CAG flags ‘suspected fraud of Rs 414 cr’ in Madhya Pradesh road construction

“We unearthed suspected fraudulent practices worthy Rs 414.94 crore successful the procurement of bitumen for the operation of PMGSY roads successful 71 retired of 75 PIUs and 49 retired of 51 districts. The contractors submitted fake invoices of the authorities refineries. The contractors besides submitted the aforesaid invoices doubly oregon thrice and procured bitumen from backstage refineries. The Department failed successful prescribing mechanics to cheque the invoices of bitumen,” the CAG study stated.

Detailed scrutiny of 9,903 invoices showed that 3,389 of them, worthy Rs 320.75 crore, were fabricated, arsenic per the report. These invoices, submitted arsenic impervious of acquisition of 0.80 lakh metric tonnes of bitumen, “were not issued by the refineries”, it said.

The CAG flagged that contractors submitted invoices with manipulated dates and reused transporter oregon seller copies. Some invoices were reused crossed aggregate projects, resulting successful payments of Rs 32.47 crore for non-existent bitumen purchases. The CAG said the acrophobic section has “not taken immoderate enactment to forfeit the Performance Security from the erring contractors for submitting mendacious documents oregon to cancel immoderate existing contracts being executed by specified contractors”.

PMGSY is simply a cardinal authorities strategy that aims to “provide connectivity to unconnected Habitations arsenic portion of a poorness simplification strategy”.

The Madhya Pradesh Rural Road Development Authority (MPRRDA), liable for implementing PMGSY successful the state, defended its practices and said that autarkic monitors and NABL-approved labs guarantee prime and quantity compliance. However, the CAG dismissed this argument, stating that owed diligence successful invoice verification could person prevented the fraud.