Staff Reporter

“The Board has been short of funds; been taking loans from the Delhi Govt.”

Excess payment of mobilisation advance of Rs.1.63 crore to a contractor

Excess payment of Rs.3.21 crore to Uttar Pradesh as raw water charges

NEW DELHI: Negligence by the Delhi Jal Board has resulted in an undue benefit of Rs.50 lakh along with excess payment of a mobilisation advance of Rs.1.63 crore to a contractor.

The Auditor and Comptroller General of India in his latest report has also ticked off the Delhi Jal Board for excess payment of Rs.3.21 crore to Uttar Pradesh as raw water charges.

The CAG report says an official of the rank of executive engineer awarded work of design, construction, supply, installation and testing trial run of an 11 million gallons per day (MGD) water treatment plant at Wazirabad to a contractor, Degremont Limited, in December 2005 at a cost of Rs.27.80 crore.

The Jal Board paid a mobilisation advance of Rs.1.48 crore on January 2, 2006, and Rs.1.15 crore on January 3, 2006, for civil and other works.

“It was, however, seen that no interest was charged on such advance in contravention of the codal provisions,” the report states. The report adds that the Jal Board has been short of funds and has been meeting expenses of various projects by taking loans from the Delhi Government.

“It is a serious lapse on the part of the Delhi Jal Board that on one side it was making huge payments towards interest on loans taken from the Government and on the other not charging interest on mobilisation advance paid to contractors,” the report says.

The CAG has also indicted the Jal Board for failing to comply with the conditions of revision of rates as stipulated in the memorandum of understanding agreed upon between the Delhi and UP governments. The report claims that the Board released excess payment to UP by revising the rates of raw water charges prematurely from April 1, 1988, instead of April 1, 1989, resulting in excess payment of Rs.3.21 crore.