Founded in 1987 by Indukuri Syam Prasad Reddy in his father’s name, I Venku Reddy Construction Ltd (IVRCL), based in Hyderabad’s Banjara Hills, has completed over 100 projects, but has a record known more for delays and missing deadlines.
Indukuri Reddy left the firm in 2000 and it is run by E Sudhir Reddy now.
IVRCL’s area of expertise is laying pipelines and constructing irrigation canals, though it has executed highway projects and built bridges too.
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On July 28, 2009, two labourers involved in laying a drainage pipeline on the outskirts of Hyderabad were buried alive when a mud wall collapsed. The company had declined to take responsibility, blaming loose soil for the collapse. After protests IVRCL paid compensation, but escaped punishment.
Another project assigned to IVRCL by the undivided Andhra Pradesh government was a contract to build 120 flats for MLAs at Hyderguda, in August 2012. The project was to be completed in 16 months, but as of March 31, 2016, it is only 60 per cent complete.
In Jharkhand, IVRCL was blacklisted twice, after failing to fufill two government contracts. The first pertained to rural electrification in three districts in 2006, where the work fell far behind schedule and wasn’t satisfactory.
An inquiry revealed that poles put up in 842 villages didn’t have the equipment crucial to laying down wires.
“There was just no execution by IVRCL. Finally, the contract was terminated and the company blacklisted in September 2015,” says Jharkhand Urja Vitaran Nigam Ltd MD Rahul Purwar.
The other contract given to IVRCL was to set up a drinking water supply system in Ranchi in 2010. The Rs 234-crore project entailed setting up a 300-km pipeline network by 2012. Till November 2013, even half the work wasn’t finished. Finally, the contract was terminated and the firm blacklisted.
While IVRCL Director, Operations, A G K Murthy says the company has over Rs 19,000 crore worth of projects, a legal cell member admitted to problems.
“Due to delays in obtaining clearances and increase in costs, the company has accumulated losses of nearly Rs 8,000 crore,” the member said.
IVRCL is also facing CBI probes. While the agency has investigated the charge that IVRCL bribed the Jharkhand government to bag the electrification project, in September 2011, it registered a case against the firm over allegations of financial irregularities, indulging in corrupt practices with government officials, and criminal conspiracy, over a 2007 Puducherry tsunami housing project. IVRCL was allegedly awarded the project at an inflated cost, and used sub-standard material. A chargesheet has been filed in a Puducherry court.
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