Timeline – How IAC activist Anjali Damania unearthed biggest Dam Scam of Maharashtra

Timeline – How IAC activist Anjali Damania unearthed biggest Dam Scam of Maharashtra

India against Corruption [IAC] volunteer, Ms. Anajli Damania was informed by local authorities that her 30-acre plot in Kondhane village, Taluka Karjat, District Raigad could be acquired to facilitate the submergence of Kondhane Dam Project.
She was shocked.
She began a detailed inquiry through RTIs to understand the details of the project and what a hornet’s nest she discovered

The Konkan Irrigation Development Corporation (KIDC) has sanctioned a Kondhane Dam Project, without any due diligence on the need, impact, or viability.

It has then speedily awarded it to a preferred contractor and flouted all norms of KIDC itself as well as Central Vigilance Commission (CVC).

State Irrigation Department in mooting and sanctioning a dam project in just 2 months, in violation of all prescribed norms and increasing its value by 6 times after one month of awarding the contract

Timeline See how it all happened

19th May 2011    

Cabinet approval was sought and granted for the Kondhane project with the caveat that the exact assessment of water was to be studied before commencement.

26th May 2011    

Technical sanction sought

27th May 2011    

Technical sanction given in 24 hours without any study, with a budgetary approval of 56 crores, and 39 meters height

Sunday, 29th May 2011    

Executive Engineer from Kolad writes to Irrigation Department Mumbai to advertise for tenders in national, state, and local papers.
Wednesday, 1st June 2011     In 2 working days advertisements inviting tenders are published in “Dainik Kille”, “Dainik Ramprahar” and “Punyangiri” - local newspapers with small subscriber bases! 

 

Tender submission period –
1 week in absolute violation of CVC prescription of 6 to 8 weeks

2nd July 2011    

Pre bid meeting held

2nd to 12th July    

Online Bidding

15th July 2011    

Tenders of 3 shortlisted companies opened, FA Enterprises, FA Constructions & AB Nagireddy

15th July 2011    

FA Enterprises chosen as L1 contractor despite failing to show financial ability and equipment adequacy

18th July 2011    

Post Bid negotiations held in complete violation of CVC guidelines, which do not allow post tender negotiations with L1 contractors.

18th July 2011    

FA Enterprises reduces bid from 9.98% to 9.48%

19th July 2011    

FA Enterprises further reduces bid to 4.98%! (Privy to internal notings that contract will be awarded to bidder who bids below by 5 %?)

22nd July 2011    

Tender awarded to FA Enterprises

22nd July 2011    

Fort KIDC writes letter-awarding contract to FA Enterprises to Kolad KIDC,
Kolad KIDC writes to Thane KIDC,
Thane KIDC replies to Kolad KIDC,
Kolad KIDC replies to Fort KIDC

ALL IN A SINGLE DAY, BEFORE 3 PM
22nd July 2011    

FA Enterprises provides Bank Guarantee of 1.35 crores and Earnest Money Deposit of 28 lakhs before 3pm

24th August 2011    

Budgetary approval enhanced from 56 crores to 328 crores and height from 39 meters to 71 meters.

Reason? Local “pratinidhichya nivedana anusar   [this means that as per the request of local representatives.]

THE SCAM

The Scam is beautiful in its simplicity.
Award a small contract to a preferred contractor who is in cahoots with the department with amazing speed so that it is not noticed by anyone.

Increase it value 500% or more, post sanction.

Violations –

It is shocking that the height of the dam increases from 39 meters to 71 meters after the contract is awarded.

But what it highlights is that no technical study has been done on viability of need

KIDC norms do not allow companies to apply for a tender, which have even one common director.

FA Enterprises and FA Constructions both have the same ownership and have been allowed to bid.

Tender summary valuation showed that FA Enterprises had a score 12 out of 30 in equipment adequacy for a 56 crore project.

FA Construction had a score of 18/30 while
AB Nagireddy had a score of 23/30.

So the company that failed equipment adequacy for a 56 crore project is awarded a project worth 328 crore

It does not end there

The same company is awarded more than 13 larger projects in the same district.

Tender summary valuation shows the FA Enterprises also failed financial capability with a score of mere 17 out of 30 as against

FA Constructions score of 19/30 and AB Nagireddy score of 26/30.

KIDC norms say that a single contractor will get only one project.

FA Enterprises has been awarded 13 dam projects (of much higher values) in Raigad district in villages like Kalu, Shai, Susari, Chanera, Balganga, Gadgadi, etc.

In each project, the value increased manifold after receiving the contract

Project value increased 6 times from 56 crores to 328 crores without re-tendering the process

Gross violation of CVC guidelines.

No land acquisition has taken place, in fact, farmers have not even received any notices regarding the project or the acquisition - but almost 40% of the work has been completed

No forest permission has been taken.
Trees have been hacked and soil excavated!
The forest department has even arrested two officials of their own for collusion
But the project is steaming ahead.
The project runs parallel to Indian Railways’ Mumbai-Pune track for 11km.
The railways were not even intimated, forget seeking permission.

The railways have issued a “stop work” notice but it has gone unheeded!

The project has blocked access to historical sites - Kondhane Caves and Rajmachi fort.

Neither ASI nor the tourism department has been informed or even raised objection

One cannot imagine how powerful must the people be who can control & manipulate the irrigation department and KIDC to sanction projects violating all norms and guidelines, can win contracts without meeting tender criteria, can subvert the Forest Department, Indian Railways, ASI, Tourism Department!

Brave volunteer Anjali has taken them on and has filed a writ petition to expose them and stop this waste of state funds.

The result is that Anjali Damania is now being threatened, the local authorities are fabricating accusations regarding her ownership and goons are threatening her life.

Source – IAC Mumbai

Reality views by sm –

Tuesday, September 25, 2012

Tags – Maharashtra Dam Scam