Rs 1,168 cr irregularities found in the construction of Ahmedabad Metro Phase 1

Ahmedabad (Metro Rail News): Ahmedabad metro phase 1 construction has been questioned by The apex committee of the Gujarat assembly for monitoring public sector enterprises (PSEs). The committee recently submitted its report before the state assembly, has noted irregularities worth Rs 1,168 crore in the execution of Ahmedabad Metro Rail project.

The committee is headed by BJP MLA and former minister Babu Bokhiriya has recommended recovery of Rs. 1,168 crores from the accused and initiate strict action against those involved in futile expenditure and irregularities in the metro rail project.

"The CAG (Comptroller & auditor general) of India, in its 2014-15 report examined MEGA’s financial and actual performance. The Gujarat government, in 2005 envisioned to begin a metro rail service between Ahmedabad and Gandhinagar. In 2010, MEGA company was formed to implement the metro rail service. The first DPR (draft project report) was approved in December 2012 and revised estimate of Rs 15,789 crore was made" Said in the report submitted by PSE Committee.

“However, before the high-powered committee approved the DPR, the MEGA company started making major purchases and issuing work orders without any due process at very exaggerated rates. Rs 584 crore worth 1,868 work orders (June 2011 to September 2013), moreover, a total of 672 work orders worth Rs 201 crore were also issued without prior permission at higher rates. Even before the central and state government sanctioned the projects in addition to these, 1,196 work orders worth Rs 383 crore were made for landfilling, casting and other work,” the report stated.

The PSE committee noted that set government processes were not followed in issuing work orders. “When the government realised in various inquiries that the chairman at that time and 43 other contractual workers were involved in the major financial and other irregularities, the government terminated all persons and initiated action against them,” the report said, adding that two complaints had been filed with the CID crime of misappropriation of government funds worth Rs 115 crore.

“There are many allegations of giving non-required work at too high rates. A total of 22 other cases in arbitration is ongoing. Since the new management took over, no irregularities have been reported,’’ the committee report said.

In its final observation, the committee noted, “There were major financial and other irregularities in the MEGA company under the urban development and urban housing department. However, inquiries are pending at various levels.”

The phase 1 of Ahmedabad Metro Rail Project was implemented under the supervision of Delhi Metro Rail Corporation (DMRC). The PSE Committee noted that the the govt guidelines were not followed in the issuing of work orders.