Surat Municipal Corporation Terminates C.D. Transport’s Waste Contract, Withholds ₹151 Crore Payment

The Surat Municipal Corporation has ordered C.D. Transport Agency to stop waste disposal operations at Khajod after years of controversy over waste accumulation, recurring fires and alleged lapses in handling the city’s garbage.

The civic body issued a 13-page notice to the Vapi-based contractor on the evening of November 3, a day before its extended contract was due to expire on November 4. The agency has been asked to explain the problems during its tenure and the volume of waste it handled.

Of the total contract value of ₹284 crore, the corporation has paid ₹133 crore and withheld the remaining ₹151 crore. Officials plan to verify the work completed and assess the waste accumulated at the Khajod disposal site before deciding on further action.

Drone Survey to Assess Waste at Khajod

The civic body has initiated a drone survey to establish the quantity of waste dumped at the site, how much was processed and how much remains untreated.

The findings will be compared with the work records submitted by the contractor. The assessment is expected to help the corporation determine whether the agency fulfilled its contractual responsibilities and what action should follow.

Smit Lodha, head of the concerned department, said the agency had been instructed to discontinue its services after the contract expired. He added that the corporation would take further action under the rules after receiving and examining its response to the notice.

₹284 Crore Contract Extended Beyond Original Term

In 2023, the corporation awarded C.D. Transport Agency a contract worth around ₹213 crore to scientifically process approximately 3,000 metric tonnes of waste generated in Surat every day.

The original three-year contract ended in January 2026. The corporation subsequently extended the agency's tenure for a further period, with the extension valued at around ₹71 crore. This took the overall contract value to ₹284 crore.

Despite the extension, waste continued to accumulate at Khajod, while recurring fires at the disposal site raised concerns over the quality of operations and pollution in surrounding areas.

Controversies from Kankaria to Khajod

The agency's tenure was marked by several controversies. An incident involving the alleged unauthorised dumping of waste at Kankaria in Mahuva had earlier drawn attention to its operations.

At Khajod, the accumulation of more than 10 lakh tonnes of waste and repeated fire incidents intensified criticism of the contractor. Smoke from the fires also triggered concerns about air pollution in nearby areas.

The corporation has now handed over responsibility for the work to a new contractor. However, it must still determine the extent of the previous agency's work, decide the status of the withheld ₹151 crore and establish accountability for any lapses during the contract period.