The government has decided to revive a vigilance enquiry into the Thiruvananthapuram Road Development Project.
It has also decided to initiate proceedings for recovery of compensation from the company executing the project (Thiruvananthapuram Road Development Company Limited) for delay in completion of the second phase of the project.
Public Works Minister M. Vijayakumar said that the Cabinet had decided to order a vigilance enquiry into the irregularities connected with the project on May 31, 2007, while approving payment of the arbitration award of Rs. 124.947 in favour of the company. However, the enquiry had not taken off till now.
It had now been found that the information such as that government was not bound to pay arbitration awards exceeding Rs. 80 crore, had been kept away from the Cabinet. The Public Works Department had agreed to accept the award without consulting the Law or Finance Departments.
Hence, the vigilance enquiry would cover the irregularities alleged to have taken place in the Department also.
Mr. Vijayakumar said that that the government had signed supplementary agreements with the company for re-starting work on the project.
Though the company was given time up to November 30, 2010, for completion of the works, it could not finish the works. The quality of work suffered because the company failed to engage qualified contractors and carry out the works efficiently. Though the company was told to complete the second phase at least by March 31, 2011, the company failed to do so. Hence, the Cabinet had decided to issue notice to the company seeking compensation.