Rs 25, 000 crore Army Housing Scam exposed

Rs 25, 000 crore Army Housing Scam exposed

DNA expose

The defense ministry has cancelled 14 contracts awarded to private builders after smelling a scam in the Indian Army’s ambitious Rs25,000 crore housing project for married officers and other ranks.

What is the reason to cancel contracts?
The ministry cited “delay” and “non-performance”

Ministry accused the project directorate of “abdicating” its responsibilities and “allowing private players to benefit

The project has been in the pipeline for over 11 years now

The project kick-started in May 2002 with the establishment of the Directorate of Married Accommodation Project (MAP).
However, to date, MAP has managed to complete only 63 per cent of work despite missing extended deadlines repeatedly.

The target was to provide two lakh dwelling units for armed forces officers and lower ranks in a phased manner on a PPP basis through 62 defined projects across the country.
A budget of Rs25, 000 crore was allocated by the Vajpayee government for the purpose.

Again, in this case also problem is with the terms and conditions on which the contract is given to private builders.

The contracts are signed or made in such a way that Private Builders enjoy more benefits

Each contract needs to specify the fine amount of 100 Crore if project is delayed exception should be court cases where construction is stopped because of court orders.

Reality views by sm –

Saturday, September 21, 2013

Tags – Army Housing Scam