The state transport departme-nt said on Thursday that it has sent a legal notice to the company awarded the task of manufacturing and issuing high security number plates in Bihar.

The department has decided to cancel the contract with Delhi-based DD Industries and forfeit its security deposit. In doing so, the department has also made it clear that the process of issuing high security number plates would now be delayed by several weeks.

The move by the transport department came two days aft-er The Telegraph reported a likely delay in the commencement of the process of manufacturing and issuing hi-tech number plates in the state.

State transport minister Brishen Patel said: “According to the terms of our agreement with DD Industries, the company was supposed to set up at least six embossing stations by March 31, 2012, and set up all affixation stations latest by March 30, 2012. However, taking cognisance of the failure of the company in taking any steps, the department sent a showcause letter on March 26. In response, the company sought an extension of 10 weeks from the stipulated deadline, which was not acceptable to us. Consequently, we have served a legal notice to the company for termination of their contract and to forfeit the performance guarantee of Rs 50 lakh.”

The transport department is mulling to award the contract to the second shortlisted firm. “However, any decision would be taken in accordance with the directives of the Supreme Court,” Patel said.

R.K. Mahajan, the state transport secretary, said: “The process of issuing high security number plates would now be delayed by several weeks.”

AC luxury buses

Brishen Patel said Bihar State Road Transport Corporation will start running AC luxury buses, including Mercedes and Volvo, from the state capital to cities in Bengal, Odisha and Chhattisgarh within a fortnight.