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Fiscal irregularities in BMC, says CAG report

mumbai Updated: Apr 17, 2015 22:55 IST
Surendra P Gangan
Surendra P Gangan
Hindustan Times

In the supplementary report on urban local bodies tabled by the Comptroller and Auditor General (CAG), it has slammed the Brihanmumbai Municipal Corporation (BMC) for financial irregularities in various contracts including road construction, housekeeping, rain suit purchase, and pay and park and financial irregularities in Octroi collection.

The report has pointed at the 203% variation in the road construction contract for the Mahakali Road, Khan Abdul Gafar Khan Road and Dr Annie Besant Road in 2008. The construction work was given to M/s Mahavir Roads and Infrastructure for Rs 38.3crore, but was later escalated to Rs 125.68 crore. The report states the enormous rise in the contract amount was against the provisions in the Municipal Act.

In another case cited in the report, the contractor for designing and construction of the Cleveland Bunder pumping station was given to M/S Unity M&PWPK for Rs 86.44 crore. However, the consortium was given mobilisation of Rs 7.93 crore, even before actual work had begun between 2008 and 2011.

The report has raised objection to the appointment of consultant MWH India Private Limited for the Brihanmumbai Stormwater Disposal System (BRIMSTOWAD) for Rs 19.96 crore. It has stated that the appointment should have been done by inviting tenders as per the BMC Act. The consultant was given mobilisation advance of Rs 1.51 crore without the guarantee of a nationalised bank.

The report has slammed the BMC for the incomplete and out-of-the contract civil and electrical works of the Rajawadi Hospital in Ghatkopar (East). The contract was of Rs 4.19 crore for 168 works. However, 67 works were not completed, while the excessive works were undertaken without approval and illegally, the report reads.

The report has questions why the contractor, M/S SV Jiwani, was not penalised for delay in construction work of the foot over bridge across Nityanand Marg in Andheri. The contract was worth Rs 4.29 crore, 48% above the estimated contract price. The BMC failed to take action against the contractor or recover penalty.

Undue favour to contractor M/s Neev Infra Private Limited, appointed to lay the pipeline between GPO and Janabai Rathod Marg, has been cited. The contractor, who didn’t have requisite experience, was allotted work of Rs 20 crore without invitation of tenders.