Poor project management in building office by NHAI blocked Rs 44 crore: CAG

Funds to the tune of Rs 44 crore were blocked on account of poor project management among other things by the National Highways Authority of India (NHAI) in construction of a office building, the Comptroller and Auditor General (CAG) said in a report tabled in Parliament on Monday.

The government watchdog, in its 'Audit Report on Union Government (Commercial)-Compliance' has also said that NHAI made avoidable payment of Rs 11.79 crore on rent.

"Undue favour to contractor and poor project management by NHAI in the construction of second office building for NHAI, right from the stage of project conception till its execution resulted in time overrun, cost overrun, blocking of funds amounting to Rs 43.60 crore and avoidable payment of rent of Rs 11.79 crore (April 2015 to October 2018)," the CAG said.

It said though more than five years have lapsed from the scheduled date of completion and over a decade from the date of release of land, the envisaged benefits of the proposed building were yet to be reaped as the building construction work was still in progress.