Maharashtra orders probe into Louis Berger contracts in Mumbai

Company was PMC for key infra projects including mono rail, metro rail and Navi Mumbai airport

After the Goa government’s decision to order a police inquiry, US consultancy Louis Berger is under a scanner in Maharashtra. The Bharatiya Janata Party-led government in the state will soon institute a preliminary inquiry into contracts awarded by the Congress-NCP government during its 15-year rule to Louis Berger as project management consultant (PMC) for the monorail, Metro rail, Navi Mumbai International Airport and Santa Cruz-Chembur-Link Road projects. Chief Minister Devendra Fadnavis told Business Standard, “The government will soon conduct a preliminary inquiry.”

A government official said an in-depth inquiry might be ordered if the preliminary probe finds deviations in awarding contracts, and thereafter its violations by Louis Berger.

The completion of the second phase of monorail between Jacob Circle and Wadala has been rescheduled to mid-2016 from December this year. The first phase, between Chembur and Wadala, started operations in February 2014.

BJP’s Mumbai unit secretary Vivekanand Gupta, who has already filed a case at a metropolitan magistrate against Louis Berger, alleged the monorail project cost was increased to Rs 2,900 crore from Rs 1,700 crore by the Congress-NCP government. “The project cost has been increased without justifiable reason,” he said.

Further, the project cost of the 11.4-km Versova-Andheri-Ghatkopar route surged to Rs 4,321 crore from Rs 2,356 crore. The Reliance Infrastructure (R-Infra) arm Mumbai Metro One Pvt Ltd is the Metro operator.

As far as Navi Mumbai airport is concerned, the state-run City and Industrial Development Corporation (CIDCO) expects to receive a request for proposal (RFP) from qualified bidders, including GMR Delhi, the GVK-led Mumbai International Airport Ltd, the Zurich Airport with Hiranandani Developers, and MIA Infrastructure of France along with Tata Realty. CIDCO hopes to award the contract by December-end for the Rs 15,000 crore airport project.

Gupta said he has appealed to the Maharashtra government to terminate PMC contracts awarded to Louis Berger during the Congress-NCP rule. Further, he has urged the government to blacklist Louis Berger from all future contracts. He added this is necessary, especially when the US-based company on its own had admitted to paying bribes in Goa.