The transport department on Tuesday issued an order to cancel the contract of Agro Impex (I) Pvt Ltd for not implementing the system of high security registration plates in the state within the deadline.

The department has also decided to forfeit the security deposit of the company.

Transport commissioner Rahul Singh told The Telegraph that the contract of Agro Impex has been terminated.

“The department sent a legal notice to Agro Impex on May 3. Subsequently, the firm sent a reply giving an alibi that a gazette notification is required to be issued by the state government prior to the commencement of the process. However, no such gazette notification is required, as the high security registration plates are mandated by Motor Vehicles (New High Security Registration Plates) Order, 2001 dated August 22, 2001,” a senior official of transport department said.

The officer added: “Dissatisfied with the reply, senior officials of the department today met minister Brishen Patel and got his approval to cancel the contract and forfeit its security deposit of Rs 50 lakh.”

Agro Impex was supposed to set-up affixation stations in Patna, Gaya, Darbhanga and Bhagalpur and one embossing station in Gaya for 10 districts by April 31. However, it has not taken any step for setting up the infrastructure in any of the four districts yet.

“The company is also liable to pay Rs 25,000 per district per day according to the terms of contract for failing to meet the deadline,” added the official.

The transport department on September 21, 2011 issued tenders for inviting bids from interested manufactures for establishing a complete infrastructure to provide and fix high security registration plates to all vehicles in the state. Later, it entered into an agreement with Delhi-based DD Industries Pvt Ltd for commencing the process by March 31, 2012. However, as the firm failed to comply with the stipulated deadline the contract was cancelled and another agreement was signed on April 11 with Agro Impex.

The transport department is required to adhere to a Supreme Court order dated February 7, 2012 in case WP(C) number 510 of 2005. The order directed all states, which did not have the scheme of providing high security registration plates, to commence the process for all new vehicles by April 30, 2012.