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CAG performance audit finds cost overruns in paramilitary forces construction projects

In 20 selected works, mobilisation advances amounting to Rs. 87.64 crore were given by the CAPFs to the executing agencies, but no separate project account for mobilisation advance was maintained by the executing agencies.

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CAG's performance audit has found several irregularities in construction activities undertaken by the seven central armed police forces (CAPFs) including those of tardy land acquisitions, delay in awarding work and completion and no system of quality assurance resulting in bad construction quality of buildings and cost overruns worth several crore rupees.

The performance audit undertaken for the period from 2008-09 to 2013-14 found that Union home ministry and CAPFs were not able to meet the requirement of the office buildings as well as residential buildings for personnel as against the authorised requirement of 2.99 lakh dwelling units, only 1.54 lakh dwelling units were available for the CAPFs personnel. Similarly, against the requirement of 5113 office buildings, only 2041 were available.

Thus the satisfaction level in providing residential accommodation for under stress CAPFs personnel ranged from a low of 2.06 per cent to 22.48 per cent as on March 2014 against the targeted 25 per cent satisfaction level.

There was a significant delay beyond prescribed limit ranging from 5 months to 9.7 years in 56 out of 132 selected land acquisition cases worth Rs. 236.05 crore. In 23 cases, land was acquired in access of authorisation resulting in additional expenditure of Rs. 29.21 crore. In 18 cases of land acquisition, sale deed/mutation were not executed by the CAPFs in contravention to the home ministry guidelines.

In 20 selected works, mobilisation advances amounting to Rs. 87.64 crore were given by the CAPFs to the executing agencies, but no separate project account for mobilisation advance was maintained by the executing agencies.

Although there were delays up to 56 months in completion of works, no compensation charges amounting to Rs. 19.86 crore were levied on the contractors.

Excess payment of Rs. 6.42 crore over the contractual stipulation was made to the contractors. The excess payment made were mainly due to wrong calculation of price index, escalation of labour rates, cement and steel rates etc.
 

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