SIT begins probe into civic body’s ₹12,024 cr expenditure, visits BMC HQ

“The Comptroller and Auditor General (CAG) report has pointed out several lacunas after which three preliminary enquiries (PE) have been registered. We went to get clarity on those matters and also to seek some documents relating to the three PEs,” an officer from the Economic Offences Wing (EOW) said

Mumbai: The Special Investigation Team (SIT) on Monday began its probe into the alleged irregularities of the Brihanmumbai Municipal Corporation’s (BMC) ₹12,024 crore expenditure. They visited the civic body’s headquarters and collected relevant documents.

HT Image

“The Comptroller and Auditor General (CAG) report has pointed out several lacunas after which three preliminary enquiries (PE) have been registered. We went to get clarity on those matters and also to seek some documents relating to the three PEs,” an officer from the Economic Offences Wing (EOW) said.

The EOW has earlier registered three PEs against the roads department and five other departments wherein the expenditure was ₹5,000 crore. The second PE is related to the IT and bridges department, where the expenditure was to the tune of ₹500 crores and the third is related to the alleged Dahisar Land deal, which the CAG had pointed out was overvalued by ₹206 crore.

Following a special request by the state government, the CAG had conducted an audit, and, in its report, had criticised the civic body for mismanagement, lack of transparency and callous handling of funds between November 28, 2019, and October 31, 2022. The report pointed out that the tendering process was not followed in most cases, resulting in unfair benefits to contractors.

Among many alleged lapses, the CAG observed that two of the civic body’s departments issued 20 work orders worth ₹214.48 crore without tenders, while work orders worth ₹4,756 crore were given to 64 contractors, which could not be executed as no agreement was signed with them. The report pointed out that the BMC had prepared its road designs without a detailed soil investigation and traffic survey.

In addition, of ₹12,024 crore expenditure, the civic body’s Covid spending is estimated at around ₹3,500, which is also under the scanner of the SIT.