LDA caused wrongful loss of almost Rs 30 crore: Report
Source: The Sangai Express

Imphal, April 03 2018: An enquiry report submitted by Khuplem Lhouvum, Additional SP, Vigilance and Anti Corruption Department to the OC Vigilance and Anti Corruption Police Station in connection with the vigilance case number 2 of 2018 against ex-Chief Minister and former Chairperson of LDA O Ibobi and former LDA Project Directors Ch Gojendro and Th Ibobi that the LDA caused loss of Rs 29,91,20,059 to the Government and corresponding wrongful gain to M/S K Pro Infra Works Pvt Ltd.

The report was submitted on March 24, 2018.Meanwhile, Vigilance and Anti-Corruption officials today questioned former Forest and Environment Minister Th Debendra in connection with the same case.

Ex-Chief Minister O Ibobi was questioned yesterday.

The executive body of Loktak Development Authority (LDA) which included the then Chief Minister and LDA Chairman O Ibobi, the then Minister of Forest and Environment and LDA Vice Chairman Th Debendra, Ch Gojendro, the then Project Director (Member Secretary) LDA and others took a decision in a meeting held on August 5, 2008 without any consent of the Cabinet and other members of LDA in which Progressive Construction Limited (PCL) Hyderabad was allowed to execute works for removal of phumdi from Loktak Lake without calling any tender on trial basis at the estimated cost of Rs 3,06,10,000 which clearly indicates favouring M/S (PCL) Hyderabad by abusing their official position.

LDA caused wrongful loss of almost Rs 30 crore: Report

Chiranjeevi, the then Project Director of PCL submitted his proposal letter to the LDA Project Director on the same day in which the meeting was held.

It was further revealed that M/S PCL submitted the proposal letter to the LDA without any corresponding letter from LDA and the proposal letter of M/S (PCL) was accepted by Ch Gojendro, the then Project Director LDA.

LDA paid a total bill amount of Rs 2,93,96,803 for the removal of Phumdis whereas Rs 1,01,22,215 was deducted from the amount as hiring charge of machinery and HSD fuel.

LDA also recovered a sum of Rs 24.10 lakh which was paid in excess to PCL Hyderabad for the departmental works from the bill of M/S K Pro Infra works Private Limited which is a sister agency of PCL.

However there is no completion certificate to be submitted by the PCL for the works executed departmentally by LDA through PCL in the records available in the office of LDA.

The report says that the tender committee of LDA accepted the single tender by negotiating the rates offered by M/S K Pro Infra Works Pvt Ltd which amounted to Rs 22439.24 lakh against sanctioned amount of Rs 22373.52 lakh (in excess of Rs 65 lakh) in compliance with the Cabinet decision taken on July 4, 2009.The executive body of LDA allowed M/S K Pro Infra Works Private Limited to get 10 per cent of the estimated tender amount as advance for plant and machinery against the CPWD norms by taking a decision in the meeting held on October 21, 2009 chaired by the then LDA Chairman along with the then Vice Chairman and others.

M/S K Pro Infra works Private Limited had procured only 25 number of trucks valued at Rs 5.27 crore out of the sanctioned amount of Rs 21,95,20,000 rupees violating rule number 32.6 of CPWD manual.

LDA also sanctioned 10 per cent of the tender amount as mobilization advance without interest to M/S K Pro Infra Works Private Limited against CPWD norms which should be done with simple interest as per Rule No 32.5 of CPWD manual.

The meeting held on October 21, 2009 was attended by nine persons including O Ibobi, Th Debendra, DS Poonia the then LDA member, AN Jha, the then LDA member, PK Singh, the then Secretary to CM Manipur, Th Ibobi, the then Project Director LDA, L Bhagaton the then SE LDA, and Raja Shekhar Paturi and Chiranjeevi, representatives of K Pro Infra Works Pvt Ltd.

Out of 37 members of LDA, only five attended the meeting and thus the decision taken at the meeting clearly violated the Manipur Loktak Lake (Protection) Rules 2008.Total amount of Rs 173,58,62,426 was paid to M/S K Pro for the contract work (management of phumdis in Loktak Lake).

However, M/S K Pro could not complete the works within the stipulated plus extended period and contract was therefore rescinded on June 1, 2013.Upon the rescission of the contract agreement between the M/S K Pro and LDA, a work order for the balance work was issued to M/S HVS Construction Materials Private Limited by Th Ibobi, the then Project Director of LDA.

M/S HVS Construction Material Private Limited executed the balance work at the lowest rate as compared to the rates offered by M/S PCL, M/S K Pro and LDA.

Thus a total amount of Rs 29,91,20,059 was paid to M/S K Pro at an exorbitant rate as compared to the rate negotiated with M/S HVS thereby causing wrongful loss to the Government to the tune of Rs 29,91,20,059 and corresponding wrongful gain to M/S K Pro Infra Works Pvt Ltd.