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ANNEXURE – III

(Para 3.6)

ILLUSTRATIVE LIST OF CASES IN WHICH LAPSES/IRREGULARITIES NOTICED BY CTEO WERE REFERRED TO CVOS FOR INVESTIGATION FROM VIGILANCE ANGLE

 

A. GOVERNMENT DEPARTMENTS

 

A.1 ALL INDIA RADIO (A.I.R.)

 

A.1.1 Construction of Doordarshan Bhawan at Mandi House

Inadmissible payment of Rs.5.21 lakhs made for earth work, concrete and RCC items in or under water.

A.2 CENTRAL PUBLIC WORKS DEPARTMENT (C.P.W.D.)

A.2.1 Construction of 66 type III, 30 Nos. Type IV and 20 Nos. Type V Qrts. At Indira Gandhi National Open University, Maidan Garhi, New Delhi

Chief Engineer ignored the interpretation of Executive Engineer in respect of rebates offered by contractor resulting into a loss of Rs.5,83,286. Extension of time case had been sanctioned without adequate justification.

A.2.2 Construction of New Extension of Supreme Court Part-II Stone Work

Overpayment of Rs.39.63 lakhs have been brought out due to computation errors, wrong mode of measurements and sanction of high rates for extra-items apart from huge deviation in quantities of abnormally high rated items.

A.2.3 Construction of GSI office building at Jaipur

Due to delay in awarding the work, the Government has been put to loss of Rs.12,33,924. Substantial deviations in abnormally high rated items were allowed indicating undue favour to the contractor. The substandard items of work were accepted without affecting cost adjustment.

A.2.4 Providing security fencing along Indo-Pak border in Rajasthan Sector (SH: supply of galvanised punched type coil)

Galvanised punched type concertine coils were procured through call of tenders, although the same were available on DGS&D rate contract, thus violating the laid down norms. Local purchase of barbed wire was allowed thus compromising with quality.

 

 

A.2.5 Providing security fencing along Indo-Pak border under NPAP in Rajasthan sector (SH: Supply of galvanised barbed wire)

The barbed wire of proper specified quality was not procured. The samples of same had failed when tested in different labs. This indicates no proper control over quality of wire was exercised.

                                                                                                                                        

 

A.3 GOVERNMENT OF N.C.T., DELHI

(PUBLIC WORKS DEPARTMENT (PWD))

A.3.1 100 bedded hospital at Jahangirpuri (Balance work)

Market Rates Justification has been changed to manipulate accepted rates. Recovery of Rs.86 lakhs outstanding from the original contractor. Cube test results were doubtful since 28 days strength was less than 7 days strength.

A.3.2 Construction of 100 bedded hospital at Jahangirpuri, Delhi (SH: Construction of kitchen, store, ward & laundry block including internal sewerage, sanitary, water supply installations and drainage up to 1st Manhole)

Many items of work have been executed with inferior quality of materials and workmanship for which even cost adjustment was not made. Samples of materials failed in testing. Over payments were made to contractor by way of over measurements of certain items.

A.3.3 Construction of Govt. Hr. Secondary School for 960 students including water supply and sanitary installations at Mangolpuri "K" Block, Delhi

Number of items executed were of substandard quality and even cost adjustments have not been made thereby extending undue favour to contractor. The tender processing file, a very important document was not available on record indicating slackness in maintaining important office records.

A.4 RAILWAYS

A.4.1 In the work of "earth work in filling in formation construction of Bridge No.32, 1x4.5m each including its protection work etc. in Zone No.E-6A in Jammu-Udhampur Rail Link Project", a deduction of 2400 cum in filling was made instead of 17,971 cum. resulting into over measurement and overpayment of Rs.2.8 lakhs. Recovery for excess issue of steel reinforcement has not been made from the contractor extending undue favour to him.

A.4.2 For the work "Supplying and stacking of 50,000 cum stone ballast 50mm gauge at Bhagwansar", Sales Tax was recoverable @ 2.5% of contract value from the contractor in terms of agreement but not deducted in order to extend undue favour of Rs.2.5 lakhs.

A.4.3 In the work of construction of combined examination pit and washing floor for six broad gauge washing lines including extension of bridge No.15 located at Pragati Maidan and Hazrat Nizamuddin Railway Station and drawing work etc., substandard concrete work was accepted without price adjustment and ascertaining structural stability. Substandard GI pipes were also accepted without price adjustment from the contractor extending undue financial benefit to contractor.

A.4.4 In the work of "Construction of tunnel No.1 & 2 and cut and cover and earth work in formation in cutting at approaches and miscellaneous works on Jammu-Udhampur Rail Line", higher lead has been considered for transportation of soil in cutting and filling in spite of specific provision given in agreement for consideration of leads resulting into an overpayment of Rs.80,000. Earth work in excavation having quantity of 4164 cum has been paid under non-schedule item which was not to be paid as per special condition of contract resulting into overpayment of Rs.1.25 lakhs. Overpayment of Rs.39,080 was made on account of binding wire for reinforcement which was not payable as per terms of contract. Heavy deviation was done for the items for which contractor has quoted abnormal high rates resulting into undue financial benefit to contractor.

A.4.5 Balance Work of supplying and stacking at site 18599 cum stone ballast (hard stone) from Km 17/0 to 30/0Km between Palam and Gurgaon station in connection with broad gauge of second DLI-RE station

Balance work was got executed at higher rates at the risk and cost of original contractor. The amount of Rs.71 lakhs was not yet recovered from original contractor indicating lack of efforts to recover public money.

                                                                                                                                    

 

 

B. BANKS, INSURANCE COMPANIES AND FINANCIAL INSTITUTIONS

B.1 INDIAN BANK

B.1.1 For the "purchase of 30 flats Block A and 30 flats Block B at 14, Salimpore, Calcutta", Rs.7 lakhs had been paid to the developer due to not clarifying the ambiguity in the offer regarding roof rights. No cost adjustment had been made from the builder in lieu of not providing water softening plant, mirror, soap box, towel stand, medicine box in the building as per the agreement. Septic tank was constructed by the builder instead of sewer line connection. No cost adjustment had been made on this account. Builder had provided one tube well instead of two and no cost adjustment has been made. The bank had to incur extra expenditure for taking increased power connection which has not been recovered from the builder.

B.1.2 For "purchase of 50 flats at Puranchand Nahar Avenue, Calcutta", the bank had lost Rs.17.12 lakhs due to cottah less land and further suffered loss of Rs.7.31 lakhs due to decrease in number of flats and plinth area. A loss of Rs.60 lakhs plus interest was caused due to over measurements since no recovery could be made.

B.1.3 During purchase of 6 Nos. Residential flats at No.58/6, Prince Anwarshal Road, Lake Garden, Calcutta, overpayment of Rs.1.14 lakhs was made to the builder by over-measurement.

 

 

B.2 VIJAYA BANK

B.2.1 Construction of multi -storeyed building at L.H.H. Road, Mangalore

The work of the fire fighting for which contractor had quoted Rs.1,51,670 was got executed through some other agency at a cost of Rs.5,42,347, thus resulting into a loss of Rs.3.9 lakhs.

                                                                                                                                    

 

 

C PUBLIC SECTOR UNDERTAKINGS & AUTONOMOUS BODIES

C.1 AIRPORTS AUTHORITY OF INDIA

C.1.1 Special repairs to main runway 10/28 and other operational pavement at IGI Airport

The market rate justification was inflated by considering various non admissible factors. Undue benefit was thus extended by allowing higher tendered rates.

C.2 BHARAT HEAVY ELECTRICALS LIMITED (B.H.E.L.)

C.2.1 Aluminium Curtain walls for Human Resources Development and Engineering Services Institute in B.H.E.L. Complex at Sector 16A Noida (U.P.)

Short listing of contractors was done arbitrarily. Proper competition in tenders was not generated. Work had been arbitrarily split into two parts after calling a combined tender and the major part of work awarded to M/s Crystal Corporation who was other than the lowest, causing a loss of Rs.5.5 lakhs to BHEL. Consultant advice for re-tender and splitting was ignored.

C.2.2 Construction of multi-storeyed building for Human Resource Development Institute & Engineering Services Institute in BHEL Complex at Sector-16A, Noida

Request of the contractor to change the mode of deposition of security from Demand Draft to Bank Guarantee of half value and for the remaining from recovery from running account Bills to Bank Guarantee was agreed putting BHEL to risk and loss. Later the Bank Guarantee was not en-cashed as the contractor got stay order from the court depriving the BHEL of the amount of Rs.9.05 lakhs which could have been utilised for meeting the extra expenditure incurred for execution of balance work at the risk and the cost of the contractor.

C.3 BHARAT PETROLEUM CORPORATION LIMITED (BPCL)

C.3.1 Construction of Admn. Building at Anna Nagar Madras

No market rate analysis was carried out to ascertain reasonability of tendered rates. As a results of it, the rates at which the work was awarded was nearly 30% higher than the corresponding rates at which similar work was carried out by CPWD. If the amount of cement and steel is subtracted from gross tendered amount, the net amount in case of BPCL is 93% higher than the net amount in case of CPWD. The excess expenditure involved is of the order of Rs.101 lakhs in a work of Rs.437 lakhs. Substandard work has been executed using less quantity of cement which is likely to effect the structural strength and life span of building. Undue financial benefit has been extended to the contractor due to less cement used than required.

C.3.2 Construction of residential flats at Jabalpur

Competition has been restricted by not making publicity through press advertisement. Agencies have been pre-qualified in an arbitrary manner. The work has been awarded at unreasonably high tendered rates without ascertaining reasonability with reference to prevailing market rates. The tendered rates of Aluminium windows was excessive at Rs.2723/sqm resulting into loss of 5.85 lakhs. The steel doors accepted were made of M. S. Sheets and angles of thickness and size less than required and brass hinges were not used and no cost adjustment was made for substandard work. Substandard quality local steel was used. Strength of RCC was found poor.

                                                                                                                                        

 

 

C.4 CALCUTTA PORT TRUST

C.4.1 Construction of 80 type "A" and 48 type "B" Qrs. At Port area for Calcutta Port Trust

Substandard cast iron rain water soil pipe were used. G.I. pipe was also not tested before use.

C.5 CENTRAL INLAND WATER TRANSPORT CORPORATION LTD. (CIWTC)

C.5.1 For the "Construction of Dry Dock No.3 & 4 and other related works at Rajabagan Dockyard", second lowest tenderer was awarded the work ignoring first lowest resulting into a loss of several lakhs to the corporation. An amount of Rs.60 lakhs was paid to the contractor against site installation charges. Recovery of this advance including interest has not been effected from the contractor putting CIWTC into loss. Substandard concrete has been accepted without price adjustment.

C.6 COTTON CORPORATION OF INDIA

C.6.1 Construction of multi-storeyed office building for C.C.I. at CBD Belapur, Navi Mumbai (Civil Structure work Phase-I)

Pre-qualification of contractors done was not fair. Estimate was inflated from 330 lakhs to 430 lakhs within a period of 2 months without any basis. High tender rates of a private firm have been accepted ignoring M/s Bridge & Roof Ltd. a Govt. Of India undertaking at a higher cost of Rs.160 lakhs. The additional work of Rs.100 lakhs was awarded to the same contractor at high rates without ascertaining reasonability or calling fresh tenders.

 

C.7 DAMODAR VALLEY CORPORATION (DVC)

C.7.1 Construction of 276 blocks GMT type Qrs. I/c land development, external sanitation, external water supply, road and internal electrification of Bokaro Thermal Power Station, Bokaro

The tender was accepted at very high rate at 79.5% above the estimate cost plus escalation which is evident from the fact that contractor agreed to execute the work almost 3 years after submission of his tender.

C.8 DELHI DEVELOPMENT AUTHORITY (DDA)

C.8.1 Construction of 176 MIG Houses (N.P.) at East of Loni Road including internal development of land

The delay in completion of work more than three years caused heavy burden to D.D.A. on account of payment due to escalation in prices under clause 10 c.c. of the Agreement.

C.9 ENGINEERS INDIA LIMITED (EIL)

C.9.1 The work Site grading, Roads, Culverts, Retaining wall for SRU Cochin (Balance work) was awarded at very high rates without ascertaining reasonability of tendered rates based on prevailing market rates of labour and material, resulting into admitted loss of Rs.15 lakhs. The derivation of rate for extra item has been made on the basis of very high quoted rates of previous years resulting into a loss of more than Rs.12 lakhs to Cochin Refineries Limited.

C.10 GAS AUTHORITY OF INDIA LIMITED (GAIL)

C.10.1 Construction of Gas Training Institute and Hostel Block at Noida

Market rate justification was not prepared and tender was accepted at high rates.

C.11 HINDUSTAN PETROLEUM CORPORATION LIMITED (HPCL)

C.11.1 Construction of tank 1331 at Lube refinery of H.P.C.L.

Out of 22 tenders sold only 2 tenders were received. In spite of poor response tenders were not re-invited. No efforts were made to examine the reasonability of tendered rates. Estimates rates were very high and were not based on any standard schedule of rates. Detailed estimate has been prepared with incomplete nomenclature, lump sum quantities, excessive rates and lump sum provision for major items instead of working out detailed measurements putting corporation for a loss due to awarding work at high rates.

                                                                                                                                

 

C.12 INDIAN FARMERS FERTILIZERS COOPERAVIE LTD.

C.12.1 Construction of pipe and cable rack, D.G. and Air Compressor building, D.M. plant and other Misc. works at Anola Expansion project

Unauthorised overpayment and undue benefit of Rs.46,760 up to second running account bill which might have been more in subsequent bills was extended to the contractor making double payment of the same element under different agreement items.

C.12.2 Civil and structural work for Amonia Plant, Group-B at Anola Bareilly (U.P.)

Substandard pre-cast terrazo tiles made by local manufacturer instead of ISI approved were used without mandatory tests which subsequently failed in wear and mortar used were poor thus extended undue benefit to the contractor.

C.12.3 Civil & structural work for bagging plant, transfer

houses and product handling system

Recovery for element of de-watering component of stacking, disposing and spreading running into lakhs of rupees was not effected thus extending undue financial benefit to the contractor.

C.12.4 Civil & structural works for Naptha storage tank Phulpur Expansion project

IFFCO suffered a loss of Rs.58.37 lakhs by acceptance of tender for this work with excessive tendered rates with reference to prevailing market rates. Further undue benefit to the extent of Rs.23.85 lakhs was extended to contractor by allowing use of 12895 cum of fine sand instead of coarse sand as per agreement provision.

C.13 IRCON INTERNATIONAL LTD.

C.13.1 Construction of sub-structure of Bridge No.5 & 21 on Mccluskiefganj Piperwar Railway siding.

M.S. lining left permanently in Pile foundation resulting in avoidable expenditure.

C.14 KONKAN RAILWAY CORPORATION LTD. (KRCL)

C.14.1 Construction of Roha-Mangalore new broad gauge railway line-major bridges-3 bridges across rivers Terrikhol, Chapora and Assonora

An amount of Rs.2,22,204.85 was to be forfeited from available security deposit of contractor on account of contract as agreed by NTPC which has not been recovered. Recovery amounting to Rs.34,156/- on account of risk and cost was to be made from the contractor which has not been made since last eight years. Loss of Rs.2.30 lakhs has been caused by working out lesser liquidated damages.

C.14.2 For the work of Mangalore-Udupi New Broad Gauge Line Design and Construction of 4 New major bridges Rs.50 lakhs was paid to the contractor for site installation which was not payable. The condition regarding reimbursement of Sales Tax was accepted by KRCL and liability of Rs.6.60 lakhs was accepted. Escalation on installation charges has been paid which was not payable. Panel rate recovery for issue of excess cement of Rs.59772 has not been made. Special condition was accepted, without approval of tender accepting authority, after award of work resulting into a loss of Rs.18.55 lakhs, substandard work was accepted even without price adjustment from the contractor.

C.14.3 For the work of Mangalore-Udupi New Broad Gauge Line Construction of New Station Building at Udupi, extension of time was granted to the contractor without recovery of liquidated damages. Liquidated damages were recovered only after pointing out regarding recovery by Chief Technical Examiner’s Organisation.

C.15 MORMUGAO PORT TRUST

C.15.1 Construction of 2 Nos. warehouse at the Port of Mormugao Goa, Part-I Construction of a warehouse in lieu of old sheds superstructure

Visaka make asbestos cement sheets have been used on roofing instead of specifically stipulated make of Everest or equivalent without considering and making available to show that Visaka make asbestos cement sheets used are equivalent to Everest make in quality, strength, durability and market rate etc. No recovery on this account has been effected in spite of pointing out the same. Further no recovery for using less number of J-hooks than required as per CPWD specifications and for other discrepancies/pointed out has been made putting trust to loss.

                                                                                                                                       

 

 

C.16 MUNICIPAL CORPORATION OF DELHI

C.16.1 Strengthening and improvement of roads under E.E.(Project)South Zone

Reply to pending paras of serious nature were not given even in 5 years. The paras related to payments by not adopting proper mode of measurements, non submission of cash vouchers of bitumen, deviations in work, test results not in conformity to standard limits etc.

C.16.2 Construction of office building at Sector-IX, R.K.Puram.

The contractor was unduly benefited by not recovering the amount due from him for substandard work. Deviations in items were allowed without approval of competent authority. Extended period of contract was not regularised. Superintending Engineer did not conduct the checking of work, as directed by the Commission.

C.16.3 Improvement to Mandi road from Meharuali-Gurgaon Road to village Mandi

Scope of work was not decided meticulously which resulted in delay in completion of work. Invalid contract was accepted by the Executive Engineer. Cash vouchers of bitumen were not available. Un-authenticated measurement book were used for recording measurements.

C.16.4 Construction of drainage system of Okhla Industrial Estate Phase II, Part V (Sh: Drainage work)

The work awarded with stipulated period of completion as 5 months after 16 months of call of tenders. Over payment was made to contractor in cutting of asphaltic roads. Hard rock of 10966.80 cum qty. was not utilised but disposed away thereby causing huge loss to the Corporation.

C.16.5 Construction of 96 Nos. type "D" staff quarters at Seelampur (B/W)

Irregularity in market rate justification was observed. Detailed checking of the work was not done by concerned officers. Number of defects were noticed for which no action was taken by the Corporation. Reply of the pending paras was delayed for more than 2 years.

C.17 NATIONAL DAIRY DEVELOPMENT BOARD

C.17.1 Internal electrification work of High Security Animal Disease Laboratory & Service Godown Building at Bhopal (Phase-I)

The work has been awarded without proper assessment of rates and adequate competition. Secured advance of Rs.5.07 lakhs and had been paid without justification and many defects in wiring were noticed.

C.18 NATIONAL HYDRO-ELECTRIC POWER CORPN. LTD.

C.18.1 Construction of barrage, head regulator and appurtenant work at Tanakpur

The work was awarded to M/s T.R. Gupta & Co. on ad-hoc basis. Due to incorrect drafting of contract, Corporation was put to loss of Rs. 28.71 lakhs approximately. Stone was issued free of cost to the contractor. The contractor was over paid for de-watering. Reply of many paras of serious nature was not given by N.H.P.C.

C.19 NATIONAL THERMAL POWER CORPORATION LIMITED

C.19.1 For construction of 60 Nos. ‘B’ type quarters at Unchahar, the structure has been raised over substandard concrete.

C.20. OIL AND NATURAL GAS CORPORATION (ONGC)

C.20.1 Construction of compound wall at Ravva on shore facilities at Sursaniyanam (Ph.I)

Boundary wall was not planned along the outer periphery of the land but it was on inner side, on all four sides indicating poor planning. The money withheld towards rectification of defective work in running account bills of the contractor was released without getting the defects rectified by contractor. Subsequently ONGC had to incur infructuous expenditure of Rs.10 lakhs approximately.

C.21 POWER GRID CORPORATION OF INDIA LTD.

C.21.1 For the work "Construction of Roads, Drains and Sewerage system, water supply and External Electrification at Agra sub-station" measurements of earth work in excavation taken more than that actually executed resulting into over measurement and overpayment of Rs.1.42 lakhs to the contractor.

C.21.2 For the work of "Construction of boundary wall at 400 KV sub-station Ballabhgarh (Haryana)", Rs.2.33 lakhs to be forfeited from available security deposit of contractor, due to rescission of contract have not been recovered. No recovery was made from the contractor on account of risk and cost amount putting the corporation to loss of Rs.34,156. Liquidated damages were calculated to Rs.2.70 lakhs instead of Rs.5.02 lakhs putting the corporation into loss of Rs.2.30 lakhs.

C.22 RAIL INDIA TECHNICAL & ECONOMIC SERVICES LTD. (RITES)

C.22.1 The work "Construction of multistoreyed quarters 28 units "B" type and 14 units "D" type at RITES colony, Wazirpur, Delhi" was awarded to the fifth lowest tenderer rejecting all lowest tenderers on flimsy grounds causing a loss of Rs.2.00 lakhs. The work has been delayed and contract terminated without levy of compensation. Subsequently contract has been revoked and sub-standard work has been accepted thus extending undue favour to the contractor.

C.22.2 Similarly the work of "Construction of multi-storeyed quarters 14 units D type at RITES colony, Wazirpur, New Delhi, was awarded to the third lowest tenderer putting RITES into a loss of Rs.1.89 lakhs. Substandard work has been accepted favouring the contractor.

C.23 TELECOMMUNICATION CONSULTANTS INDIA LTD.

C.23.1 For the work "Construction of Telecommunication cable duct work between Sanjay Place Telephone Exchange and Tax building at Agra". The cement concrete used was much poorer than required as per specification. Substandard work has been accepted without any price adjustment in spite of test results of substandard cement concrete were communicated. Substandard galvanised M.S. channel has been accepted without cost adjustment.