₹2.49cr payment by MCG over planned parking raised in audit

Documents show the contractor received mobilisation advance in January 2020 though the civic body did not yet possess the land required for construction.

A planned multilevel parking project near the Sadar Bazar Post Office is under lens, over a payment of ₹2.49 crore made by the Municipal Corporation of Gurugram (MCG) to the contractor as “mobilisation advance” in January 2020, despite not having possession of land for the project, according to official documents accessed by HT. Six years since the award, delays in land transfer and administrative lapses have stalled the project.

Officials say an inquiry may be initiated and the tender could be cancelled as the project remains stalled due to delays in land transfer. (HT)

A senior MCG official, requesting anonymity, said that with ₹2.49 crore of public funds lying with a private contractor for nearly six years despite no construction on ground, an inquiry will be initiated and the tender may be cancelled.

A retired superintending engineer from the Public Works Department (PWD), requesting anonymity, said the case required examination of whether the mobilisation advance was provided with a bank guarantee. “Such advances are usually given with bank guarantees and interest conditions. If ₹2.5 crore remained idle for six years, its value with interest could reach ₹6–7 crore. Normally, if work does not start within six to eight months after a work order, the contract is cancelled,” the retired official said.

The contractor did not respond to multiple requests for comment.

The MCG did not comment when questioned about interest accrued from the payment, but sought to clarify that the land transfer will be resolved and work will be initiated.

“The process of purchasing the land for the multilevel parking near the post office has been completed and the possession will soon be taken by the revenue branch of the corporation. The contractor has agreed to carry out the construction. If the work is not executed, the amount paid will be recovered and the project will be re-tendered,” said Sandeep Dhundhwal, executive engineer, MCG.

The project is estimated to cost ₹49.03 crore in all.

Officials said the project site is spread across 3,700 square yards and that the municipal corporation has already deposited ₹43.66 crore for acquiring the land, and an additional ₹17 lakh has been paid to the Public Works Department (PWD) for demolishing an old structure at the site. However, the process of formally transferring the land from the PWD to the corporation is still pending.

The prolonged delay has also raised questions about why the contract was awarded and payment made before completing land-related formalities. Experts said such lapses can lead to financial losses and project delays.