The contract of a firm operating the recreation zone of a lake in Vadodara in Gujarat in which a boat capsized a couple of days ago killing 12 students and two teachers has been cancelled by the local civic body, an official said on Saturday.

The boat, carrying students and teachers on a picnic, capsized on Thursday afternoon in Motnath lake in Harni area, with subsequent probes showing the vessel was overloaded and the service operator had not made provisions for enough life jackets.