Delhi LG orders ACB probe into delay, cost overruns, arbitration penalty in Barapullah project

New Delhi, Oct 7 (PTI) Delhi Lieutenant Governor V K Saxena has ordered a probe by the Anti-Corruption Branch (ACB) into "delay, cost overruns and arbitration payment" allegedly made to a private contractor in the Barapullah extension project, Raj Niwas officials said on Tuesday.

The role of previous ministers as well as officers of the Public Works Department (PWD), Revenue and Delhi Transco Limited (DTL) is under the scanner, they said.

The LG's order comes on the recommendations of Chief Minister Rekha Gupta, the officials said.

"The LG has ordered an ACB probe into the more than a decade delay in the construction of the Barapulla flyover. This delay caused a loss of hundreds of crores to the Delhi government exchequer by way of cost overruns and payment of arbitration penalty to the private contractor," said an official of the LG Office.

A proposal for the probe was made by the Directorate of Vigilance according to a decision of the Expenditure Finance Committee headed by the Delhi chief minister.

The LG, while approving the proposal, noted on file that the "extraordinary delay" in the project has raised some "fundamental policy issues" which must be addressed, the official said.

The project was started in 2015 during the previous Aam Aadmi Party (AAP) government's tenure and is yet to be completed. It is expected to be completed by June next year.

The issues related to the project were discussed in a meeting of the Expenditure Finance Committee held on July 28 this year.

It was decided in the meeting that a "thorough inquiry" by the ACB should be conducted regarding approval and acceptance of arbitration awards by authorities not competent to accept, delay in the execution of the project and fixing responsibility of the erring officers and individuals, the official said.

In August, the BJP-led Delhi government directed the PWD to prepare a fresh and comprehensive proposal for cabinet approval to accommodate cost overruns in the Barapullah Phase-3 project.

The project, sanctioned in 2015 and initially estimated at Rs 1,260.63 crore, has already used Rs 1,238.68 crore and is expected to exceed its original budget. Hence, a fresh approval will be required, taking into account all the pending liabilities.

Officials said that the elevated road scheduled for completion in October 2017 was repeatedly delayed, and eventually the matter went into arbitration.

"The arbitration ruling favoured the contractor with an award of Rs 120 crore plus interest in addition to GST, totalling up to Rs 175 crore," a Delhi government official said.

When the payment was withheld, the private contractor approached the Delhi High Court to enforce the award. PTI VIT SSM VIT KSS KSS