ICT plans to drop deemed status; CAG report points to lapses

A CAG report reveals irregularities at the Institute of Chemical Technology, highlighting tender issues, construction delays, and lack of proper documentation.

MUMBAI: Irregularities in tendering procedures, construction delays at the Jalna campus, blocking of department of atomic energy (DAE) funds to set up an institute, no minutes maintained of various committee meetings and non-appointment of committees – these are some of the issues highlighted in a recent Comptroller and Auditor General (CAG) report on the Institute of Chemical Technology (ICT).

ICT plans to drop deemed status; CAG report points to lapses

The Matunga-based institute is the oldest in the country working in the field of chemical engineering, research and allied branches. In 2008, the institute acquired deemed-to-be-university status. Now, it plans to relinquish this status, saying it limits the ICT’s access to central and state funding.

However, all is not well at the Matunga-based institute. A CAG report for the period 2020-21 to 2024-25 calls the institute’s approach “lackadaisical” for its faulty planning and over 17-year delay to establish the DAE-UICT Centre for Chemical Engineering and Research, a centre at its Matunga campus. This resulted in ₹46.31 crore in funding being blocked, the report states. With no tendering procedure followed in the appointment of a consultant, the project cost escalated by 22.22% on the revised contract value. Construction work started 9 years 3 months after an MoU was signed in 2008. Yet, only the basement and superstructure have been constructed so far, the report states.

“The project was halted due to Covid-19 pandemic which lasted up to August 2021. However, as of present, the work has not restarted till date. The ICT Matunga did not initiate any action for recovery of fine/penalty from the Agency post Covid period. Scrutiny of Agency Note for Approval dated 4.6.2024 revealed that though the Agency was liable for penal action, ICT has awarded the work for construction to the same contractor,” the CAG report states.

Responding to the delay in the DAE-UCIT, ICT vice-chancellor Aniruddha Pandit said the institute needed additional permissions from the municipality. “The institute is in the process of obtaining the same, and the project shall be completed soon,” he said.

Jalna campus

The CAG report noted similar discrepancies in the construction of ICT’s campus in Jalna, Marathwada. In 2017, the state government gave the institute more than 80 hectares and the sub-centre was required to be constructed within three years from the date of agreement.

In 2022, the state approved ₹55.69 crore for construction of infrastructure, a building and a compound wall. However, the report raised questions on tenders floated for construction of the campus, compound wall, and appointments of an architect and project management consultant.

The tender was floated without the approval of the building and works committee. Additionally, tenders were floated offline instead of e-tenders, a violation of the prerequisite of the higher and technical department.

The CAG report also highlighted several other deficiencies. For instance, in case of the compound wall, CAG pointed out the absence of the signatures of the registrar and contractor on the tender papers; no signature of consultant/store superintendent/ registrar/dean on the comparative statement; no work order; purchase order without details such as value of work, period of completion or penalty details.

“No agreement between contractor and ICT, Mumbai, was executed, instead an undertaking from the contractor was taken. Thus, without a proper agreement, how the Institute, in case of default would recover the penalty/fine/cost etc, needed justification (sic),” the report states.

Pandit clarified that irregularities were addressed relating to allied facilities, such as land allotment, marking, remarking of land & remeasurement doing good offices of the collector and tehsildar. “Construction has now started in good earnest following all the proper procedures or recommendations involving BWC (Building Works Committee),” he said.

Tenders for equipment

The CAG also flagged irregularities in the tender process for the purchase of equipment by the institute at its Matunga campus, and delays in procurement. For instance, the microwave-ultra-violet-Ultrasonic Extraction/Synthesis System, which should have been delivered within 12-14 weeks, based on the purchase order, was delivered after around 180 days with a more than 16-month delay for installation. Not only did this impact research students, the report pointed out, the purchase order was devoid of a bank guarantee from the vendor and a penalty clause for delay in supply and installation.

Pandit said, “The irregularities related to single-party tendering and special purchase permission are authorised under the vice-chancellor’s emergency powers and the necessity of the biotechnology department’s laboratory work and the structural conditions/ status of the old building and its repair.”

Once again, no tender procedure was followed in repair work of the hostels, the report stated. It also noted the non-appointment of committees including grievance committee, and failure to document meetings.

On committee appointments and proper documentation, the university said the ICT has formed all the committees as per the statutes, and other committees not mentioned in these statutes have also been established under UGC guidelines. “All the committees regularly meet improvements in the documentation, and MoM’s (minutes of the meeting) are now looked into and rectified,” said Pandit.