dna impact: PIL against MTDC over purchase of Volvo buses, kiosks

After dna highlighted, through a series of articles, corruption worth several crores of rupees in the purchase of Volvo luxury buses and kiosks, a public interest litigation (PIL) has been filed in the high court in this regard against the state tourism corporation and senior officials.

In another development, the Accountant General (AG), which reports to the Comptroller and Auditor General of India (CAG), has made harsh observations on the case. And this, being an election year, could have a direct bearing on Chhagan Bhujbal, under whose ministry the Maharashtra Tourism Department Corporation (MTDC) functions.

dna had reported how initially MTDC had planned to buy five of the smaller Volvo 9400 coaches, for which the corporation had received a quotation for Rs 3.82 crore. However, five multi-axel Volvo buses were bought at a cost of Rs 5.41 crore instead, without even waiting for the feasibility report. M/s Fortress Infrastructure Advisory Services, which was the project consultant, was appointed at a fee of Rs 8.10 lakh. The AG, in an audit report for 2012-13, observes: "The consultant had reported that multi-axle Volvo buses would not be pliable on most routes in Konkan due to the single approach roads there, which are in bad condition, and the lack of manoeuvring space for vehicles like Volvo buses. In spite of this, the company (MTDC) opted for Volvo buses."

The petitioner, Dilip Ajgaonkar, has highlighted that the proposal for the five Volvo buses, received on October 11, 2012, was passed and the payment of Rs 5.41 crore released to Volvo Buses India Private Limited the very next day.

But as not one private operator came forward to operate these buses, they remained idle for over a year. They were then handed over to RMSS Buses Private Limited for being operated on other routes at a paltry Rs 75.5 lakh for five years. "At such a paltry compensation, MTDC will never be able to recover the amount it had invested. It's a waste of public money" said Ajgaonkar.

The PIL has also highlighted how 100 kiosks were purchased for Rs 1.27 crore for being installed at important locations to promote tourism. But most of these kiosks have remained idle for over a year. The audit report has slammed the authorities on this issue too stating that no feasibility study had been undertaken prior to buying the kisoks from M/s Forbes Technosys Limited without floating tender. 

Similarly, handing out the luxury train, Deccan Odyssey, to The Luxury Holidays (TLH), a private operator, for operating it, had cost the exchequer a loss of Rs 16.92 crore, claims the PIL. The AG audit too observed that the deal had been done without any formal agreement with TLH, which had also failed to compensate the MTDC.