Misappropriation of over Rs 61 lakh alleged
Source: The Sangai Express

Imphal, September 12 2026: A 2025 letter of the Principal Accountant General (AUDIT) to Works Secretary marked "CONFIDENTIAL" and subsequent reports of the Public Works Department have revealed an alleged misappropriation of over Rs 61 lakh in the execution of a project for improvement of the State Guest House at Babupara, Imphal during 2019-2020 .

The work "Major Improvement of State Guest House, Babupara, Imphal (Phase-II)" for construction of protection wall and compound wall on the eastern side was awarded to a Special Class Contractor on June 6, 2019 .

The project, the work order of which was issued with a tender amount of Rs 1.43 crore was completed on June 1, 2020 at a cost of Rs 1.52 crore.

The official documents, this paper has seen, revealed that an officer at that time of the PWD had allegedly inflated the work volume and made an excess payment of Rs 61,73,045 to the contractor.

The volume of work was allegedly inflated for two components--"earthwork in excavation" and "providing and laying cement concrete" .

While the actual physical measurement of the length of the site is 106.50 m, it was recorded as 4792.50 m in the Measurement Book for the "earthwork in excavation" component.

This resulted in the inflation of the cost from Rs 40,464 (actual) to a staggering Rs 18,89,446--meaning Rs 18,48,979 was paid in excess.

For the other component (providing and laying cement concrete), the quantum of work was recorded as 620.68 cum instead of 12.78 cum, the actual requirement.

This resulted in the inflation of the cost from Rs 1,29,498 (actual cost) to a staggering Rs 44,13,100--meaning Rs 43,24,066 was paid in excess.

While the actual cost of the two components combined is Rs 1,29,498 only, the contractor has been paid Rs 63,02,546--- an excess of Rs 61,73,045, as per the documents.

Notably, the State Principal Accountant General (Audit) had written to the Secretary, Works on April 4, 2025, enclosing a draft on the "undue benefit" given to the contractor "due to inflated volume of work", and requesting the "Government" to confirm the facts and figures mentioned therein for inclusion in the Report of Comptroller and Auditor General of India for the year ended March 31, 2024 .

The Principal Accountant General (Audit) had requested the "Government" to confirm the facts and figures within three weeks time.

While the Executive Engineer, Building Division No-II, PWD had submitted the facts and figures, confirming the inflation of work volume and excess payment, to the Chief Engineer PWD and the latter to Principal Secretary Works in January 2026, no further steps were taken to include the draft prepared by the Principal Accountant General (Audit) in the CAG Report, said sources.

Comment