Local Government Minister Navjot Singh Sidhu has exposed a Rs 500 crore scam in urban development works.

Chandigarh: Local Government Minister Navjot Singh Sidhu has exposed a Rs 500 crore scam in urban development works. In a news conference here on Thursday, Sidhu said four Superintending Engineers (SE) of Local Government Department have been placed under suspension.

They included PK Goyal, Kulwinder Singh, Pawan Sharma and Dharam Singh. The accountability of three IAS officers will also be fixed, he added. The scam was unearthed during probe into tenders of urban development works in four Municipal Corporations of the state. 

Vigilance team inspected sample files of civil works orders for MC Amritsar and found that large number of work orders were awarded based on single bid/two bids received through e-tendering process. Thereafter, majority files for funds received through 'Urban mission' and 'Hridaya' were inspected. Based on findings in MC Amritsar, decision was taken to check to MC Jalandhar, Ludhiana and Bathinda for civil works undertaken durinng 2016. 

Major deviations have been observed while award of these contracts. The Municipal Corporation Act, 1976 has been violated wherein the house resolution is a must for any work order above Rs 25000.

The Finance and Contract committee of respective MC's approval has not been taken for majority work order scrutinised while awarding the contract. CVC guidelines have been violated whcih call for written detailed justification in such cases. 

Local government circular dated February 2, 2011 calls for certification that the proposal is comparative and reasonable. The circular has been violated by not certifying the comparability and reasonableness of rates of the tenders. 

The fact finding report clearly depicted that more than 50 per cent of the tenders of Rs 100s of crore has been alloted on single bid violating MC laws, CVC guidelines and local government circulars. A chargesheet is being prepared to begin an inquiry into the matter.