CWG scam: Roads, flyovers: Irregular bids and use of correction fluid
The CAG report on seven flyovers and roads claims that PWD and DDA adopted norms to benefit private contractors.
By Dipak Kumar Dash, TNN | Updated:
NEW DELHI: The CAG report on seven flyovers and roads claims that PWD and DDA adopted norms to benefit private contractors. The contractor's profit and overhead charges was kept at 37.5% though the CPWD norm is only 15%. This "resulted in increasing the justified cost, worked out by the department after opening of the financial bids, by Rs 352.47 crore."
Pointing out the irregularities in the tendering process, the report says in two projects - Barapullah Nullah elevated road and UP Link Road - the lowest bidder ( DSC Ltd) was determined by considering the rates quoted on paper other than submitted tender documents. In the case of Barapullah, there were six bidders . "DSC became the lowest bidder not on the basis of its bid in the prescribed format of bid documents, but on the basis of separate letters quoting a lumpsum amount, stated to be found in envelopes containing financial bid," it says. Something similar was observed in the UP Link Road project . The report says audit could not ascertain whether the said letters were submitted along with the bid or placed at a later stage. In case of Barapullah , greater accuracy in estimate preparation would have led to awarding of the work to a different contractor and Rs 3.55 crore could have been saved, says CAG. It also found that Rs 1.34 crore expenditure could have been avoided in Raja Ram Kohli Marg flyover.
Citing that the CPWD manual prohibits used of correction fluid anywhere in the tender, the CAG report says the bid documents of Simplex Infrastructure for the Ring Road bypass project had 12 cutting/ corrections besides three instances of use of correction fluid. This increased the bid amount by Rs 6.23 crore.
The report also says that the PWD awarded work costing Rs 51cr for connecting Barapullah elevated road with Lala Lajpat Rai Marg, as requested by Delhi Police, without floating tenders.
Pointing out the irregularities in the tendering process, the report says in two projects - Barapullah Nullah elevated road and UP Link Road - the lowest bidder ( DSC Ltd) was determined by considering the rates quoted on paper other than submitted tender documents. In the case of Barapullah, there were six bidders . "DSC became the lowest bidder not on the basis of its bid in the prescribed format of bid documents, but on the basis of separate letters quoting a lumpsum amount, stated to be found in envelopes containing financial bid," it says. Something similar was observed in the UP Link Road project . The report says audit could not ascertain whether the said letters were submitted along with the bid or placed at a later stage. In case of Barapullah , greater accuracy in estimate preparation would have led to awarding of the work to a different contractor and Rs 3.55 crore could have been saved, says CAG. It also found that Rs 1.34 crore expenditure could have been avoided in Raja Ram Kohli Marg flyover.
Citing that the CPWD manual prohibits used of correction fluid anywhere in the tender, the CAG report says the bid documents of Simplex Infrastructure for the Ring Road bypass project had 12 cutting/ corrections besides three instances of use of correction fluid. This increased the bid amount by Rs 6.23 crore.
The report also says that the PWD awarded work costing Rs 51cr for connecting Barapullah elevated road with Lala Lajpat Rai Marg, as requested by Delhi Police, without floating tenders.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
Related Articles
Quote of the day by George Clooney: 'There comes a point in life when you realize that you've got more road behind you than you do in front of you...' The reality of life's limited time highlighted by the Hollywood star2026-06-22T19:03:16Z- Hit-and-run deaths top 1,000 in Gujarat as road fatalities remain high2026-06-22T18:03:04Z
- Best proverb of the day: 'Heaven has a road, but no one travels it; Hell has...' Life lessons from Chinese proverb on human nature, free will, suffering, corruption, enlightenment, righteousness, unchecked emotions, greed and ignorance2026-06-22T15:08:43Z
ADVERTISEMENT
