Shunglu Committee Third Report – Loss to India Rs.900 Crore – Blamed PWD,MCD,NDMC and Delhi Government

Shunglu Committee Third Report – Loss to India Rs.900 Crore
– Blamed PWD,MCD,NDMC and Delhi Government

The Shunglu Committee was formed by the prime minister immediately after the commonwealth games to investigate corruption

The Shunglu Committee has submitted its third report dealing with corruption in civic agencies.


Third Report of the Shunglu committee has blamed the Delhi government and its agencies for several delays in key projects.

The Shunglu Panel, Committee found that loss of Rs.900 Crore India Suffered because of
Delays in construction of bridges, flyovers, roads and all other civic infrastructure work.

Rs 159 crore was wasted only for putting up street lights and signages.
Shunglu found that its tenders were manipulated by bidders in collusion with civic agencies.

Civic Agencies like PWD, MCD and NDMC have been blamed for wasting public money worth Rs 700 crore

Shunglu panel has also asked for action against top Brass of MCD, DDA, PWD and Delhi government for all acts of omission and commission.

The Shunglu panel indicted Lt Gov Tejendra Khanna, Delhi chief minister Sheila Dikshit and a host of senior bureaucrats for cost overruns, favours to select contractors, exaggerated estimates and a staggering waste of public money.

Regarding Lt Gov Tejendra Khanna Shunglu Panel said
"The responsibility for the various acts of omission and commission which brought 'undue gains' to Emaar MGF primarily lies with LG, Shri Tejendra Khanna, ex-officio chairman of DDA (and other DDA officers)."

The Shunglu panel pointed to the Chief Minister Sheila Dikshits involvement in street lighting contract where three firms bid without inviting tenders with the deal going to a German firm. "Unusual interest was displayed by her.
Imported luminaries were approved by her and competition restricted," the report said.

Shunglu Committee said the imported street bulbs were three times as expensive as domestic ones and caused a loss of Rs 46 crore, not including other agencies like MCD and NDMC.

The Delhi government's signage project was also flawed as paint was already peeling off five months after the Games. "About 50% of contract value or Rs 36 crore appears to be wasteful expenditure designed to provide undue benefit to the manufacturer and contractors," said the Shunglu report. Here, too, it mentioned the CM's approvals.

On undue profits to contractors, the panel noted these amounted to
Rs 52 crore in the Barapullah elevated road,
Rs 47 crore in the Ring Road bypass,
Rs 16 crore in streetscaping,
Rs 63 for street lighting,
Rs 46 crore for signages
And Rs 28 crore in the Rajaram Kohli project.

The report also noted how expenses of Games-related facilities at the trade fair or ITPO were revised from Rs 28.02 crore to Rs 75.77 crore.

The report said, "It is striking that the value of projects assigned to M/s DSC, Afcons and M/s Simplex is roughly of the order of Rs 1,000 crore each.
Overall, five contractors bagged 15 contract packages of PWD, Delhi government and three out of them (Afcons, Simplex, DSC) hogged 11 contracts (sanctioned cost Rs 2,709.94 crore)."

Shunglu Panel has ask the question the need for Shiela Dixit to first take charge of all financial approvals for CWG related projects and then give approval to six projects under Rs 50 crore and wondered about the reasons for lack of decentralisation of power.

Reality Views by sm –
Saturday, March 26, 2011

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