Arappor Iyakkam on Monday released documents that showed that a bonus of ₹90.9 lakh was disbursed to the contractor, P.S.T. Engineering Construction, for the construction of 864 tenements of the Tamil Nadu Urban Habitat Development Board (TNUHDB) at K.P. Park in Pulianthope here that were later found to be of substandard quality. The bonus was 1% of the project cost.
The Chennai-based non-governmental organisation demanded stringent action under the Prevention of Corruption Act against top officials who served in the board for sanctioning bonus for buildings with substandard quality of construction.
The project was executed during the term of the AIADMK government. The bonus was released in August 2020.
The Iyakkam has demanded action against Principal Secretary of Higher Education Department D. Karthikeyan, who held the additional charge of Managing Director of TNUHDB at that time, and the Chief Engineer, the Superintending Engineer and the Executive Engineers concerned.
In August, the allottees complained of poor quality of construction of the tenements. The Centre for Urbanisation, Building and Environment (CUBE), which was asked to assess the quality, found “unacceptable workmanship” and “extensive defects” in cement plastering work. It raised concerns over the quality of structural elements in one of the four blocks.
Common phenomenon
Iyakkam convener Jayaram Venkatesan alleged that it had become a routine affair to suspend a few junior-level officials when such complaints were made. In this case, an Assistant Engineer and an Assistant Executive Engineer had been suspended. The entire chain of command must be held accountable, he said.
Mr. Venkatesan said his organisation had petitioned the Directorate of Vigilance and Anti Corruption (DVAC) to file a case following irregularities in the award of the contract itself. The evidence of bonus being sanctioned supported the Iyakkam’s demand.
Officer’s response
Mr. Karthikeyan said he held additional charge of the MD of the TNUHDB and was not aware of bonus being sanctioned. He said the release of funds for completed projects happened at the level of engineers and not at the level of MD. The contract had been awarded before he assumed charge.
A senior official from the Housing and Urban Development Department, under which TNUHDB functioned, admitted that bonus had been sanctioned under a provision in the contract that allowed such incentives if the project was completed before the deadline.
Considering the poor quality of construction, the official said that options were explored to recover the bonus. He said that a Superintending Engineer and an Executive Engineer involved in the project had been transferred, pending disciplinary proceedings. “We will take stringent action. It is still not over,” he said and added that the government was planning to make a strong representation in the case filed by the contractor in Madras High Court regarding this issue.
P.S.T. Engineering Construction had contended that it completed the work as per specifications and the same was officially acknowledged by TNUHDB engineers.
