Saturday, October 18, 2014

Homes for LIG, EWS: VMC in the dock for ‘siphoning off’ funds

Indian Express: Vadodara: Saturday, 18 October 2014.
Alleging that it was a scam, Vadodara Congress corporator Chinnam Gandhi has demanded a Central Vigilance inquiry into the housing board projects under the Mukhyamantri Awas Yojana in the city. Gandhi, armed with official replies received from the Vadodara Municipal Corporation (VMC) under the Right to Information Act  (RTI) Act, on Friday announced his decision to move the High Court to demand CBI probe into the alleged  scam of up to Rs 200 crore in the housing projects for Low Income Group (LIG) and Economically Weaker Sections (EWS). Gandhi lashed out at the VMC for “siphoning off” funds to the tune of Rs 135 crore for 12 projects by exaggerating costs of construction against prevailing market rates.
Gandhi said that having sought information under the RTI, he had received information regarding the construction of 14 housing projects, including 10 projects for the LIG housing scheme. According to Gandhi, the official reply received from the VMC stated that the cost of construction incurred per square metre for LIG housing projects was Rs 19,500, and an additional 7% contingency charge.
Thus, the bids received from contractors range from Rs 20,000 to Rs 21,000 per square meter. Similarly, for the EWS housing schemes, the bids for construction range from Rs 19,500 to Rs 20,000 per square metre. Gandhi says, “When we checked the ongoing market rates for constructions, it turned out to be Rs 14,000 per sq metre. This clearly reflects a shady deal of at least Rs 135 crore for only 10 projects. It is a clear case of open corruption in the housing schemes for which an independent and unbiased CBI and CVC inquiry should be initiated against the ruling party and the executive wing of the corporation.”
Gandhi said that it was “amusing” that the rates for construction for LIG and EWS housing schemes per square metre vary up to Rs 2,000. He said, “Are they trying to tell us that the material used for construction of EWS housing schemes is substandard and they will meet the same fate as Madhavnagar colony in Atladara? How can there be so much difference in the calculated cost of construction if that is the price for it?”
Gandhi said that the corporation had admitted that the estimated cost of Rs 19,500 per sq metre of construction did not include the additional overhead costs of electric fittings and other important works, but reflected the cost of construction alone.
“It is clear that there is a big scam in the name of housing. I am moving the High Court with a petition based on the documents I have received under the RTI. The Mukhyamantri Awas Yojana in Vadodara is nothing but a cloak for scam worth hundreds of crores of rupees, even after which, poor people are left homeless, like in Madhavnagar,” Gandhi said.