The Comptroller and Auditor General of India (CAG) has recommended an inquiry in the renovation of the India House in London as the works award was given without approval of the Ministry of External Affairs.
According to a CAG report tabled in the Parliament, the High Commission of India, London undertook work relating to renovation of the basement at the India House, at a cost of GBP 744,971
(approx. ` 6.63 crore), without prior approval from the Ministry of External Affairs and resorted to irregular splitting of works to evade approvals from higher authority and open bidding.
“It adopted a grossly manipulated process for award of works to the same person, and made post facto additions and alterations in the scope of work which led to undue benefits being extended to Contractors. Such blatant subversion of rules and processes indicates supervisory failure and possible collusion between Mission officials and the agencies”.
“Further, additional work was awarded based on fraudulent quotations, to an associated ineligible company, incorporated immediately prior to the award of work and dissolved after receipt of payments,” the CAG said.
The report further states as per the contract, the work was to be executed within 8-10 weeks from September 1, 2017 i.e., by November 15,2017. “However, the work was completed on 31 January 2018. Despite a delay of 10 weeks (minimum) in completion of the work33, the Mission did not recover liquidated damages amounting to GBP 7,78834 (` 6.85 lakh) from the company,” it said.
The renovation work of the basement area was taken up at a bid cost of GBP 129,800 (` 1.07 crore). After five months in January 2018, the Mission issued another NIT for “Design and furnishing of the consular service area”, which was again a part of the original project scope, and awarded this work at a cost GBP 34548023 (`3.14 crore). Subsequently, (August/September 2018) the Mission took up “additional works25” not originally within the scope of the renovation project valuing GBP 107,694 (` 99.06 lakh), by splitting the total work into 19 piecemeal orders.
The CAG said that the Mission resorted to indiscriminate sub division of work with the intention of evading seeking approval of higher authorities/Ministry and avoiding open bidding.