DMRC faces Rs 15.54 crore shortfall in recovery due to poor quality of work by contractor: CAG

The Comptroller and Auditor General (CAG) has raised concerns over the Delhi Metro Rail Corporation's failure to recover Rs 15.54 crore it was owed in repair costs and other incidental expenses. In a report tabled in Parliament on Monday, the CAG said that due to poor construction quality by the contractor and reluctance of the contractor to rectify the defects within defect liability period, the DMRC carried out the repair work (including consultancy work) through other contractor at Rs 11.85 crore.

In addition to repairing cost, DMRC also incurred incidental expenses of Rs 7.81 crore on account of shifting allottees to alternative accommodation and payment of lease charge, brokerage etc.

"However, DMRC could recover only Rs 4.12 crore against Rs 19.66 crore incurred due to poor quality of work from the contractor through conciliation process as against arbitration process provided in the contract," the report stated.