Economy

CWG works made contractors richer by Rs 250 cr: Shunglu

Press Trust of India New Delhi | Updated on March 27, 2011




The Prime Minister-appointed Shunglu Committee has found that over Rs 250 crore of the tax payers' money had been pocketed by various contractors executing the Commonwealth Games projects.

The high-level committee has estimated Rs 900 crore as “cost of delay” by certain government departments in implementing infrastructure-related projects and Rs 300 crore loss to DDA in construction of Commonwealth Games Village near Akshardham temple here. The committee in its two reports – construction of Village and development of city infrastructure – has pointed out several irregularities such as delays, collusive bidding and hasty decision on the part of certain Central and Delhi government officials which led to cost escalation and loss running into crores to the government exchequer.

Procedural violations

The HLC has found procedural violations by the Delhi Lt Governor, Mr Tejinder Khanna, the Chief Minister, Ms Sheila Dixit, and other top government officials for alleged inadequacies and indications of their poor oversight in executing projects related to the mega sporting event.

In its second report, the committee said the Village site suffered from many shortcomings and necessitated extra spending of over Rs 630 crore in constructing a ‘Barapullah Nallah' flyover. The project developer Emaar MGF made a gain of Rs 134 crore to Rs 220 crore. The committee questioned the role of the consultant PricewaterhouseCoopers (PwC), the report said.

“The HLC, based on the records made available to it, finds that the Union Cabinet was not provided with all the information regarding the pros and cons of the location of the Games Village... The consultant chosen by DDA (PwC) to advise them on execution of the Games Village Project in the PPP mode failed to perform their assigned task satisfactorily,” the Committee said in the report basing its findings on interview of 16 people.

It also questioned the bailout package given to the builder and recommended action against Emmar MGF. “Government of India/DDA may take appropriate action against Emaar MGF, Project Developer, for knowingly supplying incorrect information and for its various acts of omission and commission,” the report submitted by the Committee to the Prime Minister's Office said.

In its third report, the panel chose 19 infrastructure projects worth over Rs 3,000 crore that included elevated roads, flyovers, street-lighting, street-scaping, bus parking areas, bus queue shelters and signages among others and noted there was no special preparation by Government of National Capital Territory of Delhi.

It has named senior officials including K.K. Sharma, Principal Secretary, Public Works Department; R. Subramanian, then Engineer-in-Chief, PWD; Parimal Rai, Chairman, New Delhi Municipal Council; Ashok Kumar, Vice-Chairman of Delhi Development Authority; Nand Lal, Member (Finance); A.K. Bajaj, then Member (Engineering) of DDA, and M. Jayachandran, then Secretary, Ministry of Urban Development for alleged high valuation, corruption and delays in Games projects.

Published on March 27, 2011

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