Kajauli waterworks: Mohali firm fails to lay pipeline, CAG raps GMADA for paying Rs 2 cr

An audit report by CAG mentioned that the department is not ‘satisfied’ with the justification given by GMADA.

Written by Jagdeep Singh Deep | Mohali | Published:September 15, 2016 8:40 am
Mohali, Greater Mohali Area Development, GMAD, Kajauli waterworks, Mohali firm, compensation, Mohali news, India news, latest news, Indian express Kajauli Waterworks. (Express Archives)

A Report by the Comptroller and Auditor General has rapped the Greater Mohali Area Development Authority (GMADA) for paying a compensation of Rs 2.78 crore to the company which failed to to lay the pipeline for Phase V and Phase VI to bring 40 Million Gallon per Day (MGD) water from Kajauli waterworks. The audit report mentioned that the department is not ‘satisfied’ with the justification given by GMADA.

The report said that to ensure proper supply of water to Mohali town, administrative approval to the work of Water Supply Scheme (Phase V and VI ) from Kajauli head works to waterworks, Mogal, was accorded in December 2010 by Chief Administrator of GMADA for Rs 168.79 crore.

The work of laying of 1600 mili meter dia MS pipe for bringing 40 MGD water from Kajauli head works was allotted in March 2011 to M/S Welspun Projects Limited for Rs 108.34 crore; it was to be completed within 30 months. The requirement of 40 MGD was based on a decision taken at a meeting held in July 1983.

The report said that the test check of records of Divisional Engineer, PH-II GMADA in October 2014 showed that the work was delayed and could not be started at site as the agency could not prepare and submit the survey report and hydraulic and structural design of the rising main by May 2011 as required under the allotment order.

Thereafter, in October 2011, GMADA decided to rescind the agreement on the grounds that demand for water would increase due to urbanisation of adjoining areas and pipes of 1,600 mm would not sufficient.

GMADA terminated the project in November 2011. After the termination of the project, the agency claimed compensation of Rs 20.51 crore to offset the loss suffered by it against which GMADA paid a compensation of Rs 2.78 crore in October 2013.

The report said that the state government stated in October 2015 that the contract was terminated due to change in scope of work and the claim was paid on the recommendation of the committee.

The audit department said in the report that the reply of GMADA was not acceptable as the urbanisation of adjoining areas of Mohali was a known fact and not a sudden development and this should have been factored in while deciding the scope of the work and framing estimates for the same. Thus, failure of GMADA to assess the actual requirement of water for the area led to framing of unsound and incorrect estimate resulting in a wasteful expenditure of Rs 2.78 crore.