Gurugram: HC paves way for waste mgmt firm to resume ops

The Punjab and Haryana high court has paved the way for solid waste management firm Ecogreen to resume its operations in Gurugram with the nullification of Municipal Corporation of Gurugram’s (MCG) termination of its contract earlier this year. On Tuesday, the court ruled that MCG and the Haryana government failed to provide the mandatory 60-day notice required for contract termination, making the termination invalid. 
The conflict dates back to January 2024, when the Haryana government issued a preliminary termination notice to Ecogreen for alleged irregularities in its waste management services. Tensions heightened after MCG reduced Ecogreen’s tipping fee from ₹1,000 per tonne to ₹333 per tonne in 2023, claiming the firm had failed to establish a promised waste-to-energy plant in Bandhwari. Ecogreen disputed the reduction, resulting in strikes and service disruptions. 
On June 15, 2024, MCG officially terminated Ecogreen’s contract, backed by the Haryana chief secretary’s approval. Ecogreen challenged the termination notice in the high Court on June 17, which subsequently stayed further action by MCG, including the issuance of new tenders.On Tuesday, judges Arun Palli and Vikram Aggarwal ultimately ruled in Ecogreen’s favour.  
“In the wake of the position sketched out above and in terms of the statements made by learned counsel for the parties, the writ petition is, accordingly, disposed of. Needless to assert that this order shall not constitute an expression of opinion on the merits of the case of either party, for, as indicated earlier, the authority shall examine the concerns/grievances of the petitioner, strictly in accordance with law,” stated the order.
“The high court has declared the termination notice invalid. We will now initiate the process afresh as per proper procedures,” said Akhilesh Yadav, joint commissioner, MCG. 
According to MCG officials, the contract, initially signed in August 2017 and set for 20 years, was terminated within seven years due to Ecogreen’s poor performance. Officials said that Ecogreen was expected to meet targets such as 100% household coverage for door-to-door waste collection within one year, 80% recycling of collected waste within the same timeframe, and 100% segregation of waste at the source within six months. The company failed to achieve these targets, they added. 
Following the verdict, Ecogreen expressed its intention to improve sanitation services. “Ecogreen is now a fully Indian company. We aim to restore Gurugram and Faridabad’s cleanliness and improve their rankings in the Swachh Survekshan survey. Previously, we had to deal with a “mafia” which collected the waste, hampering the company’s operations and delaying services. This order provides us with a platform to perform and lift the sanitation standards of both cities,” said Uma Maheshwar Reddy, managing director of Ecogreen Energy. 
Meanwhile, two private firms have managed waste collection since Ecogreen’s termination. However, their performance has not met the standards previously set by Ecogreen, with garbage piles still visible across Gurugram, according to residents. MCG has assured residents of improved sanitation efforts as it revisits its agreement with Ecogreen. 
The Punjab and Haryana high court has paved the way for solid waste management firm Ecogreen to resume its operations in Gurugram with the nullification of Municipal Corporation of Gurugram’s (MCG) termination of its contract earlier this year. On Tuesday, the court ruled that MCG and the Haryana government failed to provide the mandatory 60-day notice required for contract termination, making the termination invalid.
The conflict dates back to January 2024, when the Haryana government issued a preliminary notice to Ecogreen for alleged irregularities in its waste management services. Tensions heightened after MCG reduced Ecogreen’s tipping fee from ₹1,000 per tonne to ₹333 per tonne in 2023, claiming the firm had failed to establish a promised waste-to-energy plant in Bandhwari.
Ecogreen disputed the reduction, resulting in strikes and service disruptions.
On June 15, 2024, MCG officially terminated Ecogreen’s contract, backed by the Haryana chief secretary’s approval.
Meanwhile, Ecogreen challenged the termination notice in the high Court on June 17, which subsequently stayed further action by MCG, including the issuance of new tenders.
On Tuesday, judges Arun Palli and Vikram Aggarwal ultimately ruled in Ecogreen’s favour.
“In the wake of the position sketched out above and in terms of the statements made by learned counsel for the parties, the writ petition is, accordingly, disposed of. Needless to assert that this order shall not constitute an expression of opinion on the merits of the case of either party, for, as indicated earlier, the authority shall examine the concerns/grievances of the petitioner, strictly in accordance with law,” stated the order.
“The high court has declared the termination notice invalid. We will now initiate the process afresh as per proper procedures,” said Akhilesh Yadav, joint commissioner, MCG.
According to MCG officials, the contract, initially signed in August 2017 and set for 20 years, was terminated within seven years due to Ecogreen’s poor performance.
Officials said that Ecogreen was expected to meet targets such as 100% household coverage for door-to-door waste collection within one year, 80% recycling of collected waste within the same timeframe, and 100% segregation of waste at the source within six months. The company failed to achieve these targets, they added.
Following the verdict, Ecogreen expressed its intention to improve sanitation services. “We aim to restore Gurugram and Faridabad’s cleanliness and improve their rankings in the Swachh Survekshan survey. Previously, we had to deal with a ‘mafia’ which collected the waste, hampering the company’s operations and delaying services. This order provides us with a platform to perform and lift the sanitation standards of both cities,” said Uma Maheshwar Reddy, managing director of Ecogreen Energy.
Meanwhile, two private firms have managed waste collection since Ecogreen’s termination. However, their performance has not met the standards previously set by Ecogreen, with garbage piles still visible across Gurugram, according to residents.
MCG has assured residents of improved sanitation efforts as it revisits its agreement with Ecogreen Energy.