In the wake of the Central Vigilance Commission (CVC) expressing concern over irregularities in awarding contracts under the Dedicated Freight Corridor Corporation (DFCC) project, the railways have asked its chief to proceed on leave, replacing him with another senior official.
S K Malik, additional member in the railway board, has taken over as interim head in place of V K Kaul of DFCC, which was set up to lay about 2,800 km of dedicated freight corridors in the eastern and western parts of the country. Railways sources said showcause notices had been served to 11 officials, including Kaul, involved in the project.
CVC, which conducted a probe, concluded that irregularities in awarding contracts included “malicious interpretation of tender provisions and subsequently motivated negotiation against the interest of DFC”.
It investigated awarding contracts for 54 bridges in the Western Corridor between Vaitarna and Utran stations of Western Railway. “The tender itself seems to be awarded at a very high rate, as the consultant’s revised estimate was quite inflated and not based on standard analysis and practices,” the commission observed.
CVC said the “revision in estimates appear to be solely with the purpose of bringing lowest tendered amount near the estimate and thereby facilitating the award”. Changes were made in the contract agreement surreptitiously, against the interest of DFCC and to favour the contractor, CVC said.
It said there was no system of vetting draft tender documents by the legal and finance wing of DFCC. “Changes were made in the agreement unilaterally by DFCC.” It said irregularities were gross and serious and could cause DFCC loss of hundreds of crores of rupees.
The Planning Commission, while expressing concern over the tardy progress of the DFC project work, had desired to revamp the corporation for smooth and timely project execution and appointment of a financial commissioner on its board, given the large financial implication of the project.
