Chandigarh: ₹41-crore project: Audit flags lapses in Sec-43 multi-level parking project

An audit reveals major lapses in a ₹41-crore parking project in Chandigarh, citing contractor violations and departmental negligence, with no penalties enforced.

A recent audit by the director general of audit (central), Chandigarh, has flagged serious irregularities and administrative lapses in the ₹41-crore multi-level parking project near the district courts and judicial academy in Sector 43, which remains unfinished despite its September 2024 deadline.

The project was allotted to Hansraj Kohli & Company in September 2022 with a two-year completion target, but progress has been significantly delayed. (Getty Images/)

According to the audit report, the UT engineering department’s capital project division-6 failed to ensure compliance with key contractual obligations. The project was allotted to Hansraj Kohli & Company in September 2022 with a two-year completion target, but progress has been significantly delayed.

UT chief engineer CB Ojha said, “The concerned officials have already submitted the compliance report.”

Contract violated, no penalties imposed

The audit found that the contractor did not adhere to the terms of the agreement, while the department failed to impose penalties or fix accountability. As per the detailed notice inviting tender (DNIT), 10% of the work was to be completed within 72 days, failing which a 0.7% penalty—around ₹29.18 lakh—was to be levied. Similarly, 25% of the work was to be completed within 180 days and 50% within 288 days, but none of these targets were achieved.

Despite these violations, no action was taken against the contractor. The audit estimated that if penalties had been applied as per the agreement, they would have amounted to nearly ₹2 crore.

Progress reports ignored

The audit revealed that the contractor failed to submit mandatory progress reports every 10 days detailing manpower, material procurement and financial updates and the department neither demanded these reports nor raised objections.

Lack of technical staff

Another lapse was the absence of qualified technical personnel at the construction site. As per the contract, a project manager, site engineer, planning engineer and billing engineer were to be deployed, but none were present during inspection. The audit said a fine of ₹27.70 lakh should have been imposed for this violation, but no such action was taken.

In addition, the contractor did not provide records of employees’ ESI and PF contributions and the department again failed to ensure compliance.

Administrative negligence under scrutiny

The audit findings highlight both contractor negligence and departmental apathy, leading to delays and financial losses. With the parking facility still incomplete months after its deadline, questions are being raised over the UT engineering department’s oversight and enforcement of contract rules.