BMC estimates for maintenance of open spaces inflated: CAG report

CAG found these irregularities while auditing the contracts awarded from 2016-2020 (39 months) and 2018-21 (30 months).

Besides maintenance and development of gardens and open spaces, the contractors were also responsible for maintaining traffic islands, central medians and strip gardens.

There are about 1,000 open spaces across the city that are under BMC’s Garden’s Department for maintenance.

The auditor has pointed out that works were awarded at an average rebate of 24.32 per cent and 30.67 per cent for 2016-2020 and 2018-2021 respectively.

It adds that in another contract of removal of dead and dangerous trees for 24 months (June 2019-June 2021) the average rebate of 21.06 per cent was offered.

“This indicates that proper rate analysis was not done since 2016. All the bidders had offered rebates of more than 20 per cent but the department did not take action to analyse the rates but instead, collected additional security deposit

(ASD) for rebate over and above 12 per cent. ASD is collected to ensure quality and standard of work; since higher rebate over and above 12 per cent is offered by the bidders,” said the CAG note.

The CAG report has already questioned the civic body’s ward-wise contract system pointing out irregularities that led to financial losses to the corporation.

Despite repeated attempts there was no response from Garden’s department.

BJP leader in BMC, Vinod Mishra, has slammed the BMC’s gross irregularities found in the Gardens department.

“We have been saying this for years. The BMC’s estimates for the work are inflated. Now CAG has proved our allegations. This is a clear case of corruption and the ruling party was benefiting from it,” he said.

Similarly, former Opposition leader Ravi Raja had also questioned the department’s estimated cost and called it inflated.

In the past, the department has been in controversy and was criticised over low bidding by contractors against the civic body’s own estimate.

While corporators had raised the issue of inflated estimates prepared by civic administration in other departments such as roads, storm water drains, and solid waste management, this is the first time that irregularities have been pointed out to the BMC in CAG report.