Irrigation Scam of Maharashtra: Deliberate cost escalations of 8,616 cr in power projects

MUMBAI: After the coal supply controversy and repeated breakdowns at its power plants in Maharashtra, state-owned generation utility Mahagenco faces yet another serious allegation of corruption.

The Bharatiya Janata Party (BJP) on Wednesday alleged deliberate cost escalations of Rs8,616 crore in Mahagenco’s 10 generation projects over the past seven years so that political bosses and officials concerned could earn hefty bribes from private generators who sold power to the state company Mahavitaran. The alleged bribe is 14 paisa per unit which turns out to be hundreds of crore per year.

BJP’s state spokesperson Madhav Bhandari said that the information was based on documents procured under the RTI from Mahagenco. BJP has tried to establish that the cost escalations were because of delays of 12 to 35 months.

The original cost of these projects was Rs23,120 cr. The escalated costs are recovered through tariff from about 2 crore consumers.

“This scam is bigger than the irrigation corruption. And like irrigation, the leaders of Nationalist Congress Party (NCP) benefited from this scam as well,” said Bhandari. NCP has

been heading the energy department since 1999 and controls all three power companies.

Bhandari alleged that senior officer SC Thotve, who did not have required qualifications and experience, was made director of projects in 2007. “Thotve is a pawn in the hands of his political masters. He got the job even though a selection panel of experts did not find him suitable,” said Bhandari. He also produced a letter by then union power secretary Uma Shankar asking the state chief secretary to expedite delayed projects.

Mahagenco faces controversy over other matters as well. Coal India Limited (CIL) and its subsidiary Western Coalfield Limited (WCL) have vehemently denied Mahagenco’s allegations for supplying inferior quality coal. They asserted in the Bombay high court on Tuesday that 94% of the coal supplied during last three years was of very superior quality.

The petitioner Anil Wadpalliwar alleged that Mahagenco was happy to import high-priced coal, forcing the state to buy costly power produced by private players and further burden consumers.
Courtesy:
20 Jun 2013, Hindustan Times (Mumbai), HT Correspondent, htmetro@hindustantimes.com
http://paper.hindustantimes.com/epaper/viewer.

HC will hear irrigation scam PILs : Blow To Maha Govt’s Bid To Escape Scrutiny

Nagpur: The Nagpur bench of Bombay HC on Wednesday struck a blow to the government’s attempt to escape legal scrutiny of the alleged irrigation scam by rejecting the Vidarbha Irrigation Development Corporation’s (VIDC) plea that two PILs in the matter were not maintainable. A bench of justices Bhushan Dharmadhikari and Arun Chaudhari ruled that technical lapses in public interest matters could not lead to outright rejection of the petition. The petitioners — Jan Manch and social workers including Mohan Karemore, Amit Khot and Bharti Dabhadkar — had alleged massive corruption and mismanagement in all irrigation projects in Vidarbha, including Gosikhurd, while demanding a judicial or CBI probe into the matter.

VIDC, through senior counsel V R Manohar, raised two contentions as preliminary objections to maintainability of PILs. He also questioned the very basis of the petitioners’ demand for a CBI enquiry, arguing it was not as per mandamus. It stressed that the petitioners should have made a representation to the government and only on its rejection could they have moved the court. He had also contended that the petitioners should have lodged a formal police or a private complaint before demanding a CBI enquiry.

VIDC’s prayers were opposed by the petitioners’ counsel Anil Kilor and Srikant Khandalkar who argued that procedural safeguards could not be allowed to defeat substantive public rights and the PIL offerred an opportunity to make amends.

They stated that mere ordering of enquiry may not always influence the investigating agencies. “In appropriate cases, even in the face of such prayers, the court may mould relief and pass suitable orders,” they stated.

Citing various SC and HC verdicts, the judges observed there was a need to adopt a non-traditional approach in matters where fundamental rights or issues fundamental to success of democracy were at stake.

“When PILs themselves are not adversarial, the insistence by public-oriented bodies like respondents for its dismissal at threshold and not permitting the court to even to look into alleged wrongdoings is not easy to understand,” they observed.

They added that instead of technicalities, the respondents could have welcomed the notice of the court, treated it as sufficient demand and made proper statements on merits to drive away petitioners’ apprehensions. “Respondents insistence upon technicalities is unsustainable. They have not cared to point out prejudice caused to it due to their absence,” the justices stated in their 42-page order.

Flaying the chief secretary for not following governor’s orders, the judges stated that latter had instructed him to review compliances of his current and earlier directives to address policy issues.

“Documents show directions issued by the governor on May 27, 2005, and March 13, 2012, have not been fulfilled or looked properly. Material prima facie shows indifference or omission by the state even to comply with the directives issued by the governor. We are not concluding this controversy on merits at this stage as respondents have not addressed us on this aspect,” they observed adding that the chief secretary failed to submit report about discrepancies in the figures of unspent balance of rest of Maharashtra (RoM) development boards.

The respondents were asked to file their respective replies on merits of controversy in both PILs within four weeks.

WHAT THE HC SAID
Respondents’ insistence on technicalities is unsustainable
All technical lapses in public interest matters cannot lead to its outright rejection
Merely because CBI inquiry is suggested as one of the options, PILs can’t be dismissed
We failed to understand as to why the respondents are taking it as adversarial PILs
We find no merit in preliminary objections raised by VIDC, same are thus rejected

WHAT NEXT
Respondents asked to file replies on merits of controversy in both PILs
They are told to file individual replies within four weeks
Next date of hearing fixed on June 19 after court vacations
PILs could be shifted to principal bench in Mumbai for clubbing
Or Wategaonkar’s PIL would be shifted to Nagpur bench for same purpose
Courtesy:
Vaibhav Ganjapure TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/04/25&PageLabel=11&EntityId=Ar01100&ViewMode=HTML

Irrigation Scam of Maharashtra: Whistleblower asks SIT to probe netas’ role

DAMMED STATE
Writes To Inquiry Panel Chief, Says He Can And Must Fix Responsibility

Mumbai: Senior irrigation department engineer Vijay Pandhare, the whistle blower in the state irrigation scam, has said the government-appointed Chitale committee probing the irregularities should focus on the role of politicians and bureaucrats.

In a letter to Madhav Chitale, who heads the Special Investigation Team (SIT), Pandhare said the SIT chief has powers to unearth irregularities and fix responsibility.

Chitale earlier stated that he had no powers to summon or investigate anyone. But Pandhare debunked his claim, stating that the terms of reference clearly allowed him to probe irregularities.

In December, CM Prithviraj Chavan appointed Chitale, a former water resources bureaucrat, to investigate the multi-crore irrigation scam. But activists said the committee would end up as another “whitewash” because Chitale had no experience or power to undertake a criminal investigation.

Top state politicians, bureaucrats and water department officers are believed to have siphoned off half of the over Rs 70,000 crore spent by the state government on irrigation projects.

Pandhare created a sensation last year by writing to the CM and the governor, alleging that Rs 35,000 crore may have been wasted on dud irrigation projects.

In his latest letter, he advised Chitale to invite complaints from the public and investigate. “It is the callousness and greed of officers which caused chaos in the water department. It will become worse in the future. You must not shirk your responsibility as SIT chief. If you do, then it’s better to resign,” said Pandhare’s letter.

The whistleblower then listed 33 major irregularities with detailed explanations on how fraud is committed in the department. He specifically mentioned how basic estimates of tenders are prepared at exorbitant prices without any survey or study.

Pandhare said the scope of projects is abruptly changed to jack up the costs. He cited six such projects, five of which are in the drought-prone areas of Vidarbha. Nerdhamna, one of the projects mentioned by Pandhare, was inspected by governor K Sankarnarayanan early this year. The Centre rejected funds for this project because of cost escalation from Rs 190 crore to Rs 617 crore.

The whistle blower suggested that the entire state irrigation policy be reviewed with more emphasis on smaller dams rather than larger ones. “In the last 50 years, we built big dams, canals and huge distributary network. But the results are very poor,” he said, adding that the state failed to achieve the irrigation potential with these projects. “If these projects are reviewed, their complete efficiency would not be more than 15%,” he said. “The state has suffered immense loss because of the ruthless ambition of politicians, engineers and contractors.”

Given six months for the probe, the SIT will end its term in June.

LOOKING AT IRREGULARITIES
The SIT is headed by water management expert Madhav Chitale and has three former bureaucrats as its members

Its terms of reference include reasons for lesser irrigated area, cost escalations and delay in execution of the projects

It will also see if procedures were followed for cost hikes

The government has asked the SIT to recommend measures to finish projects within deadlines
COURTESY:
TIMES NEWS NETWORK
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/04/20&PageLabel=11&EntityId=Ar01100&ViewMode=HTML

Irrigation Scam of Maharashtra: Babus too were involved in canal scam: Patkar

They, along with politicians, received bribe of R200 cr, says NGO
MUMBAI: Apart from exposing the state’s top politicians including deputy chief minister Ajit Pawar and senior BJP and Congress leaders, the income tax assessment documents furnished by Medha Patkar-led NGO National Alliance for People’s Movements (NAPM) have also disclosed the alleged involvement of several senior bureaucrats, including officials from the environment and forests ministry, in receiving speed money from some of the state’s biggest irrigation projects.

The total value of the speed money earned by politicians and officials from the contractors for undertaking work in Ghoshikurd, Tembhu and another unnamed project, add up to almost Rs 200 crore.

When contacted, politicians dismissed Patkar’s charges as baseless.

NAPM made the allegations on Thursday based on an IT assessment report of 2011of Mahalaxmi Infra projects Limited (MIL), one of the big irrigation contractors in the state.

The offices of MIL and residences of its directors were raided between 2009 and 2011 and several documents including diaries were seized.

“Besides top politicians, there are names of several department staffers and other bureaucrats, whose names appeared in the assessment documents. There is a clear nexus between the politicians, government officials and contractors,” said NAPM’s national convener Patkar.

She said some officials from the ministry of environment and forests (MoEF) received ‘speed money’ up to Rs 12.5 lakh. The documents also disclosed that a payment of Rs 1.5 crore was made to ‘Kale’ as part of the work of the right bank canal project of the Ghosikhurd.

The state’s irrigation scam including blatant costs escalations of projects and illegalities centre on an unholy officials-contractors-politicians nexus. The allegations led to Pawar’s resignation last year.

Dismissing the charges of earning Rs 27.5 crore as part of the projects, deputy CM Ajit Pawar said: “I do not accept these allegations because I am in no way linked to these dealings. I completely negate these charges levelled by NAPM against me.”

Rejecting the allegation of earning Rs 75 lakh as bribe, former Congress leader Sunil Deshmukh said, “At the time this IT raid was conducted, I was not even in the department.”

NAPM’S ALLEGATIONS : BACKGROUNDThe Medha Patkar-led NGO National Alliance for People’s Movement (NAPM) had alleged that politicians had received kickbacks to the tune of Rs200 crore in some of the state’s biggest irrigation projects

NAPM made these allegations on Thursday on the basis of an IT assessment report of 2011 of Mahalaxmi Infra projects Limited (MIL), one of the big irrigation contractors in the state

The details of the money trail made during the pretendering process of the project was revealed through diaries and papers seized from DA Bhat, one of the directors of MIL.
Rs 44 crore: was siphoned off for the Ghosikhurd project
Rs 109 crore: was paid for the Tembhu project
Rs 92 crore: for an unnamed project

THOSE NAMED BY NGO, WHAT THEY ALLEGEDLY RECEIVED
AJIT PAWAR, deputy chief minister was referred to as AP or Dada in the documents: Rs 27.5 crore

NITIN GADKARI, former Bharatiya Janata Party (BJP) chief, referred to as GAD: Rs 50 lakh

GOPINATH MUNDE, BJP general secretary, referred to as MG in the documents: Rs 20 lakh

SUNIL DESHMUKH, former Congress minister, referred to as SD in documents: Rs 75 lakh

Unnamed officials from the environment ministry received R12.5 lakh in kickbacks
COURTESY:
20 Apr 2013
Hindustan Times (Mumbai)
HT Correspondent htmetro@hindustantimes.com
http://paper.hindustantimes.com/epaper/viewer.aspx

Irrigation Scam of Maharashtra : Activist questions probe by SIT

Activist Pravin Wategaonkar, who filed the petition on alleged irregularities in irrigation projects in the state, has questioned the government move to appoint a special investigation team (SIT) instead of instituting a judicial probe.

In an affidavit in Bombay High Court Tuesday, Wategaonkar said the state government should clarify whether SIT had the power to conduct a criminal investigation and file a first information report.

He demanded the government state the terms of reference of SIT.

In December last year, the state government announced the SIT headed by water resources expert Madhav Chitale to probe allegations of irregularities in irrigation projects.

The affidavit states, "Media reports suggest there are multiple terms of reference based on which SIT is to undertake its work, detecting irregularities being one of them. The mammoth task envisaged by various terms of reference would be used for delaying criminal investigation in cases of irregularities and corruption."
COURTESY:
Express news service : Mumbai, Wed Feb 13 2013, 02:31 hrs
http://www.indianexpress.com/news/activist-questions-probe-by-sit/1073441/

Irrigation Scam : Controversial irrigation official back in saddle

Mumbai: Three months after shunting out water resources secretary DP Shirke following allegations against him in the multi-crore irrigation scam, chief minister Prithviraj Chavan has finally given him an alternative posting.

Shirke has now been posted as the managing director of Aurangabad-based Maharashtra Water Conservation Corporation (MWCC). This posting would alienate Shirke from irrigation projects and the department’s day-to-day functioning. Shirke is facing a departmental inquiry for allegedly clearing cost escalation in irrigation projects as former executive director of the Vidarbha Irrigation Development Corporation. TNN
Courtesy:
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/01/16&PageLabel=7&EntityId=Ar00704&ViewMode=HTML

Irrigation Scam : File reply to PIL against SIT: High court to govt

The Bombay high court on Monday directed the state government to file a reply on a public interest litigation, challenging the state-appointed Special Investigation Team (SIT) to probe the multi-crore irrigation scam.

The PIL filed by social worker Uttamrao Ghatule has sought appointment of a judicial commission to probe the scam or hand over investigations to the Central Bureau of Investigations (CBI).

Advocate Machindra Patil, appearing for the petitioner, argued that the SIT, led by water expert Dr Madhav Chitale, comprises several IAS officers. It will not be able to conduct an impartial inquiry against its own officers. Hence, a judicial commission needs to be set up or the probe should be handed over to CBI.

Division bench of Chief Justice Mohit Shah and Justice AV Mohta adjourned the hearing and directed the state government to file its affidavit within four weeks.

According to the PIL, it needs to be found out the exact cost of dam projects, expenditure incurred by state departments and how much fund was misused.

“Since 2000- 2001, around Rs70,000 crore was spent by the state irrigation department on various projects. However till date, the irrigation department has deliberately and intentionally not completed the projects,” the PIL alleges.
DNA Correspondent
Published Date:  Jan 08, 2013
http://epaper.dnaindia.com/story.aspx?id=36158&boxid=15154&ed_date=2013-01-08&ed_code=820009&ed_page=2

DAMNED BY THE IRRIGATION SCAM : AAP Black Paper Highlights

1.    The Black Paper illustrates what a genuine White Paper on Irrigation should have ideally been like. The White Paper of the Irrigation Department is a farcical ‘Status Paper’ made to cover up the gross illegalities committed. In fact it is a joke that the White Paper is being prepared by the WRD itself! Hence, AAP has brought out the true picture through a Black Paper.

2.    It illustrates that figures relating to area brought under irrigation, as claimed in the White Paper, are misleading. We have learned that the WRD’s White Paper states that the land under irrigation has increased by 12.47 lakh hectares since 2001, that is 6 to 9%.  Assuming these figures are correct we have to understand that any increase mentioned is a result of irrigation due to wells, bore wells, drip irrigation, lift irrigation and not just due to dams and canals for which the WRD has made huge expenditure. We have also heard that the White Paper claims that the land under irrigation area has increased from 17.8% since 2001 to 28% but this is misleading as it pertain to the increase in the percentage of gross irrigated area to the gross cropped area.

3.    It has been prepared after analyzing data from sources and the findings show that the WRD’s tall claims about the area brought under irrigation are contradictory. As per WRD’s own data during 08-09 to 09-10, irrigation potential increased by only 0.148 Mha (Million Hectares) i.e. by a mere 3% year on year and irrigation on canals has actually decreased by 0.169 Mha. The ultimate irrigation potential stated by NABARD is 8.4 Mha while the CWC has stated it as 8.952 Mha, nowhere close to WRD claim of 12.6 Mha. DES data states that Irrigation Potential created by completed projects was a mere 2.95 Mha as agasint the WRD claim of 4.486 Mha.

4.    The Black Paper shows how Maharashtra, despite having the highest number of large dams has lesser increase in irrigated area vis-à-vis other States in the Country. As per CWC the Net Irrigated Area has actually decreased between the years 2000 and 2008!

Net Irrigated Area in Thousand Hectares
Period		Maharashtra	Madhya Pradesh	Gujrat	Orissa
2000	2001	3,249	4,135	2,806	1,334
2007	2008	3,181	6,418	3,528	2,158
Increase (%)		-2.09%	55.21%	25.73%	61.77%

           

          There is no other State in India or even Country in the world which has such shameful achievements

           

5.    The Black Paper proves how the cost per hectare for bringing land under irrigation in Maharashtra is the highest in the Country and probably in the World. The gross irrigated area has increased by a mere 8.9 % in spite of an annual expenditure of Rs. 7,000 crores amounting to a staggering Rs. 70,000 crores. That means Rs. 21.67 lacs per hectare which is in gross violation as the limit mandated by the Central Water Commission of Rs. 1.5 lakh to Rs. 2.5 lakh per hectare.

6.    The Black Paper exposes the modus operandi of the Irrigation Scam and the politician-bureaucrat-contractor nexus.

7.    The Black Paper also exposes that the main reason of such dismal performance of the WRD is largely due to the illegal diversion of water from Irrigation Projects for non-irrigation purposes. Water reserved for non-irrigation use (i.e. domestic and industrial) should be within the 15% to 25% spectrum but this ratio is cruelly reversed. At least 398.87 million cubic metres of water per year was diverted from irrigation to thermal power plants in Vidarbha between 2003 and 2011. This water could irrigate approximately 79,774 hectares of farmland. Coal-based thermal power is an extremely water-intensive way to generate energy.

8.    The Black Paper exposes the Laws, Acts, G.R.s and guidelines that have been violated by the WRD in almost all irrigation projects.

·       Violations of various Acts of the State and Central Govt.

·       Violations of the Hon’ble Governor’s Directives’

·       Violations of Govt.’s norms

·       Violations of IDC’s norms

·       Violations of CVC norms

·       By-passing the MWRRA

·       Creating Regional imbalances

·       Creating financial burden on the State

·       Partisanship to select contractors

·       Cartelization of bidders in tenders

·       Increasing the scope of work after tendering

·       Allotting dis-proportionately large number of projects to a few select contractors

9.    This Back Paper therefore demands the following actions from the Govt. of Maharashtra:

·      Immediate resignation of Sunil Tatkare, Minister WRD;

·      Set up an SIT probe to investigate into the Irrigation Scam;

·      Halt all dam projects in the State where there are violations and where Rehabilitation and Resettlement of PAPs has not been completed

·      Initiate disciplinary & punitive action against the Ministers and Officers of the WRD found guilty and implicated by the SIT probe and recover the funds siphoned off by them;

·      Black-list the contractors found guilty and implicated by the SIT probe and recover the funds siphoned off by them;

·      Initiate disciplinary & punitive action against the contractors found guilty and implicated by the SIT probe.

IRRIGATION SCAM: Govt saves face, names irrigation SIT members at the 11th hour

Mumbai: In a last-ditch effort to save itself from major embarrassment, the state government announced late on Monday the terms of references as well as the names of members of the special investigation team (SIT) to probe the alleged multi-crore irrigation scam.

The announcement came at 11.40pm, just 20 minutes before the expiry of the government’s self-imposed December 31 deadline.

According to a release put out by the CM’s office, the SIT, headed by water management expert Madhavrao Chitale, will have three former bureaucrats—retired additional chief secretary (finance) A K D Jadhav, retired irrigation secretary V M Ranade and retired agriculture commissioner Krishna Lavekar— as its members. The SIT, which will be headquartered in Aurangabad, will have to submit its report within six months.

The government also announced the SIT’s terms of reference, which include reasons for lesser irrigated area, cost escalation in projects and the delay in execution and implementation of the projects. The SIT will also probe if administrative procedures were followed while approving the cost escalations. The government has asked the SIT to recommend measures it needs to take to complete irrigation projects within deadlines.

Water resources minister Sunil Tatkare had announced the formation of the SIT in the state legislative assembly on December 17. “The SIT probe will certainly go beyond what the white paper has already established,” he had said.

“The government took its own sweet time to make the announcement. Fearing criticism from the Opposition in case the government missed the deadline, Chavan made the announcement at the eleventh hour,” a Mantralaya official said. “The difference of opinion among the coalition partners on the SIT’s terms of reference led to the delay.”

For the past few months, the Congress and the NCP have been at loggerhead over the irrigation issue. The NCP’s Ajit Pawar had to resign following allegations of irregularities in irrigation projects. After the government’s white paper practically gave Pawar a clean chit, he was re-inducted into the state cabinet. The Opposition condemned Pawar’s re-induction, following which the CM agreed to an SIT probe.

STORY SO FAR

• Following allegations by opposition parties over the irrigation scam worth Rs 70,000 crore, the CM announced an SIT probe
• The white paper tabled by the government in November claimed 28% rise in the irrigation potential in the past 10 years
• The state economic survey cited .01% rise in irrigated area in Maharashtra while the white paper tabled by the government claims 5.17% rise

Courtesy:
Sanjeev Shivadekar TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2013/01/01&PageLabel=8&EntityId=Ar00800&ViewMode=HTML

Irrigation Scam: Faulty design escalates cost of dam by 450cr

Mumbai: A faulty design was the ostensible reason for the cost of the Nerdhamana irrigation project in Akola district to skyrocket from an initial estimate of Rs 181 crore to Rs 638 crore.

State governor K Sankaranarayanan visited the project site on the Purna river earlier this month to supervise work. Experts said it is one of the most expensive irrigation projects in the country—Rs 9.18 lakh to irrigate one hectare of land as against the national average of Rs 1.70 lakh. Following the irrigation scam, TOI has learned that irrigation department officials have now proposed to reduce the project cost by 30%. Irrigation experts said this is a fit case for investigation by the state government-appointed special investigation team.
The water resources department justified the huge cost on the grounds that the project was innovative as it is being taken up in “soft black cotton soil’’. It also stated that the area was severely drought hit and in the suicide belt of Vidarbha region.

MONEY DOWN THE DRAIN?
Major Cost Escalations In State Projects
1 Gosikhurd (Bhandara dist): From Rs 372cr in 1982 to Rs 7,777cr today and expected to shoot up to Rs 13,000cr
2 Balganga (Raigad dist): From Rs 353cr in 2009 to Rs 1,220cr in 2010. Govt appointed panel recommends price should now be fixed at Rs 900cr
3 Kondhane (Karjat taluka): From Rs 56cr in July 2011 to Rs 328cr a month later. Contract was scrapped after TOI expose
4 Wardha diversion (Amravati): From Rs 120cr six years ago to Rs 433cr last year
5 Lower Penganga (Yavatmal dist): From Rs 1,402cr to Rs 9,027cr three years ago.

Contract cancelled following uproar in state assembly VIDC’s hasty tender process under lens
Mumbai: The cost of the Nerdhamana irrigation project in Akola has soared by over 250%.

The need for change of design was taken up after awarding of the project to the contractor.

The project is carried out under the supervision of the Vidarbha Irrigation Development Corporation (VIDC), an arm of the state water resources department, and is funded jointly by the Centre under the accelerated irrigation benefit project (AIBP).

The project received its first administrative approval (AA) on October 24, 2008 for an amount of Rs 181.99 crore. The tender process was initiated instantly and the work order was issued on March 2, 2009 for Rs 189.41 crore. In fact, a mobilization advance of 10% of estimated cost of project was also disbursed to the contractor. Work commenced and the scheduled date of completion was March 2012.

However, VIDC soon sought permission for a revised administrative approval (RAA), which substantially increased the cost to Rs 638.34 crore. The apparent reason given by the department was change in design of the barrage and its structures due to poor strata encountered at certain depths.

The need for change of design was taken up after awarding of the project to the contractor.

The advisory committee on irrigation, flood control and multipurpose projects in its 112th meeting held on September 14, 2011, and subsequent meetings, apprehended the unusual increase in the project cost. The revised estimate was given technical clearance by the central water commission in Delhi. However,the Centre has kept the funding pending following complaints from two MPs from Vidarbha regarding the astronomical increase in cost due to faulty design.

Questions are now being raised as to how VIDC initiated tender process hurriedly before finalizing the technicalities of the entire project. “The tender process was initiated based on tentative designs. VIDC should have waited till the final design was submitted since this was the first such project to be undertaken in different soil conditions,’’ said sources, who have tracked this project.

Correspondence between chief engineer, Special Projects, Amravati, to Barrage & Canal Design (N.W & N.W.S), shows that only the tentative design was prepared and final design was kept pending due to peculiar soil conditions.

“This proves that the state water resources department hurriedly initiated tender process without any technical sanction. Project work commenced in March, 2009, based on tentative designs,’’ said sources.
    Subsequently, the design wing of the central water commission sent a revised design around December 2009. “Since the revised design involved major cost variation from Rs 181.41 crore to 638.34 crore, it required a revised administrative approval. The state government should have waited for the actual design of the barrage and subsequently initiated tender process for the same. This would have saved hundreds of crores of rupees,’’ they added.
Courtesy:
Nauzer K Bharucha TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/12/24&PageLabel=1&EntityId=Ar00102&ViewMode=HTML

Irrigation Scam : Vest investigators with effective powers

Mumbai: The special investigation team appointed to probe the irrigation scam will be ineffective if it is not invested with sweeping powers to question ministers, bureaucrats and contractors allegedly involved in the multi-crore swindle.

By most accounts, almost half the Rs 70,000 crore spent on irrigation projects over the past decade may have been siphoned off or wasted on dud projects.

TOI presents its wish list on how the SIT should work and what it should go after:

• Investigate irregularities and criminal conspiracy, including roles of ministers, officers and contractors
• Estimates for every tender above Rs 1 crore must be thoroughly probed. Compare rates given for major tenders (Rs 50 crore) with smaller tenders (Rs 10 crore) for discrepancies
• Investigate if costs of estimates were updated or increased as per department schedule rates (price levels) and laid-down rules
• Analyse estimates for works awarded without calling tenders and their legality
• Probe transportation lead rates paid by irrigation corporations for various projects
• Investigate projects where, in violation of well-established principles and various circulars, market rates were used to update costs of tenders. Also examine steps taken to recover extra sum paid to contractors
• Verify if contractors for every tender above Rs 1 crore satisfied enough criteria. 
• Check if due process was followed in awarding contracts
• Find irrigation potential planned, declared and achieved year-wise and project-wise
• Ascertain actual irrigation planned, declared and created year-wise and project-wise
• Conduct physical audit of actual land irrigated and irrigation potential created
• Compare rates of various irrigation corporations in the last ten years and focus on the variance. Particularly rates of pipes for lift irrigation schemes, hearting, casing, concrete and tunnel excavation
• Investigate in every corporation details of advances paid to various contractors along with rate of interest charged and interest waived
• Inquire into details of claims and idle charges paid to contractors and the reasons
• Probe details of total tenders called annually by various irrigation corporations and compare them to budgetary provisions and funds provision
• Examine diversion of funds from one region to another, one district to another, one project to another, names of authorising authorities, and whether sanctions were sought from the state governor
• Seek details of where project costs increased due to disregard of mandatory designs, particularly lift irrigation schemes in Vidarbha
• Probe works that should have been executed by mechanical/electrical body of the state but, instead, tenders were awarded by civil organisations
• Calculate average rate at which tenders were quoted
• Find details of number of tenders allotted in past decade and their status. Investigate if tenders convened under e-tender system were foolproof
• Examine Vadnere committee report, Mendhegiri report, M K Kulkarni report, Kolawale report and departmental enquiries; suggest criminal action
• Suggest steps to recover financial loss incurred to the state due to irregularities
• Examine contractors who were awarded tenders of over Rs 50 crore in a single project
• Check bank accounts of contractors for money laundering.

CM rejects printing error argument
Nagpur: CM Prithviraj Chavan on Monday dismissed R R Patil’s claim that a printing error was behind the assertion in the state economic survey 2010-11 that the irrigation potential has increased by only 0.1%. TNN
Courtesy:
Nauzer K Bharucha | TNN

http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/12/18&PageLabel=4&EntityId=Ar00402&ViewMode=HTML

Irrigation Scam : 3 Member SIT To Investigate Case

Nagpur: Bowing to pressure from the opposition, the state government on Monday announced a probe by a special investigation team (SIT) into the alleged irrigation scam.

Water resources minister Sunil Tatkare informed the Lower House of the legislature that the SIT would be headed by irrigation expert and former bureaucrat Dr Madhavrao Chitale. The team’s terms of reference and work duration, he said, would be finalized before December 31.

Government sources said the panel would have two more members apart from Chitale and would get six months to complete the probe. The two other SIT members will also be former civil servants, with one from a financial background.
Courtesy:
Sharad Vyas TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/12/18&PageLabel=1&EntityId=Ar00106&ViewMode=HTML

Irrigation Scam of Maharashtra : Chavan refuses to empower irrigation scam SIT with law

Nagpur: Chief minister Prithviraj Chavan on Thursday ruled out instituting the special investigation team (SIT) to probe the alleged irrigation scam under theCommissions of Inquiry Act, 1955, which would have given it more teeth. The opposition called the refusal an attempt to save deputy chief minister Ajit Pawar and water resources minister Sunil Tatkare, who are accused of being involved in the scam.

The government announced an SIT under Madhav Chitale, a well-known irrigation expert, on Monday after coming under pressure from opposition benches.

Speaking to TOI on Thursday, Chavan said that a panel under the Commissions of Inquiry Act has to be headed by a retired high court or Supreme Court judge. The government, he added, was not contemplating appointing such a person. “We are looking to include an expert from the finance field on the panel, whichwill probably havefour members,” he said. Chavan added that the SIT will be granted a deadline of six months, with a provision of extension if the members so demand. He maintained that he had proposed Chitale’s name as the panel head.

Reacting to Chavan’s assertions, lawyer Anil Kilor charged the government of misleading the public. Kilor is pleading the case for the NGO Jan Manch, which wants a judicial probe or a CBI inquiry into the multicrore scam. “There is no provision in the Commission of Inquiry Act that there should be a judicial member on the panel,” he said. Kilor explained that the government has to compulsorily give statements on oath to a panel formed under the COI Act.

“The panel becomes quasi-judicial, with judicial powers to summon bureaucrats, ministers and experts. There are regular hearings andthey are deemed judicial proceedings under Section 193 and 228 of the IPC. It is just like regular court hearings,” Kilor said, adding that anyone deliberately skipping hearings can be prosecuted.

The lawyer pointed out that the SIT, as instituted by the state, will have to seek appointments of officials. Moreover, it will not be binding on anyone to be present before it. “Such an inquiry into areas where thousands of crores of public money is involved cannot be relied upon. Even inquiries made by Nandkumar Vadnere and HT Mendgiri committees were not under the COI Act and therefore the government was not duty bound to act against the guilty,” Kilor said.

LEFT TOOTHLESS
The chief minister has refused to set up a probe into the irrigation scam under the Commissions of Inquiry Act. The law considerably empowers any panel instituted under it: Panel can summon officials, bureaucrats, ministers and experts It is mandatory for all those summoned by the panel to be present Panel becomes a quasi-judicial body with judicial powers All depositions to it are on oath; giving false information invites charge of perjury Initiating action against those held guilty is mandatory

VIDC admits to poor work in Gosikhurd project
The Vidarbha Irrigation Development Corporation (VIDC) has admitted before the Nagpur bench of the HC that the work on the left bank canal of the Gosikhurd project was of very poor quality and that the contractor, BJP MLC Mitesh Bangadia, was asked to do the relining afresh. The admission came in an affidavit in response to a PIL that alleges irregularities in VIDC. TNN
Courtesy:
Vaibhav Ganjapure | TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/12/21&PageLabel=7&EntityId=Ar00700&ViewMode=HTML

Irrigation Scam of Maharashtra : CAG to be made party to PIL in irrigation scam of Maharashtra

Mumbai: The Bombay high court has permitted a social activist to make the Comptroller and Auditor General (CAG) a respondent in a public interest litigation on the alleged irrigation scam in Maharashtra.

Petitioner Pravin Wategaonkar made an oral plea on the addition before a bench headed by Justice Ajay Khanwilkar on Thursday. The bench allowed him to amend the PIL to make CAG a party before January 7, 2013, and posted the matter for further hearing on January 15.

The court has already received the state’s response to the petition. In it, the state denies allegations of a nexus between ministers and contractors, but admits to several irregularities.

For instance, it acknowledges that the governing council headed by the state water resources minister met just 49 times in 10 years up to 2010. As per law, the council is required to meet every month to approve and review important decisions. Attempting to write off the dereliction as inconsequential, the state said, “Lesser meetings did not hamper the performance of Konkan Irrigation Development Corporation (KIDC) projects.”

But it might have. The PIL notes that KIDC did not pay Rs 8.25 crore as compensation to the villagers affected by the Jamda project in Ratnagiri. And yet it gave Rs 26.33 crore to the contractor as “idle payment charges” because work was held up owing to villagers’ protests over lack of compensation. The state, in the response, says it “only sanctioned the amount” and has not paid the contractors yet.

In a similar instance, the state confesses paying “idle payment charges” of Rs 7.4 crore to a contractor for a project at Nardave in Sindhudurg because protesting villagers stalled work. The PIL argues that while KIDC paid the contractor hastily, it failed to give less than half that amount to the forest department for acquiring forestland. The state’s defence simply is that the forest department never demanded money.

According to the PIL, no work can legally begin on a project unless all required land is acquired. But the state maintains that dam projects are split into two parts: land for one part is acquired and work on it begins. The PIL calls this strategy a ploy as part of “institutionalised irregularities and corruption” to delay projects and allow cost overruns.
Courtesy:
Swati Deshpande | TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/12/21&PageLabel=7&EntityId=Ar00702&ViewMode=HTML

Irrigation Scam of Maharashtra: ‘Without FIR, police power, SIT’s irrigation probe futile’

Mumbai: The state government may have announced a probe by a special investigation team into the alleged irrigation scam but so far, no FIR has been registered in the case. For the panel to start an investigation, the government would first have to ensure that an FIR was filed or the team would be able to do nothing but merely inquire into the allegations, said a senior police officer.

Even legal experts said without an FIR, the SIT would not have any provision under which they could summon private players involved in the alleged scam. Echoing him, a police officer said “law suggests the use of force in investigation to unearth the truth and trace the financial transaction”. “It can be possible only after an FIR is registered…” he said.

Though BJP leader Kirit Somaiya had lodged separate complaints with the economic offence wing and the anti-corruption bureau and submitted related documents to them, the agencies are yet to convert the complaints into FIRs.

Moreover, said another police officer, since this SIT would be headed by irrigation expert and former bureaucrat Dr Madhavrao Chitale, he would not have the power to investigate the case or make arrests as only serving policemen and government investigating agencies can do so. So, former IPS officer-turned-lawyer Y P Singh added, the state would have to notify Chitale as a special police officer under the Bombay Police Act, authorizing him with the legal power to summon witnesses/ suspects, inquire, investigate, freeze bank accounts and make arrests. Concurring with the officer, another senior cop said if the state-appointed SIT was not given the police power, it would be toothless, rendering it a “special inquiry and not an investigation team”. Without the police power, the team could only submit its findings to the appointing authority, the officer said. Chitale would not have any power to act against any suspect unless the government bestowed the special power on him, he added.

Singh said, “Law says cases where private players are involved in corruption should be probed by a police agency. The government must first register an FIR in an alleged scam and also notify the panel head a special police officer, giving him the power to probe the case.”

Apparently upset with the SIT, Somaiya said, “This is a cover-up. It’s not an SIT but an inquiry team under an expert. If the state is interested in proper investigation, why does it not give its consent to the ACB and EOW to probe?”

The state has prepared a detailed affidavit on the steps it has taken in the alleged scam and will file it in the HC on Wednesday.

DIFFERENT ANGLES OF INVESTIGATION
SIT HEADED BY A POLICE OFFICER
If a serving police offi cer heads an SIT, the state or the court does not have to bestow special power on him but he himself can investigate a case, summon witnesses/suspects, inquire, freeze bank accounts and make arrests. In case of a retired officer, the court or state has to delegate such power to him as only a serving cop or an investigating agency can make arrests. Some officers feel an SIT headed by police is more effective as cops are better skilled than bureaucrats in probes and interrogations

SIT HEADED BY A FORMER BUREAUCRAT
If a former bureaucrat heads an SIT, the court or government will have to notify him as a special police officer under the Bombay Police Act, empowering him to investigate a case and make arrests. Otherwise, his work will be restricted to summoning government officers and studying documents. Some feel a retired babu may not be best cut out for the job as he lacks investigation and interrogation skills, which play a crucial role in cracking alleged corruption cases

TELGI SCAM
The Bombay high court appointed an SIT under retired IPS offi cer S S Puri in 2003 to investigate a case against fake stamp paper scam accused Telgi in Pune. The team arrested several senior IPS offi cers and a politician

FAKE ENCOUNTER CASE
In 2009, the Bombay high court appointed an SIT under IPS officer KMM Prasanna to investigate the killing of Chhota Rajan associate Lakhan Bhaiya in an alleged fake encounter in Versova in 2006. The court ordered the SIT to register an FIR based on fresh statements of the complainant, the brother of the deceased. The SIT arrested encounter specialist inspector Pradeep Sharma and senior police inspector Pradeep Suryavanshi along with several other policemen

KRIPASHANKAR SINGH CASE
The Bombay high court ordered an SIT, under the supervision of the Mumbai police commissioner, to investigate a complaint against Congress leader Kripashankar Singh of possessing assets disproportionate to his income. The SIT initiated the probe after an FIR was registered against Singh and his family in February 2012. Earlier, the anti-corruption bureau had conducted an inquiry into the allegation and submitted its report to court, which ordered the SIT to take over the case
Courtesy:
Vijay V Singh TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/12/19&PageLabel=7&EntityId=Ar00700&ViewMode=HTML

Irrigation Scam of Maharashtra: Chavan pacifying saffron camp: Oppn

Mumbai: Chief minister Prithviraj Chavan’s decision to set up an SIT to probe the alleged Rs 70,000-crore scam in the NCP-controlled water resources department is being seen as an attempt to pacify the saffron combine.

Leader of opposition Eknath Khadse said Chavan had done a balancing act by setting up a committee headed by water resources expert Madhav Chitale. On one hand, he had no other option but to set up the panel and on the other, the NCP made it clear to him that he must form a committee that would not harm Ajit Pawar, he said. “Five PILs have been pending in the HC and in all of them, the allegations are similar. It has been established that there was abuse of power and rampant irregularities in the allotment of contracts. The probe should be monitored by the court, we will approach the judiciary,” Khadse said.

In March when Khadse had said the dismal performance of the water resources department should be probed, Chavan had said his government would come up with a white paper on the irrigation projects’ status. After TOI exposed the alleged scam, Ajit Pawar, who controlled the department, quit the cabinet, saying he would not return unless he got a clean chit. In less than three months, he was back after he was given a clean chit in the white paper drafted by his department.

Khadse has been demanding a judicial probe or an examination by an SIT that will submit its report to the HC. Chavan reportedly wanted a judicial probe, but the proposal was rejected by the NCP. Finally the Congress and NCP arrived at a compromise and decided to set up an SIT that will take instructions from water resources minister Sunil Tatkare, who is also under the lens for alleged graft. “The SIT will report to a cabinet member who is under scrutiny,” Khadse said.

Times View: At stake is the govt’s credibility

The government does not seem to be too keen to get to the bottom of the alleged multi-crore scam. This is understandable at one level – neither the Congress nor the NCP wants to rock the coalition boat – but it’s come at ahuge cost; the decision to set up an SIT that apparently does not have too much power has put the credibility of the government at stake. The government may gloss over these issues in the legislature but answering questions in court will be much tougher.
Courtesy:
Prafulla Marpakwar TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/12/19&PageLabel=7&EntityId=Ar00703&ViewMode=HTML

Irrigation Scam of Maharashtra: Scope of SIT to decide probe outcome, says whistleblower

Nashik: Restraining himself from saying anything on the appointment of a special investigation team (SIT) to probe the irrigation scam, whistleblower Vijay Pandhare said the terms of reference to be finalized by the government would decide the outcome of the inquiry.

“Let the terms of reference be finalized and let the names of other members of the committee come to the fore. Only that will bring a clearer picture about the intentions of the government,” said Pandhare, the chief engineer, Maharashtra Engineering Training Academy.

While the engineering association was quick to welcome the move, some of the engineers, on the condition of anonymity, said the SIT would have been more fruitful had it been ordered by the judiciary. If the terms of reference do not award the committee any powers, the SIT would turn out to be nothing but a farce,” said a senior official of the water resources department.

Pointing out that the judiciary was hearing a number of public interest litigations, the official said, “If the judiciary also appoints an SIT or orders the state to come up with a better suggestion, then the government will have to re-think on SIT.”
Courtesy:
Abhilash Botekar TNN
http://epaper.timesofindia.com/Default/Scripting/ArticleWin.asp?From=Archive&Source=Page&Skin=TOINEW&BaseHref=TOIM/2012/12/19&PageLabel=7&EntityId=Ar00707&ViewMode=HTML