Lokayukta unearths scam in Rs 136-cr infrastructure project

June 2, 2017

Bengaluru, Jun 2: A Lokayukta enquiry report has confirmed large-scale irregularities in handling of Rs 136-crore Bidar infrastructure project fund.i-lok

The report submitted by Lokayukta chief engineer stated that almost all the infrastructure works were executed in violation of the Karnataka Transparency in Public Procurement Act and also by paying more than what the bidder had quoted for the work.

The complaint filed to the Lokayukta in 2014 had stated that certain officials at the district administration in Bidar had siphoned off most of the funds that the Union government and the state governments had released in October 2008.

The chief engineer was directed to make spot visits to inspect the files pertaining to the works taken up by the district administration. Senior IAS officer Harsh Gupta was the deputy commissioner when Rs 136 crore was released to the district for taking up various works.

The fund was released to upgrade Bidar infrastructure in view of “Guru-ta-Gaddi,” a celebration to observe the centenary of Guru Granth Sahib. “Since thousands of devotees were expected at Nanded in Maharashtra, the crowd was also expected to visit the Gurudwara complex and other places in Bidar. Hence, the Centre had allocated Rs 136 crore fund to upgrade the infrastructure in Bidar. This fund was part of the Centre's additional central assistance,” the report said.

The team, led by chief engineer Lokayukta, which inspected the documents in April 2015 found that funds were released in two instalments – one Rs 40.82 crore and another Rs 95.20 crore during September-October 2008. The report stated that the then DC, Bidar, (Harsh Gupta) had requested the state government to exempt these works from the provisions of the Karnataka Transparency in Public Procurement Act. Though the state government had not accorded any exemption, all works were split into piece works of below Rs 5 lakh budget.

'Act violated'

“The works were split only to avoid the provisions of the Karnataka Transparency in Public Procurement Act. The files perused reveal that only short-term tenders were invited. Though there was poor response to the tenders called, the district administration made no attempts to recall the tender. In certain cases, single bidder was allotted the work after negotiations.

All these are in violation of the provisions of Karnataka Transparency in Public Procurement Act. Some works were allotted to the contractors by paying more than the bidding amount,” the report stated.

Even as the district administration took up works worth Rs 114.89 crore by 2011, the state government issued an order in January 2011 directing the administration not to take up any more work.

Lokayukta Justice P Vishwanath Shetty said that he is yet to go through the file. “I was told about this case. However, the file has not been placed before me yet. Besides, I have instructed the officials not to place any file before me out of turn, unless it concerns larger public interest and pertains to serious problems to the general public,” Justice Shetty said.

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News Network
May 5,2020

Bengaluru, May 5: Karnataka Chief Minister BS Yediyurappa on Tuesday said that the coronavirus situation in the state is "under control" as compared to several other states in the country.

He also hinted that soon the construction and industrial activities would be allowed in the state except in the red zones.

"Coronavirus situation in the state is under control as compared to other states. Due to this, travel of migrant workers was prohibited. Now, trade, construction and industrial activities need to restart, except in the red zones," he told reporters.

According to the Karnataka Health Department, the state has so far recorded 659 COVID-19 cases, including 324 discharged and 28 deaths.

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News Network
May 29,2020

New Delhi, May 29: The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 1.2 crore on Karnataka Bank Limited for non-compliance of asset classification, divergence and provisioning norms.

"The penalty has been imposed in exercise of powers vested in RBI under the provisions of Section 47 A (1) (c) read with Section 46 (4) (i) of the Banking Regulation Act, 1949. 

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers," the central bank said in a statement on Thursday.

According to the central bank, the statutory inspection of the bank with reference to its financial position as on March 31, 2017, and as on March 31, 2018, and the Risk Assessment Reports (RAR) pertaining thereto revealed, inter-alia, non-compliance with the directions issued by RBI.

Earlier, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for non-compliance with the directions.

After considering the bank's reply to the notice, oral submissions made in the personal hearing and examination of additional submissions, RBI concluded that the charges of non-compliance with RBI directions warranted imposition of monetary penalty, according to a release.

This action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

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News Network
March 23,2020

Bengaluru, Mar 23: In the wake of the shutdown in several districts of the state to control the COVID-19 spread, Karnataka government on Monday said food would be provided free of cost through Indira Canteen for the poor who depend on daily wages for their livelihood.

The state-sponsored subsidised 'Indira Canteens' as of now serves breakfast at Rs 5 and lunch and dinner at a cost of Rs 10.

"In the interest of the poor, it has been decided to serve free food for poor. Through Indira Canteen, free food will be served for the entire day for the poor," Yediyurappa told reporters.

The Karnataka government has already announced shutdown of all commercial activities, barring essential services, in nine districts where COVID-19 cases have been reported till March 31.

They are: Bengaluru city, Bengaluru Rural, Mangaluru, Mysuru, Kalaburagi, Dharwad, Chikkaballapura, Kodagu and Belagavi.

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