The Directorate of Vigilance and Anti-Corruption (DVAC) has booked former Minister of the AIADMK and Thondamuthur MLA S.P. Velumani, and top engineers of the Greater Chennai Corporation (GCC) on charges of cheating in the award of tenders and misappropriation of funds worth ₹26.61 crore.
After establishing prima facie in the preliminary probe conducted on the complaints lodged by Jayaram Venkatesan, convenor of Arappor Iyakkam, the DVAC registered a case accusing Mr. Velumani, the then Minister for Municipal Administration, Rural Development and Implementation of Special Programme; L. Nandakumar, former Superintending Engineer; M. Pugazhendi, former Chief Engineer; and Executive Engineers A.S. Murugan, B.R. Saravanamurthy, V. Periasamee, V. Chinnadurai, A. Nachan; and others, for violating “rules of business in allocation of tenders and selection of contractors.” The DVAC said the accused had caused loss to the GCC exchequer in awarding tenders for storm-water drains and road works executed during 2018.
The preliminary inquiry had disclosed prima facie information of cognisable offence warranting registration of a criminal case. The case pertains to storm-water drain works executed under the Chennai Mega City Development Mission in 2018-19, and works related to relaying and restoration of damaged roads, and footpath projects under the Tamil Nadu Urban Roads Infrastructure Programme in 2018-19.
While awarding the tenders, the inviting/accepting authorities and Technical Scrutiny Committee violated the Tamil Nadu Transparency in Tenders Act, 1988, and the Tamil Nadu Transparency in Tenders Rules, 2000, under the influence and directions of Mr. Velumani, the DVAC said in its First Information Report.
‘Abnormal rates’
The agency further said R. Chandrasekar, one of the founders of KCP Engineering (P) Ltd and a close associate of Mr. Velumani, used to decide the companies that the tenders should be awarded to. The contractors who were awarded the works had quoted abnormally higher rates for certain items and abnormally lower rates for the remaining. Despite negotiations with the lowest bidder, the rate quoted by the bidder was higher than the Schedule of Rates and the actual market rate.
The DVAC said the accused persons entered into criminal conspiracy, injudiciously awarding tenders for some of the works and engaged in criminal misappropriation of public money.The Special Investigation Cell of the agency registered the case under various provisions of the Prevention of Corruption Act, 1988. after obtaining sanction from the competent authority.
Published - September 19, 2024 01:07 am IST
