A major controversy has erupted in Kanpur after Gulermak, a Turkish construction company involved in the city’s metro project, reportedly fled with unpaid dues amounting to ₹80 crore. The company, which was responsible for the underground section of the Kanpur Metro in a joint venture with Indian firm Sam India Builtwell Private Limited, is accused of abandoning its financial obligations to 53 subcontractors who worked on the project.
Contractors allege that Gulermak’s top officials abruptly left Kanpur, locking their local office and becoming unreachable by phone. When contacted, company representatives gave evasive answers, refusing to address the issue of pending payments. Subcontractors say they have not received payments for nearly ten months, despite completing their assigned work. The situation escalated after nine of the affected contractors submitted a formal complaint to the District Magistrate’s office, seeking intervention to recover their dues.
Payment Delays Linked to Diplomatic Tensions and Protests:
The crisis reportedly began after nationwide protests erupted in India over Turkey’s perceived support for Pakistan during a diplomatic dispute. According to several contractors, Gulermak began delaying payments following these protests, raising suspicions about the company’s intentions. Many believe that the anti-Turkey sentiment and subsequent boycotts influenced the company’s decision to halt payments and ultimately leave the city.
Contractors claim that Gulermak made only partial payments, keeping a significant portion of the dues pending. For example, Metro Marble is owed ₹3.70 crore, Radiant Services ₹1.20 crore, Shreyans Infratech ₹1.70 crore, S Interior ₹74.80 lakh, and several other firms are awaiting amounts ranging from a few lakhs to crores. Gajendra Singh of Radiant Services stated that only about 50% of the total payments have been received by the subcontractors so far.
Dispute Over Responsibility and Regulatory Response:
The Uttar Pradesh Metro Rail Corporation (UPMRC), which oversees the Kanpur Metro project, has clarified that it made full payments to Gulermak for the completed work on four underground stations. According to Panchanan Mishra, Joint General Manager (Public Relations) at UPMRC, the unpaid contractors were hired by Gulermak as subcontractors, not directly by the metro authority. UPMRC has retained 5% of the contract value as a safeguard, which is typically released a year after project completion. If Gulermak fails to pay the subcontractors, UPMRC may consider releasing these funds to help settle the outstanding dues.
Despite these assurances, contractors remain frustrated by the lack of immediate action and regulatory oversight. Many have criticized both Gulermak and UPMRC for failing to protect the interests of local businesses and workers involved in the project. The incident has raised broader concerns about the risks faced by subcontractors in major infrastructure projects, especially when foreign firms are involved and regulatory mechanisms are limited.
Gulermak Denies Fleeing, But Questions Remain:
In response to mounting allegations, Gulermak issued a statement denying that it had abandoned the Kanpur Metro project or fled the city. The company maintains that it continues to work on the project and that any payment disputes are the result of unresolved issues with UPMRC over pending dues. Gulermak’s billing manager, Hatis Airi, claimed that over ₹35 crore in payments are still due from UPMRC, and that the company will settle its debts to subcontractors once it receives these funds. However, UPMRC insists that all contractual payments have been cleared and that there is no outstanding dispute from their side.
The conflicting statements have left subcontractors in a precarious position, uncertain about when—or if—they will receive their hard-earned payments. The locked Gulermak office and the absence of company officials have only deepened the sense of betrayal among local businesses.
Ongoing Fallout and the Call for Stronger Protections:
The Kanpur Metro payment crisis has spotlighted the vulnerabilities faced by subcontractors in India’s infrastructure sector. Many are now calling for stronger regulatory safeguards, more transparent payment mechanisms, and stricter accountability for foreign firms operating in the country. As the situation unfolds, the affected contractors continue to press authorities for intervention and redress, hoping to recover their dues and restore trust in the system.
For now, the fate of the ₹80 crore owed to Kanpur’s contractors hangs in the balance, as the city’s ambitious metro project becomes a cautionary tale of risk, responsibility, and the urgent need for reform in public infrastructure partnerships.
