CWG English - Part-2

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Common Issues |n
Venue Deve|opment
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 237
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1here were considerob/e voriotions in the performonce of desiqn consu/tonts enqoqed by
different venue owners/ imp/ementinq oqencies. we noticed thot where the ro/e of the
foreiqn portner in the desiqn consu/tonts consortio {with re/evont experience in desiqn of
sports stodio) wos /ess, there were siqnificont deficiencies in performonce.
uespite o mu/ti-/eve/ quo/ity ossuronce mechonism, most of the imp/ementinq oqencies
hod enqoqed 1hird Porty lnspection/ uo/ity 4ssuronce {1Pl4) 4qencies for /orqer works.
lt is importont thot the ro/e ond responsibi/ities of the 1Pl4 4qencies ond the
imp/ementinq oqencies shou/d be c/eor/y demorcoted. whi/e the 1Pl4 4qencies shou/d
be he/d occountob/e in its own riqht for poor quo/ity of execution of the work, the
imp/ementinq oqencies shou/d continue to be the fino/ point of responsibi/ity ond shou/d
c/ose/y monitor the work of the 1Pl4 4qencies.
uifferent imp/ementotion oqencies fo//owed different processes for oword of mojor
construction works. cPwu oworded most of the venue deve/opment controcts on item-
rote bosis, which is the preferred method occordinq to the cPwu Monuo/ since it is best
suited to deviotions from the oriqino/ scope of work. nowever, two mojor works {5PM ond
roofinq of lN5), which were oworded on /umpsum bosis. Lorqe number of extro/
substituted items ond deviotions in the works oworded on /ump sum bosis tended to
chonqe the very essence of the controct. Pwu, 6Nc1u oworded most of its works on
percentoqe rote tenders. 1his method of tenderinq is recommended/ suitob/e, on/y when
the mojor portion of work is on occount of items inc/uded in the ue/hi 5chedu/e of kotes
{u5k), which wos not the cose in most of the venue deve/opment works.
ueficiencies in the process for oword of mojor works re/oted moin/y to pre-quo/ificotion
ond e/iqibi/ity. 1he pre-quo/ificotion of bidders seporote/y for eoch venue not on/y
introduced orbitroriness ond inconsistencies in e/iqibi/ity criterio, but o/so de/oyed the
process of oword ond execution. considerinq the simi/or noture of works for sports venues,
o common pre-quo/ificotion process shou/d hove been conducted.
1here were de/oys re/otinq to venue deve/opment ot o// stoqes - proctico//y no proqress
beinq mode ti// mid 200, thereofter p/onninq de/oys on occount of /ote preporotion/
opprovo/ of venue briefs, return briefs, ond concept desiqns, de/oys in tenderinq ond
controct oword, ond de/oys in works execution ond hondover.
we found severo/ deficiencies in the process of "justificotion" for owordinq works ot
substontio//y hiqher omounts thon the cost estimotes. 1here were o/so numerous
instonces of deviotions {quontity deviotions, extro items, ond substituted items) from the
oriqino/ scope of work, with odverse imp/icotions in terms of increosed cost ond de/oys.
ChapLer 16 - Common lssues ln venue uevelopmenL
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1hese ore ottributob/e to deficiencies in performonce of the desiqn consu/tonts, the works
controctors, ond the imp/ementinq oqencies, os we// os subsequent chonqes in detoi/ed
venue specificotions ot the instonce of the Oc/ lnternotiono/ 5portinq lederotions.
we found numerous instonces of de/oys in ochievinq the mi/estones /isted in the controct,
for which odequote peno/ oction {/evy of compensotion/ Liquidoted uomoqes) wos not
token, hindronce reqisters were poor/y mointoined, ond xtensions of 1ime {O1s) not
monoqed proper/y. lurther, it is o motter of qrove concern thot despite the /opse of severo/
months since the conc/usion of the 6omes, fino/ poyments ore nowhere in siqht for most
venue deve/opment works. 4/so, in our opinion, the current c/ouses for compensotion/ Lu
do not provide odequote disincentives for de/oys in comp/etion. lor such projects, 6ol moy
consider revised Lu/ compensotion c/ouses with hiqher disincentives, with on oppropriote
cost-versus-time trode-off.
4 key e/ement of cost esco/otion is /obour woqe esco/otion. we found severo/ deficiencies
in the opp/icotion of this esco/otion c/ouse. ln our opinion, o/thouqh such poyments ore in
the noture of compensotion, the poyments ore routine/y mode os per o specified formu/o
ond there is no mechonism to verify thot poyment is mode for /obour octuo//y enqoqed by
the controctor/ sub-controctor. ln order to ensure thot the benefit of increosed minimum
woqes reoches the octuo/ beneficiory, we recommend thot such poyments shou/d be mode
on/y on production of proof of unski//ed /obour octuo//y enqoqed, du/y outhenticoted by
the Lobour we/fore ueportment.
4nother issue with reqord to the venue deve/opment controcts is the reimbursement of
service tox to the controctors. current/y, such reimbursement is beinq mode on the bosis of
e-cho//on indicotinq on/y /ump poyments. ln future, such reimbursement shou/d be mode
on/y on the bosis of o certificotion from the chortered 4ccountont thot the service tox
c/oimed for reimbursement hos been poid specifico//y for the work covered under the
controct.
we o/so found deficiencies in /eqocy p/onninq ond siqninq of Mous with the venue owners.
servlces of CWu's CenLral ueslgn
CrganlsaLlon (CuC) were noL uLlllsed.
(8efer paragraph 17.1 and 17.2 of Lhe
reporL),
ln Lhe case of Lhe Cames vlllage pracLlce
venues, a consorLlum of Suresh Coel
AssoclaLes wlLh uecaLhlon was awarded
Lhe conLracL, however, uecaLhlon
wlLhdrew from Lhe consorLlum due Lo
problems wlLh Lhe lndlan parLner.(8efer
paragraph 20.6. of Lhe reporL), and
Llkewlse, ArchlLecLs 8ureau ln consorLla
wlLh Croup CSA was appolnLed by uuA
for refurblshmenL of exlsLlng venues aL
Slrl lorL SporLs Complex and ?amuna
SporLs Complex (eddle 1horp
ArchlLecLs havlng been appolnLed for
deslgnlng of new faclllLles). 1here were
several deflclencles ln Lhe performance
of ArchlLecLs 8ureau.(8efer paragraph
18.2.2 of Lhe reporL).
lor hosLlng CWC-2010, 14 CompeLlLlon

venues and several Lralnlng venues were
consLrucLed/upgraded Lo meeL Lhe
sLandards and speclflcaLlon for such
lnLernaLlonal evenLs. 1he works were
underLaken under Lhe guldance of dlfferenL
consulLanLs by Lhe lmplemenLlng agencles
who furLher enaged conLracLors Lo execuLe
Lhem. llgure 16.1 ls a schemaLlc
presenLaLlon of Lhe varlous agencles
engaged ln venue developmenL.
1here were conslderable varlaLlons ln Lhe
performance of deslgn consulLanLs engaged
by dlfferenL venue owners/ lmplemenLlng
agencles. A key requlremenL for Lhe deslgn
consulLanLs was experlence ln deslgnlng of
1
slmllar sporLs sLadla . Such experlence
requlremenLs were usually meL Lhrough
consorLla lnvolvlng a forelgn parLner wlLh
such experlence. We noLlced LhaL where Lhe
role of Lhe forelgn parLner wlLh relevanL
experlence was less, Lhere were slgnlflcanL
deflclencles ln Lhe performance of deslgn
consulLancy servlces:
AlmosL all Lhe deslgn consulLancy
servlces relaLlng Lo CWu venues were
awarded Lo CLS. 1he role of Lhe forelgn
parLner (S8), lf any, was noL verlflable
from CWu's records, alLhough Lhe fees
payable Lo Lhe forelgn parLner were 60
per cenL under Lhe conLracL. ln Lhe case
of roof deslgnlng consulLancy conLracL
for !nS, sLrangely S8 (Lhe !v parLner)
was also engaged as Lhe 1ClA. 1he
16.1 Introduct|on
16.2 Des|gn Consu|tancy
1hlrd arLy lnspecLlon/ CuallLy Assurance
(1lCA) Agency are engaged Lo provlde an
lndependenL assessmenL, aL varlous sLages
of Lhe consLrucLlon. 1he scope of work of
1lCA lncluded:
AssessmenL of Lhe quallLy of Lhe work
belng execuLed wlLh regard Lo Lhe
maLerlal and workmanshlp as per Lhe
sLlpulaLed speclflcaLlons,
revlew Lhe quallLy assurance plan
submlLLed by Lhe conLracLor ln
consulLaLlon wlLh Lhe cllenL,
advlse Lhe deparLmenL on quallLy check
of varlous maLerlals belng used, as well
as LhaL of Lhe flnlshed works.
16.3 1h|rd arty Inspect|on]

ua||ty Assurance Agency
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speclolly wbeo tbe lmplemeotloq oqeocles boJ oo socb
expetleoce ooJ tbe coosttoctloo coottoctots wete oot
tepolteJ to speclflcolly bove expetleoce lo coosttoctloq
spotts veooes.
perlodlcally, lnspecL ongolng as well as

flnlshed works and record observaLlons
abouL Lhe quallLy and sLandard of Lhe
work and Lhe workmanshlp, and
prepare a reporL on lLs observaLlons and
submlL Lhe same Lo Lhe deparLmenL for
Laklng necessary acLlon on Lhelr
recommendaLlons.
We found LhaL all Lhe venue owners/
lmplemenLlng agencles vlz. CWu, Wu,
nuMC, CnC1u eLc. had appolnLed/ engaged
lndependenL deslgn consulLanLs, who were
also requlred Lo asslsL Lhe deparLmenLs
durlng Lhe execuLlon sLages of Lhe pro[ecLs
ln order Lo ensure LhaL Lhe works were
carrled ouL as per Lhe approved plan and
concepL. lurLher, Lhe CvC also perlodlcally
monlLored Lhe pro[ecLs of Lhe CWC - 2010,
Lhrough lLs Lechnlcal wlng, Lhe Chlef
1echnlcal Lxamlner (C1L), and submlLLed
reporLs wlLh lLs recommendaLlons. 8esldes,
Lhe quallLy assurance funcLlons of Lhe
lmplemenLlng agencles also covered Lhe
pro[ecLs aL all sLages of execuLlon.
uesplLe a mulLl-level quallLy assurance
mechanlsm, Lhe lmplemenLlng agencles
also engaged 1lCA Agencles for larger
works. Whlle lL ls dlfflculL for us Lo quesLlon
Lhe raLlonale of engaglng 1lCA Agencles, lL
ls lmporLanL LhaL Lhe role and
responslblllLles of Lhe 1lCA Agencles and
Lhe lmplemenLlng agencles should be
clearly demarcaLed. Whlle Lhe 1lCA
Agencles should be held accounLable ln lLs
own rlghL for poor quallLy of execuLlon of
Lhe works, Lhe lmplemenLlng agencles
should conLlnue Lo be Lhe flnal polnL of
responslblllLy and should closely monlLor
Lhe work of Lhe 1lCA Agencles, so as Lo
ensure LhaL:
lL ls avallable aL all sLages of

consLrucLlon,
lL glves lLs reporLs perlodlcally,
preferably llnked wlLh Lhe consLrucLlon
mllesLones, and
lL submlLs lLs reporL ln a Llmely manner
and Lhe cllenL ensures LhaL Lhe
deflclencles are recLlfled lmmedlaLely.
lurLher, ln cases of fallure Lo perform lLs
duLles and responslblllLles, Lhe penalLles
lmposed on Lhe 1lCA Agencles should be
sLrlngenL and noL llmlLed Lo flnanclal
penalLles vlz. llquldaLed damages,
compensaLlon for damages, eLc., buL also
such LhaL lL adversely effecLs Lhe credlblllLy
of Lhe agency (1lCA), so LhaL lL ls
debarred/ blackllsLed from securlng any
governmenL/ prlvaLe conLracL for Lhlrd parL
assurance/ englneerlng consulLancy ln
fuLure.
ulfferenL lmplemenLlng agencles awarded
ma[or consLrucLlon works dlfferenLly:
CWu awarded mosL of Lhe venue
developmenL conLracLs on lLem-raLe
basls, whlch ls Lhe preferred meLhod
accordlng Lo Lhe CWu manual, slnce lL
ls besL sulLed Lo handllng devlaLlons
from Lhe orlglnal scope of work.
Powever, CWu awarded Lwo ma[or
works - Lhe ur. S Mukher[ee AquaLlcs
Complex (SM) and Lhe roof for
!waharlal nehru SLadlum - on lumpsum
basls. Large number of exLra/
subsLlLuLed lLems and devlaLlons (ln
parLlcular ln Lhe case of Lhe SM) -
Lended Lo change Lhe very essence of
16.4 Award of Contracts

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works. (refer paragraph 17.8.2.1 and
17.8.4.1 of Lhls reporL)
1he maln work for Lhe Cames vlllage
pracLlce venues was awarded Lo
SporLlna ayce, whlch was lnellglble aL
Lhe Llme of blddlng. (refer paragraph
20.6.4 of Lhls reporL)
1he maln work of consLrucLlon of Shlva[l
SLadlum was awarded Lo Chlna 8allway
Shlsl[u Croup CorporaLlon (whose
ellglblllLy ls open Lo quesLlon) whlch, ln
Lurn, employed a sub-conLracLor,
Slmplex ro[ecLs LLd. lncldenLally, Lhls
sLadlum ls sLlll noL compleLe. (refer
paragraph 19.2.2.3 of Lhls reporL)
1he maln work ln respecL of 1alkaLora
lndoor SLadlum was awarded on Lhe
basls of a slngle flnanclal bld Lo Slmplex
ro[ecLs vL. LLd. (refer paragraph
19.2.3.1 of Lhls reporL)
Lhe lump sum conLracL. (refer paragraph

17.6.1.1 , 17.6.1.2 & 17.7.1.1 of Lhls
reporL)
Wu, CnC1u awarded mosL of lLs works
on percenLage raLe Lenders. under Lhls
meLhod, Lhe blddlng conLracLors quoLe a
slngle percenLage raLe above or below
Lhe cosL esLlmaLe for Lhe pro[ecL.
ConsequenLly, errors/ calculaLlons ln
lndlvldual lLems of Lhe cosL esLlmaLe
cannoL be facLored lnLo conslderaLlon aL
Lhe Llme of blddlng. Accordlng Lo Lhe
CWu manual, Lhls meLhod of Lenderlng
ls accepLable only when Lhe ma[or
porLlon of Lhe work ls on accounL of
lLems lncluded ln Lhe uelhl Schedule of
8aLes (uS8). Conslderlng LhaL many of
Lhe lLems assoclaLed wlLh developmenL
of sporLs venues were noL llsLed ln Lhe
uS8, adopLlon of Lhls meLhod was noL
deslrable. (refer paragraph 19.3.1.4 of
Lhls reporL)
ueflclencles ln Lhe process for award of
ma[or works malnly relaLed Lo pre-
quallflcaLlon and ellglblllLy:
ln Lhe case of Ma[or uhyan Chand
Pockey SLadlum, unlLy lnfra became
ellglble only Lhrough relaxaLlon of pre-
quallflcaLlon crlLerla. (refer paragraph
17.9.2 of Lhls reporL)
ln Lhe case of lndlra Candhl
SLadlum(lndoor cycllng velodrome), !MC
lndla was consldered ellglble on accounL
of flnanclal poslLlon only Lhrough
conslderaLlon of a shorLened accounLlng
perlod of slx monLhs wlLh proflLs (whlle
subsLanLlal losses were lncurred durlng
Lhe precedlng exLended 18 monLh
accounLlng perlod). lurLher, undue
favours were shown ln selecLlon of
Swadeshl ConsLrucLlon Co. for many

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1he pre-qua||f|cat|on of b|dders separate|y
for each venue not on|y |ntroduced
arb|trar|ness and |ncons|stenc|es between
the e||g|b|||ty cr|ter|a adopted by d|fferent
|mp|ement|ng agenc|es (and the|r
execut|ng d|v|s|ons), but a|so de|ayed the
process of award and execut|on of these
contracts. In our op|n|on, cons|der|ng the
s|m||ar nature of works for sports venues
(based on the venue br|efs prepared by
CC's consu|tant, LkS), a common pre-
qua||f|cat|on process (cutt|ng across a||
|mp|ement|ng agenc|es and venues)
shou|d have been conducted, wh|ch wou|d
have m|n|m|zed such |ssues.
of 10 per cenL Lhrough calculaLlon of
[usLlfled cosLs (based on markeL assessmenL
of Lhe ma[orlLy of lLems) posL- flnanclal bld
openlng. We found several deflclencles ln
Lhe process of [usLlflcaLlon.
We recognlse LhaL Lhe only alLernaLlve Lo
Lhe [usLlflcaLlon process - vlz. re-Lenderlng -
was noL feaslble ln Lhe vasL ma[orlLy of
cases, due Lo Lhe llmlLed Llme avallable for
compleLlon of Lhe venues ln Llme for Lhe
Cames. Powever, ln addlLlon Lo casLlng
doubLs on Lhe rellablllLy of cosL esLlmaLlon,
noL knowlng Lhe preclse cosL Lo be
ulLlmaLely borne by Lhe publlc exchequer ls
also a hlghly undeslrable slLuaLlon. 1hls also
puLs Lhe CovernmenL ln a weak negoLlaLlng
poslLlon vls-a-vls poLenLlal bldders.
16.6 Contract Management and
Lxecut|on
1here were delays relaLlng Lo venue
developmenL aL all sLages:
lannlng delays - As already dlscussed ln
ChapLer 3, Llll mld-2006, Lhere was
pracLlcally no progress made on
plannlng. Whlle Lhe sporLlng dlsclpllnes
and Lhe compeLlLlve venues were
approved ln !anuary 2006, no ma[or
progress could be made Llll Lhe
appolnLmenL of LkS as CC's consulLanL,
whlch was approved ln november 2006.
1hereafLer, Llme was losL on accounL of
delayed preparaLlon of venue brlefs by
CC, submlsslon of reLurn brlefs and
concepL deslgns by Lhe lmplemenLlng
agencles, and flnal approval by Lhe CC,
Lhls was compounded by delays ln
applylng for, and recelvlng clearances
from varlous sLaLuLory agencles. Annexe
16.1 lndlcaLes Lhe delays aL Lhe plannlng
sLage,
uelays ln Lenderlng and conLracL award,
and
uelays ln works execuLlon and handover.
16.S De|ays
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16.6.1 Cost Lst|mat|on
ln mosL cases, Lhe cosLs aL whlch works
were flnally awarded were subsLanLlally
2
hlgher Lhan Lhe esLlmaLed cosLs . 1he
awards were Lhen [usLlfled" wlLhln a band
16.6.2 Changes |n Scope of Work
ln mosL of Lhe works, Lhere were numerous

devlaLlons from Lhe orlglnal scope of work,
wlLh adverse lmpllcaLlons ln Lerms of
lncreased cosL and delays. ln our oplnlon,
Lhese are aLLrlbuLable Lo mulLlple facLors:
Lhe fallures of Lhe deslgn consulLanLs,
deflclencles ln performance of Lhe works
conLracLors,
fallure of Lhe lmplemenLlng agencles Lo
properly supervlse and monlLor Lhe
progress of work, and
subsequenL changes ln deLalled venue
speclflcaLlons aL Lhe lnsLance of Lhe CC/
lnLernaLlonal SporLlng lederaLlons.
1hese changes ln Lhe scope of work of
awarded conLracLs, fell lnLo Lhree
caLegorles:
uevlaLlons - represenLlng lncreases/
decreases ln quanLlLy for lLems already
lncluded ln Lhe conLracL,
2
lo ooe cose l.e. welqbtllftloq AoJltotlom lo IN5, tbe clvll
wotks compooeot of tbe tecbolcol estlmotes wete
loexpllcobly ptepoteJ lo Iooooty 2008 oo tbe bosls of
u5k 2002 (wltboot loJexloq lt to locteose lo costs)
tbooqb tbe tevlseJ u5k 2007 wos ootlfleJ lo uecembet
2007.
Category
Lxtra |tems
Subst|tuted |tems
Dev|ated |tems
93.66
13.99
131.83
Amount
1he exLenL of exLra, subsLlLuLed and
devlaLed lLems ln Lhe 29 works (wlLh
Lendered cosL of 8s.1483.91 crores)
revlewed by us, ls summarlzed below:
1hese lnclude cases whlch are also
dlscussed ln works speclflc paragraphs of
Lhe relevanL chapLer.
1he deLalls of exLra lLems, subsLlLuLed lLems
and devlaLed lLems ln dlfferenL works, along
wlLh our remarks, ls glven aL Annexe 16.2.
(8s. ln crore)
LxLra lLems - for lLems of work whlch

are compleLely new and ln addlLlon Lo
Lhe lLems conLalned ln Lhe conLracL, and
SubsLlLuLed lLems - where an lLem ls
Laken up ln parLlal modlflcaLlon or ln lleu
of lLems of work ln Lhe conLracL.
1he flnanclal lmpllcaLlon of Lhese changes ls
compllcaLed by Lhe dlfferences beLween Lhe
currenL markeL raLes and Lhe lLem-wlse
raLes sLlpulaLed ln Lhe conLracL. 1he raLe of
exLra lLems wlll be worked ouL aL markeL
raLes prevalllng aL Lhe Llme of
commencemenL of execuLlon of Lhese
lLems. Powever, for subsLlLuLed lLems, Lhe
agreemenL raLe of Lhe orlglnal lLem wlll be
ad[usLed for Lhe dlfference ln markeL raLes
of orlglnal and subsLlLuLed lLems. ln a few
lnsLances, we noLlced LreaLmenL of lLems as
exLra" lLems where Lhere was a rlslng
markeL Lrend, and subsLlLuLed lLems where
Lhere was a decllnlng markeL Lrend. 8oLh
Lhese scenarlos Lended Lo be Lo Lhe
flnanclal beneflL of Lhe conLracLors. Case
sLudy 16.1 lllusLraLes Lhe varlaLlon ln
amounLs payable by LreaLlng subsLlLuLed
lLems as exLra lLems.
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Case Study: 16.1
Cverpayment by |rregu|ar|y treat|ng the
subst|tuted |tems of works as extra
|tems
We noLed LhaL undue flnanclal favours
were exLended Lo Lhe conLracLor Lhrough
lrregularly LreaLlng lLems of work ln Lhe
agreemenL as 'exLra lLems' lnsLead of
'subsLlLuLed lLems'.
ln ur. karnl Slngh ShooLlng 8ange
agreemenL, lLems of lnLegral flood fllghL
were parLlally modlfled buL lnsLead of
derlvlng raLes as above, CWu pald
markeL raLes LreaLlng Lhe lLem as exLra
lLem resulLlng ln overpaymenL of 8s. 0.31
crore.
ln SM LreaLlng Lhe lLem vlz. 'Loughened
glass' as exLra lLem lnsLead of subsLlLuLed
lLem CWu [usLlfled Lhe raLe of 8s.
13,933 per sqm ln lleu of Lhe raLe of 8s.
13,744.43 per sqm already sancLloned as
subsLlLuLed lLem, wlLh an addlLlonal
flnanclal lmpllcaLlon of 8s. 2.16 crore. 1he
exLra paymenL was [usLlfled on grounds
of a declslon LhaL for lump sum conLracL
usual subsLlLuLlon of lLems cannoL be
operaLed upon on Lhe basls of varlaLlon
raLes and Lherefore such lLems would be
LreaLed as new lLem for paymenL aL
markeL raLe. Powever, facL remalned LhaL
ln anoLher case buL ln Lhe same
agreemenL, CWu (LlecLrlcal ulvlslon)
has subsLlLuLed some lLems. Pence,
CWu adopLed Lwo dlfferenL
meLhodologles for adopLlon of raLes ln
case of subsLlLuLlon of lLems ln a
lumpsum conLracL.
It |s a matter of grave concern that desp|te
the |apse of severa| months s|nce the
conc|us|on of the Games, f|na| payments
are nowhere |n s|ght for most
venuedeve|opment works.
mllesLone, speclfled percenLage of Lendered
amounL was Lo be wlLhheld from
conLracLors' bllls for ad[usLmenL agalnsL any
recovery due from conLracLor for slow
progress and delay ln compleLlon of work.
8egardlng granL of LC1, Lhe CWu Manual
sLlpulaLes LhaL based on Lhe Plndrance
8eglsLer where adequaLe and proper
grounds exlsL, Lhe Lnglneer-ln-charge can
granL exLenslon of Llme. 8emedles for
delayed compleLlon/ lnferlor workmanshlp
aL dlsposal of Lhe CovernmenL lnclude levy
of compensaLlon, LermlnaLlon of conLracL,
award of unexecuLed work Lo anoLher
conLracLor afLer glvlng noLlce Lo Lhe
conLracLor, forfelLure of earnesL money/
securlLy deposlL/ performance guaranLee
eLc.
We found LhaL generally compleLlon of
works was delayed due Lo numerous lapses,
sllppages, lnadequacy of manpower,
lncompeLency of conLracLors/ sub-
conLracLors, delays ln procuremenL of
maLerlal eLc. on Lhe parL of Lhe conLracLor
and Lhere were elLher no bona flde
hlndrance ln compleLlon of work or
hlndrance were of rouLlne naLure noL
[usLlfylng long delays ln compleLlon of work.
uesplLe records lndlcaLlng LhaL Lhe
conLracLor was fully/largely responslble for
delay ln compleLlon of work, CWu had noL
lnlLlaLed acLlon ln a slngle case for levy and
recovery of compensaLlon from conLracLors.
AmounLs wlLhheld for slow progress of work
and non-achlevemenL of mllesLone were
also released wlLhouL reasonable
[usLlflcaLlon. LxLenslons of Llme were
rouLlnely granLed, compleLely lgnorlng
lapses, sllppages and delays on Lhe parL of
Lhe conLracLor, leLLers lssued Lo Lhe
conLracLors polnLlng ouL such lapses,
lnadequacles of resources & maLerlals and
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16.6.3 nand||ng of De|ays
We found numerous lnsLances of delays ln
achlevlng Lhe mllesLones llsLed ln Lhe
conLracLs, for whlch adequaLe penal acLlon
was noL Laken. Plndrance reglsLers, whlch
would clarlfy Lhe responslblllLles of Lhe
conLracLor and lmplemenLlng agency for
Lhese delays, were poorly malnLalned,
compromlslng Lhe process of deLermlnlng
llablllLles for delays. lurLher, LxLenslons of
1lme (LC1s), whlch are requlred Lo be
handled ln a Llmely manner (Lo ensure
conLracLually LhaL Llme remalns Lhe essence
of Lhe conLracL, lf a dlspuLe requlres legal or
arblLraLlon remedles) were noL managed
properly. Also, compensaLlon/ llquldaLed
damages for delays have noL been levled on
Lhe conLracLors ln mosL cases.
16.6.4 Non-|evy and recovery of
compensat|on for de|ay |n
comp|et|on of work
All conLracLs awarded by CWu for CWC-
2010 lndlcaLed sLlpulaLed daLes of sLarL and
compleLlon of work speclfylng LhaL Llme was
essence of Lhe conLracL. All agreemenLs
provlded for recovery of compensaLlon [
1.3 percenL per monLh of delay ln
compleLlon of work, compuLed on per day
basls, noL exceedlng 10 percenL of Lhe
Lendered value of work. AgreemenLs for
ma[or works also lncluded mllesLones
lndlcaLlng sLages of work for achlevemenL
by Lhe conLracLor. ln case of fallure of Lhe
conLracLor Lo achleve Lhe conLracLed
kecover|es need to be made |n a|| such
cases wh||e f|na||s|ng the LC1s and
pena|t|es for de|ays |n comp|et|on.
noLlces lssued Lo Lhe conLracLor from Llme
Lo Llme under provlslons of respecLlve
agreemenL.
ln Lwo of Lhe slx cases ln whlch flnal LC1
had been granLed we found LhaL no
compensaLlon was levled desplLe delays
belng aLLrlbuLable Lo lnadequaLe manpower
and lack of managemenL on Lhe conLracLor's
parL, and delays ln provldlng drawlngs for
Lhe consulLancy conLracL. 1he maxlmum
amounL of compensaLlon LhaL could have
been levled ln Lhese 2 cases amounLed Lo
8s. 2.32 crore as deLalled ln Annexe 16.3.
ln 41 cases exLenslon of Llme had noL been
declded and CWu assured LhaL due
conslderaLlon would be Laken for lapses on
Lhe parL of Lhe conLracLor aL Lhe Llme of
flnal exLenslon of Llme/blll and
compensaLlon levled. ueLalls of Lhese cases
are glven ln Annexe 16.4.
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 24S
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16.6.S ayment of esca|at|on |n cases of
un[ust|f|ed LC1
lurLher, under Lhe provlslons of Lhe
conLracL, penal acLlon agalnsL Lhe conLracLor
for delay ln compleLlon of work would
deprlve Lhem of Lhelr clalm for escalaLlon ln
raLes of labour and maLerlal beyond Lhe
sLlpulaLed daLe of compleLlon of work. We
found LhaL an escalaLlon of 8s. 7.02 crore
for perlods beyond Lhe sLlpulaLed daLe of
compleLlon, was made ln !nS (refer
paragraph 17.6.1.3 of Lhls reporL).
16.6.6 Adequacy of pena| prov|s|ons for
de|ays |n comp|et|on of pro[ects
lor Lhe venue developmenL and oLher
pro[ecLs relaLlng Lo CWC-2010, compleLlon
wlLhln sLlpulaLed Llme llmlLs was of
paramounL lmporLance. Clearly, Lhe rouLlne
delays ln compleLlon occurrlng ln a large
proporLlon of publlc works pro[ecLs would
noL be accepLable ln Lhls scenarlo. Powever,
Lhe currenL clauses for llquldaLed damages/
compensaLlon for delays (generally llmlLed
Lo 10 per cenL of Lhe conLracL cosL) do noL
provlde adequaLe dlslncenLlves for Llmely
compleLlon. 8y conLrasL, 8C1 conLracLs wlLh
revenue generaLlon arrangemenLs
auLomaLlcally provlde necessary lncenLlves/
dlslncenLlves for conLracLors, slnce delayed
compleLlon auLomaLlcally delays/ reduces
revenue generaLlon.
lor such pro[ecLs, where Llmely compleLlon
ls of uLmosL lmporLance, Col may conslder
revlslng Lhe Lu/ compensaLlon clauses (Lo,
say, 20 -23 per cenL of conLracL cosL), whlch
would provlde far hlgher dlslncenLlves Lo
Lhe conLracLor for delayed compleLlon.
naLurally, Lhe rlsks on accounL of sLrlcLer Lu
clauses would be facLored lnLo
conslderaLlon by Lhe prospecLlve bldders,
and would, llkely, resulL ln hlgher awarded
cosLs. Powever, an accepLable cosL-versus-
Llme Lrade-off needs Lo be consldered ln
such clrcumsLances.
A poLenLlal problem ln such an arrangemenL
ls LhaL conLracLors could be favoured by
aLLrlbuLlng delays Lo Lhe ueparLmenL (and
noL Lhe conLracLor), ln such a slLuaLlon, Lu/
compensaLlon would noL be levlable.
Safeguards agalnsL such mlsuse could
lnclude speclfylng LhaL hlndrances/ delays
noL aLLrlbuLable Lo Lhe conLracLor should be
ldenLlfled well ln Llme (and noL [usL before/
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afLer Lhe sLlpulaLed compleLlon daLe) and
approved aL one or Lwo levels hlgher Lhan
Lhe nl1/ conLracL-approvlng auLhorlLy.
lf a conLracLual arrangemenL on Lhe above
llnes ls consldered feaslble, lL should be
flnallsed aL Lhe level of Lhe CenLral Works
8oard, and noL aL lower levels.
MosL ma[or conLracLs for works were
awarded beLween laLe 2007 and 2008. Slnce
Lhe cosLs Lendered were generally hlgher
Lhan Lhe esLlmaLed cosLs, Lhese were
[usLlfled parLly by lncludlng a cosL
componenL of lncreased labour cosL due
less Lhan normal Llme allowed for execuLlon
of work ln vlew of Lhe lmmovable deadllne
of CWC-2010. Powever, mosL pro[ecLs could
noL be compleLed as per Lhe reduced Llme
schedule, defeaLlng Lhe very premlse on
whlch Lhese addlLlonal cosLs amounLlng Lo
8s. 13.02 crore were anLlclpaLed. ueLalls of
Llme llnes (LargeLed and acLual) and Lhe
addlLlonal labour cosLs due Lo reduced Llme
for execuLlon are glven ln Annexe 16.3.
16.7 Iust|f|cat|on of rates by
|nc|us|on of add|t|ona|
|abour cost due to reduced
t|me per|od for execut|on
Cenerally, Lhe noLlce lnvlLlng 1ender (nl1)
for works sLaLed LhaL no labour
huL/[huggles shall be allowed aL slLe. 1he
conLracLor shall accommodaLe Lhe labourers
eLc. ln neaL looklng prefabrlcaLed sLrucLures,
lnsLead of Lemporary [huggles lncludlng
provlslon of LolleL blocks on hls own land."
Accordlngly, when [usLlflcaLlon of raLes were
prepared, a componenL of cosL
LransporLaLlon from huLmenLs Lo slLe and
back" was lncluded.
We found evldence lndlcaLlng LhaL some
labour huLmenLs were provlded on slLe
lnsLead of off-slLe aL venues llsLed ln Annexe
16.6 As such, lL cannoL be assured LhaL Lhe
conLracLor fully lncurred cosLs for Lhe
componenL cosL of LransporLaLlon from
huLmenLs Lo slLe and back" esLlmaLed aL
8s. 8.79 crore ln Lhe [usLlflcaLlon of raLes.
Clause 10 C of Ceneral condlLlons of
ConLracL (CCC) provldes for relmbursemenL
Lo/recovery from a conLracLor of
lncrease/decrease ln labour cosLs caused as
a dlrecL resulL of comlng lnLo force of any
fresh law or sLaLuLory rule or order, by
whlch wages of labour are
lncreased/decreased over wage raLes
16.8 Inadm|ss|b|e component
of cost transportat|on of
|abour from |abour huts to
s|te and back |n cases
where arrangements are
not made for |abour huts
at an off-s|te |ocat|on
16.9 Labour wage esca|at|on
payments under c|ause
10C of Genera| Cond|t|ons
of Contract
As commented e|sewhere |n th|s
chapter, Lxtens|on of t|me has been
granted but |t has not been
determ|ned how much of the de|ays
are attr|butab|e to the contractor. 1o
the extent that the de|ays are
attr|butab|e to the contractor, the
add|t|ona| cost for |abour |nc|uded |n
the [ust|f|cat|on |s not tenab|e and
shou|d be ad[usted |n the f|na| b|||s.
prevalllng aL Lhe Llme of Lhe lasL sLlpulaLed
daLe of recelpL of Lenders. 1hls clause
forms an excepLlon Lo Lhe general rule of
Lhe conLracL LhaL noLhlng more Lhan whaL
has been agreed Lo be pald for work done ls
Lo be pald Lo Lhe conLracLor. It |s |n the
nature of recompense to the contractor lf
durlng Lhe progress of Lhe work Lhe cosL of
wages of labour lncreases as a dlrecL resulL
of Lhe comlng lnLo force of any fresh law or
sLaLuLory rule. Slmllarly, Lhe conLracLor
cannoL beneflL ln Lhe evenL Lhe cosL of
labour decreases due Lo Lhe same reason.
As per Lhls clause, for labour wage
escalaLlon paymenLs, Lhe labour componenL
of Lhe work execuLed durlng perlod under
conslderaLlon shall be Lhe percenLage, as
speclfled ln Schedule l, of Lhe value of work
done durlng LhaL perlod and Lhe
lncrease/decrease ln labour shall be
consldered on Lhe mlnlmum dally wages ln
rupees of any unskllled adulL male mazdoor,
flxed under any law, sLaLuLory rule or order.
Also, Lnglneer-ln-Charge may call for books
of accounL and oLher relevanL documenLs
from Lhe conLracLor Lo saLlsfy hlmself abouL
reasonablllLy of lncrease ln cosL of wages.
We found several deflclencles ln Lhe
appllcaLlon of clause 10C wlLh regard Lo
relmbursemenL of lncrease ln labour cosLs
LscalaLlons were Lo be calculaLed on Lhe
basls of percenLage of labour componenL ln
schedule l Lo Lhe conLracL. We found cases,
deLalled ln Annexe 16.7, where no such
percenLage was menLloned ln Lhe slgned
conLracL and appended Lo Schedule l, buL
paymenLs of 8s. 3.81 crore were made. Such
paymenLs agalnsL deflclenL conLracLs are
lrregular and noL permlsslble.
1hough Lhe paymenL under Clause 10 C of
CCC ls ln Lhe naLure of a compensaLlon,
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Lhere ls no mechanlsm ln place Lo verlfy
LhaL paymenL ls belng made for labour
acLually engaged by Lhe conLracLor/sub-
conLracLor. 1hough Lhe conLracLor does
submlL forLnlghLly reporLs lndlcaLlng Lhe
labour engaged, Lhese are nelLher compleLe
as Lhey generally do noL reflecL Lhe labour
engaged by sub-conLracLors, nor are Lhese
auLhenLlcaLed by an lndependenL
compeLenL auLhorlLy (Labour Welfare
ueparLmenL of Lhe CovernmenL). lL ls also
noL mandaLory for Lhe englneer ln charge Lo
verlfy Lhe sLrengLh of labour engaged before
maklng such paymenL. Pence, no assurance
can be drawn LhaL Lhe paymenLs made
under Clause 10C of CCC Lruly and falrly
relmburse Lhe conLracLor for Lhe labour
acLually engaged by lL and LhaL Lhe beneflL
of lncrease ln mlnlmum wages ls belng
passed on Lo Lhe acLual beneflclary l.e. Lhe
labourer ln Lhe lnsLanL case. A case sLudy ln
Lhls regard ls glven ln Lhe box below
Case Study: 16.2
Contractor pay|ng |ess than m|n|mum
wages to |abour wh||e c|a|m|ng
compensat|on under C|ause 10C
ln case of Lhe lndoor Cycllng velodrome
aL lC sLadlum (ComposlLe work for
consLrucLlon of lndoor Cycllng velodrome
execuLed by !MC ro[ecLs (lndla) LLd.),
Lhe conLracLor clalmed esclaLlon paymenL
for Lhe monLhs of !une-SepLember 2009
on Lhe basls of revlsed labour laLe of 8s.
180 per day per labour and for CcLober-
uecember 2009 aL Lhe revlsed raLe of
8s. 203 per day per labour. Powever, as
per labour reporLs aLLached wlLh runnlng
accounL bllls, paymenL Lo Lhe unskllled
labourers by Lhe conLracLor was [
8s. 133 per day per labour.
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lL ls a known facL LhaL Lhe unskllled labour
secLor ls a dlsorganlsed secLor. lL ls Lhe
prlmary responslblllLy of Lhe Labour Welfare
ueparLmenL Lo ensure LhaL Lhe unskllled
labour engaged ln any naLure of
employmenL acLlvlLy ls duly ldenLlfled,
reglsLered and recompensed/beneflLed as
per Lhe labour laws of Lhe counLry.
ConsLrucLlon lndusLry belng a ma[or
employer of unskllled labour, lL ls lmperaLlve
LhaL sysLems are puL ln place ln Lhls secLor
Lo ensure all unskllled labour are duly
ldenLlfled, reglsLered and remuneraLed aL
leasL as per Lhe prevalllng mlnlmum wage
raLes aparL from beneflLLlng from oLher
sLaLuLorlly prescrlbed labour welfare
measures.
ScruLlny of records lndlcaLed LhaL Lhe
ueparLmenL was reckonlng Lhe followlng
componenLs of cosLs as per uA8 whlle
analyslng raLes, as lndlcaLed below:
one per cenL of Lhe cosL of Lhe sLeel
lLems Lowards waLer charges, Lhough no
use of waLer was requlred ln Lhe
execuLlon process of Lhe lLems, and
flve per cenL Lowards wasLage of sLeel
(1M1 8ars) used wlLhouL credlLlng lLs
scrap value ln Lhe analysls of raLes.
CWu, wlLhouL commenLlng on Lhe
reasonablllLy of Lhe charges sLaLed LhaL
Lhese were done as per provlslons of uA8
and dld noL furnlsh Lhe commenLs of Lhe
compeLenL auLhorlLy (approvlng auLhorlLy)
of uA8.
16.10 Def|c|enc|es |n Deta||ed

Ana|ys|s of kates for
De|h|(DAk)
16.11 Serv|ce 1ax Issues
1herefore, we recommend that
payments under c|ause 10C for
statutory |ncrease |n wage
rates]other |abour re|ated costs,
shou|d be made on|y on the
product|on of proof by the contractor,
du|y authent|cated by the competent
author|ty of the Labour We|fare
Department, of the unsk|||ed |abour
actua||y engaged and compensated at
m|n|mum of the app||cab|e wage rate.
In the |ong term, measures shou|d
a|so be taken to ensure proper
|dent|f|cat|on of unsk|||ed |abour
through |ssue of un|que |dent|f|cat|on
numbers and payments through wage
cards d|rect|y cred|ted to the|r bank
accounts as |s be|ng done |n the
|mp|ementat|on MNkLGA scheme.
1he matter needs to be exam|ned by
the DAk approv|ng author|ty and
necessary c|ar|f|cat|on |ssued
16.11.1 Lxcess re|mbursement of
Serv|ce tax
As per clarlflcaLlon lssued ln Lhe Servlce 1ax
8ules for relmbursemenL of servlce Lax, Lhe
gross amounL charged for Lhe works
conLracL was Lo exclude vA1/Sales 1ax Lo
arrlve aL Lhe neL amounL sub[ecL Lo servlce
Lax. Powever, Lhls was noL done by CWu
whlle allowlng relmbursemenL of servlce Lax
relmbursed wlLh reference Lo LoLal amounL
of work done. CWu accepLed Lhe facL ln
SM sLadlum and assured LhaL necessary
correcLlon/ad[usLmenL shall be done ln Lhe
nexL relmbursemenL of servlce Lax Lo Lhe
agency. 1hough CWu was requesLed ln
!anuary 2011 Lo provlde deLalls of such
overpaymenLs made ln all CWC-2010 works,
Lhelr reply was sLlll awalLed. As a case sLudy,
we calculaLed LhaL such recoverles/
ad[usLmenLs amounL Lo 8s.0.18 crore ln Lhe
case of Ahluwalla ConLracLs (lndla) LLd., Lhe
agency execuLlng works aL ur. S Mukher[ee
SLadlum.
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uelhl urban ArLs Commlsslon, ln lLs
approval Lo pro[ecLs, sLlpulaLed a condlLlon
LhaL one percenL of Lhe pro[ecL cosL should
be spenL on works of arL ln Lhe bulldlngs. no
such works were execuLed. CWu replled
LhaL slnce Lhe esLlmaLes dld noL lnclude Lhls
cosL, lL had separaLely asked SAl Lo release
8s. 22.34 crore for Lhe execuLlon of such
works ln Lhe venues owned by SAl.
As such, Lhe works of arL remaln
unexecuLed.
Slnce Lhe funds for developmenL/
upgradaLlon of varlous compeLlLlon and
Lralnlng venues noL owned by CovernmenL
dlrecLly/ lndlrecLly were released by
CovernmenL, M?AS was requlred Lo enLer
lnLo Mous wlLh Lhe venue owners for
legacy/ fuLure use of sporLs lnfrasLrucLure
and faclllLles creaLed. We found LhaL Lhe
acLlon Laken by M?AS ln Lhls regard was
deflclenL
16.12 Absence of Works of Art
16.13 Legacy |an
We recommend that |n future,
re|mbursement of Serv|ce 1ax shou|d be
made on|y on the bas|s of a cert|f|cat|on
from the Chartered Accountant to the
effect that the Serv|ce 1ax payment
sought to be re|mbursed has been pa|d
spec|f|ca||y for the work covered under
the contract] agreement perm|tt|ng the
re|mbursement.
16.13.1 Memorandum of Understand|ng
(MoU)
M?AS slgned Mous on varlous daLes ln
respecL of Lhe followlng venues:
16.11.2 ke|mbursement of Serv|ce 1ax
w|thout assurance of |ts payment
for the part|cu|ar work
CWu, ln Lhe nl1 for works, speclfled LhaL
Servlce 1ax on work conLracL as appllcable
would be relmbursed Lo Lhe execuLlng
agencles, and accordlngly relmbursed
servlce Lax [ 4.12 per cenL of Lhe gross
amounL of Lhe work done. Such
relmbursemenL was done on Lhe basls of
e-challan, whlch lndlcaLe only lump sum
paymenL wlLhouL break-up of Lhe paymenLs
made agalnsL varlous works - CovernmenL/
non-governmenL, underLaken by Lhe
conLracLor. ln Lhe absence of work-wlse
breakup, lL cannoL be assured LhaL Lhe
relmbursemenL ls speclflcally wlLh respecL
Lo Lhe Servlce 1ax pald on LhaL parLlcular
work execuLed for CovernmenL, and Lhe
conLracLor ls noL unduly enrlched by such
relmbursemenL.
We found LhaL Lhe M?AS had noL flxed any
Llme llmlL for slgnlng of Mou wlLh Lhe venue
owners alLhough Lhe CWC-2010 concluded
on 13 CcLober 2010, Lhe legacy/fuLure use
of mosL venues are yeL Lo be declded.
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 2S0
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16.13.2 Def|c|enc|es |n MoUs
1he deflclencles ln Lhe Mous slgned are
llsLed below:
S|.No. Name of the organ|zat|on and venue Date of MCU
Maln 8ugby CompeLlLlon venue, MulLlpurpose Pall and ALhleLlcs
1rack 1ralnlng venue aL olo Cround aL uelhl unlverslLy, norLh
Campus.
uelhl Lawn 1ennls AssoclaLlon (uL1A) and All lndla 1ennls
AssoclaLlon (Al1A), 8.k. khanna 1ennls SLadlum
8ugby and 1able 1ennls 1ralnlng venue aL !Ml.
Lawn 8owls 1ralnlng venue aL uS, 8k uram
1000 yard 8lg 8ore ShooLlng 8ange aL C8l Campus aL kadarpur
09.11.2010 1.
27.03.2010 2.
08.07.2010 3.
04.08.2010 4.
17.06.2010 3.
Venue Def|c|enc|es
3
uu slgned Mou wlLh M?AS, however, Mou wlLh seven colleges for legacy
use of rugby Lralnlng venues and women wresLllng hall are sLlll pendlng.
uu (March 2011) replled LhaL Lhe colleges were lndependenL
admlnlsLraLlve unlLs governed by separaLe sLaLuLes and based on Lhelr
requlremenLs, Lhe flnal proposal would be submlLLed Lo M?AS.
uL1A and Al1A slgned Mou for legacy use of 8.k. khanna, 1ennls SLadlum.
As per Mou
M?AS has Lhe rlghL Lo nomlnaLe sevenLy flve LalenLed players annually
Lo avall of free coachlng by Al1A,
M?AS would nomlnaLe up Lo Len coaches per year for free of cosL
Lralnlng by Al1A,
Lenure membershlp be provlded for 20 governmenL servanLs for uslng
faclllLles and
malnLenance of sLadlum and faclllLles shall be responslblllLy of uL1A
and Al1A.
lL was observed LhaL Lhe acLlvlLles menLloned ln Lhe Mou schemes vlz.
nomlnaLlon of LalenLed players and provldlng coachlng Lo Lhem had sLlll
noL been lmplemenLed.
De|h| Un|vers|ty,
North Campus.
DL1A and AI1A
3
uoolot kom, kbolso, komjos, kltotlmol, 5t.5tepbeos, 5kcc ooJ nloJo.
kugby Ma|n Compet|t|on Venue
1he comprehenslve legacy plan for
opLlmum uLlllzaLlon of developed
lnfrasLrucLure for usage and regular
malnLenance and upkeep of faclllLles ln Lhe
operaLlonal condlLlon ln respecL of above
venue owners has sLlll noL been prepared.
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Iurther, the prov|s|on of tenure
membersh|p for 20 Government
servants for us|ng DL1A fac|||t|es does
not represent proper |egacy use of
such fac|||t|es (targeted towards
ch||dren, youth and sportsmen) and
|nstead prov|de an opportun|ty for
patronage by MAS to |nd|v|dua|
Government Servants. We
recommend that th|s c|ause |n MoU
be ammended.
We suggest that
At DU, bes|des regu|ar use by the
students of DU and respect|ve co||eges,
the sports fac|||t|es may be made
ava||ab|e for tra|n|ng] pract|ce of
nat|ona| |eve| ath|etes, and 1enn|s
assoc|at|ons and soc|et|es cou|d have
been |nv|ted to ut|||ze the stad|um by
organ|z|ng tournaments]tenn|s events.
16.13.3 resent os|t|on
Cur vlslL aL Lhe uu, revealed LhaL lf Lhe
legacy plan for usage and regular
malnLenance and upkeep of faclllLles for Lhe
operaLlonal condlLlon had been prepared
and lmplemenLed, Lhen Lhe sporLlng
lnfrasLrucLure would have remalned ln
proper worklng condlLlon, unllke Lhe poor
condlLlon as can be seen from Lhe serles of
phorographs Laken by us and presenLed
below:
Dur|ng CWG - 2010 After CWG - 2010
kugby Ma|n Compet|t|on Venue
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Ma|n kugby I|e|d - Seat|ng
1o||ets |n Mu|t|purpose na||
Dur|ng CWG - 2010 After CWG - 2010
Ma|n kugby I|e|d - Seat|ng
1o||ets |n Mu|t|purpose na||
C
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A
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Venues Deve|oped by
Centra| ub||c Works Department
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1
cPwu wos enqoqed by the 5ports 4uthority of lndio {54l) for upqrodotion/ renovotion of
five competition venues - lowohor/o/ Nehru 5todium, ur. 5P Mukherjee 5todium, Mojor
uhyon chond Notiono/ 5todium, lndiro 6ondhi 5todium, ond ur. korni 5inqh 5hootinq
konqe, os we// os one troininq venue - uP5, kk Purom. ln oddition, cPwu renovoted the
kodorpur 5hootinq konqe on beho/f of ckPl.
we found thot the oppointment of consu/tinq nqineerinq 5ervices {c5) os the moin
desiqn consu/tont for the five moin stodio, in 5eptember / October 200,wos serious/y
f/owed. c5 wos fovoured ot the evo/uotion stoqe by oword of morks on "concept desiqn"
{which were /orqe/y outputs of o previous set of consu/toncy controcts for "condition
survey" oworded to c5). lurther, the technico/ quo/ificotion of c5 on the bosis of
"concept desiqn" is o// the more omotinq, since Oc's consu/tont, k5 wos enqoqed on/y in
November 200 ond thereofter prepored the venue briefs, on the bosis of which "concept
desiqns" were to be prepored. 1he performonce of c5 in o/most o// the venue consu/toncy
controcts wos obysmo/. 1he finoncio/ /iobi/ity of c5 for numerous deficiencies shou/d be
determined, ond c5 shou/d be b/ock/isted for considerotion for future consu/toncy
controcts. we o/so recommend thot cPwu's centro/ uesiqn Orqonisotion be
strenqthened, to reduce undue dependence on externo/ consu/tonts.
4 centro/ised co-ordinotion committee, choired by choirmon, Oc ond inc/udinq
representotives from venue owners/ imp/ementinq oqencies, wos responsib/e for
se/ection of bronds of sports surfoces. we found c/eor instonces of fovouritism ond bios
shown by this committee {which wos /orqe/y quided by the Oc) in se/ectinq sport surfoces
for oth/etic trocks, hockey turf ond bodminton court mots.
4 joint tenderinq mechonism wos put in p/oce for se/ection of oqencies for /oyinq the sports
surfoces ot the venues. we found serious deficiencies in the oword of the controct for
/oyinq of synthetic oth/etic trock surfoces by cPwu to 5hiv Noresh 5ports Pvt. Ltd. 1he
restrictive tenderinq conditions resu/ted in o situotion where the oworded rotes were
much hiqher thon comporotive rotes. we o/so found thot the oreo over which synthetic
trock wos /oid inc/uded 9,1l0 sqm outside the moin trock ond oreo of fino/ worm-up ond
co// rooms ot lLN 5todium ot o cost of ks. .l crore, we ore unob/e to derive ossuronce thot
this odditiono/ quontity wos required for the 6omes, ond confirmed os such by Oc. we o/so
found deficiencies in the quo/ity of the moin competition trock durinq our fie/d visits in
November 2010.
4 joint tenderinq mechonism wos evo/ved for supp/y ond insto//otion of vvlP/ vlP choirs
ond medio choirs for five venues. we found o systemotic pottern of co/cu/otions ond re-
ChapLer 17 - venues ueveloped by CenLral ubllc Works ueparLmenL
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co/cu/otions for inf/otion of rotes, which u/timote/y benefited the vendor, 5uperior
lurnitures.
we found mossive overki// in purported/y bui/dinq "redundoncy" in power supp/y
orronqements for the venues, inc/udinq:
lnsto//otion of u6 5ets os permonent fixtures {the prospects of uti/isotion of which
durinq the non-events period ore neq/iqib/e) for "critico/ /oods" os ossessed by cPwu
which were c/ose to the normo/ power requirement,
lnsto//otion of uP5 {whose requirement on o /eqocy bosis is, in our opinion, more or /ess
insiqnificont), ond
nirinq of odditiono/ u6 sets of huqe copocity by Oc.
ln lowohor/o/ Nehru 5todium, we found instonces of non-odjustment for work not
executed, extro poyments for work o/reody covered by the scope of the /umpsum controct,
ond non-/evy of compensotion for de/oyed comp/etion of the work of the membrone roof.
1he creotion of o tunne/ ot lN5 for entry ond exit of performinq ortistes ot the openinq ond
c/osinq ceremonies wos initioted on/y in November 2009, we ore unob/e to oscertoin how
much of the de/oys ore ottributob/e to the introduction of the tunne/ ot this /ote stoqe.
uurinq o joint inspection in lonuory 2011, we found severo/ deficiencies in execution of
work, inc/udinq /eokoqes in underqround porkinq ond evidence of woter /oqqinq in the
/ower bosement.
1he moin work of ur. 5hyomo Prosod Mukherjee 5wimminq Poo/ comp/ex wos oworded on
o /umpsum controct. we found o number of concessions to the controctor, in deviotion
from the spirit of the /umpsum controct - /orqe number of extro items, odditiono/ poyment
for work covered in the oriqino/ controct, os we// os substitution of the oriqino/ qo/vo/ume
{o/uminium-tinc cooted stee/) roof with on o/uminium roofinq system, due to the foi/ure of
the controctor, this wos o/so noticed in the rep/ocement of the roof ot lN5 weiqht/iftinq
ouditorium. 1he essence of the /umpsum chorocter of the controct wos, thus, defeoted. we
o/so found instonces of execution of poor quo/ity of work.
work ot the lndiro 6ondhi 5todium comp/ex invo/ved upqrodotion/ construction of venues
for cyc/inq, qymnostics ond wrest/inq. we found thot on otherwise ine/iqib/e firm for the
composite work of the indoor cyc/inq ve/odrome wos quo/ified {ond u/timote/y become the
successfu/ bidder) throuqh o chonqe in occountinq periods {to ensure comp/ionce with the
condition of not hovinq incurred /osses in more thon 2 of the /ost 5 yeors), os we// os
inconsistent ond unre/iob/e fiqures of /iobi/ities. 5tronqe/y, competition for /oyinq the
permonent timbre trock for the ve/odrome wos /imited to lndion furniture controctors {in
ossociotion with on internotiono/ trock desiqn ond construction expert), with no ottempt
to f/oot internotiono/ tenders, this wos compounded by di/ution of e/iqibi/ity criterio. we
o/so found deficiencies in the biddinq process for the wrest/inq stodium, with on
inexp/icob/e de/oy of four months in dec/orinq the pre-quo/ified bidders, u/timote/y
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 2SS
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resu/tinq in o sinq/e finoncio/ bid, which roises concerns on the competitiveness of the
biddinq process. lurther, we found numerous irrequ/orities/ re/oxotions in the tenderinq
process for different works re/otinq to the qymnostics stodium, hoste// medio centre ond
roods, boundory wo// etc. to fovour o porticu/or bidder, 5wodeshi construction co. Our
verificotion of its correspondence oddress reveo/ed thot it wos o residence, costinq further
doubt on its credibi/ity ond outhenticity.
ln the cose of the Mojor uhyon chond 5todium, we found di/ution of pre-quo/ificotion
criterio benefitinq o porticu/or controctor, further, estimotes were /owered substontio//y
from the kl to the klP stoqe, which moy hove discouroqed /orqer componies from
porticipotinq. we o/so found thot the "justified" rotes co/cu/oted by the cPwu did not tru/y
ref/ect the morket, os we found evidence of much /ower rotes for components of the moin
work from outsourced oqencies. 4/so, despite odditiono/ costs for reduced time period for
comp/etion foctored into the "justificotion" process, the project took l7 months, oqoinst
the stipu/oted 18 months, no compensotion hod, however, been /evied. we o/so found
inexp/icob/e de/oys, with re-tenderinq twice o/onq with di/ution of bid criterio, in oword of
the work of the P4 system to o firm, which wos ine/iqib/e in the first ond second rounds of
tenderinq.
1he oriqino//y envisoqed renovotion/ upqrodotion of ur. korni 5inqh 5hootinq konqe wos
chonqed to reconstruction of ronqes ofter o de/oy of seven months, creotinq o squeete of
time ot the execution stoqe. uue to the foi/ure of the controctor, port of the work wos
oworded {ofter re/oxotion of e/iqibi/ity conditions to onother oqency). we found
deficiencies in the quo/ity of works executed, which persisted even ofter the 6omes. we
o/so found certoin deficiencies in the execution of works ot the kodorpur 5hootinq konqe.
1he troininq foci/ities to be constructed ot the ckPl compus, lhorodo ko/on for po/ice
sportspersons for porticipotion in cw6-2010, hod not been comp/eted.
17.1.1 Venue Appra|sa| Stud|es and
Venue 8r|efs by LkS
ln !une 2003, aL Lhe concepLuallsaLlon sLage
1
of Lhe CWC - 2010, LkS was appolnLed as a
consulLanL for conducLlng a basellne sLudy -
'venue Appralsal Servlces' (vAS). 1hls
lncluded
17.1 Lngagement of Des|gn
consu|tants
commenLs on Lhe approprlaLeness of

Lhe proposed lnfrasLrucLure for meeLlng
lnLernaLlonally accepLed sLandards,
Lechnlcal venue requlremenLs,
recommendaLlons regardlng alLernaLe
venue opporLunlLles/ upgradaLlon of
exlsLlng venues, and
preparaLlon of MasLer lan for CWC -
2010 venues, eLc.
1he compeLlLlon venues were flnallsed ln
!anuary 2006 ln Lhe 9Lh Croup of MlnlsLers
(CoM) meeLlng. SubsequenLly, ln november
1
Oo tbe ptoposol of Oc to tbe CoM lo lts 4tb Meetloq lo
Motcb 2005 ot o cost of ks. 0.49 ctote to be botoe by
uuA
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2006, LkS was agaln appolnLed as Lhe maln
consulLanL by Lhe CC for preparlng venue
8rlefs, whlch were Lo be Lhe baslc guldlng
documenLs for Lhe venue developer Lo
develop sporLs venues for hosLlng
lnLernaLlonal sporLs evenLs durlng CWC -
2010.
1he venue brlefs sLlpulaLed LhaL Lhe deslgn
and Lechnlcal soluLlons for venue
developmenL were Lo be prepared by Lhe
deslgn consulLanLs appolnLed by Lhe
respecLlve agencles.
ln !uly 2004, soon afLer Lhe award of CWC-
2010 Lo uelhl buL before plannlng for Lhe
same had sLarLed aL Lhe CovernmenL's
level, SAl enLrusLed renovaLlon of sLadla Lo
CWu. lollowlng Lhls (ln March 2003), CLS
was awarded conLracLs for condlLlon survey
and repalrs for flve sLadla namely - MuC
naLlonal SLadlum, ur. S..M Swlmmlng
Complex, lndlra Candhl SLadlum Complex,
!awaharlal nehru SLadlum, and karnl Slngh
ShooLlng 8ange for a LoLal consulLancy fee
2
of 8s. 0.43 crore . As a parL of Lhls seL of
17.1.2 Lngagement of CLS for
"Cond|t|on Survey"
earller conLracLs, CLS prepared reporLs ln
several volumes for all Lhese sLadla, whlch
lncluded concepL deslgns, 8CCs, Lechnlcal
speclflcaLlons, eLc. 1hese conLracLs were
conLlnulng even ln March 2007, Lhe exacL
daLes of compleLlon of conLracLs could noL
be ascerLalned from CWu.
ln Lhe meanLlme, subsequenL Lo Lhe
ldenLlflcaLlon of Lhe venues, CWu lnlLlaLed
Lhe work of award / ldenLlflcaLlon of ueslgn
ConsulLanLs for lLs venues durlng Lhe perlod
!une - !uly 2006.
lor Lhe engagemenL of speclallzed agencles
for consulLancy servlces for works ln all Lhe
3
sLadla, an evaluaLlon commlLLee , on Lhe
approval of Lhe AddlLlonal ulrecLor Ceneral
(1u) - CWu, was consLlLuLed. 1he Lenders
for Lhe maln consulLancy conLracLs for Lhe
developmenL of Lhe flve sLadla, for CWC -
2010 were floaLed by Lhe lndlvldual
sLadlums. ueLalls of flrms LhaL Lechnlcally
quallfled and Lhen were awarded Lhe
consulLancy conLracL are glven ln 1able 17.1.
17.1.3 Se|ect|on of Consu|tant
Lng|neer|ng Serv|ces (I) Ltd. (CLS)
by CWD as ma|n consu|tant |n a||
the f|ve stad|a
2
3
Muc - k55k = ks.9.87 lokb, lC-5lM = ks. 12.55 lokb, IN5 = ks. 20.44 lokb
Membets of tbe commlttee wete c cuO-com-ltoject Moooqet cwC - 2010, c (Nu2) - lv, c (lecttlcol), cblef Atcbltect,
u-lloooce (5Al), 5 (ueslqos)-l, cuO, 5 (ueslqos)-ll, cuO, ooJ 5 ucc - lll - membet-5ectetoty.
1oble 17.1 - coosoltoocy fltms tecbolcolly poollfleJ ooJ owotJeJ coosoltoocy coottoct
Venue I|rms pre-qua||f|ed.short ||sted
I|rm dec|ared
techn|ca||y qua||f|ed
I|rm awarded
the work
Iawahar|a|
Nehru
Sports
Comp|ex
CLS (l) vL. LLd. CLS (l) vL. LLd.
!nS Complex
CLS (l) vL LLd.
S1u ConsulLanLs vL. LLd.
8l1LS LLd.
1aLa ConsulLlng Lnglneers LLd.
lnLerconLlnenLal ConsulLanLs and
1echnocraLs vL. LLd. (lC1)
ualal MoLL Macuonald

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CLS Lechnlcally quallfled ln all Lhe flve
conLracLs. ln Lhree sLadla, lLs flnanclal bld
was Lhe only one Lo be opened, effecLlvely
denylng Lhe beneflL of compeLlLlve blddlng.
4
Otbet Jetolls oot ovolloble lo tecotJs fotolsbeJ to ooJlt
Venue I|rms pre-qua||f|ed.short ||sted
I|rm dec|ared
I|rm awarded
the work
Ind|ra
Gandh|
Stad|um
Comp|ex
(|n two
packages)
Dr. S..M.
Sw|mm|ng
oo|
Comp|ex
Dr. karn|
S|ngh
Shoot|ng
kange
Ma[or Dhyan
Chand nockey
Stad|um
CLS (l) vL. LLd.

CLS (l) vL. LLd.
lnLerconLlnenLal
ConsulLanLs and
1echnocraLs vL.
LLd.
CLS (l) vL. LLd.

CLS (l) vL. LLd.
Span ConsulLanLs
vL. LLd.
CLS (l) vL. LLd.
CLS (l) vL. LLd.
CLS (l) vL. LLd.
CLS (l) vL. LLd.
!nS WelghLllfLlng AudlLorlum
CLS (l) vL LLd.
ackage - l (CymnasLlcs)
CLS (l) vL LLd.
uevelopmenL ConsulLanLs vL. LLd.
M. n. uasLur LLd.
ConsLruma ConsulLanLs vL. LLd.
ackage -ll (WresLllng, Warm-up Palls for
CymnasLlcs, LxLernal uLlllLles)
4
llve flrms pre-quallfled whlch lncluded
lMM vL. LLd.
Span ConsulLanLs vL. LLd.
CLS (l) LLd.
CLS (l) vL LLd.
8l1LS LLd.
1aLa ConsulLlng Lnglneers LLd.
lnLerconLlnenLal ConsulLanLs and
1echnocraLs vL. LLd.
CLS (l) vL LLd.
MoLL Macuonald vL. LLd.
koLharl & AssoclaLes.
Span ConsulLanLs vL. LLd.
CLS (l) LLd.
ArchlLecLs 8ureau
1LAM
1he conLracLs for deslgn consulLancy were

awarded Lo CLS ln all Lhe flve venues aL Lhe
raLes lndlcaLed ln 1able 17.2:
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1oble 17.2 - 5toJlom wlse owotJeJ cost of coosoltoocy setvlces to c5
1oble 17.J - Motks obtoloeJ blJJets oo tbe potometet of coocept Jeslqo
I|rm Dec|ared
Marks obta|ned on
concept des|gn
Max|mum and m|n|mum
qua||fy|ng marks
Venue
Iawahar|a|
Nehru Stad|um
Comp|ex
Ind|ra Gandh|
Stad|um
Comp|ex (|n
two packages)
Dr. S..M.
Sw|mm|ng
oo| Comp|ex
Ma[or Dhyan
Chand nockey
Stad|um
Dr. karn| S|ngh
Shoot|ng
kange
CLS (l) vL LLd - 26.62

lC1 vL. LLd. - 10.87
1CL LLd. - 16.S9
ueLalls regardlng marks
obLalned noL furnlshed.
CLS (l) vL LLd - 26.00

lC1 vL. LLd. - 22.S0
CLS (l) vL LLd - 17.S0
MoLL Macuonald vL.
LLd. - 7.S0
S1u - 0.00
CLS (l) vL LLd - 27.S0
Span - 31.00
Maxlmum Marks - 30
Mlnlmum Marks - 22
ueLalls regardlng marks
obLalned noL furnlshed.

Maxlmum Marks - 30
Mlnlmum Marks - 20
Maxlmum Marks - 20
Mlnlmum Marks - 13
Maxlmum Marks - 40
Mlnlmum Marks - 23
CLS (l) vL LLd.
CLS (l) vL LLd. for boLh Lhe
packages
CLS (l) vL LLd and
lC1 vL. LLd quallfled
(llnanclal offer was evaluaLed
on Lechno-commerclal
parameLers where lC1 scored
68 marks and CLS 86.64 )
CLS (l) vL LLd.
CLS (l) vL LLd. & Span
quallfled (CLS quoLed Lhe
lowesL 8aLes of 8s. 39.31 lakh
as agalnsL Span's quoLe of
8s. 61.73 lakh)
Venue Awarded Cost
Iawahar|a| Nehru Stad|um Comp|ex
Ind|ra Gandh| Stad|um
Comp|ex (|n two packages)
Dr. S..M. Sw|mm|ng oo| Comp|ex
Ma[or Dhyan Chand nockey Stad|um
Dr. karn| S|ngh Shoot|ng kange
1ota|
ks. 8.97 crore
ks. S.17 crore
(1he scope of work lncreased, posL award, Lo
lnclude lnLerlor space plannlng of gymnasLlcs
sLadlum aL an addlLlonal cosL of 8s. 0.38 crore)
ks. 6.41 crore
ks. 2.09 crore
ks. 0.32 crore
(Crlglnal consulLancy work noL foreclosed, and
new consulLancy work asslgned aL an addlLlonal
cosL of 8s. 0.33 crore augmenLlng Lhe cosL of
consulLancy work Lo 8s.0.80 crore)
ks. 22.96 crore
We found LhaL CLS emerged as Lhe only
Lechnlcally quallfled bldder for Lhree sLadla,
prlmarlly on accounL of marks asslgned Lo
Lhem on Lhe parameLers of 'concepL
deslgns' and oLher deLalls (whlch were
largely ouLpuLs of Lhe prevlous seL of
consulLancy conLracLs). All oLher bldders,
desplLe possesslng speclflc experlence ln
sporLs sLadla, were held Lo be Lechnlcally
noL quallfled, by asslgnlng lower scores Lo
Lhem on Lhe parameLers of 'concepL deslgn'
as lndlcaLed ln Lhe 1able 17.3:
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CLS d|d not d|rect|y possess spec|f|c

exper|ence |n des|gn|ng sports stad|a,
w|th |ts exper|ence be|ng pr|mar||y |n
prov|d|ng des|gn consu|tancy for roads
and br|dges. lL could show experlence
for bulldlng sporLs sLadla only Lhrough
purporLedly assoclaLlng" wlLh forelgn
consulLanLs, and LhaL Loo only afLer
purchaslng Lhe C documenLs (all Lhe
Mou submlLLed were slgned on daLes
falllng afLer Lhe C documenLs were
purchased). CLher bldders who were
Lechnlcally re[ecLed had falrly good
experlence ln consLrucLlon of sporLs
sLadla vlz.
Mott MacDona|d - Wembley SLadlum ln
London, Melbourne CrlckeL Cround ln
AusLralla, Lord's crlckeL ground ln
London,
S1U - SLadla for naLlonal Cames ln
CuwahaLl and Pyderabad, 1wln 1urf
Pockey SLadlum aL Pyderabad.
lurLher, we could noL see, Lhrough
perusal of varlous deslgns and
documenLs submlLLed by Lhe consulLanL,
Lhe conLrlbuLlons of Lhe forelgn
consulLanLs, on Lhe basls of whlch CLS
was deemed Lo be Lechnlcally quallfled
vls--vls sporLs sLadla. ln response Lo our
query, CWu sLaLed LhaL Lhe Lender
condlLlons dld noL lnslsL on Lhe
slgnaLure of Lhe forelgn consulLanL.
Powever, ln vlew of Lhe conLracLual
provlslon regardlng lnvolvemenL of Lhe
forelgn consulLanLs Lo Lhe exLenL of noL
less Lhan 60 per cenL of Lhe LoLal fee,
documenLary evldence of Lhe acLual
lnvolvemenL of Lhe forelgn consulLanLs
ln work was essenLlal.
1he Lechnlcal quallflcaLlon of CLS
prlmarlly on Lhe basls of Lhe 'concepL
deslgns' submlLLed by lL as parL of Lhe
blddlng process ls all Lhe more amazlng,
slnce LkS was engaged only ln
november 2006 and prepared Lhe
venue brlefs LhereafLer, based on whlch
Lhe concepL deslgns were requlred Lo be
prepared. WlLhouL Lhe venue brlefs (and
wlLhouL adequaLe Llme belng provlded),
Lhe oLher bldders could noL have been
expecLed Lo prepare such deslgns aL Lhe
blddlng sLage, nor was Lhls aL all
necessary. 1hls advanLage Lo CLS was
lrregularly faclllLaLed by CWu by
lncludlng Lhe concepL deslgn
requlremenL ln Lhe 8l for consulLancy
conLracLs, well before even Lhe venue
brlef was ready. 1hls effecLlvely favoured
CLS.
ln response Lo our observaLlon, CWu
replled LhaL Lhe condlLlon survey was
conducLed Lo assess Lhe repalr and
reLroflLLlng cosL and noLhlng was
declded abouL Lhe new sLrucLures.
1herefore no lnslghL was avallable Lo
CLS regardlng Lhe naLure and scope of
work for CWC-2010. Moreover concepL
plan was deslred Lo [udge Lhe apLlLude
and vlslon, and Lhe consulLanLs who are
blddlng for mega sporLs sLadla can
prepare concepL plan on Lhe basls of
scope of work, slLe vlslLs and pre-bld
meeLlngs.
Powever, Lhe advanLage Lo CLS ls
evldenL from lLs own sLaLemenL ln Lhe
secLlon ro[ecL AppreclaLlon" of Lhe
Lechnlcal bld documenL LhaL
'ConsulLanLs, durlng a prlor asslgnmenL,
Look up exLenslve reconnalssance survey
and condlLlon survey of lnsLallaLlons and
uLlllLles of Lhe area. ln Lhe process, Lhe
ConsulLanLs have gone Lhrough avallable
drawlngs and condlLlon survey daLa

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whlch enabled Lhem Lo have full
undersLandlng of Lhe pro[ecL and lLs
requlremenL lndlcaLed ln Lhe 1C8.' 1hls
amply evldences LhaL Lhe prlor
asslgnmenL of condlLlon survey Lo CLS
creaLed a foundaLlon for Lhe preparaLlon
of concepL plan, pro[ecL appreclaLlon
and Lechnlcal proposal and Lhls
advanLage was noL avallable Lo oLher
bldders.
1he lnexperlence of CLS was evldenL from
numerous deflclencles noLlced durlng Lhe
execuLlon of Lhe deslgn consulLancy
conLracLs such as
frequenL and drasLlc changes ln deslgns
and drawlngs,
changes ln 8CCs and Lender documenLs,
frequenL delays ln submlsslon of deslgns
and drawlngs,
delays ln obLalnlng approval from local

bodles, and
engagemenL of addlLlonal speclallsL
deslgn consulLanLs for works whlch
were, prlmarlly, Lhe responslblllLy of Lhe
maln consulLanL, eLc.
ueLalls are glven ln Annexe 17.1. 1hls
adversely affecLed Lhe plannlng as well as
execuLlon of Lhe varlous pro[ecLs. All such
deflclencles were condoned or lgnored by
CWu. enalLles for such fallures were
S
elLher noL lncluded ln Lhe conLracL or,
6
where lncluded , were noL enforced. Some
of Lhe glarlng deflclencles are summarlsed
ln 1able 17.4:.
1oble 17.4 - ueflcleocles lo coosoltoocy wotk of c5
Stad|um Def|c|enc|es (|n br|ef)
ILN Stad|um
ILN We|ght||ft|ng
Stad|um and Dr. SM
Sw|mm|ng oo| Comp|ex
Dr. karn| S|ngh Shoot|ng
kange
IG Stad|um Comp|ex
MDC Nat|ona| Stad|um
uefecLlve assessmenL of Lhe requlremenL of lump sum conLracL resulLed ln
devlaLlons prlmarlly on accounL of changes ln 8CCs, resulLlng ln gross
7
devlaLlon of 8s. 41.24 crore.
1he scope of rooflng work was changed from Zlncalume sLeel Lo
alumlnlum (kalzlp), resulLlng ln exLra paymenL Lo conLracLor of 8s. 6.79
crore.
1here were huge devlaLlons and exLra lLems worLh 8s. 20.37 crore due Lo
lmproper assessmenL of 8CCs for Lhe work. 1he baslc lLem of excavaLlon
ln hard rock could noL be envlsaged earller (desplLe Lhe hllly locaLlon of
Lhe venue). lurLher, rebaLe of 8s. 0.30 crore could noL be avalled.
ln Lhe work of lmprovemenL of roof Lruss", Lhere were huge devlaLlons ln
sLeelwork alone, ranglng from 83.8 per cenL Lo 139.70 per cenL,
amounLlng Lo 8s. 13.62 crore.
AsLronomlcal lncrease ln Lhe quanLlLles of cables, ducLs, plpes eLc. ln Lhe
work of Sl1C of A sysLem and elecLrlcal componenL of Lhe maln work
resulLed ln addlLlonal flnanclal burden of 8s. 4.11 crore.
S
6
7
Mojot ubyoo cbooJ 5toJlom
Iowobotlol Nebto 5toJlom, ut. 5lM 5wlmmloq lool complex, loJlto CooJbl 5toJlom complex ooJ ut. kotol 5loqb 5bootloq
kooqe.
5om of posltlve (-) ooJ oeqotlve (-) Jevlotloos.
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SeparaLely, several oLher consulLanLs were
also engaged for oLher venues l.e. WAuA
block, shooLlng range eLc. (CWu), and
oLher sporLlng venues developed by uuA,
Wu, CnC1u, nuMC, uu, !Mlu, Al1A. 1he
engagemenL and performance of Lhese
consulLanLs has been dlscussed ln Lhe
relevanL secLlons of Lhe reporL.
lor Lhe preparaLlon of venues for Lhe CWC
- 2010, approxlmaLely 8s. 113 crore was
spenL on engagemenL of deslgn consulLanLs
for all venues lncludlng Lhose of uuA,
nuMC, Wu CnC1u and oLhers.
CWu's, CenLral ueslgn CrganlsaLlon (CuC)
conslsLs of four unlLs namely
Lhe ueslgn unlL,
8epalr & 8ehablllLaLlon unlL,
CompuLer CenLre unlL, and
1echnology AppllcaLlon uevelopmenL
Cell unlL.
CuC ls malnly responslble for sLrucLural

analysls, deslgn of large pro[ecLs and speclal
sLrucLures, developmenL of ln-house
experLlse ln Lhe fleld of repalrs and
rehablllLaLlon, developmenL of new
lnnovaLlve Lechnologles for Lhe deparLmenL
and compuLerlsaLlon.
1he CuC currenLly has 1 CL, 6 SLs, and 24
LLs/ALs/ALLs, besldes oLher supporLlng
sLaff. Powever, Lhe CWu dld noL uLlllse Lhe
servlces of CuC for deslgn consulLancy for
any of Lhe sLadla for CWC-2010, and lnsLead
engaged exLernal agencles for deslgn and
oLher consulLlng servlces for Lhese pro[ecLs,
as dlscussed ln Lhe prevlous paragraph.
ln response, CWu sLaLed LhaL:
for plannlng and deslgn for all Lhe sporLs
sLadla ln a Llme bound manner for Lhe
CWC-2010, a well coordlnaLed
mulLldlsclpllnary plannlng and deslgn
Leam coverlng archlLecLural, sLrucLural,
mechanlcal, audlo-vlsual, lnLegraLed
8ulldlng ManagemenL SysLem eLc were
essenLlal requlremenLs.
All Lhese speclallsaLlons dld noL exlsL ln
CWu, LhaL Loo under slngle command,
whlch was absoluLely essenLlal for
Llmely accompllshmenL as a coordlnaLed
[ob of mulLldlsclpllnary consulLanLs.
Lven ln lLs llmlLed role ln sLrucLural
deslgn and drawlng, CuC dld noL have
skllled and experlenced sLrucLural
englneers Lo deal wlLh Lhe sLrucLural
complexlLles of sporLs sLadla lnvolvlng
use of new lmporLed sLrucLural
maLerlals, necesslLaLlng laLesL sLaLe of
Lhe arL Lechnologles ln sLrucLural
englneerlng as well as maLerlal sclence.
ln our vlew, lL ls absoluLely essenLlal for
CWu Lo develop, malnLaln and properly
1he performance of CLS |n a|most a||

the venue consu|tancy contracts was
abysma|. 1he f|nanc|a| ||ab|||ty of CLS
for the numerous def|c|enc|es shou|d
be ascerta|ned and recorded. Iurther,
CLS shou|d be b|ack||sted for
cons|derat|on from any consu|tancy or
other contracts w|th CWD and the
GoI, to prevent recurrence of such
events. In add|t|on, respons|b|||t|es
shou|d be f|xed on the off|c|a|s who
fac|||tated appo|ntment of CLS and
grant of undue favour to |t |n the
course of these consu|tancy contracts.
17.2 Lack of organ|sed |n-house
des|gn sk|||s |n CWD
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17.3.1 Se|ect|on of brands of Sports
Surfaces
Cn 24 May 2008, Shrl kalmadl consLlLuLed
an experL commlLLee for flnallslng Lhe
selecLlon of brands of sporLs surfaces and
sporLs equlpmenL for CWC-2010. 1he
CommlLLee was chalred by Shrl 8hanoL, and
lncluded represenLaLlves from Lhe 17
naLlonal SporLs lederaLlons, CnC1u, SAl,
uuA, nuMC, Al1A, and CCl.
SeparaLely, on 14 !une, 2008, ln pursuance
of a meeLlng held by MlnlsLer of SLaLe, ?AS
wlLh CM, uelhl and Chalrman, CC, Shrl
8hanoL noLlfled Lhe consLlLuLlon of a
CommlLLee for CenLrallsed Co-ordlnaLlon
for flnallsaLlon of Cverlays, lncludlng SporLs
Speclflc Surfaces/ LqulpmenLs" on Lhe
grounds LhaL Lhe CC had Lhe ulLlmaLe
responslblllLy for ensurlng LhaL look and
feel" of Lhe Cames was malnLalned, and Lhe
requlred cerLlflcaLlon from Lhe respecLlve
lnLernaLlonal lederaLlons was obLalned ln
Llme. 1hls CommlLLee for CenLrallsed Co-
ordlnaLlon was chalred by Lhe Chalrman,
CC, and lncluded SecreLary, SporLs and CS,
CnC1u and Lhe heads of SAl, uuA, nuMC
and CWu. 1hls CommlLLee was Lo Lake
lnpuLs from Lhe earller consLlLuLed experL
commlLLee. SubsequenLly, a !olnL 1enderlng
Mechanlsm was agreed Lo, where a lead
agency was declded for each surface
1he chronology of evenLs relaLlng Lo Lhe
speclflcaLlon of brands for sporLs surfaces ls
summarlsed ln 1able 17.4:
1hls would reduce CWu's undue
dependence on exLernal consulLanLs. CuC
should funcLlon as a cenLre of excellence for
lnnovaLlon of deslgns of bulldlng,
brldges and oLher lnfrasLrucLure and lLs
documenLaLlon,
uocumenLaLlon of deslgns glven by
consulLanLs and Lhelr paLenLlng,
uLlllse a core mulLl-dlsclpllnary pool of

plannlng and deslgn experLlse, and CWu
cannoL be percelved merely as a pro[ecL
monlLorlng agency.
ln Lhe Cames ro[ecL, CWu vlslbly
abdlcaLed all deslgnlng responslblllLles by
enLrusLlng Lhem Lo exLernal consulLlng
agencles. As has been adequaLely polnLed
ouL elsewhere ln Lhe reporL, Lhe
performance of Lhese agencles was less
Lhan saLlsfacLory. Powever, Lhe lack of
adequaLe mulLldlsclpllnary plannlng and
deslgn Leam lefL CWu aL Lhe mercy of Lhe
consulLanLs. lurLher, due Lo shorL Lerm
naLure of Lhe consulLlng engagemenLs,
Lhere ls no 'lnsLlLuLlonal memory'.
Moreover, once Lhe CovernmenL pays Lhe
consulLanLs, Lhe deslgn should become Lhe
lnLellecLual properLy of Lhe CovernmenL
and should be paLenLed ln lLs name.
SLandardlsaLlon of deslgns and Lhelr

avallablllLy and dlssemlnaLlon Lo oLher
agencles wlLhln Lhe publlc secLor, and
eer revlew.
We recommend that |mmed|ate steps
shou|d be taken to strengthen the
Centra| Des|gn Crgan|sat|on (CDC),
both |n terms of the number of
techn|ca| off|cers as we|| as |n the
qua||ty of resources prov|ded. Where
necessary, upgradat|on of re|evant
state-of-the art sk|||s may be ensured
through appropr|ate tra|n|ng.
17.3 rocurements through
common tender|ng
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1oble 17.4 - ueflcleocles lo coosoltoocy wotk of c5
1|me||ne Lvent
24 May 2008
14 Iune 2008
22 Iu|y 2008
26 September 2008
16 November 2008
16 December 2008
29 Ianuary 2009
13 Apr|| 2009
2 Iu|y 2009
ConsLlLuLlon of (experL) commlLLee by Shrl kalmadl
ConsLlLuLlon of CommlLLee for cenLrallsed co-ordlnaLlon
LxperL commlLLee recommended brands for varlous sporLs surfaces (ln
mosL cases, slngle brands)
CenLrallsed Co-ordlnaLlon CommlLLee, afLer conslderlng LxperL
CommlLLee recommendaLlons, shorLllsLed Lhree brands for mosL
surfaces.
LxperL commlLLee shorLllsL conveyed Lo M?AS
LlsL of shorLllsLed brands placed before CenLrallsed Co-ordlnaLlon
CommlLLee for conslderaLlon. CommlLLee declded LhaL M?AS would
deslgnaLe a cenLrallsed procuremenL agency.
CC floaLed LCl, aL SecreLary M?AS's dlrecLlon, for offerlng opporLunlLles
Lo oLher suppllers. Cnly four vendors for lawn bowls and Lwo for
wooden floor were consldered addlLlonally ellglble.
CenLrallsed Co-ordlnaLlon CommlLLee prepared a flnal llsL of shorLllsLed
brands.
M?AS approved Lhe llsL of brands shorLllsLed by Lhe CenLrallsed Co-
ordlnaLlon CommlLLee.
We found clear lnsLances of favourlLlsm
shown by Lhe CenLrallsed Co-ordlnaLlon
CommlLLee (whlch was largely gulded by
Lhe CC), as summarlsed below:
1he Lop four brands of synLheLlc Lrack
surfaces wlLh maxlmum lAAl Class-l
cerLlflcaLes were Mondo (19), Conlca (13),
olyLan (8) and 8ekorLan (4). 1he LxperL
CommlLLee declded Lo procure Conlca lull
8
u8 Lrack surface, and ruled ouL Mondo ,
based on Lhe followlng:
1he ALhleLlcs lederaLlon of lndla
represenLaLlve observed LhaL Lhe
Mondo Lrack was earller lald aL
17.3.1.1 ALhleLlcs
1hlruvananLhapuram, !amshedpur,
Lucknow and new uelhl was noL
sulLable for lndlan weaLher condlLlons
and aL all Lhese places, Lhe Lrack was
cracked ouL wlLhln Lwo years and had a
very shorL llfe.
lurLher, Lhe Mondo Lrack was a pre-
fabrlcaLed Lrack, whereas oLher Lracks
were polyureLhane Lracks and easy Lo
repalr ln case of any damage aL Lhe spoL.
Powever, aL Lhe meeLlng of Lhe CenLrallsed
Co-ordlnaLlon CommlLLee on 26 SepLember
2008, uC SAl ralsed Lhe lssue of lAAl
approved brands for synLheLlc Lracks. Agaln,
ln Lhe CommlLLee meeLlng on 2 Aprll 2009,
uC, SAl menLloned LhaL he had been
advlsed LhaL Mondo was preferable for
aLhleLlcs Lrack as lL was pre-fabrlcaLed, and
ln case of damage Lo Lhe Lrack durlng Lhe
8
MooJo ls tbe offlclol soppllet of otbletlc ttocks fot tbe
lost oloe Olymplcs (locloJloq 8eljloq Olymplcs 2008) os
well os tbe opcomloq looJoo Olymplcs 2012.
C|ear|y, the se|ect|on of brands for sports
surfaces was not transparent and
ob[ect|ve. It appears from the m|nutes
that ob[ect|ons ra|sed by venue owners
were |gnored by Shr| 8hanot by g|v|ng
se|ect|ve techn|ca| |nformat|on.
We found no ev|dence ] reports to
substant|ate c|a|ms of the poor
performance of Mondo's tracks. Iurther,
the re[ect|on of a f|rm supp|y|ng surfaces
for 8e|[|ng C|ymp|cs 2008 |s |n stark
contrast to the use of supp|y at 8e|[|ng
C|ymp|cs 2008 as [ust|f|cat|on for vendors
for other surfaces.
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Cpenlng Ceremony, Lhe parLlcular damaged
surface could be easlly replaced. 1hls was
counLered by Shrl 8hanoL, and lL was
declded noL Lo go ln for pre-fabrlcaLed
synLheLlc surfaces, based on Lhe poor
experlences of pre-fabrlcaLed Lracks ln
lndla. llnally, Lhree brands (Conlca, olyLan
and 8ekorLan) were shorLllsLed.
17.3.1.2 Pockey
1he experL commlLLee had shorLllsLed Lhree
companles for hockey on Lhe assumpLlon
LhaL Lhese global surface provlders would
be able Lo produce polyeLhylene surfaces
wlLh Lhe approval of lnLernaLlonal Pockey
lederaLlon (llP) lnsLead of Lhe hlLherLo
used polypropylene surfaces. Powever,
Lhere was a devlaLlon ln quallfylng crlLerla
for Lhe hockey surface, necesslLaLlng a fresh
LCl. AfLer evaluaLlon of Lhe LCl by a
commlLLee, four producLs of dlfferenL flbrer
l.e. polyeLhylene, polypropylene and nylon
were recommended. 1hese were produced
by Lhe same vendors, whose names were
shorLllsLed earller. 1he selecLlon of
polyeLhylene, a new Lype of synLheLlc
surface lnsLead of Lhe hlLherLo used
polypropylene surface ls lndlcaLlve of Lhe
facL LhaL the criterion reqordinq the
se/ection of wide/y used surfoce for
se/ection of compony was noL followed
conslsLenLly by Lhe experL commlLLee.
17.3.1.3 8admlnLon
17.3.1.4 ermanenL Llmber Lrack for
Lhe cycllng velodrome
1he LxperL CommlLLee declded Lo
recommend ?onex, slnce lL was belng used
aL 8el[lng Clymplcs 2008 and oLher evenLs,
and also because 8Wl conflrmed LhaL only
?onex courL maLs and shuLLlecocks were
excluslvely approved. We found Lhls
assumpLlon Lo be of doubLful veraclLy. 8Wl
has 23 approved brands, buL has an
excluslve sponsorshlp conLracL wlLh ?onex
for use aL 8Wl evenLs. AlLhough Lhe 8Wl
webslLe llsLs CWC-2010 as a 8Wl evenL, Lhls
appears Lo be lncorrecL as Lhe badmlnLon
evenLs aL nelLher Lhe Clymplcs nor Lhe
Aslan Cames are llsLed as 8Wl evenLs.
1he LxperL CommlLLee recommended
Schuermann ArchlLecLs (who bullL Lhe
velodrome for 8el[lng Clymplcs-2008) as
Lhe lnLernaLlonal Lechnlcal delegaLe for
cycllng evenLs and menLloned LhaL no
archlLecL oLher Lhan Schuermann ArchlLecLs
could guaranLee Lo meeL Lhe speclflcaLlons
of lnLernaLlonal Cycllng unlon(uCl).
Powever, Lhls was noL lmplemenLed, slnce
Lhe blddlng condlLlon sLlpulaLed by CWu
resLrlcLed compeLlLlon Lo lndlan furnlLure
conLracLors ln assoclaLlon wlLh an
lnLernaLlonal Lrack deslgn and consLrucLlon
experL (refer paragraph 17.8.2.4 of Lhe
reporL). 1he conLracL was flnally awarded Lo
ComforL neL 1raders, ln assoclaLlon wlLh
anoLher lnLernaLlonal archlLecL.
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17.3.2 Lay|ng of synthet|c ath|et|c
tracks surface
As already dlscussed ln para 17.3.1.1, Lhe
CenLrallsed Co-ordlnaLlon CommlLLee
shorLllsLed Lhree brands/ manufacLurers
(Conlca, olyLan and 8ekorLan) for laylng
synLheLlc aLhleLlc Lrack surfaces aL flve
9
venues , Lhereby creaLlng grounds for
resLrlcLlve Lenderlng. CWu was ldenLlfled
as Lhe nodal agency for [olnL Lenderlng for
selecLlon of agency Lo lay Lhe Lrack surfaces
aL Lhese venues. A [olnL Lenderlng
10
commlLLee was consLlLuLed Lo oversee Lhe
Lenderlng process.
ln !uly 2009, ress noLlce lnvlLlng blds for
laylng synLheLlc aLhleLlc Lrack surface aL flve
sLadla was lssued. 1he ellglblllLy crlLerla
lncluded:
17.3.2.1 ulluLlon of ellglblllLy crlLerla Lo sulL
Lhe agencles LhaL flnally bld.
We found LhaL Lhe relaxaLlon of condlLlons
from compleLlon of Lwo slmllar works Lo
one and reducLlon of value of works Lo
8s. 4 crore each (whlch was only 10 percenL
of Lhe esLlmaLed cosL of Lhe work as agalnsL
Lhe generally prescrlbe 80 percenL of
esLlmaLed cosL for one work, whlch would
amounL Lo 8s. 30.73 crore ln case of an
auLhorlsed lndlan represenLaLlve blddlng)
was Lallor made Lo sulL only Lhe Lhree
bldders (auLhorlsed lndlan 8epresenLaLlve
of each brand) who responded, as lndlcaLed
below:
Clearly, all Lhe bldders [usL meL Lhe much
dlluLed ellglblllLy crlLerla and Lhe dlluLlon
was probably done only Lo ensure LhaL
Lhese agencles could bld.
lrom Lhe Lhree blds recelved, Lhe conLracL
was awarded Lo Shlv naresh SporLs vL. LLd.
11
(SSL) who was Lhe L1 bldder aL 8s. 60.38
crore for Lhe flve venues of whlch 8s. 27.61
crore was for !nS alone.
17.3.2.2 SelecLlon of Shlv naresh SporLs
vL. LLd. and Lhe reasonablllLy of
Lhe raLes lL quoLed
9
10
IN5, 1byoqtoj 5toJlom, cbbottotsol 5toJlom,
commooweoltb Comes vllloqe ooJ lolo CtoooJ of uelbl
uolvetslty.
lts membets locloJeJ cblef oqloeet (cwCl), clwu
(cboltmoo), cblef oqloeet (lwu, CNc1u), cblef
oqloeet, uuA, AJJl cblef oqloeet, NuMc, uolvetslty
oqloeet, uu, kepteseototlve of 5Al, 5 (c ), clwu
11
55ll wos ptlmotlly o mooofoctotet of spotts weot os
pet lts webslte.
Agency L||g|b|||ty Cr|ter|a
CompleLlon of Lwo works
(laylng aLhleLlc synLheLlc
Lrack surface approved by
lAAl) cosLlng noL less
Lhan 8s. 4 crore each
CompleLlon of one work
(laylng synLheLlc aLhleLlc
Lrack surface approved by
lAAl) cosLlng noL less
Lhan 8s. 4 crore each
Manufacturers
of the short||sted
brands (hav|ng
reg|stered off|ce
|n Ind|a)
Author|zed
Ind|an
kepresentat|ves
of manufacturers
of the approved
brands
8rand
Manu-
facturers
Author|sed
Ind|an
representat|ve
lnder[lL MehLa
ConsLrucLlon
vL. LLd.
Shlv naresh
SporLs vL. LLd.
!ubllee SporLs
1echnology
vL. LLd
4.60
4.32
4.99
o|ytan
Can|ca
kekortan
Va|ue of
s|ng|e work
comp|eted
(ks. |n crore)
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We found LhaL Lhe resLrlcLlve Lenderlng
condlLlons creaLed around Lhe Lenderlng
process by llmlLlng Lhe compeLlLlon Lo Lhree
brands only resulLed ln a slLuaLlon where
Lhe raLe aL whlch Lhe conLracL was flnally
Ath|et|cs track at Chhatrasa| Stad|um
awarded was noL aL all comparable wlLh Lhe
raLes of slmllar works quoLed or lnLlmaLed
aL dlfferenL works/sLages as lndlcaLed ln
1able 17.3.
1oble 17.5 - compototlve totes of slmllot wotk obtoloeJ fot Jlffeteot wotks ot stoqes
Agency Lvent
1ota| cost for
norma| stress area
at a|| venues as
per NI1 (48469
sqm) (|n ks. Crore)
Net kate
per sqm
(|n ks.)
SSL
NCCL at DU
8ASI
(Manufacturer)
SSL to NCCL at
kanch|
Iub||ee Sports
1echno|ogy (I)
vt. Ltd.
Inder[|t Mehta
Construct|on vt.
Ltd for CkI
Campus,
Iharanda ka|an
neL raLe afLer rebaLe of 17.06 and addlLlon
of servlce Lax [10.30.
8aLes Lendered ln Aprll 2008 lncluslve of all
Laxes.
8aLes lndlcaLed by Lhe manufacLurer and
parLner of SSL ln SepLember 2009.
Work compleLed ln !anuary 2009
8aLes obLalned by CWu ln !une 2009 for
preparlng cosL esLlmaLes, and
Powever, Lhe agency bld aL Lhe raLe of
8s. 9000 per sqm ln lLs bld for CWC-2010.
8aLes offered Lo CWu ln lebruary 2010
for C8l campus aL !haroda kalan,
Powever, Lhe agency bld aL Lhe raLe of
8s. 8830 per sqm ln lLs bld for CWC-2010
7,604.03
7,337.00
4,928.70
2,784.00
4,630.00
4,316.03
36.86
33.36
23.88
13.49
22.33
21.89
Note. 1be obove tote ooly covets loyloq of sotfoce ttock, tbe cost of sob-bose ls oot locloJeJ
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such by Lhe CC. lurLher, Lhough Lhe aLhleLlc
surfaces ln Lhe maln compeLlLlon Lrack and
Lhe warm up Lrack were sulLably cerLlfled as
Class l and Class ll, Lhls area of 9130 sqm
was noL cerLlfled.
As per Lhe performance sLandards
appended Lo Lhe AgreemenL, no surface
lmperfecLlons such as bubbles, flssures,
delamlnaLlon, uncured areas, bumps or
depresslons should be presenL on Lhe
Lracks. uurlng our fleld vlslLs Lo Lhe
SLadlum ground on 13, 19 and 23
november 2010, we observed LhaL ln Lhe
maln compeLlLlon Lrack, Lhe surface of Lhe
Lrack were uneven aL numerous places,
Lhere were slgns of waLer logglng even afLer
dry up, and paLch work had been done aL
over 40 places ln areas ranglng from 2 sqm.
Lo 20 sqm. approxlmaLely. ApparenLly,
Lhere were deflclencles ln Lhe execuLlon of
base work resulLlng ln depresslons aL
numerous places causlng uneven surface,
waLer logglng and resulLanL paLch work as
sLaLed above.
17.3.2.3 CuanLlLy and quallLy of work
execuLed by SSL aL !nS
As per Lhe nl1, Lhe synLheLlc aLhleLlc surface
Lrack was Lo be lald over an area of 27,330
sqm. We found LhaL Lhls area lncluded
9,130 sqm lald ouLslde Lhe maln Lrack and
area of flnal warm up and call rooms aL a
cosL of 8s. 6.63 crore. We are unable Lo
derlve assurance LhaL Lhe quanLlLy of 9,130
sqm was conLracLually requlred for Lhe
purpose of CWC-2010 and conflrmed as
atch work on the ath|et|c synthet|c surface track
As |s ev|dent from above, advantage was
taken of the art|f|c|a| restr|ct|on on the
agenc|es that cou|d part|c|pate as we|| as
the ||m|ted t|me, wh|ch |nh|b|ted the
poss|b|||ty of re-tender|ng. 1he rates
quoted by the b|dders were much h|gher
than the rates quoted by the same
agenc|es for other s|m||ar pro[ects or
po|nts of t|me. nence, the reasonab|eness
of cost at wh|ch the ath|et|c synthet|c
track surfaces were |a|d for CWG-2010
cannot be assured by us.
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17.3.3 Un[ust|f|ed |nf|at|on of rates of
VVI]VI and med|a cha|rs
procured for f|ve stad|a, resu|t|ng |n
extra expend|ture of ks. 3.66 crore
LCls were lnvlLed ln uecembers 2009 from
Lhe manufacLurers/suppllers of seaLs/chalrs
for supply and lnsLallaLlon of 13,900
vvl/vl chalrs wlLh arms, cushlon and arm
resL and medla chalrs wlLh cushlon, foldlng
12
Lable and arm resL for flve venues for
CWC-2010. 1he manufacLurers/ suppllers
were Lo vlslL Lhe venues Lo undersLand Lhe
requlremenL and Lo submlL sallenL daLa wlLh
brlef Lechnlcal parameLers/ speclflcaLlons,
deLalls of Lurnover, manufacLurlng capaclLy,
dellvery perlod and prlces (lncluslve of
lnsLallaLlon cosL). 1hey were also requlred
Lo lnsLall Lhelr samples aL !nS and submlL
model wlse Lechnlcal speclflcaLlons and
caLalogues, and phoLos of samples lnsLalled
along wlLh Lhe response Lo LCl. Cf Lhe 13
atches of water |ogg|ng
agencles LhaL lnsLalled Lhelr samples aL !nS,
a commlLLee of seven senlor offlcers
headed by Lhe uC, SAl approved, ln
uecember 2009, a LoLal of 14 samples (11
for vvl/vl and 3 for Medla) of slx
13
manufacLurers .
ln !anuary 2010, nl1 was lssued lnvlLlng
agenLs or manufacLurers of Lhe shorLllsLed
14
makes/models Lo bld . lour blds were
recelved. none were from Lhe
manufacLurers, excepL Superlor lurnlLure,
who was awarded Lhe conLracL based on lLs
L1 bld ln March 2010.
We found LhaL Lhough Superlor lurnlLure
was Lhe L1 bldder, lLs raLes were lnflaLed
and CWu [usLlfled Lhese lnflaLed raLes by
8s. 3.66 crore Lo award Lhe conLracL. 1hls ls
esLabllshed by Lhe esLlmaLes prepared aL
dlfferenL polnLs of Llme, as deplcLed ln
llgure 17.1.
12
13
14
IN5, lC complex, Muc, 5lM, ooJ k55k
noobo cbolt co. ltJ(cbloo), 2bejlooq uoqeoq 5potts polpmeot co. ltJ (cbloo), 5toteoo lotetootloool lty ltJ., Aosttollo,
5opetlot lotoltotes loJlo, nooqzboo Ioolo cbolts loJostty co ltJ (cbloo) ooJ comotlc lty ltJ. Aosttollo.
5blv Notesb 5potts lvt. ltJ., 5opetlot lotoltotes, Mlllltb kotv, ooJ leo wotkets
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lurLher, we found LhaL abouL 2300 chalrs
cosLlng 8s. 1.34 crore, so lnsLalled, were
removed from Lhe seaLlng areas of varlous
sLadlums before sLarL of Lhe games Lo make
broadcasLlng and medla plaLforms, whlch ls
Lhe normal pracLlce ln holdlng lnLernaLlonal
evenLs. 1hese were lylng unlnsLalled ln Lhe
sLadlums.
llqote 17.1 - stlmotloo of kotes of vvll/vll ooJ MeJlo cbolt
LCI (December 2009)
ln response Lo Lhe LCl, Superlor lurnlLure lndlcaLed a budgeLary
'prlce' (lncluslve of lnsLallaLlon):
VVI]VI cha|rs- ks. 3130 per cha|r
Med|a cha|rs- ks. 3310 per cha|r
reparat|on of Lst|mates (Ianuary 2010)
1he budgeLary prlces (lncluslve of lnsLallaLlon) quoLed aL LCl were assumed
Lo be Lhe' cosL' and Lhese were loaded wLh CCP [ 13 , waLer charges [1
and vA1 [ 12.3 plus 2
1he esLlmaLed cosLs were deLermlned aL:
VVI]VI cha|rs - ks. 4300 per cha|r
Med|a cha|rs- ks. 4S4S per cha|r
Iust|f|cat|on of Costs (Iebruary]March 2010)
Superlor lurnlsher quoLed
VVI]VI cha|rs - ks. S4S2 per cha|r
Med|a cha|rs - ks. S6S0 per cha|r
1hls was [usLlfled by LreaLlng Lhe same raLes quoLed aL Lhe LCl sLage as prlce,
reduclng a noLlonal CCP of 13 from lL and Lhen addlng 8s. 1286 per chalr for change
ln speclflcaLlons Lo arrlve aL a cosL. 1herafLer, vA1 [ 12.3 on maLerlal componenL,
Servlce 1ax [ 10.36 on Lhe labour componenL, waLer charge[1 and CCP [ 13, eLc.
AfLer Lhls exerclse, Lhe esLlmaLed cosLs
AfLer Lhls exerclse, Lhe esLlmaLed cosLs of Lhe chalrs were deLermlned as
VVI]VI- ks. S37S.68 per cha|r
Med|a Cha|rs - ks. SS8S.S6 per cha|r
Irom the ca|cu|at|ons and re-ca|cu|at|ons
shown above, |t |s ev|dent that these were
man|pu|ated and the rates |nf|ated, wh|ch
u|t|mate|y benef|tted Super|or Iurn|ture,
who was awarded the contract (March
2010) to supp|y the cha|rs at a negot|ated
tendered rates of ks. S362 and ks. S623
for VVI]VI and Med|a cha|rs
respect|ve|y. 1he add|t|ona| cost on th|s
account worked out to ks. 3.66 crore.
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We also found LhaL Superlor lurnlLure was
also alloLLed Lhe work of deslgnlng , flxlng
and dlsmanLllng of Mlld SLeel (MS) slLLlng
arrangemenL for 8s. 1.40 crore ln lC
Complex as exLra work wlLhouL calllng any
Lender or work order.
suggesLed permanenL uC SeLs as backup
power source. 8esulLanLly, Laklng Lhls as a
ground, CWu opLed for permanenL
lnsLallaLlon of uC SeLs. 1he CWu Look a
plea LhaL when LkS proposed plug ln Lype of
uC SeLs lL was lnLended for non-regular
acLlvlLles llke overlays whlch were Lo be
looked afLer by CC and Lhls was noL meanL
for permanenL lnsLallaLlon creaLed by
CWu. 1he facL, however, remalns LhaL
desplLe suggesLlon/ proposal from M/s LkS
for plug-ln or permanenL generaLors, CWu
lnsLalled all uC SeLs ln all Lhe flve venues as
permanenL flxLures wlLhouL any cosL beneflL
analysls (permanenL flxLures v/s hlrlng as
and when requlred). 1he prospecLs of
uLlllsaLlon of Lhese permanenL uC SeLs,
durlng non-evenLs perlod, are negllglble
resulLlng ln unfrulLful flnanclal burden, Lhls
was also Lhe case ln uu.
SLadlum-wlse sancLloned load, crlLlcal load,
uC SeL capaclLy lnsLalled, uS CapaclLy
lnsLalled and Lemporary uC SeLs for whlch
orders were placed by Lhe CC are deLalled
ln 1able 17.6:
CC's consulLanL, LkS, ln lLs venue brlef
sLaLed LhaL lf Lwo hlgh volLage elecLrlclLy
feeders were provlded, crlLlcal supplles
should be evenly dlsLrlbuLed across boLh
Lhe feeders. A backup generaLor of capaclLy
sufflclenL for Lhe Cames 'crlLlcal supplles'
should also be provlded. LkS had also
proposed provlslon for plug-ln or
permanenL prlme generaLors. ln pursuance
Lhereof, all Lhe venues obLalned Lwo
lndependenL hlgh volLage feeders from
Lhelr respecLlve power supply companles. ln
conLrasL, ln Lhe reLurn venue brlef, Lhe
deslgn consulLanLs flrm, appolnLed by Lhe
respecLlve venue developmenL agencles,
17.4 Insta||at|on of DG Sets
as permanent f|xture
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1oble 17.6 - uetolls of ootmol sooctlooeJ looJ, ctltlcol looJ,
uC set copoclty ooJ ul5 copoclty.
S.No.
Stad|um
Norma|
ower
requ|rement
as per
sanct|oned
|oad from
the
concerned
power
d|str|but|on
ut|||ty
Cr|t|ca|
Load as
assessed
by CWD
DG Set
Capac|ty
Insta||ed
US
Capac|ty
Insta||ed
Crder for
1emporary
DG Sets
p|aced by
CC
Iawahar|a|
Nehru Stad|um
Dr. S..M. Sw|mm|ng
oo| Comp|ex
Dr. karn| S|ngh
Shoot|ng kange
Ma[or Dhyan
Chand Stad|um
Ind|ra Gandh|
Stad|um Comp|ex
1C1AL
1.
2.
3.
4.
3.
12,000
3,471
2,777
3,888
11,111
10,063

2,806
2,139
4,338
10,630
11,330

3,730
2,230
4,300
10,630
3,330
2,300
1,020
18
3,390
3,328
1S
43,290

16
3,660
17
3,202
3,390
(for lC
SLadlum
Complex,
MuC
SLadlum
and
CenLral
vlsLa)
ks. 34.63
Crore
ks. 39.84
Crore
1S
16
17
18
locloJes uC 5ets fot ul5, kk lotom.
locloJes ceottol vlsto, 1olkototo loJoot 5toJlom ooJ 5blvojl 5toJlom.
locloJes 5btl lott 5potts complex, 5oket 5potts complex, 1boyoqtoj 5potts complex, Iomlo Mlllo lslomlo, kk 1eools complex
ooJ ckll compos (koJotpot) - bteokop oot ovolloble ftom Oc's tecotJs.
4 sets of 2 k 40 kvA uC 5ets sblfteJ to IN5
Note.
Normo/ Power requirement os qot sonctioned from the power uti/ity - wblle coovettloq tbe powet
tepoltemeot ftom kw to kvA (lo coses of k55k, Muc ooJ lC 5toJlom complex), tbe powet foctot bos beeo tokeo
os 0.9.
critico/ /ood - wblle colcolotloq tbe ctltlcol looJ/ emetqeocy looJ fot uC 5opply, clwu stoteJ tbot tbe
cooflqototloo qlveo lo tbe tetoto veooe btlef by tbe Jeslqo coosoltoots cottleJ oo welqbtoqe otbet tboo coofltm
to tbe Oc tbot tbe Comes tepoltemeots woolJ be met. 1be opptoptlote tlme to floollse tbe cooflqototloo of tbe
uC 5ets wos ot tbe tlme of obtololoq tbe tecbolcol sooctloos, so tbot tbe lotest tepoltemeots" wete met. neoce,
wblle jostlfyloq tbe ctltlcol looJ ottlveJ ot, lo tespoose to oot ooJlt poety, clwu stoteJ tbe followloq lssoes wete
tokeo loto cooslJetotloo (o) soqqestloos of tbe c5, (b) soqqestloos of tbe flte Jepottmeot (c) clwu's qeoetol
speclflcotloo fot electtlcol wotk lott- l lotetool, ooJ (J) otbet lssoes wblcb tbe Jepottmeot tbooqbt oecessoty.
u6 5et copocity insto//ed - wblle colcolotloq uC 5et copoclty, clwu bos tokeo loto cooslJetotloo o looJ foctot
of 0.8 (80X looJloq) ooJ powet foctot os 0.8. lottbet, tbe Jepottmeot bos olso tokeo loto cooslJetotloo potollel
N-1 system to ptovlJe foll teJooJoocy fot tbe qomes ctltlcol sopply os pet tbe soqqestloos of tbe Jeslqo
coosoltoots (c5).
1he permanent DG Sets |n the stad|a
cou|d, perhaps, st||| be used (at |east to
a part of the |nsta||ed capac|ty) for
nat|ona| ] |nternat|ona| sports events.
nowever, the requ|rement of US on a
|egacy bas|s, |s |n our op|n|on, more or
|ess |ns|gn|f|cant (except for the m|nor
requ|rement for key techn|ca|
equ|pments v|z. A Systems, computers
etc. and not for sports ||ght|ng).
Moreover, the batter|es attached to
these US a|so have a re|at|ve|y short
||fe. CWD] SAI may therefore cons|der
|dent|fy|ng the requ|rement of US
str|ct|y for key techn|ca| equ|pments,
and ensure that these are proper|y
ma|nta|ned |n the |ong run. 1he
ba|ance of US (wh|ch |s ||ke|y to be
substant|a|) may be transferred, free of
cost] at nom|na| rates, to other
government departments] agenc|es
requ|r|ng re|at|ve|y |arge I1 Systems
(typ|ca||y |arge data caches). 1h|s w|||,
at |east, ensure product|ve ut|||sat|on
of these assets.
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1hus, an expendlLure of 8s. 112.29 crore
was lncurred by CWu, uu and CC for
permanenL lnsLallaLlon of uC SeLs/ uS
8s. 34.63 crore by CWu for uC SeLs
8s. 39.84 crore by CWu for uS
8s. 6.03 crore by uu for uC SeLs & uS
8s. 28.08 crore for hlrlng of uC SeLs
(prlmarlly for !nS)
8s. 3.71 crore for hlrlng of uC SeLs for lC
SLadlum Complex & MuC SLadlum.
Clearly, Lhere was a masslve 'overklll' ln
purporLedly bulldlng 'redundancy' ln power
supply, when CcLober was ldenLlfled as a
19
lean season ln Lerms of power demand ,
and Lhe MlnlsLry of ower allocaLed an
addlLlonal 100 MW of power for uelhl for
Lhe Cames.
1he lssues relaLlng Lo lnsLallaLlon of uC SeLs
as permanenL flxLures aL venues developed
by oLher agencles (uuA, Wu, CnC1u and
nuMC) are dlscussed ln chapLers perLalnlng
Lo Lhese agencles ln Lhls audlL reporL.
of any such provlslon ln Lhe venue brlef or

Lhe reLurn venue brlef resulLlng ln addlLlon
flnanclal burden Lo Lhe Lune of 8s.2.01
crore. 1hls was on Lhe lnsLrucLlons of Lhe
CommlLLee of SecreLarles.
Whlle lnsLalllng uS SysLem for supporLlng
noL only Lhe key 1echnology LqulpmenLs (as
suggesLed by LkS ln Lhe venue brlef and Lhe
deslgn consulLanL ln Lhe reLurn venue brlef)
buL also for sporLs llghLlng, Lhe deparLmenL
had lnsLalled addlLlonal uS for a LoLal
capaclLy of 1370 kvA as parallel redundancy
ln MuC naLlonal SLadlum, desplLe absence
17.S Insta||at|on of add|t|ona|
US as para||e| redundancy
19
1be effotts of ltoqotl lowet cotpototloo ltJ. lo
ooqmeotloq powet qeoetotloo ooJ uelbl 1toosco ltJ. lo
locteosloq powet ttoosmlssloo copoclty ote JesctlbeJ
sobstootlolly lo cboptet 26.
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!awaharlal nehru SLadlum Complex (!nS)
was Lhe maln venue for CWC-2010. lL
underwenL ma[or redeslgn and
reconsLrucLlon for Lhls evenL. lL hosLed Lhe
compeLlLlve evenLs for aLhleLlcs, welghL
llfLlng and Lawn 8owl as well as Lhe openlng
and closlng ceremonles.
1he ma[or works underLaken aL !nS were
ConsLrucLlon of a new Lenslle
membrane roof and supporL sLrucLure
for lL,
SLrucLural repalr & space plannlng of
enLlre !nS,
ConsLrucLlon of welghLllfLlng
audlLorlum,
20
ConsLrucLlon of AdmlnlsLraLlve 8lock
and World AnLl uoplng Agency (WAuA)
LaboraLory,
17.6 Iawahar|a| Nehru Stad|um Comp|ex

20
Now boosloq tbe 5Al. 1be Jlvetsloo of fooJ of ks. 19
ctote ftom tbe scbeme fot ltepototloo of loJloo 1eoms
fot cwC-2010" fot coosttoctloo of tbls oJmlolsttotlve
block ls JesctlbeJ lo cboptet J2.
Iawahar|a| Nehru Stad|um
A PosLel/ Medla AccommodaLlon block,

8econsLrucLlon of lower Llers, and
lnsLallaLlon of sporLs llghLlng and A
sysLem.
17.6.1 Construct|on of f|xed tens||e
membrane roof|ng over the
seat|ng area
CWu awarded a lumpsum conLracL for
consLrucLlon of flxed Lenslle membrane
rooflng over Lhe seaLlng area ln !nS aL a
cosL of 8s. 308.08 crore Lo Shapoor[l allon[l
& Co. LLd. (SCL) for compleLlon by
SepLember 2009.
1he lump-sum agreemenL provlded for
regulaLlng lncrease / decrease ln quanLlLles
of work aL varlaLlon raLes. aymenL of 8s.
314.46 crore had been made Lo Lhe
17.6.1.1 non ad[usLmenL of 8s.3.99 crore
for work noL requlred Lo be
execuLed
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1ens||e membrane roof over INS
conLracLor, buL ad[usLmenLs LoLalllng 8s.
3.99 crore for lLems of work noL requlred Lo
be execuLed were pendlng. ueLalls are glven
ln Annexe 17.2.
CWu ln lLs reply sLaLed LhaL Lhese
ad[usLmenLs would be affecLed ln Lhe flnal
blll. 1hls shall be verlfled aL Lhe Llme of
subsequenL audlL of flnal paymenLs.
1he scope of work clarlfled aL varlous places
ln Lhe conLracL LhaL Lhe quoLed cosL of lump
sum conLracL would cover all lncldenLal
work acLually requlred, buL noL speclflcally
sLaLed ln Lhe Lender. We noLed LhaL exLra
paymenLs of 8s.4.96 crore had been made/
approved for several lLems of work covered
wlLhln Lhe cosL of lump sum conLracL.
ueLalls are glven ln Annexe 17.3.
17.6.1.2 LxLra paymenLs of 8s.4.96 crore
for lLems of work covered by
scope of conLracL
17.6.1.3 non levy of compensaLlon
(esLlmaLed maxlmum of 8s. 30.80
crore) for delay ln compleLlon of
work and paymenL of escalaLlon
cosL of 8s.7.02 crore for Lhe LC1
perlod
1he work was awarded ln uecember 2007
for compleLlon by SepLember 2009. 1he
schedule of work sLlpulaLed elghL
mllesLones and ln case of non-achlevemenL
Lhereof, an amounL equal Lo 0.3 percenL of
Lhe Lendered amounL was requlred Lo be
wlLhheld for Lhe conLracLor's fallure Lo
achleve each of Lhe mllesLones. 1he
ConLracL provlded for levy of compensaLlon
from Lhe conLracLor [ 1.3 percenL of Lhe
Lendered cosL per monLh sub[ecL Lo a
maxlmum of 10 percenL. lor early
compleLlon of work, Lhe conLracLor was
enLlLled Lo bonus [ 1 percenL per monLh
sub[ecL Lo 3 percenL of Lhe Lendered value.
1he work was compleLed ln AugusL 2010.
We found LhaL delays ln achlevemenL of
LargeLed compleLlng daLe were aL leasL
parLly aLLrlbuLable Lo SCL, as lndlcaLed
below:
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AfLer erecLlon of x column ln

SepLember 2009, lL was found LhaL
Lhere were gaps ln head plaLes,
resulLlng ln defecLlve geomeLry of Lhe
allgnmenL. 1o correcL Lhe allgnmenL,
Lhe conLracLor Look over Lhree
monLhs (9 SepLember 2009 Lo 7
uecember 2009) causlng delay ln
progress of work,
lssues regardlng fabrlcaLlon and
erecLlon of ramps and caLwalk,
erecLlon of cable, casLlng of sLalrcase,
flxlng of ralllng, dralnage plpellne eLc
were noL resolved as of uecember
2009. SCL observed LhaL lLs
assoclaLes, vlz. &8 Croup (for sLeel
work), and 1alyo Membrane
CorporaLlon (engaged for membrane
work on Lhe recommendaLlons of
CWu), were noL commlLLed Lowards
compleLlon of work ln Llme due Lo
problems of co-ordlnaLlon and
organlsaLlon,
AbouL 61 curved beams, 40 811
beams, 88 beams, flood llghL masL
and some caLwalk sLrucLure unlLs, and
Lhe enLlre parapeL were noL lnsLalled
even as of 4 !anuary 2010,
no proper meLhodology for laylng of
Lhe cable on Lhe sLalrs and Lemporary
connecLlng Lo Lhe lower compresslon
rlng was planned. All Lhe rlng cables
were colled ln Lhe wrong dlrecLlon,
leadlng Lo loss of Llme ln laylng of Lhe
cable neL, Lhe meLhodology of cable
[acklng was flawed and lncompleLe.
ConsequenLly, [acklng work was
sLopped for 20 days durlng erecLlon,
and on-slLe sLrengLhenlng was done,
1he manpower, Lools and machlnery,
and experLlse for fabrlc lnsLallaLlon
were found Lo be grossly lnadequaLe,
causlng unprecedenLed seLback Lo
Lhe membrane lnsLallaLlon and oLher
works of Lhe sLadlum,
1wo shlpmenLs of bolLs and nuLs were
broughL Lo slLe only ln May 2010, SS
dralnage plpe were broughL from
Mumbal ln !une 2010, and Lhe
programme for fabrlcaLlon and erecLlon
of addlLlonal props Lo ramps was
submlLLed only ln AugusL 2010, and
lnadequaLe personnel were deployed
for membrane work, Lhe meLhodology
for lnsLallaLlon of fabrlc was noL
correcLly planned, Lhe lengLh of Lhe llghL
masL cable was wrongly calculaLed, Lhe
lengLh of Lhe lnner edge cable was also
wrongly esLlmaLed, and Lhe locaLlon of
all Lhe caLwalk clamps were wrong and
Lhey had Lo be shlfLed by 730 mm Lo
1200 mm each.
CWu clarlfled Lo Lhe conLracLor
(!anuary 2010) LhaL Lhere were no
hlndrances aL slLe, and lssued several
noLlces lncludlng on 28 Aprll 2010, 3
May 2010 and 16 AugusL 2010, holdlng
Lhe conLracLor responslble for sllppages,
slow progress of work and non-
achlevemenL of revlsed mllesLones.
1he work was cerLlfled Lo have been
compleLed on 26 AugusL 2010 sub[ecL Lo
measuremenL, quallLy check and also
removal of varlous defecLs ln shear walls,
sLalr case columns, parapeL, celllng, wall, Lle
beam, ramps, ramp slab, sLalnless sLeel (SS)
dralnage plpe, sLeel sLrucLure and SS ralllng
requlrlng recLlflcaLlon.
1hus, Lhe conLracLor was, aL leasL parLly
responslble, for Lhe delay of over eleven
monLhs ln compleLlon of work wlLh

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numerous defecLs, and Lhus llable Lo
recovery of compensaLlon upLo a maxlmum
of 8s. 30.80 crore. 1hough several noLlces
for lmposlLlon of penalLy / compensaLlon
were lssued Lo Lhe conLracLor, no acLlon for
levy and recovery of compensaLlon from
Lhe conLracLor was lnlLlaLed. CWu granLed
exLenslon of Llme upLo 26 AugusL 2010 and
also released Lhe amounL of 8s. 2.73 crore
wlLhheld from Lhe conLracLor's bllls for non-
achlevemenL of 3Lh and 6Lh mllesLone,
wlLhouL any recorded [usLlflcaLlon. 1aklng
serlous noLe of Lhe delays, shorLcomlngs
and repeaLed fallures ln compleLlon of CWC
works, Lhe AddlLlonal ulrecLor Ceneral-ln-
charge of CommonwealLh Cames pro[ecLs
dlrecLed ln AugusL 2010 LhaL Lhe conLracLual
remedles for fallures of Lhe agencles Lo
compleLe Lhe works ln Llme musL noL be
losL slghL of aL any cosL and Lhe lndlvldual
offlcers shall be responslble for lnacLlon.
Powever, no acLlon had been Laken as of
lebruary 2011 for levy and recovery of
compensaLlon from Lhe conLracLor.
As deLalled separaLely, Lhe lmpacL of laLe
lncluslon of Lhe Lunnel ln november 2009,
on Lhe erecLlon of Lhe membrane rooflng
and oLher consLrucLlon acLlvlLles of !nS ls
noL clear Lo us, on Lhe basls of avallable
records. Powever Lhe monLh of
commencemenL of Lunnel work (uecember
2009) falls well afLer Lhe scheduled daLe of
compleLlon of Lhe membrane roof
(SepLember 2009).
aymenL of 8s. 29.70 crore had been made
Lo Lhe conLracLor as of SepLember 2010 on
accounL of lncrease ln Lhe cosL of labour
and maLerlal on Lhe basls of rlse ln Lhe
quarLerly cosL of lndex as per provlslon of
conLracL. We noLed LhaL escalaLlon beyond
Lhe sLlpulaLed daLe of compleLlon of work
was admlsslble only lf no penal acLlon had
been Laken for fallure of Lhe conLracLor Lo
compleLe Lhe work ln Llme, as per Lhe
provlslons of Lhe conLracL. CompleLlon of
work was delayed by over eleven monLhs
due Lo varlous delays, aLLrlbuLable aL leasL
parLly on Lhe conLracLor/sub-conLracLors,
buL CWu never enforced conLracLual
remedles agalnsL Lhe conLracLor, and also
made paymenL of 8s. 7.02 crore, as of
SepLember 2010, Loward escalaLlon cosLs
for perlods beyond Lhe sLlpulaLed daLe of
compleLlon l.e., 3 SepLember 2009.
ln SepLember 2009, ln Lhe 3rd meeLlng of
Lhe 'new' CoM, Lhe Core Croup of creaLlve
persons, whlle maklng a presenLaLlon on
Lhe concepL and Lheme of Lhe openlng
ceremony, requesLed LhaL ln order Lo
faclllLaLe Lhe lngress and egress of Lhe
performlng arLlsLs durlng Lhe ceremony, a
Lunnel may be consLrucLed from Lhe lnLerlor
of Lhe !nS Lo Lhe ouLslde. MlnlsLer, ?AS
expressed sLrong reservaLlons agalnsL
lncreaslng Lhe scope of work, whlch could
[eopardlze Lhe Llmely compleLlon of Lhe
sLadlum LhaL was already runnlng agalnsL
very LlghL Llme llnes. Powever, Lhe Core
Croup lnslsLed LhaL lL would noL be posslble
Lo dellver Lhe openlng and Lhe closlng
ceremony, ln a beflLLlng manner, wlLhouL
Lhe Lunnel. llnally, Lhe 'new' CoM declded
LhaL lL was an englneerlng lssue and Lhe
Lechnlcal feaslblllLy of consLrucLlon Lhe
Lunnel wlLhln Lhe Llme frame, keeplng ln
mlnd Lhe laylng of Lhe synLheLlc Lurf and Lhe
scheduled LesL evenLs, should be carefully
consldered by Lhe englneerlng Leam before
a declslon ln Lhls regard was Laken.
1hereafLer, ln CcLober 2009, ln Lhe 4Lh
17.6.2 1unne| at INS
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meeLlng of Lhe 'new' CoM, approval was
glven Lo Lhe proposal Lo engage Shrl Mark
llsher - roducLlon deslgner and
21
enLerLalnmenL archlLecL lmmedlaLely so
LhaL Lhe work relaLlng Lo Lhe 'Lrench' and
oLher lnfrasLrucLural addlLlons Lo !nS could
be commenced by CWu lmmedlaLely. 1hls
engagemenL was sLrongly recommended by
Lhe Core Croup of creaLlve persons and
supporLed by Lhe CC. 1hereafLer, ln
november 2009, CWu provlded revlsed
mllesLones for compleLlon of varlous works
aL !nS, as lndlcaLed below
Date
3 november
2009
11 november
2009
12 november
2009
13 !une 2010
22 Aprll 2010
I|na||sat|on of des|gn of
new tunne| by CC
Approva| of f|re,
secur|ty and ath|et|cs
federat|on etc
Date of start
Comp|et|on of tunne|
Comp|et|on of
synthet|c tracks
M||estone
21
5btl Motk llsbet wos eoqoqeJ slmoltooeoosly fot tbe
Jeslqoloq of tbe booJ stooJ (wblcb wos obooJooeJ
sobsepoeotly) ooJ tbe toooel, ooJ wos olso
sobsepoeotly eoqoqeJ fot tbe Aetostot.
and subsLanLlal lnfrasLrucLural requlremenL
aL a very laLe sLage. Whlle Lhe mllesLones
proposed by CWu lndlcaLed LhaL Lhe
compleLlon of Lhe synLheLlc Lrack would
proceed slde-by-slde wlLh Lhe consLrucLlon
of Lhe Lunnel, we are noL aware of how
Lhese acLlvlLles acLually progressed
concurrenLly on Lhe ground.
17.6.3 Construct|on of we|ght||ft|ng
aud|tor|um w|th two t|er
underground park|ng
17.6.3.1 lrregular paymenL of escalaLlon
1he work was awarded Lo nagar[una
ConsLrucLlon Co. LLd.(nCCL) aL Lhe Lendered
cosL of 8s.63.43 crore for compleLlon by
!une 2009.
We found LhaL powers delegaLed Lo senlor
offlcers ln CWu for modlflcaLlons ln
conLracLual condlLlons were used Lo
regularlse lnadmlsslble paymenL of 8s.1.93
crore Lo Lhe conLracLor on accounL of
escalaLlon ln prlce of sLeel as lndlcaLed ln
Case sLudy-17.1
We found LhaL Lhese mllesLones could noL
be achleved. 1he work lnvolved
synchronlzaLlon wlLh Lhe erecLlon of cable
and membrane work of roof sLrucLure and
synLheLlc Lrack belng underLaken by
dlfferenL agencles. 1here were slgnlflcanL
delays ln compleLlon of works. Powever, we
are unable Lo deLermlne how much of lL ls
aLLrlbuLable Lo Lhe lnLroducLlon of a new
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Case Study: 17.1
Lxerc|se of powers |n favour of contractor
CWu Works Manual and Clause 10 CA of Lhe Ceneral CondlLlons of ConLracLs (CCC) of CWu
Works 2007 provlde for varylng Lhe amounL of conLracL, due Lo lncrease or decrease ln prlce of
maLerlals perLalnlng Lo Lhe work as menLloned ln Schedule l formlng parL of Lhe agreemenL,
provlded such varlaLlons were effecLed up Lo Lhe sLlpulaLed perlod of conLracL, lncludlng
[usLlfled exLenslons. noLlce lnvlLlng 1enders (nl1) for consLrucLlon of welghLllfLlng audlLorlum
approved by compeLenL auLhorlLy ln !anuary 2008 dld noL lnclude such provlslons, whlch was
lncluded Lhrough a corrlgendum. Powever, Lhe llsL of maLerlals for whlch Clause 10CA would
be appllcable was noL appended wlLh Lhe corrlgendum, nor lncluded ln Schedule l. 1hus Lhe
agreemenL slgned beLween CWu and Lhe conLracLor lndlcaLed appllcablllLy of Clause 10CA
wlLhouL appendlng LhereLo Lhe llsL of maLerlals on whlch Lhe Clause would be appllcable. ln
Lhe absence of Lhe llsL of maLerlals ln Schedule l, no prlce varlaLlon for any of maLerlal was
admlsslble. CWu erroneously made paymenL of 8s. 0.86 crore under Clause 10 CA ln respecL
of relnforcemenL sLeel whlch was ob[ecLed Lo by audlL ln november 2008. CWu admlLLed
(!uly 2009) LhaL no maLerlal was llsLed ln Schedule l Lo Lhe agreemenL buL sLaLed LhaL ln Lhe
pre bld conference lL was clarlfled Lo bldders LhaL Clause 10 CA would be appllcable and
conLlnued wlLh slmllar paymenLs addlng up Lo 8s.1.93 crore. AudlL agaln ob[ecLed Lo Lhe
paymenL ln uecember 2009.
We found LhaL uslng Lhe powers Lo modlfy Lhe conLracL condlLlons, CWu approved
modlflcaLlons Lo Clause 10 CA ln uecember 2010 for lncluslon of cemenL, relnforcemenL bars,
sLrucLural sLeel secLlons/flaL/sheeLs/ plaLes/ Lubes eLc ln Schedule l, ln dlsregard Lo Lhe
sancLlLy of Lhe conLracL.
We|ght||ft|ng Aud|tor|um
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17.6.3.2 uefecLs ln execuLlon of work
!olnL lnspecLlon of Lhe slLe wlLh CWu
offlcers on 22 !anuary 2011 revealed:
Leakages ln underground parklng,
lncompleLe floorlng work ln lower
basemenL,
lncompleLe palnLlng/whlLe washlng ln
lower and upper basemenLs,
Lvldence of waLer logglng ln Lhe lower
basemenL up Lo 3 feeL, and
1wo sLorled parklng measurlng 13293
sqm had noL been used durlng CWC-
2010.
17.6.4 Consu|tancy serv|ces for WADA |ab

and adm|n|strat|ve b|ock
ConsulLancy work for consLrucLlon of WAuA

and admlnlsLraLlve block were rouLlne
consLrucLlon acLlvlLles, plannlng, deslgnlng
and drawlngs work and could well be
handled by CWu Lhrough lLs CenLral
ueslgn CrganlsaLlon (CuC). Powever, CWu
opLed Lo hlre consulLanLs and awarded
consulLancy conLracL aL a cosL of 8s. 40 lakh.
We noLed LhaL:
Whlle Lhe consulLancy conLracL for
deLalled archlLecLural and sLrucLural
plannlng, deslgnlng, drawlngs, all
lnLernal servlces eLc., was awarded only
ln March 2007, Lhe pre-quallflcaLlons
blds for consLrucLlon work noLlfylng
esLlmaLed cosL of 8s. 24 crore assessed
by CWu had already been lnvlLed ln
lebruary 2007 lndlcaLlng much of Lhe
plannlng and deslgnlng work had
already been compleLed deparLmenLally.
1he evaluaLlon crlLerla was dlluLed Lhree
day before Lhe exLended daLe of
submlsslon of consulLancy bld on
grounds of beLLer parLlclpaLlon of
consulLanLs. AgalnsL Lhe orlglnal crlLerla
of 30 ouL of 40 marks ln concepL,
appralsal and meLhodology and a LoLal
of 80 ouL of 100 marks, Lhe dlluLed
crlLerla provlded for scorlng aL leasL 23
ouL of 40 marks ln concepL, appralsal
and meLhodology and a LoLal of 63 ouL
of 100 marks Lo be ellglble/ consldered
for flnanclal evaluaLlon. M/s koLharl and
AssoclaLes scored 26 marks ln concepL
and meLhodology and a LoLal of 79.9
marks. 8uL for dlluLlon of evaluaLlon
crlLerla Lhey were noL ellglble for
flnanclal evaluaLlon.
1he consulLancy servlces were requlred Lo
be compleLed ln 90 days wlLh sLlpulaLed
Water |ogg|ng mark at about 3 feet
Underground park|ng at INS
Water |ogg|ng mark at
about 3 feet
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daLe of compleLlon of 12 !une 2007. We,
however, noLed:
urawlngs and wrlLe up were submlLLed
Lo MCu on 3 !une 2007,
urafL Lender documenLs were submlLLed
ln AugusL 2007,
SLrucLural deslgn and drawlng were
submlLLed ln november 2007, and
ClC drawlng for upper floor of Lhe
AdmlnlsLraLlve 8lock had noL been
submlLLed as of november 2007.
uue Lo delay ln submlsslon of esLlmaLes,
Lender documenLs eLc. by Lhe consulLanL
Lhe work was awarded ln SepLember 2007,
seven monLhs afLer pre-quallflcaLlon
process. lurLher, defecLlve plannlng and
cosL esLlmaLes resulLed ln large devlaLlons
of 8s. 4.32 crore and exLra lLems of 8s. 1.11
crore.
22
23
0.06 petceot below tbe estlmoteJ omooot of
ks.21.04 ctote
80 mm tblck Ckc/lkc Jecototlve
Crass pavers wlLh green honey comb
panels, meanL for dlsLrlbuLlng load from
vehlcular and pedesLrlan Lrafflc Lo Lhe
base course below, and for mlnlmlslng
Lhe grass and rooL compacLlon, were
lald ln Lhe parklng area. Powever Lhese
were found lylng on Lhe surface, broken
and scaLLered, defeaLlng Lhe very
purpose of laylng Lhese pavers. 1he
expendlLure on Lhe lLem was 8s.0.09
crore (upLo SepL. 2010)
17.6.S Construct|on of koad, Storm Water
Dra|ns and kCC Seat|ng 1|ers of
Warm-up Area
1hls work was awarded Lo nkC

lnfrasLrucLure LLd. aL Lhelr Lendered cosL of
22
8s. 21.02 crore , wlLh sLlpulaLed daLe of
sLarL of !uly 2009 and compleLlon by
!anuary 2010. We found Lhe followlng
lnsLances of unwarranLed expendlLure.
M-30 grade, 80 mm Lhlck lnLer locklng
23
paver blocks , meanL for heavy
vehlcular Lrafflc, were lrregularly lald ln
Lhe sLadlum on Lhe pedesLrlan fooLpaLh.
Case Study: 17.2
kecovery of |ncome tax at the |nstance of
aud|t
under provlslons of Lhe SecLlon 194! of
lncome 1ax AcL, 1961, Lax on Lechnlcal and
professlonal servlces ls requlred Lo be
deducLed aL source [ 10 percenL. uurlng
audlL of CWC relaLed pro[ecLs underLaken
by CWu, we noLed LhaL deducLlons were
made aL Lhe raLe of 2 percenL. Cn Lhe maLLer
havlng been reporLed Lo MlnlsLry of urban
uevelopmenL ln SepLember 2009 CWu
reporLed (!anuary 2011) recovery of 8s.1.63
crore. Powever, recovery of 8s.3.30 lakh
could noL be made due Lo closure of
conLracLs. no recovery of penal lnLeresL
from defaulLlng agencles and/or penalLy
from auLhorlLles responslble for shorL
recovery was reporLed. CorrecLness of up Lo
daLe deducLlons, lnLeresL and penalLy ln
Lerms of Lhe lncome 1ax AcL would be
verlfled ln due course.
M-30 grade |nter|ock|ng paver b|ock meant
for heavy traff|c |a|d on footpath
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awarded Lo 8ama ConsLrucLlon Company aL
Lhe negoLlaLed amounL of 8s. 7.41 crore.
AgalnsL Lhls, Lhe conLracLor had been pald
8s. 13.10 crore by Lhe elevenLh 8A blll,
whlch ls more Lhan Lwlce Lhe orlglnal
amounL. 1hls was due Lo devlaLlon ln
quanLlLy and execuLlon of exLra lLems,
whlch lndlcaLes LhaL Lhe esLlmaLes were
unreallsLlc.
17.6.6 Construct|on of Sub-Stat|on
bu||d|ng I, III, IV & underground
water tanks & pump rooms
17.6.6.1 unreallsLlc LsLlmaLe
1hls work was awarded Lo 8ama
ConsLrucLlon Company aL 8s. 7.41 crore
wlLh sLlpulaLed daLe of compleLlon as
SepLember 2009.
1he deLalled esLlmaLe for Lhe above work
was for 8s. 8.83 crore. 1he work was
17.6.7 Construct|on of 8oundary Wa|| of
Stad|um Comp|ex
17.6.7.1 LxLra expendlLure lncurred due Lo
lack of proper plannlng
Arora ConsLrucLlon Company was awarded
Lhe above work for 8s. 6.17 crore, whlch
was 3.80 per cenL above Lhe esLlmaLed cosL
of 8s. 3.83 crore.
ln Lhls regard, Lhe followlng was noLlced:
ln March 2010, CWu was dlrecLed Lo flx a 6
mm Lhlck M.S. plaLe on boLh sldes of Lhe
boundary wall Lo make lL bulleL proof
(agalnsL Lhe uelhl ollce's orlglnal requesL of
a 2.8 mLr lmpeneLrable brlck boundary wall,
whlch was Lurned down by Lhe CoM). 8y
Lhls Llme, 90 percenL of Lhe work was
already compleLed as per Lhe orlglnal
drawlngs
ln lLs reply CWu sLaLed LhaL Lhere was no
such provlslon even ln hlghly secured
premlses such as arllamenL Pouse,
8ashLrapaLl 8hawan.
ln our oplnlon, ordlnary, cusLomary or usual
maLerlals of consLrucLlon would have
Lurned ouL Lo be equally sulLable and aL Lhe
same Llme would have been cosL effecLlve
alLernaLlves Lo ensure LhaL Lhe boundary
wall was secure and bulleL proof. A case has
been worked ouL for brlck boundary wall
wlLh concerLlna coll whlch would have
1he work was an lnLegral parL of Lhe
faclllLles Lo be provlded durlng Lhe games.
non avallablllLy of Lhe same has defeaLed
Lhe purpose of Lhe work.
8roken and scattered green honeycomb
pane|s |n park|ng areas
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served Lhe same purpose and lLs cosL would
be approxlmaLely 8s 3 crore, whlch ls much
lesser Lhan Lhe flnal gross amounL of Lhls
work whlch ls llkely Lo exceed 8s. 16.00
crore, (lncludlng Lhe cosL of orlglnally
deslgned walls and exLra lLems
subsequenLly lncluded Lo meeL securlLy
requlremenLs) spenL aL Lhe lnslsLence of Lhe
securlLy agencles.
1he slLe was handed over Lo Lhe conLracLor
ln a plecemeal manner. 1hroughouL Lhe
execuLlon of Lhe work, varlous auLhorlLles
kepL lnspecLlng Lhe slLe and accordlngly Lhe
drawlngs were changed from Llme Lo Llme.
Slnce an lnLegraLed approach was noL
adopLed, work seems Lo have been
execuLed ln an ad hoc manner.
We found LhaL Lhe boundary wall beLween
CaLe no. 9 and CaLe no. 10 served no real
purpose. 1hls was bullL as per lnlLlal plans
buL abandoned subsequenLly Lo lnclude Lhe
SAl bulldlng wlLhlng Lhe !nS complex. 1he
expendlLure lncurred for Lhls work, whlch ls
approxlmaLely 8s. 0.60 crore, was Lhus
wasLeful
17.6.7.2 unwarranLed LxecuLlon of Work
17.6.7.3 LxecuLlon of uefecLlve Work
CWu had polnLed ouL varlous pendlng/
defecLlve works Lo Lhe conLracLor ln a leLLer
daLed 11 CcLober 2010. 1he conLracLor dld
noL Lake any acLlon. A remlnder ln Lhls
regard was senL Lo Lhe conLracLor on 7
!anuary 2011. uurlng our fleld vlslLs Lo Lhe
slLe on 13 !anuary 2011, varlous defecLs ln
Lhe work of Lhe !nS boundary wall were
noLlced, whlch are deplcLed below
plcLorlally.
Unp|astered Wa|| of INS
Gap |n MS |ate secur|ty cover 8oundary wa|| between
Gate No. 9 and Gate no. 10
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CWu, ln lLs reply, sLaLed LhaL Lhe defecLs
had slnce been recLlfled.
lurLher, CWu recorded a compleLlon
cerLlflcaLe ln whlch deLall of defecLs were
noL recorded, and no paymenL on accounL
of defecLlve work was wlLhheld from Lhe
conLracLor Llll Lhe 13Lh 8.A. 8lll (Lhe lasL blll
made avallable Lo us).
17.6.8 Non ut|||sat|on of comp|eted
noste|] Med|a Accommodat|on
8|ock
Unused noste| 8|ock
1he hosLel/medla accommodaLlon block
was compleLed ln !une 2010 aL a cosL of
8s.12.07 crore (as per paymenL made Llll
november 2010). 1he bulldlng was noL
handed over Lo SAl Llll november 2010 and
as such, Lhe accommodaLlon was noL used
durlng Lhe Cames.
Unf|||ed Gaps |n boundary wa||
17.7 Dr. Shyama rasad Mukher[ee Sw|mm|ng oo| Comp|ex
S Mukher[ee Sw|mm|ng oo| Comp|ex
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ur. Shyama rasad Mukher[ee Swlmmlng
ool Complex (SM), consLrucLed ln 1982
for Aslan Cames, wlLh faclllLles of Lwo
ouLdoor and one lndoor pools and seaLlng,
was planned Lo be upgraded and renovaLed
for CWC 2010 wlLh sLaLe of arL faclllLles Lo
meeL Lhe lnLernaLlonal sLandards and
convenLlons for hosLlng world class aquaLlc
evenL. 1he work lnvolved demollLlon of Lhe
ma[or porLlon of exlsLlng lnfrasLrucLure,
lncludlng free sLandlng plllars, and
reconsLrucLlon of Lhese faclllLles.
1he ma[or work of consLrucLlon of new
lnsulaLed meLal sheeL roof, alongwlLh roof
supporLlng sLrucLure, and lLs lnLegraLlon
wlLh Lhe sLrucLure, was Lendered as a
24
lumpsum conLracL . 1hls work was awarded
Lo Ahluwalla ConLracLs (lndla) LlmlLed (AClL)
aL Lhe Lendered cosL of 8s.229.73 crore ln
uecember 2007, agalnsL an esLlmaLed cosL
of 8s. 176 crores calculaLed ln CcLober
2007. 1he maln componenLs of Lhe
subsequenLly calculaLed [usLlfled cosL were
lnLroducLlon of new lLems of work, change
2S
ln CCP from 10 percenL Lo 13 percenL,
escalaLlon ln maLerlal cosLs, and lnLroduclng
new cosL componenLs e.g., addlLlonal cosL
due Lo compresslon of Llme, labour cosLs
aLLrlbuLable Lo provlslonlng of labour huLs
off-slLe, labour LransporLaLlon eLc.
We noLed LhaL ln devlaLlon of Lhe splrlL of a
lump sum conLracL, AClL was allowed a
number of concesslons.
1he lasL daLe for submlsslon of Lenders
whlch was noLlfled as 16 november 2007,
was exLended four Llmes upLo 14 uecember
2007. 1he esLlmaLes puL Lo Lender were 8s.
176 crore, and Lhe L1 bld of AClL was 8s.
229.73 crore. 1he dlfference ln Lhe bld from
Lhe esLlmaLes was parLly [usLlfled by revlslng
Lhe CCP from 10 percenL Lo 13 percenL,
permlLLed lnLeresLlngly on Lhe same daLe by
uC (Works), CWu as Lhe much exLended
lasL daLe Lo bld l.e. 14 uecember 2007. 1he
approval of Lhe MlnlsLry of urban
uevelopmenL for revlslon of CCP was
recelved only ln !uly 2008. ln reply CWu
sLaLed LhaL Lhe daLes are colncldenLal.
Powever, CWu lrregularly allowed
enhanced CCP wlLhouL Lhe approval of
MlnlsLry.
22 exLra lLems valulng 8s.28.10 crore had
been sancLloned desplLe Lhese belng
lncluded ln Lhe lumpsum conLracL. 1hese
lncluded Lhe followlng
AddlLlonal paymenL of 8s.4.17 crore had
been made for an lLem of work covered ln
Lhe orlglnal conLracL as deLalled ln Case
SLudy 17.3.
17.7.2 Undue concess|ons to ACIL.
17.7.1 Introduct|on
24
2S
lo o lomp som coottoct, coottoctots ote tepolteJ to
poote o lomp som omooot fot completloq tbe wotk lo
occotJooce wltb tbe qlveo Jeslqos, Jtowloqs,
speclflcotloo ooJ fooctloool tepoltemeots ooJ sboll bove
oo clolm fot ooy poymeot oo occooot of Jevlotloos ooJ
votlotloos lo poootlty of ooy ltems ot compooeots of tbe
wotk, ooless tbey ote ootbotlzeJ Jevlotloos ftom tbe
potometets, Jtowloqs ooJ speclflcotloo cootoloeJ lo tbe
teoJeteJ Jocomeots. AotbotlzeJ votlotloos ote
teqoloteJ by totes speclfleJ lo coottoct fot oJJltloos to
ot JeJoctloos ftom tbe lomp som omooot. ltem tote
teoJets, oo tbe coottoty, speclfy oll posslble ltems of
wotk wltb occepteJ totes fot teqolotloq poymeots to
coottoctot. AotbotlzeJ Jevlotloos, extto ooJ sobstltoteJ
ltems ote teqoloteJ by qeoetol ptovlsloo of coottoct
coottoctot's ptoflt ooJ ovetbeoJs
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17.7.3 Change of koof
AgreemenL for consLrucLlon of new
lnsulaLed meLal sheeL roof alongwlLh
supporLlng sLrucLure and lLs lnLegraLlon wlLh
exlsLlng sLrucLure, eLc. lncluded provlslon
for 13060 sqm of galvalume proflled roof
sheeL as Lop layer. 1he ellglblllLy crlLerla
noLlfled Lhrough press noLlce for pre
quallflcaLlon of conLracLors lncluded Lhe
condlLlon of saLlsfacLory compleLlon of aL
leasL one work of lnsulaLed meLal sheeL roof
wlLh roof area noL less Lhan 4000 sqm. 1he
evaluaLlon commlLLee of senlor offlcers
approved flve agencles afLer assesslng Lhelr
compeLence Lo compleLe Lhe work. 1he hlgh
Lendered raLes of 36.04 per cenL above Lhe
esLlmaLed cosL for clvll work was [usLlfled by
CWu on grounds of speclallzed plles [ob,
sLeel proflle sheeL roof, lndlgenous
consLrucLlon uslng local maLerlal and Lhe
hlgh degree of mechanlsaLlon, eLc. 1he
successful bldder was requlred Lo submlL
credenLlals of Lhe rooflng assoclaLe for
approval of CWu.
AClL submlLLed deLalls of MulLlcolor SLeels
lndla vL. LlmlLed as Lhelr assoclaLe for roof
work. 1he enLlre work was sLlpulaLed Lo be
compleLed by 16 !une 2009, buL AClL
lnLlmaLed LhaL Lhey were noL able Lo flnd a
sulLable vendor for Lhls work ln CcLober
2009, lndlcaLlng loose conLrol of CWu on
AClL. lL was noLlced ln CcLober 2009 LhaL
MulLlcolor dld noL possess Lhe Lechnology
or machlnery Lo provlde Lhe exLerlor
sLandlng seam roof proflle as shown ln
drawlngs and speclflcaLlons.
lnsLead of execuLlng Lhe agreemenL lLem aL
Lhe rlsk and cosL of AClL, CWu declded Lo
subsLlLuLe Lhe lLem wlLh kalzlp alumlnlum
rooflng sysLem, ln a serles of undue
flnanclal favours Lo AClL, whlch also
AddlLlonal paymenL of 8s.2.16 crore had

been made by redeflnlng subsLlLuLed
lLems as exLra lLems.
1he quallLy of hlgh cosL lLems of
sLalnless sLeel ralllng [ 8s.23,300 per
meLer was lncreased from 40 m Lo
1640 m.
Case Study: 17.3
Lxtra payment of ks.4.17 crore for |tems
of work a|ready covered |n the scope of
work of |umpsum contract.
Desp|te c|ear prov|s|ons for use of
sta|n|ess stee| p|ates, bo|ts, nuts etc. |n
the |tem of
ga|van|zed strands for sta|n|ess stee|
connect|ons |n the draw|ngs, techn|ca|
spec|f|cat|ons and notes be|ow the |tem
|n b||| of quant|ty, CWD proposed an
extra |tem of sta|n|ess stee| p|ates and
bo|ts on the ground that word
"sta|n|ess stee|" had not been
ment|oned |n the nomenc|ature of the
|tem of work. Lxtra payment of ks.S
crore to ACIL for sta|n|ess stee| p|ates
and bo|ts was approved by the
competent author|ty |n Iebruary 2010.
ayment of ks.4.17 crore had been
made to ACIL as of November 2010.
After cont|nued de||berat|ons]
d|scuss|ons and report|ng by us, CWD
agreed (December 2010) that the |tem
of sta|n|ess stee| p|ates and bo|ts, etc.
was part of the agreement |tem and
noth|ng extra was payab|e and assured
make recovery from ACIL.
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defeaLed Lhe baslc purpose of lump sum
conLracL. Case SLudy 17.4 refers.
ln addlLlon, 81 lLems of work valulng 8s.
14.86 crore were added subsequenLly as
exLra lLems of work as Lhese were noL
envlsaged aL Lhe Lenderlng sLage.
Comp|ex by treat|ng the |tem as 'extra
|tem'.
Instead of execut|ng the agreement
|tems |n both the cases at the r|sk and
cost of the contractor under prov|s|ons
of the agreement, CWD preferred
extra payment of ks.6.79 crore to the
contractors by subst|tut|ng the or|g|na|
|tem.
CWD rep||ed that |n v|ew of the
techn|ca| respons|b|||ty of the ent|re
bu||d|ng be|ng w|th the ma|n contractor,
resort|ng to gett|ng the roof work done
|ndependent|yat the r|sk and cost of the
ma|n contractor d|d not appear to be a
v|ab|e so|ut|on. nowever, |n both the
cases the ka|z|p roof|ng system was
prov|ded by manufacturers of the ka|z|p
roof|ng system] the|r agent, and the
ma|n contractors had no ro|e except
pocket|ng unearned prof|ts.
Case Study: 17.4
Ia||ure of CWD to enforce contractua|
remed|es aga|nst contractor
1wo contracts awarded by the CWD
for construct|on of new |nsu|ated meta|
sheet roof a|ong w|th support|ng
structure etc. at Dr. S..M. Sw|mm|ng
oo| Comp|ex and construct|on of
we|ght||ft|ng aud|tor|um w|th two t|er
underground park|ng at INS |nc|uded
s|m||ar |tem of work "prov|d|ng and
f|x|ng of doub|e sk|n |nsu|ated roof|ng
system compr|s|ng of seam prof||ed
permanent|y co|our coated ga|va|ume]
z|nca|une stee|" Q ks.78S0 per sqm.
and ks.2349 per sqm. In both cases, |t
was the respons|b|||ty of the ma|n
contractor to engage techn|ca||y
competent and capab|e vendors for the
roof|ng system.
nowever, the vendors engaged by
contractors were found to be
|ncompetent and |ncapab|e to prov|de
the comm|tted roof|ng system. 8oth
the contractors d|d not execute the |tem
of work and CWD dec|ded to prov|de
ka|z|p roof|ng system |n both the
venues. nowever, the same author|t|es
|n CWD sanct|oned var|ab|e rates of
ks.7316.44 per sqm. for we|ght||ft|ng
aud|tor|um by treat|ng the |tem as
'subst|tuted |tem' and ks.9168.3S per
sqm. for Dr. S..M. Sw|mm|ng oo|
17.7.4 Defects |n agree
Scope of work provlded conLradlcLory
provlslons ln Lhe agreemenL whereby as
per provlslons ln volume l of Lhe
agreemenL, Lhe servlce bulldlng was
covered ln Lhe scope of work buL as per
provlslons ln volume ll, lL was excluded
from Lhe scope of work. Cn belng
reporLed ln audlL, CWu agreed noL Lo
LreaL Lhe work as exLra lLem.
17.7.S Spec|f|cat|ons not as per sport|ng
requ|rements
SporLlng requlremenLs noLlfled by Lhe
CC Lhrough venue brlef had noL been
adhered Lo fully. 1here were devlaLlons
ln dlmenslons of swlmmlng pool, dlvlng
pool and warm up pool as deLalled ln
Annexe 17.4.
nose ree| used before games
nose ree| rep|aced after games
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17.7.6 Cverpayment of ks.0.39 crore.
As per Lhe agreemenL, Lhe beam

deLecLor was requlred Lo be provlded
for a range effecLlve for 110 meLers.
CWu accepLed Lhe conLracLor's vlew
LhaL all Lhe beam deLecLors of approved
makes were upLo 100 meLers range only.
1hls lLem was subsLlLuLed wlLh beam
deLecLors of 100 meLer range.
AgalnsL Lhe provlslon for forelgn make
pool re-clrculaLlng pumps and boosLer
pumps, local make equlpmenLs were
provlded.
Powever, paymenL was made conslderlng
Lhe raLes avallable ln Lhe bllllng schedule
lnsLead of varlaLlon raLes. 1hls resulLed ln
overpaymenL of 8s. 0.39 crore. Cn belng
polnLed ouL, CWu assured adopLlon of
varlaLlon raLes.
17.7.7 Lxcess procurement of
sport|ng equ|pment
AgalnsL Lhe requlremenL of 18 raclng lanes,
CWu procured 29 raclng lanes, lncurrlng
excess expendlLure of 8s.0.22 crore for
addlLlonal 11 raclng lanes. Agaln, 20 of 32
sLarLlng blocks requlred for swlmmlng pool
were Lransferred by Lhe CC Lo SM Complex
and CWu also procured 36 sLarLlng blocks,
lncurrlng avoldable expendlLure of 8s.0.34
crore.
CWu ln lLs reply sLaLed LhaL Lhese
procuremenLs were made as per CC's
guldellnes for sporLs equlpmenL. As such,
procuremenL of excess equlpmenL resulLed
ln wasLeful expendlLure.
17.7.8 Supp|y of |nfer|or hose p|pes for
f|ref|ght|ng system
AClL provlded ower Max make hose plpes
for flre flghLlng sysLem, lnsLead of Lhe
conLracLual requlremenL of admlnl/CaLe
make hose plpe as per lS:12383. lnsLead of
re[ecLlng Lhe enLlre loL of plpes, CWu
allowed parL paymenL and reporLed Lhe
requlremenL of replacemenL of hose plpes
Lhrough Lhe compleLlon cerLlflcaLe. 1he
lnferlor quallLy hose plpes were replaced
afLer closure of CWC 2010.
oor qua||ty of t|||ng work executed |n the poo|
D|gg|ng work st||| |n progress (Dec. 2010)
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uurlng [olnL lnspecLlon of Lhe venue on 23
AugusL 2010 we noLed floor Llles of
compeLlLlon pool, warm up pool and dlvlng
pool damaged/mlsslng aL many places.
AfLer havlng been polnLed ouL ln audlL,
CWu reporLed replacemenL of Lhese Llles
Lhrough AClL.
17.8.1 Introduct|on
1able 17.7 shows Lhe ma[or works LhaL were
execuLed aL Lhe lndlra Candhl SLadlum
complex for CWC-2010:
uurlng physlcal lnspecLlon of Lhe venue ln
uecember 2010(afLer CWC 2010), we
noLlced LhaL Lhe work of dlgglng work/road
of 6 feeL depLh and 4 feeL wldLh (approx.)
from servlce bulldlng Lo sLadlum was sLlll
belng carrled ouL..
17.7.11 Lack of authent|c|ty of comp|et|on
of the work
1he work of provldlng lnLegraLed 8ulldlng
ManagemenL SysLem was awarded aL a cosL
of 8s.0.40 crore for compleLlon by 7 !anuary
2010. lnlLlally CWu lndlcaLed Lhe work as
'work ln progress' (uecember 2010) and
subsequenLly (lebruary 2011) lndlcaLed LhaL
Lhe work was compleLed ln SepLember 2010
(lebruary 2011).
17.7.12 Inadequate hort|cu|ture work
AgalnsL Lhe esLlmaLed requlremenL of 10432
sqm of horLlculLure work, CWu lnflaLed
Lhe esLlmaLe Lo 13000 sqm on ad hoc basls.
Powever, Lhe acLual quanLlLy
execuLed/developed was only 7810 sqm.,
lncludlng grasslng work ln 2367.48 sqm
area.
17.7.9 Lxecut|on of poor qua||ty work
17.7.10 Lxecut|on of defect|ve work
17.8 Ind|ra Gandh| Stad|um
Comp|ex
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17.8.2 Indoor cyc||ng ve|odrome
1oble 17.6 - Mojot wotks execoteJ ot lC 5toJlom
Work Consu|tant Lst|mated
Cost
Awarded
Cost
Contractor
(ks. |n Crore)
Construct|on of Indoor
Cyc||ng Ve|odrome
Des|gn and Construct|on of
permanent 1|mber Cyc||ng 1rack
Construct|on of
Wrest||ng Stad|um
Structura| ketrof|tt|ng
(Gymnast|cs Stad|um)
koof truss
Construct|on of warm-up ha||s
nVAC (Gymnast|cs Stad|um)
Construct|on of 1S0 bedded
noste| cum Med|a Centre
Construct|on of koads Storm
Water Dra|ns, 8oundary wa||
Sub Stat|on Lqu|pment
S1u
uale Pughes
(uSA)
CLS
CLS
CLS
CLS
--
SAn
CLS
CLS
97.20
17.43
79.20
63.34
36.80
17.96
26.89
13.36
32.02
23.82
78.39
13.00
63.33
49.81
33.43
14.16
31.30
12.06
23.40
39.37
!MC ro[ecLs
(lndla) LLd
ComforL neL 1raders
(lndla) LLd.
Lra lnfra Lnglneerlng LLd
!MC ro[ecLs (lndla) LLd
Swadeshl ConsLrucLlon
Co. LLd.
Co. LLd.
volLas LlmlLed
Co. LLd.
Co. LLd.
Ahluwalla ConLracLors
(lndla) LLd.
IGI Cyc||ng Ve|odrome
IMC ro[ects (Ind|a) Ltd. emerged as the
successfu| b|dder based on non-
transparent pract|ces. 1ak|ng advantage of
the ad[usted account|ng per|od and
desp|te non-c|ar|ty on the quantum of
||ab|||t|es, |t not on|y won the |nstant
contract but a|so the contract for
structura| retrof|tt|ng] repa|r and L&M of
the gymnast|cs stad|um. Inc|denta||y, the
same contractor was found |ne||g|b|e
wh||e b|dd|ng for works |n the MDC
stad|um.
As brought out |n our Study keport, of
Iu|y 2009, th|s change |n spec|f|cat|on
from an open stad|um to a fu||y a|r-
cond|t|oned Indoor Ve|odrome was
|arge|y at the |nstance of the
Internat|ona| Cyc||ng Un|on (UCI).
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1he proposal was lnlLlally Lo renovaLe Lhe
exlsLlng open cycllng velodrome buL, afLer
conslderlng Lhe opLlons of a parLlally
covered velodrome wlLh demounLable
Llmber Lrack beLween May 2007 and
SepLember 2008, a declslon was flnally
Laken by M?AS Lo consLrucL a fully covered
alr condlLloned velodrome wlLh permanenL
Llmber Lrack.
1hls delay was also reflecLed ln Lhe
flnallsaLlon of Lhe reLurn venue brlef ln
lebruary 2009, venue brlef of whlch was
submlLLed ln november 2006, wlLh
Clearly, an oLherwlse lnellglble agency

quallfled due Lo Lhe ad[usLmenL ln Lhe
flnanclal sLaLemenLs and performance.
lnconslsLenL flgures of llablllLles were
provlded by !MC. ln Lhe flrsL lnsLance lL
lndlcaLed a llablllLy of 8s. 1179.79 crore
for 33 works ln progress as on 30 !une
2008, whlch was subsequenLly lncreased
Lo 66 works of 8s 1734.36 crore as on 31
March 2008. SlmulLaneously, ln Lhe
Lender documenLs for Lhe conLracL for
sLrucLural reLroflLLlng/repalr and L&M
for Lhe gymnasLlcs sLadlum ln Lhe same
venue, Lhe llablllLy as on 31 March 2008
cascadlng changes ln Lhe succeedlng
mllesLones. 1he ma[or works were of
consLrucLlng Lhe sLadlum sLrucLure and
laylng Lhe Llmber cycllng Lrack.
!MC ro[ecLs (lndla) LLd. was awarded Lhe
conLracL of composlLe work for lndoor
Cycllng velodrome. We found LhaL lL dld noL
fulfll Lhe prescrlbed ellglblllLy condlLlons as
llsLed below:
1he compllance wlLh Lhe condlLlon LhaL
Lhe agency should noL have lncurred any
loss for more Lhan Lwo years ln Lhe lasL
flve years was clrcumvenLed by a change
ln Lhe accounLlng perlod ln Lhe year
26
2004-03 (Lhough lL does noL appear Lo
have been done speclflcally for Lhls
pro[ecL) as lndlcaLed, below
17.8.2.1 SelecLlon of !MC ro[ecLs
(lndla) LLd.
Account|ng ear 2007-08 2006-07 200S-06

(S|x Months)
2004-0S
(18x Months)
2003-04
rof|t after 1axes 30.67 13.90 1.32 (11.37) (4.04)
26
AccepteJ by tbe kOc lo Iooe 2005
was lndlcaLed as 8s. 1378.12 crore for
33 works. Such dlsparlLy ln Lhe flgures
clearly esLabllshes Lhelr unrellablllLy.
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SeparaLely, we found LhaL for Lhe award of
work of consLrucLlon of Lrap and skeeL nos.
4, 3, 6 and underground Lank aL ur. karnl
27
Slngh ShooLlng 8ange (kSS8) , slx bldders,
who responded, dld noL fulfll Lhe speclfled
crlLerla of execuLlng Lhree slmllar works of
8s. 3 crore each ln Lhe lasL flve years. 1he
condlLlon was LhereafLer relaxed Lo
execuLlon of slmllar works of 8s. 1 crore per
monLh, whlch enabled Lhe shorLllsLlng of
!MC ro[ecLs (lndla) LLd. and Swadeshl
ConsLrucLlon Co. from among Lhe 6
respondenLs. 1he work was flnally awarded
Lo !MC ro[ecLs (lndla) LLd. for 8s. 4.73
crore, belng Lhe lower bldder of Lhe Lwo..
1hls agency also could noL compleLe Lhe
work as per Lhe sLlpulaLed Llme. ln addlLlon,
we found LhaL slnce CWu no longer
lncludes Lhe clause perLalnlng Lo execuLlon
of works aL Lhe rlsk and cosL of Lhe orlglnal
conLracLor ln Lhe evenL of unsaLlsfacLory
performance ln lLs conLracLs, Lhey have no
recourse Lo recover 8s. 0.20 crore from Lhe
orlglnal conLracLor.
CWu ldenLlfled Lloyd lnsulaLlons as Lhe
agency whlch would execuLe Lhe roof
work as a sub-agency of Lhe maln
conLracLor. !MC lndlcaLed 8s. 2.99 crore
as Lhe cosL of Lhls work. We found LhaL
Lhe work was flnally execuLed by 8emo
8oof SysLem, slnce Llyod lnsulaLlons
falled Lo execuLe Lhe work. 1lll daLe, 8s.
4.48 crore has been pald for Lhe work.
lL ls a clear lndlcaLlon LhaL CWu and lLs
deslgn consulLanL (S1u), could noL assess
Lhe complexlLy of Lhe work, and such
17.8.2.2 Change ln Lhe roof works
change ln Lhe agency mld-course would

lnevlLably lead Lo exLra cosLs.
1here were asLronomlcal lncreases ranglng
from 100 Lo 1800 per cenL ln Lhe quanLlLles
of cables, condulLs and hardware lLems
amounLlng Lo 8s. 1.31 crore sLaLed Lo be
consumed ln execuLlon of Lhe work.
We found LhaL Lhe compeLlLlon for Lhe
speclallsed work of laylng permanenL
Llmber Lrack for Lhe velodrome was llmlLed
Lo lndlan furnlLure conLracLors ln
assoclaLlon wlLh an lnLernaLlonal Lrack
deslgn and consLrucLlon experL. lL appears
parLlcularly sLrange LhaL conslderlng Lhe
lack of domesLlc experlence and complexlLy
of Lhe Lask, CWu chose Lo llmlL Lhe lndlan
parLner Lo furnlLure conLracLors, raLher Lhan
Lhose assoclaLed elLher wlLh consLrucLlon or
Lhe sporLs lndusLry. no aLLempL was made
Lo floaL lnLernaLlonal Lenders, desplLe Lhe
compelllng need for assoclaLlon of an
lnLernaLlonal experL. lurLher, Lhe ellglblllLy
crlLerla regardlng slmllar works and
Lurnover were also dlluLed.
1he conLracL was flnally awarded Lo ComforL
neL 1raders (lndla) vL. LLd. aL a cosL of 8s.
17.43 crore from among Lhree bldders, an
agency LhaL had supplled chalrs aL varlous
venues ln assoclaLlon wlLh nussll. ComforL
neL was also parL of Lhe consorLla, who
were awarded venue overlays conLracLs by
Lhe CC (commenLed upon ln ChapLer - 9)
We also found LhaL exLra work of 8s.0.30
crore of laylng vC floorlng was also
awarded Lo ComforL neL wlLhouL Lenderlng.
17.8.2.3 uevlaLlons ln execuLlon of A
sysLem works
17.8.2.4 Award of work for 1lmber 1rack
27
1bls wotk wos loltlolly locloJeJ lo tbe scope of wotk of
to lofto oqloeetloq ltJ., tbe molo coottoctot fot
coosttoctloo of k55k. lo Aoqost 2009, lt wos tokeo owoy
ftom lt, Joe to lts follote to complete tbe wotk lo tlme.
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1hls sLadlum feaLured maln compeLlLlon
arena, aLhleLes warm up hall and fronL/back
28
of house faclllLles , wlLh a seaLlng capaclLy
of approxlmaLely 7300. 1he venue brlef was
prepared ln november 2006, reLurn brlef ln
CcLober 2007, buL no flnal approval was
reporLedly recelved.
ln CcLober 2007, Lhe pre-quallflcaLlon
process was lnlLlaLed and ln lebruary 2008,
17.8.3.1 SelecLlon of Lra lnfra
Lnglneerlng LLd.
28
lront of nouse loci/ities: 1be foclllty telote to spectotot
oteos, locloJloq ttoospott zooes, eottles, seotloq ooJ
soppott oteos.
8ock of nouse loci/ities: 1be focllltles telote to oteos
tepolteJ fot occteJlteJ petsoooel, locloJloq soppott
oteos, ttoospott zooes, eottles ooJ seotloq. 1be 8On
oteos sboolJ qeoetolly be sepototeJ ftom spectotot
oteos to osslst tbe moooqemeot of secotlty ooJ
occteJltotloo occess.
29
30
8C 5bltke & co., to lofto oqloeetloq ltJ., 8 8llllmotlo
& co. ltJ, Ablowollo coottoctots(loJlo) ltJ., IMc
ltojects (loJlo) ltJ. ooJ uolty lofto ltojects ltJ.
8C 5bltke & co (Mu oot JeposlteJ)
29
ouL of Lhe 9 respondenLs, 6 were pre-
30
quallfled. SubsequenLly, one of Lhe 6 pre-
quallfled agencles was noL lssued Lender
documenLs on Lhe grounds of non
submlsslon of LMu. llnally, of Lhe flve
remalnlng C agencles, only Lra lnfra
Lnglneerlng LLd. submlLLed Lhe flnanclal bld,
whlch was accepLed by Lhe compeLenL
auLhorlLy. 1he chronology of evenLs ls glven
ln Lhe flgure 17.2.
17.8.3 Wrest||ng Stad|um
IG Wrest||ng Stad|um
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We found Lhe followlng deflclencles ln Lhe
Lenderlng and award process:
1here was an lnexpllcable delay of four
monLhs ln declarlng Lhe pre-quallfled
bldders, belylng all Lhe urgency whlch
was oLherwlse assoclaLed wlLh Lhe
pro[ecL.
SLrangely, only one of Lhe flve pre-
quallfled agencles, whlch had also
deposlLed LMu and obLalned Lender
documenLs, flnally submlLLed a flnanclal
bld, whlch ralses concerns on Lhe
compeLlLlveness of Lhe blddlng process.
1he pre-quallflcaLlon of Lra lnfra
Lnglneerlng LLd., Lhe successful bldder,
was also deflclenL Lo Lhe exLenL LhaL

Lhere was no clear proof of execuLlon of
a sLeel fabrlcaLlon work of 20m span.
Cne of Lhe appllcanLs, 8uS ro[ecLs, was
dlsquallfled by Lelephonlc/e-mall
verlflcaLlon from a kerala cllenL as Lo
wheLher elecLrlcal and mechanlcal work
had been execuLed by lL. 8y conLrasL, we
found no documenLed evldence LhaL any
efforLs were made Lo verlfy wheLher Lra
lnfra Lnglneerlng LLd. had lndeed
execuLed a 20m span sLrucLure.
ln lLs reply, CWu sLaLed LhaL such
verlflcaLlon was aL Lhe dlscreLlon of Lhe
concerned offlcer. Powever, as such, Lhe
llqote 17.2 - cbtoooloqy of eveots lo owotJ of coottoct to to lofto oqloeetloq ltJ.

re-qua||f|cat|on |nv|tat|on -Cctober 2007
app||cat|ons opened -November 2007
re-qua||f|ed agenc|es dec|ared - Iebruary 2008
I|nanc|a| b|ds ca||ed - Ieb 2008
Lxtens|on of |ast date of subm|ss|on of b|d - March-Apr|| 2008
I|nanc|a| b|d opened - May 2008
Award of Contract - August 2008
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approach remalned lnconslsLenL Lo Lhe
exLenL polnLed ouL by us.
1he blddlng capaclLy of 8s. 1038 crore
for Lra lnfra Lnglneerlng LLd. calculaLed
whlle pre-quallfylng Lhe agency dld noL
Lake lnLo accounL any llablllLles Lowards
work-ln-progress. Powever, Lhls blddlng
capaclLy of 8s. 1038 crore was

conslderably hlgher Lhan Lhe cuL-off of
8s 73 crore.
1he flgure of flnanclal Lurnover for Lhe
year 2006-07 was also noL verlfled by
Lhe CharLered AccounLanL.
1he CymnasLlcs sLadlum ls a cenLrally alr

condlLloned sLadlum wlLh a seaLlng capaclLy
of 16000.
Several relaxaLlons ln Lhe Lenderlng process
resulLed dlrecLly ln Lhe selecLlon of
17.8.4.1 SelecLlon of Swadeshl
ConsLrucLlon Co
17.8.4 Gymnast|cs stad|um
IGI Gymnast|cs Stad|um
Swadeshl ConsLrucLlon Co. as Lhe successful
bldder, as deLalled below.
1he ellglblllLy crlLerla were relaxed Lo
enable Swadeshl ConsLrucLlon Co. Lo
quallfy. 1he crlLerla as prescrlbed ln Lhe
Lhen appllcable CWu Manual 2003 and Lhe
relaxed condlLlons are glven below
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31
We found LhaL of Lhe Lwo bldders LhaL
responded, Swadeshl ConsLrucLlon Co. dld
noL fulfll Lhe ellglblllLy crlLerla prescrlbed ln
Lhe manual.
1he relaxaLlon was [usLlfled on Lhe ground
of Lhe work belng of 'speclallsed naLure', we
found no evldence of Lhls belng prescrlbed
ln Lhe nl1. As per Lhe CWu Manual, Lhe
procedure for award of works of speclallsed
naLure requlres LhaL Lhe Lender papers
should be lssued only afLer ascerLalnlng
from Lhe conLracLor Lhelr experLlse and
experlence ln Lhe speclallsed flelds
concerned. ln facL, whlle arnlka
Commerclal and LsLaLes vL. LLd suo moLo
provlded evldence of lLs havlng experlence
of execuLlng long span sLrucLures (Lhe
probable speclallsaLlon requlred), Swadeshl
ConsLrucLlon Co had no such credenLlals.
Also, Lhe flgures of Lurnover submlLLed by
Swadeshl ConsLrucLlon Co dld noL lndlcaLe
separaLely Lhe amounLs aLLrlbuLable Lo
consLrucLlon works.
lurLher, Lhough as per manual, pre-
quallflcaLlon procedure was Lo be followed
(lnvolvlng Lhe calculaLlon of blddlng
capaclLy of Lhe Lenderers) succeeded by an
evaluaLlon procedure, Lhe nl1/Lenderlng
process adopLed ln Lhe lnsLanL work as well
as Lhe work of consLrucLlon of warm-up
halls, where also Swadeshl ConsLrucLlons
was Lhe successful bldder, dlsregarded boLh
Lhe evaluaLlon procedure and Lhe need Lo
assess Lhe blddlng capaclLy.
As per Lhe LlC memo, lnlLlally a 100 bedded
cenLrally alr condlLloned hosLel was Lo be
consLrucLed, whlch was subsequenLly
revlsed Lo a 130 hosLel wlLhouL cenLral alr
condlLlonlng ln lebruary 2009 aL an
esLlmaLed cosL of 8s. 16.30 crore. 1he
ground floor of Lhe hosLel was Lo be used as
a medla cenLre durlng Lhe Cames, buL Lhe
hosLel was noL used durlng Lhe Cames.
Swadeshl ConsLrucLlon Co was awarded Lhe
work of boLh consLrucLlon of hosLel and
consLrucLlon of roads, sLorm waLer dralns
and boundary wall.
1he Lender for consLrucLlon of hosLel was
Lendered/reLendered flve Llmes, beLween
!anuary 2008 Lo CcLober 2008 when Lhe
conLracL was awarded Lo Swadeshl
ConsLrucLlon Co. 1he Lenderlng process ls
deplcLed ln flgure 17.3.
17.8.S noste|]med|a centre, and roads,
storm water dra|n and boundary
wa||
17.8.3.1 SelecLlon of Swadeshl
ConsLrucLlon Co.
As per NI1
2 works of
8s. 10 crore
1 work of
8s. 13 crore
2 works of S0 per cent
of the est|mated cost
(|.e. 2 works of ks.
16.73 crore each)
1 work of 80 percent of
est|mated cost (ks.
26.76 crore)
As per CWD
2003 Manua|
31
lotolko commetclol ooJ stotes lvt. ltJ. ooJ 5woJesbl
coosttoctloo co.
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AfLer a proLracLed blddlng process,
Swadeshl ConsLrucLlon Co. was awarded Lhe
conLracL.
selecLlon of Swadeshl ConsLrucLlon Co.:
As per Lhe nl1, Lhe bldder had Lo submlL
evldence of works of slmllar naLure.
Swadeshl was selecLed on Lhe
experlence of consLrucLlon of ullll PaaL
aL lLampura, new uelhl for 8s. 20.78
crore. We found LhaL 8CC work
comprlsed only 13 percenL l.e. 8s. 2.77
crore, of Lhe clLed work. 1hus Lhe
condlLlon of experlence of slmllar works
whlch, ln Lhe lnsLanL case, were

'8ulldlng works wlLh 8CC framed
sLrucLures' was noL acLually fulfllled, and
1he proflL and loss accounL and balance
sheeL deLalls were noL aLLached wlLh Lhe
bld, as requlred.
We found LhaL Swadeshl ConsLrucLlon
was also lnellglble for award of work for
consLrucLlon of roads, sLorm waLer
dralns and boundary wall, buL for a
serles of relaxaLlons glven Lo lL durlng
Lhe evaluaLlon aL Lhe pre-quallflcaLlon
sLage, as lndlcaLed below:
llqote 17.J - 1eoJetloq ptocess fot owotJ of wotk to 5woJesbl coosttoctloo co.
Ist 1ender (1S Ianuary 2008)
LsLlmaLed cosL 8s 9.96 crore
Cancelled on 6 lebruary 2008 due Lo admlnlsLraLlve reasons
3rd 1ender (2S Apr|| 2008)
4 agencles bld
1ender cancelled due Lo amblgulLy ln Lender documenL regardlng plle foundaLlon work
2nd 1ender (8 March 2008)
LsLlmaLe lncreased Lo 8s. 12.30 crore
11 parLles responded buL only one bld recelved from Cahol 8ulldwell LLd.
8e[ecLed ln Aprll 2008 slnce Lhe bldder concealed Lhe facL of ongolng amalgamaLlon
4th 1ender (12 Iune 2008)
8 agencles purchased Lhe Lender documenLs, buL only Lwo (uewan Chand and
Cahol 8ulldwell LLd.) submlLLed blds
1ender re[ecLed due Lo hlgh raLes
Sth 1ender (31 Iu|y 2008)
8 agencles purchased Lhe Lender documenLs, buL only Lwo blds (Swadeshl
ConsLrucLlon Co and nn & Co) recelved
8ld of L1 bldder (Swadeshl ConsLrucLlon Co.) accepLed
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1he flgures of Lurnover submlLLed by lL

dld noL separaLely lndlcaLe Lhe amounLs
aLLrlbuLable Lo consLrucLlon works,
(Lhough requlred), audlLed flnanclal
sLaLemenLs were also noL submlLLed for
lndependenL verlflcaLlon,
1he Lurnover of 2007-08 was based on
unaudlLed accounLs. lf Lhe unaudlLed
Lurnover of 2007-08 were Lo be
excluded, Swadeshl ConsLrucLlon was
noL ellglble on Lhls parameLer. ln
addlLlon, Lhe percenLage of compleLlon
lnLeresLlngly, Lhe exLra work of Lemporary
sLrucLure for Lhe wresLllng sLadlum was
awarded Lo Swadeshl ConsLrucLlon, lnsLead
of Lhe maln conLracLor for Lhe wresLllng
sLadlum (Lra lnfra Lnglneerlng LLd.)
ln addlLlon, an amounL of 8s. 0.38 crore was
pald Lo Swadeshl ConsLrucLlons for removal
of llme, moorum and bulldlng rubblsh whlch
was conLracLually Lo be done free of cosL by
Lhe agency.
of Lhe Lwo works ln progress was noL
lndlcaLed ln Lhe performance reporL,
and
LxcepL Lwo, none of Lhe seven works
compleLed ln Lhe lasL seven years were
cerLlfled by Lhe compeLenL auLhorlLy.
Swadeshl ConsLrucLlons was also awarded
exLra lLems of works aL markeL raLes,
wlLhouL blddlng, as summarlsed ln Lhe
1able 17.8
17.8.6 Lxtra |tems of ks. 2.48 crore

1oble 17.8 - llst of extto ltems owotJeJ ot Motket totes to 5woJesbl coosttoctloo
Work charged to Nature of Work Amount
(ks. |n crore)
Construct|on of
noste|]wrest||ng]
gymnast|cs stad|um
Construct|on of koads
etc.
Cab||ng]feeder p|||ars work for CC1V at the
hoste|, wrest||ng stad|um and gymnast|cs
stad|um
1emporary sLrucLure ln wresLllng sLadlum
0.77
1.71
Cur verlflcaLlon of Lhe correspondence
address of Swadeshl ConsLrucLlon Co. (no.
1, Sukhdev vlhar) revealed LhaL Lhls was a
resldence, casLlng furLher doubL on Lhe
credlblllLy and auLhenLlclLy of Swadeshl
ConsLrucLlons Co.
It |s g|ar|ng|y obv|ous that Swadesh|
Construct|on Co. was a favoured agency.
Dur|ng the ex|t meet|ng, |t was stated that
|t was an enterpr|s|ng agency that
de||vered. nowever, |ts se|ect|on,
bypass|ng prescr|bed tender|ng processes,
can |n no way be [ust|f|ed
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hotographs of correspondence address of Swadesh| Construct|on Co.(No. 1 Sukh Dev V|har)
MDC Nat|ona| Stad|um MDC Nat|ona| Stad|um
17.9 Ma[or Dhyan Chand Stad|um
We found that the ro[ect Manager
d||uted, w|thout any recorded reasons, the
pre-qua||f|cat|on cr|ter|a for e||g|b|e works
|n the NI1 from that spec|f|ed |n the
Genera| Cond|t|ons Contract (GCC)-200S.
As |t stood, the GCC-200S prescr|bed that
for a|| works cost|ng more than ks 10
crore, exper|ence of comp|et|on of at |east
two s|m||ar works equa| to 60 percent of
the est|mated cost wou|d make the
contractor e||g|b|e. 1h|s was d||uted to
'two s|m||ar works of on|y S0 percent of
the est|mated cost'. 1h|s d||ut|on d|rect|y
benef|ted Un|ty Infrapro[ects Ltd. and ACIL
, wh|ch wou|d not have been e||g|b|e had
the standard cr|ter|a been reta|ned.
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17.9.1 Introduct|on
17.9.2 D||ut|on of b|d cr|ter|a

1he upgradaLlon and 8emodelllng" of MuC
SLadlum aL Lhe awarded cosL of 8s. 209.31
crore lncluded Lhe followlng:
8elaylng of Lhe Lwo exlsLlng synLheLlc
llelds of lay (lCs),
Converslon of Lhe warm-up plLch from
grassy Lo synLheLlc Lurf,
Lxpanslon of Lhe specLaLor gallerles,
consLrucLlon of a vl gallery and faclllLy
bulldlngs aL lC-1,
ConsLrucLlon of a specLaLor gallery and
sporLs anclllary faclllLles aL lC-2, and
ConsLrucLlon of 2-Ller basemenL parklng
and exLernal/lnLernal developmenL.
1he maln work was awarded Lo unlLy
lnfrapro[ecLs LLd. for 8s. 147.82 crore, and
41 smaller works amounLlng Lo 8s. 61.49
crore were execuLed by varlous oLher
agencles.
ln response Lo Lhe 8lC lssued ln March
32
2007 for pre-quallflcaLlon, seven flrms
33
responded, ouL of whlch Lwo were
dlsquallfled.
17.9.3 ke||ab|||ty of the b|d amounts
ln our oplnlon, LransparenL, falr and

compeLlLlve blddlng ls Lhe besL deLermlnanL
of Lhe cosL of a pro[ecL. ln Lhe lnsLanL case
we found several lndlcaLors LhaL compel us
Lo belleve LhaL Lhe process was noL fully
rellable, and consequenLly Lhe raLes
obLalned Lhrough Lhe bld may noL be Lhe
reasonable cosL of Lhe work.
1hough flve bldders had been pre-
quallfled, only Lhree flnally bld. 1he Lwo
who dld noL evlnce lnLeresL were L&1
34
(wlLh an average annual Lurnover of
8s. 6941 crore) and Shapoor[l allon[l
(wlLh average annual Lurnover of 8s. 383
crore). ln conLrasL, Lhe Lhree flrms LhaL
bld had average annual Lurnover ranglng
only beLween 8s. 236-321 crore.
Seen ln Lhe conLexL of flucLuaLlng
esLlmaLed cosLs of Lhe pro[ecL aL
dlfferenL sLages l.e. 8s. 93 crore aL 8lC
32
33
Ablowollo coottocts (loJlo) ltJ., 5bopootjl lolloojl & co.
ltJ., l & 1 ltJ., uolty loftoptojects ltJ., 8.C. 5bltke
coosttoctloo 1ecbooloqy lvt. ltJ., IMc ltojects (loJlo)
ltJ. ooJ Noqotjooo coosttoctloo co. ltJ.
IMc ltojects (loJlo) ltJ. ooJ Noqotjooo coosttoctloo co.
ltJ. lotetestloqly, tbese two JlspoollfleJ fltms wete oble
to obtolo otbet cwC wotks.
34
covetloq tbe petloJ ftom 2001-02 to 2005-06
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AlLhough Lhe deparLmenL replled LhaL
agreemenL condlLlons of work orders of sub
conLracLors were fundamenLally dlfferenL ln
many work orders as Lhey dld noL cover rlsk
facLors, defecL, llablllLy, provlslon of
machlnery free of cosL, performance
guaranLee, securlLy deposlL, vA1 appllcable
on work eLc., yeL lL dld noL furnlsh any
sLage (when seven flrms responded)
reduced Lo 8s. 88.97 crore aL 8l sLage
(when Lhree flrms responded), and Lhe
flnal award aL 8s. 147.82 crore, Lhe
pro[ecLlon of esLlmaLes on Lhe lower
slde may have dlscouraged Lhe larger
companles from parLlclpaLlng.
1he [usLlflcaLlon of cosLs ln response Lo
Lhe lowesL quoLed bld of 8s. 131.91
crore vls--vls an esLlmaLe of 8s. 88.97
crore was prepared by Lhe ueparLmenL

on markeL raLes. We found LhaL Lhese
raLes dld noL Lruly reflecL Lhe markeL, as
ls evldenL from Lhe much lower raLes
obLalned for componenLs of Lhe maln
work by unlLy lnfrapro[ecLs LLd. from
ouLsourced markeL agencles. Some
lllusLraLlve cases are glven ln 1able 17.9
below:
1oble 17.9 - lllosttotlve coses of owotJ of sob-coottocts ot lowet totes
Sub-nead of Work (percentage of tendered
va|ue compr|s|ng of on|y those |tems wh|ch
were eas||y comparab|e)
Amount at wh|ch
work was awarded
by Contractor to
Sub-agenc|es
(ks. In crore)
Amount at wh|ch
work was awarded
to the Contractor
by the Department
(ks. In crore)
D|fference
(ks. In crore)
A|um|num Work (2.21)
I|n|sh|ng Works (1.17)
Waterproof|ng Works (0.4S)
Interna| Ut|||ty Serv|ces -Supp|y of
SMC pane| tanks (0.33)
Stonework , Marb|e Work and
I|oor|ng (1.70)
art M|sce||aneous Items (0.86)
Woodwork (0.32)
art M|sce||aneous Items (0.29)
koof|ng (2.S7)
3.27
1.72
0.66
0.30
2.32
1.28
0.47
0.43
3.80
0.93
0.46
0.43
0.39
1.14
0.22
0.09
0.16
1.16
2.32
1.27
0.21
0.11
1.38
1.06
0.38
0.27
2.64
quanLlLaLlve lmpacL of Lhese facLors.
lurLher, Lhe deparLmenL recalculaLed and
lndlcaLed LhaL Lhe percenLage of amounL
charged ln excess by Lhe maln conLracLor
ranged from 8.3 percenL Lo 202.3 percenL .
LvldenLly, Lhe awarded raLes were far ln
excess of a reasonable margln.
C|ear|y, the rates obta|ned from the b|d
process were not reasonab|e and have to
be v|ewed keep|ng |n m|nd that the b|d
process does not appear to tru|y
transparent, fa|r and compet|t|ve.
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1he raLes obLalned for elecLrlcal works

awarded separaLely ranged from 4.88 Lo
43.74 percenL below Lhe esLlmaLed cosL,
whereas Lhe elecLrlcal works whlch
formed a parL of Lhe composlLe Lender
were awarded 32.43 Lo 106.70 percenL
above Lhe esLlmaLed cosLs. ueLalls are
glven ln Annexe 17.3.
As per Lhe [usLlflcaLlon, Lhe dally
requlremenL of labour was lndlcaLed aL
4793. Powever, from Lhe monLhly
progress reporLs submlLLed by Lhe
conLracLor, Lhe number of labour
engaged dally ranged from 623 Lo 1400
and as per Lhe forLnlghLly labour reporLs
appended Lo Lhe 8unnlng AccounL bllls,
Lhese ranged from 200 Lo 1887, ln
nelLher case anywhere near Lhe
pro[ecLed flgures.
uesplLe Lhe addlLlonal cosLs facLored ln due
Lo Lhe reduced sLlpulaLed Llme perlod for
compleLlon, Lhe pro[ecL, whlch was
scheduled Lo be compleLed ln 18 monLhs,
Look 37 monLhs (wlLhouL a formal
compleLlon cerLlflcaLe belng lssued Llll
daLe).
hotograph of sub-contract to outsourced market agency by the ma|n contractor
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17.9.4 Se|ect|on of L|g|n L|ectron|cs Ltd.
for Supp|y, Insta||at|on, 1est|ng
and Comm|ss|on|ng (SI1C) of A
systems
1he bld for Sl1C of ubllc AnnouncemenL

SysLem was reLendered Lwlce, wlLh
change/dlluLlon of bld crlLerla aL each sLage:
ln Lhe flrsL Lender sLage, Lhe nl1, whlch
was lssued on 23 March 2008, conLalned
condlLlon of 'Lechnlcal experlence' of Lhe
flrms belng/ havlng assoclaLlon wlLh an
Crlglnal LqulpmenL ManufacLurer (CLM)
and havlng experlence of Sl1C of A
sysLem of ouLdoor sLadlum. ln response,
four agencles submlLLed Lhe Lender
3S
documenLs, and Lhree were shorLllsLed.
Llgln LlecLronlcs was re[ecLed on
Lechnlcal grounds. 1he Lender was
cancelled due Lo complalnLs.
AL Lhe 2nd Lender sLage, on 31 March
2009 l.e. afLer one year of Lhe flrsL
Lender, Lhe Lechnlcal ellglblllLy
condlLlons were replaced wlLh flnanclal
condlLlons of havlng experlence of Lwo
works of Sl1C of A sysLems of Lhe value
of 8s. 2.33 crore (60 percenL of
esLlmaLed cosL) or one of 8s. 3.40 crore
(80 percenL of esLlmaLed cosL) . Slx
flrms responded, and only one (Lsco
Audlo-vlsual (l) vL. LLd) quallfled. Agaln,
Llgln LlecLronlcs was re[ecLed. 1hls
Lender was also cancelled due Lo
reporLed monopoly, and
AL Lhe 3rd 1ender sLage, on 23 Aprll
2009, Lhe condlLlon was dlluLed Lo only
experlence of Lwo works of 8s. 1 core or
one of 8s. 2 crore. Seven flrms
36
responded, and four were found
ellglble. Llgln LlecLronlc, belng Lhe L-1
bldder was selecLed and awarded Lhe
work on 14 !uly 2009 l.e. afLer 13
monLhs of lnlLlaLlon of Lenderlng
process.
Pence, due Lo lnexpllcable delays and
successlve dlluLlon of Lender condlLlons, Lhe
work of Sl1C of A SysLem was awarded
afLer a delay of one and half years, and a
flrm, whlch was lnellglble aL Lhe flrsL and
second sLage, emerged successful flnally.
Also, Lhe facL LhaL Lhe conLracLor (Llgln
LlecLronlcs) dld noL have a valld assoclaLlon
wlLh Lhe CLM (!8L) may poLenLlally affecL
fuLure malnLenance and usablllLy of Lhe A
sysLem. lurLher, we found LhaL an exLra
lLem of laylng cables ln excess of Lhe
conLracLed quanLlLy ranglng 306 - 631
percenL was permlLLed, wlLhouL obLalnlng
any deLalled schemaLlc dlagram lndlcaLlng
Lhe locaLlon and Lhe lengLh of Lhe cables
lnsLalled whlch ulLlmaLely resulLed ln an
addlLlonal expendlLure of 8s. 1.06 crore. ln
addlLlon Lo Lhe dlfflculLles ln verlfylng Lhe
acLual quanLlLles lnsLalled wlLhouL a
deLalled schemaLlc dlagram, Lhe
malnLalnablllLy of Lhls sysLem could be
affecLed. ueLalls are glven ln Annexe.17.6.
We found a sLaggerlng lncrease ln quanLlLles
of cables, ducLs and plpes for Lhe maln
composlLe conLracL, desplLe Lhe facL LhaL
Lhe assoclaLed lLems (elecLrlcal poles, llghLs,
APus, coollng fans eLc.) were reduced
subsLanLlally ln number. 1he deLalls are
summarlsed below
17.9.S Def|c|enc|es |n contract execut|on
36
nl-tecb AoJlo 5ystem lvt. ltJ., MoJeto koJlo noose (l)
lvt. ltJ. ooJ lqlo lecttoolcs ooJ sco AoJlo-vlsool(l)
lvt. ltJ
3S
nl-tecb AoJlo 5ystem lvt. ltJ., MoJeto koJlo noose (l)
lvt. ltJ. ooJ lowet 5ystem
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17.9.6 Non |evy of compensat|on
Lhe quanLlLy of varlous Lypes of cables

and condulLs for PvAC works, flre
flghLlng works, flre alarm works and
LlecLrlcal & lnsLallaLlon work lncreased
by 32 per cenL Lo a sLaggerlng 6000 per
cenL over Lhe conLracLed quanLlLles,
leadlng Lo an addlLlonal flnanclal burden
of 8s. 1.10 crore,
Lhe quanLlLy of varlous Lypes of ducLlng
for PvAC works lncreased beLween 39 Lo
132 per cenL, aL an addlLlonal cosL 8s.
1.17 crore, and
Lhe quanLlLy of varlous Lypes of plplng &
oLher accessorles for flre flghLlng works
lncreased from 32 Lo 7430 per cenL wlLh
addlLlonal cosL lmpllcaLlon of 8s. 0.78
crore.
uesplLe delayed compleLlon/ slow
progress of Lhe pro[ecL, no
compensaLlon has been levled for slow
progress of work amounLlng Lo 8s. 16.49
37
crore . lurLher, slnce proper record of
Lhe hlndrances aLLrlbuLable Lo Lhe
conLracLor have noL been malnLalned, lL
ls dlfflculL Lo deLermlne Lhe regularlLy of
Lhe provlslonal LC1s lssued from Llme Lo
Llme.
1he reLurn venue brlef envlsaged a
Lemporary specLaLors' gallery and anclllary
faclllLles aL lC-2. We dld noL flnd
documenLaLlon of Lhe clrcumsLances, under
whlch Lhese permanenL sLrucLures were
consLrucLed as addlLlonal works.
17.9.7 Construct|on of Spectator ga||ery
and anc|||ary sports fac|||t|es at
IC-2
37
ks. 14.78 ctote (molo composlte wotk) - ks. 1.71 ctote (5yotbetlc nockey lltcb loyloq).
17.10 kadarpur Shoot|ng kange
kadarpur Shoot|ng kange
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1he cosL esLlmaLes of 8s.20.31 crore for
consLrucLlon of full bore 1000 yard shooLlng
range prepared ln november 2007 were
revlsed Lo 8s.27.33 crore ln March 2009.
1he consulLancy conLracL for archlLecLural,
sLrucLural, servlces plannlng and deslgnlng
for consLrucLlon of full bore shooLlng range
and connecLed amenlLles aL C8l Croup
CenLre, kadarpur, Curgaon, Paryana was
17.10.1 Consu|tancy works for
awarded Lo Suresh Coel & AssoclaLes aL a
cosL of 8s. 0.32 crore. 1he sLlpulaLed daLe of
sLarL and compleLlon were 24 CcLober 2008
and 22 uecember 2008 respecLlvely. We
noLed:
1he consulLanL dld noL submlL Lhe drafL
Lender documenLs, deLalled esLlmaLes,
deLalls of measuremenLs and analysls of
raLes, flnal Lender documenLs and
deLalled esLlmaLes for one of Lhe four
works revlewed by us vlz. consLrucLlon
of approach road from dlnlng hall 1-

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[uncLlon Lo proposed CWC bulldlng" for
whlch CWu recovered 8s.0.02 crore.
lallure of ConsulLanL/CWu Lo assess /
esLlmaLe Lhe reallsLlc quanLlLles of lLems
of work resulLed ln exLra avoldable
paymenL of aL leasL 8s. 0.13 crore.
1he work was reporLed Lo have been
compleLed 23 March 2010 agalnsL
scheduled compleLlon by 22 uecember
2008, wlLh a delay of 13 monLhs,
besldes non-submlsslon of essenLlal
documenLs reporLed above. CWu
wlLhheld an amounL of 8s.0.03 crore
pendlng declslon on exLenslon of Llme,
buL falled Lo lnlLlaLe acLlon for levy and
recovery of compensaLlon.
17.10.2 Lxecut|on of works
1he work was dlvlded lnLo Lhe followlng

broad packages vlz.
ConsLrucLlon of approach road from
dlnlng hall 1-[uncLlon Lo proposed
shooLlng range,
ConsLrucLlon of roads, dralns, box
culverLs, back sLop walls, slde walls and
LargeL gallery,
ConsLrucLlon of faclllLy block, specLaLors
gallery and parklng loLs lncludlng
lnLernal elecLrlcal lnsLallaLlon, and
ConsLrucLlon of baffle wall provldlng and
laylng unfllLered waLer supply llne and
chaln llnk fenclng.
ueflclencles noLlced ln Lhe execuLlon of four
packages are summarlsed below:
1oble 17.10 - ueflcleocles ootlceJ lo execotloo of wotks
ackages Def|c|enc|es
Construct|on of approach road from
d|n|ng ha|| 1-[unct|on to proposed
shoot|ng range
(awarded Lo narblr Slngh aL a cosL of
8s.2.88 crore for compleLlon ln 120 days
by 24 Aprll 2009)
Sub-sLandard Cranular sub base (CS8) broughL by

conLracLor was re[ecLed on 13 Aprll 2009.
Plndrance of 42 days was recorded for non-shlfLlng
of elecLrlcal cable ln Lhe hlndrance reglsLer. We
noLed LhaL CWu lLself was responslble for shlfLlng
of cable. lurLher Lhe hlndrance occurred on 18 Aprll
2009 l.e., [usL 6 days before Lhe sLlpulaLed daLe of
compleLlon of work.
1he work was compleLed on 3 CcLober 2009.
LC1 upLo 28 AugusL 2009 was granLed ln uecember
2009.
CWu replled LhaL delays were due Lo non-shlfLlng of
elecLrlcal cable and non-avallablllLy of funds. Powever,
Lhe hlndrance reglsLer recorded hlndrance only for non-
shlfLlng of cables.
ackages Def|c|enc|es
Construct|on of roads, dra|ns, box
cu|verts, back stop wa||s, s|de wa||s
and target ga||ery
8s.11.21 crore for compleLlon ln 240
days by 17 november 2009)
Construct|on of fac|||ty b|ock,
spectators ga||ery and park|ng |ots
|nc|ud|ng |nterna| e|ectr|ca|
|nsta||at|on
(awarded Lo 8ansl Lal & Sons aL a cosL
of 8s.3.77 crore for compleLlon ln 180
days by 2 uecember 2009)
Construct|on of baff|e wa||, prov|d|ng
and |ay|ng unf||tered water supp|y ||ne
& cha|n||nk fenc|ng
8s.2.72 crore for compleLlon ln 90 days
uesplLe non-achlevemenL of mllesLones and delay

ln compleLlon of work CWu released Lhe enLlre
balance of 8s.0.36 crore, wlLhheld for non-
achlevemenL of mllesLones, lnsLead of ad[usLlng Lhe
same Lowards levy and recovery of compensaLlon.
MaLerlal (34.040 1 of 16mm sLeel bars) broughL Lo
Lhe slLe by Lhe conLracLor was found Lo be defecLlve,
and Lhe conLracLor was dlrecLed Lo remove Lhe
enLlre sLeel from Lhe work slLe. 1he conLracLor Look
over 23 days Lo casL Lhe base slab of box culverL no.
2, only one CC had been lald, no quallfled englneer
was deployed aL slLe by Lhe conLracLor, and
adequaLe efforLs had noL been made Lo compleLe
Lhe work ln Llme.
Work was compleLed on 10 May 2010.
LC1 upLo 30 March 2010 was granLed ln !une 2010.
CWu sLaLed ln lLs reply LhaL Lhe delays were due Lo
declslons pendlng wlLh CC and C8l auLhorlLles and
non avallablllLy of funds.
1he work was compleLed on 7 May 2010 afLer delay
of flve monLhs from Lhe scheduled daLe of
compleLlon. LC1 upLo 20 lebruary 2010 was granLed
ln May 2010.,
1he work was compleLed on 10 May 2010 afLer a
delay of 177 days l.e almosL Lhree Llmes Lhe perlod
allowed for compleLlon of work. LC1 upLo 22 March
2010 was granLed ln !une 2010
CWu replled LhaL Lhe work was delayed due Lo non-
avallablllLy of funds and slde by slde consLrucLlon of
maln works.
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Note: 1be Jote of completloo ls tbe Jote of lospectloo by tbe 5 (tbe ootbotlty competeot to lssoe completloo
cettlflcote) boseJ oo wblcb tbe completloo cettlflcote wos lssoeJ.
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sporLspersons for parLlclpaLlon ln CWC-
2010 ln Lhe shooLlng, swlmmlng, aLhleLlcs,
archery, gymnasLlcs, welghLllfLlng and
wresLllng dlsclpllnes. CWu awarded Lwo
conLracLs ln March 2010 for compleLlon of
work by !uly 2010, buL Lhe work had noL
been compleLed as of !anuary 2011. 1hus,
Lhe prlmary ob[ecLlve of lmparLlng Lralnlng
faclllLles Lo pollce sporLspersons for
parLlclpaLlon ln CWC-2010 had been
defeaLed.
17.10.3 Non-comp|et|on of tra|n|ng
fac|||t|es at Iharoda ka|an for
po||ce sportsperson
MlnlsLry of Pome Affalrs sancLloned ln
AugusL 2009 consLrucLlon of 3 permanenL
barracks and provldlng and laylng of
synLheLlc aLhleLlc Lrack surface aL C8l
campus, !haroda kalan by CWu aL a cosL of
8s. 7.77 crore. 1he lnfrasLrucLural faclllLles
were requlred for lmparLlng lnLenslve
Lralnlng faclllLles Lo 120 selecLed pollce
Incomp|ete barracks
Construct|on s|te of 1ra|n|ng Iac|||t|es at CkI Campus, Iharoda ka|an
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bore rlfle, range for Lhe flnals of Lhe 10m,
23m and 30m compeLlLlon, specLaLors
areas, LransporL zones, enLrles, seaLlng and
supporL areas and 8ack of Pouse faclllLles
for accredlLed personnel. 1he faclllLles
creaLed aL ur. karnl Slngh ShooLlng 8ange
(kSS8) are summarlsed below:
17.11.1 Introduct|on
1he CWC-2010 requlremenLs lncluded
compeLlLlon arena for 10m plsLol and small
bore rlfle, 23m plsLol, 30m plsLol and small
17.11 Dr. karn| S|ngh
Shoot|ng kange
10 M kange
CompeLlLlon arena
for 10M plsLol and
small bore rlfle
80 flrlng polnLs
lully alr
condlLloned wlLh
seaLlng capaclLy of
300
1S M kange
CompeLlLlon arena
for 23M plsLol
60 flrlng polnLs
SeaLlng capaclLy of
300
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S0 M kange
CompeLlLlon arena
for 30M plsLol and
small bore rlfle
80 flrlng polnLs
SeaLlng capaclLy of
300
I|na| kange
8ange for holdlng

flnals of 10M, 23M
and 30M
compeLlLlons
SeaLlng capaclLy of
1000
1rap and Skeet
ranges
Slx numbers
composlLe 1rap and
SkeeL 8anges
SeaLlng capaclLy of
2000
A new Armoury bulldlng for sLorage of Arms and AmmunlLlon for Lhe sporL and SpecLaLor's laza were
also bullL.
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17.11.2 Change of dec|s|on from
renovat|on]up-gradat|on to
reconstruct|on
ur. karnl Slngh ShooLlng 8ange (kSS8)
consLrucLed ln 1982 for Lhe Aslan Cames
had faclllLles of 10 mLr, 23 mLr, 30mLr
shooLlng ranges, 1rap and SkeeL, armoury
bulldlng, flood llghLlng eLc. wlLh a seaLlng
capaclLy of 13,000. 1he consLrucLlon cosL of
Lhese faclllLles was 8s.7.41 crore and Lhe llfe
span of Lhe sLrucLures was esLlmaLed aL 80
years. 1hese faclllLles were ln regular use for
shooLlng compeLlLlons and beLween 1993
and 2007, slx lnLernaLlonal compeLlLlons
and LwenLy-one naLlonal level compeLlLlons
had been organlzed aL kSS8.
ln May 2007, on Lhe advlce of Lhe CC, lL was
envlsaged LhaL Lhe faclllLles could be
upgraded and new ranges for plsLol and rlfle
evenLs, bullL aL an esLlmaLed cosL of 8s. 33
crore. ln CcLober 2007, aL Lhe dlrecLlon of
SAl, CWu prepared esLlmaLes for Lhree
alLernaLlves, glvlng dlfferenL mlxes of Lhe
reconsLrucLlon of exlsLlng ranges and
creaLlon of new ranges/faclllLles. ln !anuary
2008, M?AS flnally approved reconsLrucLlon
of exlsLlng ranges, and bulldlng new ranges
for flnal evenLs along wlLh addlLlonal ranges
for 1rap and SkeeL and back of house
faclllLles aL an esLlmaLed cosL of 8s. 63
crore.
A Llme lag of seven monLhs beLween May
2007 and !anuary 2008 creaLed an
avoldable squeeze of Llme aL Lhe execuLlon
sLage. SlmulLaneously, CLS, Lhe consulLanL
engaged ln !une 2007, for deslgn
consulLancy for augmenLlng Lhe faclllLles aL
kSS8 was conLracLed aL 8s. 0.33 crore for
Lhe asslgnmenL and laLer, due Lo change ln
scope of work wlLh Lhe declslon Lo consLrucL
new faclllLles, Lhe consulLanL's fee lncreased
17.11.3 Non-recovery of extra
expend|ture of ks.20.10 |akh
|ncurred due to fa||ure of the
contractor to comp|ete the work
1he work of clvll and elecLrlcal works were
Lendered aL an esLlmaLed cosL of 8s. 36.36
crore agalnsL whlch Lhe L1 bldder, Lra lnfra
Lnglneerlng LlmlLed (LlLL) bld 8s 71.63
crore, whlch was [usLlfled by reworklng Lhe
maLerlal cosLs aL markeL raLes and
lnLroduclng cosL componenLs llke addlLlonal
cosL due Lo compresslon of Llme, labour
cosLs aLLrlbuLable Lo provlslonlng of labour
huLs off-slLe, labour LransporLaLlon eLc.
1he daLes of sLarL and compleLlon of works
were CcLober 2008 and AugusL 2009
respecLlvely. LlLL had submlLLed a
consLrucLlon programme for compleLlon by
Lhe scheduled daLe. Powever, Lhe work dld
noL proceed as per Lhls consLrucLlon
programme. 1hough a show cause noLlce
under clause 3 of Lhe AgreemenL was lssued
Lo Lhe conLracLor ln March 2009 for breach
of conLracL, Lhe progress conLlnued Lo be
slow. AfLer explry of Lhe sLlpulaLed daLe of
compleLlon of work ln AugusL 2009, CWu
declded Lo execuLe Lhe work of 1rap and
SkeeL nos. 4, 3 and 6 and underground Lank
Lhrough !MC. LxLra expendlLure of 8s.0.20
crore lncurred by award of work Lo !MC aL
raLes hlgher Lhan lncluded ln Lhe conLracL
wlLh LlLL, buL could noL be recovered from
LlLL, whlch had defaulLed, because of Lhe
absence of Lhe 'rlsk and cosL' clause ln Lhe
agreemenL.
by 8s. 0.36 crore. We found LhaL, CLS was
flnally pald 8s. 0.81 crore , lncludlng 8s. 0.31
crore for Lhe deslgn consulLancy asslgnmenL
for augmenLaLlon work.
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17.11.4 Award of work to |ne||g|b|e
contractor
uue Lo fallure of LlLL Lo compleLe Lhe work
ln Llme, CWu declded ln AugusL 2009 Lo
execuLe work of Lrap and skeeL numbers 4,3
and 6 and underground Lank Lhrough oLher
agencles. Cf Lhe slx offers recelved ln
response Lo Lhe press noLlce, none,
lncludlng !MC, quallfled Lhe ellglblllLy
crlLerla of havlng compleLed aL leasL 3 works
of 8s.3 crore and above durlng Lhe lasL flve
years and compleLlon of each such work
wlLhln Lhe sLlpulaLed daLe of compleLlon.
uesplLe Lhe fallure of !MC Lo quallfy Lhe
crlLerla, CWu awarded Lhe works Lo !MC ,
afLer relaxlng Lhe condlLlon Lo one slmllar
work of one crore per monLh aL an exLra
cosL of 8s. 0.20 crore over Lhe raLes of
orlglnal conLracLor. Lven !MC falled Lo
compleLe Lhe work on Llme. !MC also
execuLed works aL lC SLadlum, whlch has
been separaLely commenLed upon ln
paragraph 17.9.2.1 of Lhls AudlL 8eporL.
17.11.6 Defects |n execut|on of work
Several deflclencles ln quallLy of works

execuLed were noLed aL dlfferenL sLages by
Lhe lmplemenLlng agency. 1hese
deflclencles perslsLed even afLer Lhe Cames
were concluded. An lllusLraLlve llsL of such
defecLs are llsLed below
leakage ln roof sheeLlng over shooLlng
area ln 30 mLr ranges,
non-seLLlemenL of paver blocks/CC
pavers aL numerous locaLlons,
non-funcLlonlng of alumlnlum doors and
wlndows ln some ranges,
depresslons ln newly consLrucLed roads,
weep holes ln LargeL areas and flnal
range (near 8CC wall), and
defecLs ln elecLrlc subsLaLlon work eLc.
8s.0.20 crore had been wlLhheld ln AugusL
2010 from Lhe conLracLor's blll. CWu
reporLed LhaL mosL of Lhe defecLs had been
recLlfled, and Lhe few pendlng road repalrs
would be done afLer Lhe wlnLer season.
17.11.S Irregu|ar treatment of subst|tuted
|tems as extra |tems
AgreemenL lLems of work wlLh parLlal
modlflcaLlons were requlred Lo be LreaLed
as subsLlLuLed lLems, and Lhe raLes Lhere for
were requlred Lo be worked ouL afLer
ad[usLlng agreemenL raLe of orlglnal lLem for
Lhe dlfference ln markeL raLe of orlglnal and
subsLlLuLed lLems. Case sLudy 16.1 lndlcaLes
Lwo lnsLance of such overpaymenLs.
We recommend that the amount may be
ad[usted aga|nst the erformance
Guarantee prov|ded by LILL at the t|me
f|na| sett|ement of b|||.
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Seepage |n wa||s
atched up |n road surface
Weepho|es |n target area
C
n
A
1
L
k
Venues deve|oped by
De|h| Deve|opment Author|ty
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18
ue/hi ueve/opment 4uthority {uu4) deve/oped competition/troininq venues ot 5iri lort
5ports comp/ex {5l5c), Yomuno 5ports comp/ex {Y5c) ond 5oket 5ports comp/ex {55c) ot o
toto/ oworded cost of ks. 51.50 crore.
1here wos on inexp/icob/e de/oy of neor/y o yeor in enqoqement of Pedd/e 1horp 4rchitect
Pty os desiqn consu/tonts for construction works of the indoor stodio ot 5l5c ond Y5c
{exc/udinq orchery competition venue) between lune 200 {when the bids were opened)
ond fino/ oword of controct in Moy 2007. 1his resu/ted in coscodinq de/oys in execution of
work due to time required for fino/isotion of desiqns ond preporotion of estimotes for
issuinq klP.
we found deficiencies in the se/ection ond performonce of 4rchitect 8ureou-654 6roup
consortium os desiqn consu/tont for the orchery competition venue, troininq venues ond
refurbishment work ot 5l5c, Y5c ond 55c. 1he oword wos bosed on o sinq/e finoncio/ bid.
lurther, there wos no evidence of deputotion of the representotives of the foreiqn portner
{654-6roup) to lndio, ond there were numerous deficiencies in the performonce of the
desiqn consu/tont.
we found siqnificont deficiencies in the procurement of choirs {with justificotion rotes
beinq unre/iob/e). ueficiencies were o/so noticed in the controcts for synthetic surfoce for
tob/e tennis court os we// os mop/e wood f/oorinq ot one venue.
S|r| Iort 8adm|nton Court
uelhl uevelopmenL AuLhorlLy (uuA)
developed compeLlLlon/Lralnlng venues aL
Slrl lorL SporLs Complex, ?amuna SporLs
Complex and SakeL SporLs Complex aL a
LoLal awarded cosL of 8s. 361.30 crore. 1he
venue wlse ma[or works, Lhelr Lendered
cosL and Lhe conLracLors' deLalls are glven ln
1able 18.1 below
18.1 Introduct|on
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010)
314
ChapLer 18 - venues developed by uelhl uevelopmenL AuLhorlLy
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amuna Sports Comp|ex - Archery Venue
1oble 18.1 - wotks ot uuA veooes
Work Consus|tant
Lst|mate
Cost
1endered
Cost
Contractor
Construct|on of |ndoor stad|um
for squash and badm|nton
rov|d|ng raft foundat|on for the
|ndoor stad|um for squash and
badm|nton
kefurb|shment of ex|st|ng
tra|n|ng fac|||t|es (|nc|ud|ng
those at Saket Sports Comp|ex)
8.L. 8llllmorla &
Co. LLd
SporLlna ayce
lnfrasLrucLure
LLd.
Sharma
ConsLrucLlons
eddle 1horp
Melbourne Ly. LLd.
ConsorLlum of
ArchlLecLs 8ureau
and Croup CSA Ly.
LLd., AusLralla
118.09
19.64
20.82
134.40
24.17
23.72
S|r| Iort Sports Comp|ex (SISC) |nc|ud|ng Saket Sports Comp|ex (SSC)
18.2.1 Se|ect|on of edd|e 1horp
Me|bourne
ln lebruary 2006, a [olnL 8l was lssued for
engaglng deslgn consulLanLs for Lhe Cames
venues (compeLlLlon and Lralnlng venues
for squash and badmlnLon aL SlSC/ Lable
Lennls aL ?SC) and Cames vlllage (pracLlce
area). 20 blds were recelved from 14
consorLlums, of whlch, slx were re[ecLed aL
Lhe sLage of openlng of Lhe Lechnlcal blds.
18.2 Se|ect|on of Consu|tant
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1oble 18.1 - 5electloo of leJJle 1botp os ueslqo coosoltoot
Work Consus|tant
Lst|mate
Cost
1endered
Cost
Contractor
Construct|on of |ndoor stad|um
for tab|e tenn|s
rov|d|ng cast |n s|tu bored p||es
for p||e foundat|on
Construct|on of archery
compet|t|on venue, tra|n|ng
venues for archery, hockey, |awn
bow|s and refurb|shment of
ex|st|ng tra|n|ng venues
8.L. 8llllmorla &
Co. LLd.
l1u-l1u Cem (!v)
8rahmapuLra
lnfrasLrucLure
LLd.
eddle 1horp
Melbourne Ly. LLd.
ConsorLlum of
ArchlLecLs 8ureau
and Croup CSA Ly.
LLd., AusLralla
122.84
14.26
38.24
162.94
16.47
46.67
amuna Sports Comp|ex (SC)
1he remalnlng elghL consorLlums submlLLed
blds, wlLh Lwo of Lhem blddlng for deslgn
consulLancy work boLh aL Lhe Cames
venues and Lhe Cames vlllage. llve
flnanclal blds for Lhe deslgn consulLancy of
Lhe Cames venues were opened and eddle
1horp ArchlLecL Ly LLd. (subsequenLly
engaged as eddle 1horp Melbourne), Lhe
L1 bldder, was selecLed aL a fee of 8s. 16.60
crore and Lhe conLracL slgned ln May 2007.
1he chronology of evenLs ls deplcLed ln
flgure 18.1 below
kI |ssued
Iebruary 2006
Dec|arat|on of L1 b|dder
1S Iune 2006
Negot|at|ons w|th
L1 8|dder
29 Iune 2006 and
23 September 2006
re b|d meet|ng he|d
3 Apr|| 2006
I|nanc|a| b|ds opened
1 Iune 2006
Letter of Acceptance
December 2006
1echn|ca| b|ds
opened (s|x consort|ums
d|squa||f|ed)
20 Apr|| 2006
resentat|ons made by
rema|n|ng e|ght b|dders
1S-17 May 2006
Award of Contract
22 May 2007
We found that there was an |nexp||cab|e
de|ay of near|y a year from the date of
dec|arat|on of L1 b|dder |n Iune 2006 and
the f|na| award of contract |n May 2007.
1h|s resu|ted |n cascad|ng de|ays |n
execut|on of work due to the t|me
requ|red for f|na||sat|on of des|gns and
preparat|on of est|mates for |ssu|ng kI.
1he process of Lenderlng for consLrucLlon of
Lhese works was sLarLed ln !une 2007
(lmmedlaLely afLer Lhe engagemenL of Lhe
deslgn consulLanL) wlLh ldenLlflcaLlon of
Lhree packages - one each for consLrucLlon
of new compeLlLlon venues aL SlSC and ?SC,
and Lhe Lhlrd for Lhe refurblshmenL of
exlsLlng Lralnlng faclllLles aL SlSC, ?SC and
SSC. uue Lo pauclLy of Llme, eddle 1horp
Melbourne (1M) recommended spllLLlng
Lhe works of consLrucLlon of compeLlLlon
venues lnLo foundaLlon work and
supersLrucLure work. SubsequenLly, Lhese
were awarded Lo Lwo dlfferenL agencles. ln
our oplnlon, Lhls unnaLural segregaLlon of
foundaLlon work from Lhe supersLrucLure
work was prlmarlly due Lo an lnordlnaLely
long Llme Laken ln award of Lhe deslgn
consulLancy. lL had Lhe consequenLlal effecL
of excludlng Lhe foundaLlon work from Lhlrd
parLy quallLy assurance scruLlny, (for whlch
8l1LS LLd. was engaged) whlch goL llmlLed
Lo Lhe supersLrucLure work only. no
meLhodology sLaLemenL was also made
avallable by Lhe conLracLor for Lhe
foundaLlon works, Lhereby furLher
compromlslng Lhe quallLy assurance
process.
lurLher, whlle respondlng Lo Lhe 8l, Lhe
consorLlum led by eddle 1horp ArchlLecL
Ly LLd, AusLralla lncluded seven oLher
1
members , of whlch, only one l.e. SMLC
lnLernaLlonal Ly. LLd. flnally feaLured ln Lhe
ueLalled AssoclaLlon AgreemenL, submlLLed
Lo uuA posL award of Lhe conLracL, wlLh
eddle 1horp Melbourne (represenLlng
eddle 1horp ArchlLecL Ly LLd.). 1hls
ueLalled AssoclaLlon AgreemenL was also
slgned on 23 May 2007, a day afLer Lhe
award of conLracL. uuA dld noL quesLlon
Lhese changes.
ln !uly 2007, a separaLe 8l for engaglng
Lhe deslgn consulLanL for Lhe Archery
SLadlum compeLlLlon venue aL ?SC and
refurblshmenL of exlsLlng Lralnlng faclllLles
2
aL SlSC, ?SC and SSC was adverLlsed on Lhe
uuA webslLe. 1wo flrms responded -
ArchlLecL 8ureau ln consorLlum wlLh Croup
CSA Ly. LLd. AusLralla (A8) and kapoor &
AssoclaLes. 1he laLLer's bld was dlsquallfled
on 31 AugusL 2007 afLer a presenLaLlon and
Lhe slngle flnanclal bld of A8 was opened on
19 SepLember 2007 (agalnsL 1 SepLember
lndlcaLed aL Lhe Llme of Lechnlcal
evaluaLlon). 1he work was awarded on 12
november 2007 aL 8s. 6.23 crore and Lhe
agreemenL was slgned on 13 november
2007.
We found LhaL Lhe Mou submlLLed by A8
consorLlum was daLed SepLember 2001 and
evldenced a sLraLeglc alllance beLween Lhe
Lwo parLles Lo ldenLlfy pro[ecLs and
opporLunlLles and work LogeLher, buL was
noL speclflc Lo Lhe pro[ecL under
18.2.2 Se|ect|on of Arch|tect
8ureau-Group GSA consort|um
316
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1
1
cooell Mott Moc uooolJ, Aosttollo, 5Mc lotetootloool
lty. ltJ, Motsboll uoy Acoostlcs lty ltJ., Aosttollo,
5ostolooble 8eott ovltoomeot lty. ltJ. Aosttollo, 5Cl
coosoltloq Ctoop of Aosttollo, cllttoo cooey Ctoop lty
ltJ. ooJ lloqomooeol stotes lvt. ltJ, loJlo
coosttoctloo of otcbety competltloo veooe, 1tololoq
veooes fot otcbety, bockey ooJ lowo bowls, ooJ
tefotblsbmeot of ttololoq veooes fot opootlc ooJ
tbytbmlc qymoostlcs ot 5c
conslderaLlon. 1hls was noL challenged by
uuA. lurLher, as per Lhe agreemenL wlLh
uuA, 70 percenL of Lhe work was Lo be
done by Croup CSA, lLs represenLaLlves
were Lo vlslL lndla 10 Llmes and Lechnlcal
represenLaLlve of CSA depuLed Lo lndla for
Lwo monLhs. AlLhough uuA sLaLed LhaL Lhe
pro[ecL was concelved, concepLual plan
prepared and presenLed before Lhe CC and
Lhe deparLmenL predomlnanLly by Croup
CSA, we found no evldence of depuLaLlon of
Croup CSA'a represenLaLlves on record.
We also found deflclencles ln Lhe
performance of A8, as deLalled below
A8 delayed submlsslon of drawlngs. 61
drawlngs for Lhe archery compeLlLlon
venue aL ?SC. 1hese were lssued
beLween Aprll and May 2010 agalnsL Lhe
LargeL daLe of March 2009, wlLh delays
ranglng from one Lo 13 monLhs.
1hough Lhe requlremenL for provldlng
Loughened glass was lndlcaLed ln Lhe
drawlngs for ?SC, Lhe same was noL
lncluded ln 8CC due Lo non flnallsaLlon
of deslgn and speclflcaLlons by A8. 1he
work had Lo be awarded as an exLra
lLem aL 8s. 2.29 crore.
1he 8CC requlred provldlng and
lnsLallaLlon of ?onex courL maL/1araflex
synLheLlc floorlng of 9mm Lhlckness
whlch ls noL as per ?onex brand
speclflcaLlons. 1hls lLem had Lo be
subsequenLly execuLed as a separaLe
lLem aL a cosL of 8s. 1.34 crore.
A8 was also requlred Lo geL deLalled soll
lnvesLlgaLlon done for Lhe archery venue
aL lLs cosL, buL Lhls was done by uuA aL a
cosL of 8s. 0.02 crore resulLlng ln undue
beneflL Lo A8.

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3
l1u-l1u cem Iv, 8l kosbyop ooJ 5oos ltJ., 8C 5bltke
coottoctloo 1ecbooloqy lvt. ltJ., Commoo loJlo ltJ.,
coosottlom of uolty-8tobmopotto, 5bopootjl lolloojl &
co. ltJ., 8 8llllmotlo & co. ltJ., ooJ 5pottloo loyce
coosttoctloo(loJlo) lvt. ltJ-5lv .
1he [olnL 8lC process for pre-quallflcaLlon
of agencles for consLrucLlon of Cames
venues and pracLlce area ln Lhe Cames
vlllage and Lhe deflclencles ln asslgnmenL of
conLracL for pracLlce area ln Lhe Cames
vlllage Lo SporLlna ayce lnfrasLrucLure
LLd. has been dlscussed ln paragraph 20.6.4
of Lhls reporL.
AL Lhe 8lC sLage, Lhree works were
ldenLlfled for games venues, whlch were
subsequenLly spllL lnLo slx works on Lhe
recommendaLlon of 1M. CuL of Lhe elghL
3
agencles LhaL pre-quallfled from Lhls
process, only four l.e 8L 8llllmorla & Co. LLd,
SporLlna ayce lnfrasLrucLure LLd (lnsLead of
SporLlna ayce ConsLrucLlons LLd.), l1u-
l1uCem (!v) and unlLy 8rahmapuLra
ConsorLlum submlLLed blds. 1he oLhers
chose Lo keep ouL of Lhe blddlng process. Cf
Lhe slx works, four were awarded Lo Lhe L1
bldders and Lwo were reLendered due Lo
abnormally hlgh raLes and subsequenLly
awarded on open Lender basls, (Lhough
only Lwo-Lhree blds were recelved). 1he
deLalls of bldders and successful agencles
are glven ln Annexe 18.1
ln addlLlon, 30 lLems wlLh an esLlmaLed cosL
of 8s 9.60 crore were noL lncluded ln Lhe
8CC aLLached Lo Lhe Lender documenL for
Lhe work of consLrucLlon of badmlnLon and
squash compeLlLlon venues. SubsequenLly,
20 of Lhese lLems had Lo be awarded as
exLra lLems aL a cosL of 8s. 11.02 crore, and
10 were noL execuLed aL all.
18.3 Se|ect|on of Contractors
In our v|ew, the b|dd|ng process was not
fu||y re||ab|e and to that extent the pr|ces
obta|ned from |t cannot be termed as the
best pr|ces determ|ned by fa|r and open
market compet|t|on. 1he fo||ow|ng facts
are |nd|cat|ve of the unre||ab|||ty of the
compet|t|ve b|dd|ng process
on|y four of the e|ght prequa||f|ed
b|dders subm|tted b|ds. Wh||e three of
them were awarded at |east one
contract each, the fourth
(8rahmaputra Infrastructure Ltd., |n
|ts |nd|v|dua| capac|ty) won a b|d
through open tender,
one agency, Sport|na ayce
Infrastructure that b|d was not str|ct|y
an e||g|b|e agency, and
|n the open tender, though the
response was very ||m|ted, costs |ower
than the |n|t|a||y b|d costs were
obta|ned.
18.4.1 Unre||ab|e [ust|f|cat|on of rates
ln Lhe followlng cases of procuremenL of

chalrs/synLheLlc surfaces, we found LhaL Lhe
[usLlflcaLlon of raLes was unrellable
ln Lhe conLracL wlLh nussll-ComforL neL
for provldlng and flxlng 2,336
reLracLable chalrs aL a LoLal cosL of 8s.
4.63 crore, Lhe [usLlfled raLes of 8s.
17,366 per chalr was prepared based on
a markeL quoLaLlon of nussll-ComforL
neL lLself. We found LhaL Lhe acLual cosL
of Lhese chalrs as sLaLed ln Lhe Lax
lnvolce was only 8s. 1,830 per chalr wlLh
a cosL lmpllcaLlon of exLra expendlLure
of 8s. 2.74 crore (for 1,746 chalrs
acLually lnsLalled).
8rahmapuLra lnfrasLrucLure LLd.
lnsLalled 211 upholsLered chalrs aL Lhe
archery venue ln ?SC aL a cosL of 8s
17,470 per chalr for whlch [usLlflcaLlon
was prepared aL 8s.13,764 wlLhouL
obLalnlng markeL quoLaLlons, slmllarly
[usLlflcaLlon of 8s. 7,184 per chalr for
1,818 ordlnary chalrs procured aL a cosL
of 8s. 9,890 per chalr was also prepared
wlLhouL obLalnlng any markeL
quoLaLlon, and
As per CC's speclflcaLlons of Aprll 2009,
only 1araflex and nagase kenko make of
synLheLlc surfaces were Lo be lald ln Lhe
Lable Lennls courL. ConsequenLly,
comblned Lenderlng for Lhese was done
for ?SC and !Mlu and Lhe conLracL was
awarded Lo lreewlll lnfrasLrucLure vL.
LLd. aL a Lendered cosL of 8s. 1.29 crore.
We found LhaL whlle Lhe awarded raLe
per sqm was 8s. 2,943.23, Lhe [usLlfled
cosL on Lhe basls of acLual cosL of lmporL
by Lhe agency worked ouL Lo 8s.
1,188.32 per sqm, lndlcaLlng exorblLanL
marglns of 148 per cenL.
ln Aprll 2009, CC speclfled Lhe brands for
wooden floorlng as Connor, 8obblns, Paro,
resLlge SporL SysLem and Poner SporLs
lloorlng. 1hough Lhe work of lnsLallaLlon of
wooden floorlng was already lncluded ln
Lhe scope of work of Lhe Lhree conLracLs for
consLrucLlon of venues, uuA chose Lo
wlLhdraw Lhls lLem from Lhe scope of work
of Lwo conLracLs and award lL Lo arqueL
lurnlshers vL. LLd as per speclflcaLlons
prescrlbed by CC, for cosL beneflL and
unlformlLy Lhrough common Lenderlng and
aL a much lower raLe of 8s 3,462 per sqm.
SLrangely, lL allowed Lhe Lhlrd conLracLor
(8rahmapuLra lnfrasLrucLure LLd.) Lo
conLlnue wlLh Lhe work aL a hlgher raLe. 1he
deLalls are glven ln Lable 18.2.
18.4.2 Insta||at|on of map|e wood

f|oor|ng |n three venues
318
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18.4 Lxecut|on of work
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1he arblLrary declslon Lo noL wlLhdraw Lhe
work from 8rahmapuLra lnfrasLrucLure LLd.
resulLed ln excess spendlng of 8s. 0.24 crore
(for 722.33 sqm of work execuLed).
lurLher, durlng Lhe lnsLallaLlon of wooden
floorlng ln Lhe Lable Lennls venue aL ?SC, an
exLra lLem of 8s 0.38 crore was permlLLed
for fasLenlng padded sleepers anchored Lo
Lhe floor below Lhe wooden floorlng
because of bendlng of floaLlng floor sysLem.
ln our vlew Lhls was a recLlflcaLlon, Lhe cosL
of whlch should elLher be borne by arqueL
lurnlLure vL. LLd. or Lhe orlglnal conLracLor
LhaL execuLed Lhe clvll work underlylng Lhe
wooden floorlng.
ln CcLober 2008, aL Lhe behesL of LC, uelhl,
uuA declded Lo provlde MS barrlcadlng ln
SlSC ln order Lo keep Lhe [ogglng Lrack open
Lo publlc. 1he work was lncluded ln Lhe
8CC of Lhe work for refurblshmenL of
18.4.3 Insta||at|on of M||d Stee|
barr|cad|ng at SISC
exlsLlng faclllLles aL SlSC/SSC awarded Lo
Sharma ConsLrucLlons ln March 2009. lL was
observed LhaL no drawlngs lndlcaLlng Lhe
locaLlon of Lhe MS barrlcadlng were
prepared and due Lo ob[ecLlons from SlSC
resldenLs, of Lhe 486 barrlcades supplled,
only 236 could be lnsLalled. Clearly, poor
plannlng led Lo wasLeful expendlLure of 8s.
0.49 crore
A Sewage 1reaLmenL lanL(S1) of 132 kLu
capaclLy was creaLed aL a cosL of 8s. 0.32
crore. Powever, we found LhaL Lhe planL
could be uLlllsed only aL 30 percenL of lLs
capaclLy as Lhe slze of Lhe plpes provlded
for Laklng Lhe raw sewage lnLo Lhe planL
were lnadequaLe and mosL of Lhe sewage
was pumped ouL uslng addlLlonal pumps,
by-passlng Lhe S1.
uesplLe securlng power supply from Lwo
lndependenL feeders as prescrlbed by LkS
(CC's ConsulLanL), uuA procured Lwo uC
seLs of 1230 kvA each and one of 723 kvA
for 8s. 4.32 crore aL ?SC for Lhe full power
load of Lhe sLadla, raLher Lhan resLrlcLlng lL
Lo Lhe Cames crlLlcal load of 1830 kvA.
As per agreemenL, addlLlonal securlLy
deposlL ln Lhe form of bank guaranLee was
Lo be reLalned aL Lhe raLe of flve percenL of
Lhe cosL of Lhe speclallsed work. We found
LhaL no such bank guaranLee had been
reLalned on Lhe plea LhaL subsLanLlal
paymenLs were sLlll Lo be made Lo Lhe
conLracLors.
lL may be ensured LhaL a bank guaranLee of
flve percenL of Lhe cosL of work ls obLalned
before flnal seLLlemenL of bllls.
18.4.4 Underut|||sat|on of Sewage
1reatment |ant at SISC
18.4.S Insta||at|on of DG sets
18.4.6 Add|t|ona| secur|ty depos|t on
spec|a||sed |tems
Work
and
contractor
1able Lennls
venue ln ?SC (8L
8llllmorla & Co)
8efurblshmenL
of exlsLlng
faclllLles aL SlSC
and SSC (Sharma
ConsLrucLlons)
ConsLrucLlon of
archery venue &
refurblshmenL
of exlsLlng
faclllLles aL ?SC
(8rahmapuLra
lnfrasLrucLure LLd)
8s. 3790
per sqm
8s. 7300
per sqm
8s. 6831
per sqm
8s. 3462
per sqm
8s. 3462
per sqm
noL
re-awarded
kate
as per
ex|st|ng
Contract
kate as per
[o|nt tender|ng
after
w|thdraw|ng
1oble 18.2 - kote fot
Mople wooJ lloot
C
n
A
1
L
k
Venues deve|oped by
other agenc|es
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19
NuMc ond Pwu, 6Nc1u deve/oped competition/troininq venues ot 1hyoqoroj,
1o/kotoro, 5hivoji, ond chhottroso/ 5todio ond 6overnment Mode/ Lud/ow cost/e 5choo/.
ln oddition, three other sets of competition/ troininq venues were deve/oped by ue/hi
university ond its offi/ioted co//eqes, lomio Mi//io ls/omio university {lMl) ond 4// lndio
1ennis 4ssociotion {4l14).
None of the respondents to the Nl1 issued by NuMc for oppointment of 4rchitect
consu/tont for 5hivoji ond 1o/kotoro 5todio were technico//y e/iqib/e. uespite omp/e time
beinq ovoi/ob/e for retenderinq, NuMc oppointed kojo 4ederi consu/tonts Pvt. Ltd., one
of the ine/iqib/e respondents.
1he moin controctor hired for 5hivoji 5todium wos o foreiqn compony, chino koi/woy
5hisiju 6roup corporotion {ck56c), when it is opporent from the conditions of the Nl1,
thot such wos not the intention. 5hivoji 5todium cou/d not be comp/eted in time for the
6omes ond the comp/eted hockey pitch in the stodium hos on ost-west orientotion, os
oqoinst the required North-5outh orientotion
5imp/ex Project Ltd. wos enqoqed os the moin controctor for the works ot 1o/kotoro
lndoor 5todium on o sinq/e bid bosis. lurther, our ono/ysis reveo/ed thot justified rotes for
o substontio/ portion of items wos hiqher thon the opp/icob/e cPwu u5k rotes. 1hus it is
difficu/t to conc/ude thot the best price wos determined for the work in o competitive
morket.1he quo/ity of construction wos o/so found deficient by c1,cvc.
ln the cose of 1hoyoqoroj 5todium, Pwu, 6Nc1u odopted the percentoqe rote tenderinq,
which shou/d be resorted to on/y when mojor port of the estimoted cost is bosed on the
ue/hi 5chedu/e of kotes {which wos not so in this cose). we found severo/ instonces of
inf/otion of costs in the detoi/ed estimotes. we o/so found severo/ instonces of odoption of
hiqher cost items for estimotion/execution from omonq mu/tip/e options, ond o/so
numerous instonces of specifyinq o sinq/e brond or "equivo/ent", thus fovourinq these
bronds, with consequentio/ reduced competition ond increosed costs. we o/so found
mu/tip/e forms of power bock up {despite power supp/y from two independent feeders os
stipu/oted in the venue brief) - o so/or power qenerotor unit {ot o cost of ks. 14.10 crore)
ond o due/ fue/ qos turbine with odd on vopour 4bsorption Mochine {v4M) {ot o cost of
ks. 22.41 crore).1he expenditure on the turbine ond the v4M is /orqe/y infructuous, os it
wou/d be hiqh/y expensive to qenerote power from this unit post-6omes.
322
ChapLer 19 - venues developed by oLher agencles
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Percentoqe rote tenderinq wos o/so odopted for the chhottroso/ stodium ond
6overnment Mode/ Lud/ow cost/e 5choo/. we found irrequ/orities in the oppointment of
the desiqn consu/tont for the chhottroso/ 5todium. 4t Lud/ow cost/e, o /imited tenderinq
opprooch wos irrequ/or/y fo//owed, purported/y on occount of shortoqe of time, o/thouqh
subsequent de/oys in oword of the work be/oyed this sense of urqency.
lMl wos se/ected os o troininq venue for kuqby 7s ond tob/e tennis. we found thot the
kuqby 7s fie/d, deve/oped ot o cost of ks, 2.11 crore, wos beinq converted bock into o
cricket fie/d, which defeots, ot /eost port/y, one of the stoted objectives of cw6-2010 of
creotion of stote of the ort sportinq infrostructure. lurther, ks. 2.58 crore of funds wos
diverted for creotion of sportinq foci/ities {bosket bo//, /own tennis, vo//ey bo//,
hockey/footbo// etc.) other thon the foci/ities for which lMl wos desiqnoted os o cw6-
2010 troininq venue. whi/e we recoqnise thot deve/opment of university premises for
providinq sports foci/ities is desirob/e, the diversion of funds sonctioned for o specific
purpose is irrequ/or.
ue/hi university ond its offi/ioted co//eqes were desiqnoted os the competition venues for
kuqby 7s ond troininq venues for netbo//, boxinq, ruqby 7s, oth/etics ond women's
wrest/inq. we found thot there were substontio/ de/oys in the stort of work, for wont of
opprovo/ of the revised estimotes from MY45. lurther, the /eqocy p/on for troininq venues
ot individuo/ co//eqes, coverinq the optimum uti/isotion of deve/oped infrostructure os
o/so orronqements for their requ/or mointenonce ond upkeep, is sti// pendinq.
1he k.k. khonno 1ennis comp/ex, under the 4// lndio 1ennis 4ssociotion, wos desiqnoted
os the competition venue for tennis. 4n estimoted budqet of ks. 5.5 crore wos o//ocoted
by MY45 for upqrodotion of the seotinq copocity of the tennis court, conversion of qross
courts with temporory seotinq into synthetic courts with permonent seotinq ond settinq
up /iqhtinq systems of the prescribed /ux /eve/s. we found thot the project monoqement
consu/tont wos irrequ/or/y se/ected on nominotion bosis. nowever, we found thot 4l14's
concept of de/etinq the stee/ portion from the oriqino/ controct {on occount of vo/oti/ity in
stee/ prices in 2008) ond procurinq it direct/y from 54lL hod its odvontoqes, especio//y
c/ubbed with the non-inc/usion of ony esco/otion/de-esco/otion c/ouse in the controct.
nuMC and Wu, CnC1u developed
compeLlLlon/Lralnlng venues aL 1hyagara[,
1alkaLora, Shlva[l, and ChhaLLrasal SLadla
and CovernmenL Model Ludlow CasLle
School. ln addlLlon, Lhere were Lhree oLher
seLs of compeLlLlon/ Lralnlng venues:
uelhl unlverslLy (uu) and lLs afflllaLed

colleges,
!amla Mlllla lslamla unlverslLy (!Ml), and
All lndla 1ennls AssoclaLlon (Al1A)
1he venue wlse ma[or works, Lhelr Lendered
cosL and Lhe conLracLors' deLalls are glven ln
1able 19.1.
19.1 Introduct|on
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1oble 19.1 - wotks ot otbet veooes
Work Consus|tant
Lst|mate
Cost
1endered
Cost
Contractor
Construct|on of new sports
fac|||ty 8|ock w|th basement
park|ng
Add|t|on and a|terat|on of
ex|st|ng stad|um
Construct|on of two hockey
p|tches, stad|um, new sports
fac|||ty b|ock w|th two |eve|
basement park|ng
ackage 1
ackage 2
Chhattrasa| Stad|um
Lud|ow Cast|e
De|h| Un|vers|ty (|nc|ud|ng
aff|||ated co||eges)
IMI Un|vers|ty
A|| Ind|a 1enn|s Assoc|at|on
M/s Slmplex
ro[ecLs LlmlLed
M/s Slmplex
ro[ecLs LlmlLed
M/s Chlna
8allway Shlsl[u
Croup
CorporaLlon
!MC ro[ecLs (l)
LLd
!MC ro[ecLs (l)
LLd
Lra lnfra Lngg.
LLd.
Arora
ConsLrucLlon
Co.() LLd.
nagar[una
ConsLrucLlon Co.
LLd.
8l1LS LLd.
Skyllne
Lnglneerlng
ConLracLs
M/s 8a[a Aederl
ConsulLanLs vL. LLd
M/s 8a[a Aederl
ConsulLanLs vL. LLd
eddle 1horp Arch.
Melborne ln !v wlLh
kapoor AssoclaLes
8en[amln 8en[amln
& vaLs
A.C. krlshna Menon
Lnglneers lndla LLd.
8l1LS LLd.
SC Lakhanpal and
AssoclaLes
28.18
10.60
80.83
93.33
89.01
30.68
8.30
233.39
42.37
3.23
32.98
19.19
160.27
103.96
108.80
60.26
11.23
231.82
31.92
3.23
1a|katora Indoor Stad|um
Sh|va[| Cutdoor Stad|um
1hyagara[ Stad|um
(lo ks. ctote)
324
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19.2.1 Se|ect|on of ka[a Aeder|
Consu|tants vt. Ltd as Arch|tect
consu|tant
ln Aprll 2006, Lwo separaLe nl1s were lssued

for appolnLmenL of ArchlLecL ConsulLanL for
lmprovemenL/upgradaLlon of 1alkaLora
lndoor SLadlum (1lS) and Shlva[l SLadlum,
wlLh Lhe key ellglblllLy parameLer of
experlence ln provldlng servlces for sporLs
1
venues of prescrlbed conLracLed value .
2
1hree blds were recelved and Lhe Lenders
opened on 23 May 2006. 8ased on
Lechnlcal blds, only Lwo appllcanLs were
found ellglble and Lhe conLracL was
awarded Lo 8a[a Aederl ConsulLanLs vL.
LLd., belng Lhe L1 bldder, for whlch LCl was
lssued on 3 !uly 2006 and conLracL slgned ln
CcLober 2006.
We found LhaL none of Lhe Lhree bldders
were Lechnlcally ellglble. Whlle ArklLkLurel
Crlds, was re[ecLed for non submlsslon of
requlslLe documenLs, Lhe Lechnlcal blds
submlLLed by koLharl & AssoclaLes and 8a[a
Aederl ConsulLanLs (vL.) LLd, were also
deflclenL. koLharl & AssoclaLes submlLLed
merely a llsL of compleLed works wlLhouL
any cerLlflcaLes. 8a[a Aederl ConsulLanLs
vL. LLd 's Lechnlcal bld was also lnellglble
on Lhe followlng polnLs
lL had submlLLed Lhe bld on Lhe basls of
an unreglsLered Mou (wrlLLen on an
ordlnary paper) wlLh SLerllng
Lnglneerlng ConsulLancy Servlces vL.
LLd. daLed 18 May 2006, slgned flve days
before Lhe openlng of Lhe bld l.e. 23
May 2006. lnLeresLlngly, Lhe orlglnal lasL
daLe of submlsslon of blds was 16 and
17 May 2006, whlch was exLended on
Lhe requesL of Lhe poLenLlal bldders,
8a[a Aederl ConsulLanLs (vL.) LLd., as
such, had no lndependenL experlence ln
provldlng archlLecLural servlces for
sporLs venues of Lhe prescrlbed
conLracLed value, and
SLerllng Lnglneerlng ConsulLancy
Servlces vL. LLd. provlded an undaLed
experlence cerLlflcaLe lssued by anoLher
archlLecL Shashl rabhu & AssoclaLes,
lnsLead of Lhe cllenL, sLaLlng LhaL Lhe
former had rendered SLrucLural and
ueslgn Lnglneerlng servlces for an
lndoor sLadlum pro[ecL of naLlonal
SporLs Club of lndla.
lurLher, Lhe scope of work was lncreased

from lmprovemenL/upgradaLlon of Lhe
sLadlum Lo deslgnlng for ma[or new
consLrucLlon aL Lhe sLadlum wlLh an
addlLlonal fee [ 3 percenL of esLlmaLed
cosL or acLual cosL whlchever ls less wlLh a
maxlmum of 8s. 4.23 crore (ln addlLlon Lo
8s. one crore already awarded for Lhe work
relaLlng Lo renovaLlon and upgradaLlon).
19.2 Venues deve|oped by
New De|h| Mun|c|pa|
Corporat|on (NDMC)
C|ear|y, none of the app||cants were
techn|ca||y e||g|b|e. Cons|der|ng that the
tender had been ca||ed |n May 2006 when
venue br|efs were st||| to be rece|ved ,
there was st||| scope for retender|ng and
seek|ng an agency su|tab|e for execut|ng
the serv|ces requ|red, rather than
choos|ng from a poo| of |ne||g|b|e b|dders.
3
1
2
1btee completeJ slmllot wotks oot less tboo ks.15 ctote
ot two slmllot wotks oot less tboo ks. 20 ctote ot ooe
slmllot wotk oot less ks. 25 ctote lo tbe lost 5 yeots
Atkltktotel CtlJs, kotbotl & Assoclotes ooJ kojo AeJetl
coosoltoots (lvt.) ltJ.
3
veooe btlef wos tecelveJ fot 1olkototo loJoot 5toJlom
lo Novembet 2006 ooJ tbot of 5blvojl 5toJlom lo Moy
2007.
8arr|cad|ng |n the names of
ma|n]sub-contractor at works|te
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C|ear|y, the |ntent was not to h|re a
fore|gn company and |t shou|d have been
dec|ared |ne||g|b|e |n the f|rst |nstance.
Iurther, |ts |nab|||ty to de||ver |n Ind|an
cond|t|ons and |ts re||ance on S|mp|ex
ro[ect Ltd., a sub-contractor for mater|a|
and |abour, f|na||y ref|ected |n the pro[ect
not be|ng comp|eted |n t|me for the
Games. nowever, we do not know the
exact extent of sub-contract|ng of the
compos|te work by CkSGC to S|mp|ex
ro[ect Ltd.
4
cbloo kollwoy 5blsljo Ctoop cotpototloo, Abolwollo
coottocts (loJlo) ltJ., IMc ltojects (loJlo) ltJ.,
Noqotjooo coosttoctloo co. ltJ., Mc 8ollJmote lvt.
ltJ. ooJ uolty loftoptoject ltJ.
19.2.2 Sh|va[| Stad|um
ln lebruary 2008, nl1 for Lhe composlLe

conLracL for lmprovemenL/upgradaLlon
works aL Shlva[l SLadlum was lssued. Slx
4
agencles submlLLed Lhelr blds and afLer
openlng Lhe Lechnlcal blds on 24 March
2008, all were Lechnlcally quallfled. Cn 10
Aprll 2008, Lhe flnanclal blds were opened
and C8SCC was declared Lhe L1 bldder and
Lhe LCl lssued on 19 May 2008.
We found LhaL Lhough Lhe lnLenL was noL Lo
engage a forelgn company dlrecLly (noL
even Lhrough a !v), C8SCC, a forelgn
company, wlLh no exlsLlng esLabllshed base
ln lndla was engaged. lLs bld should have
been re[ecLed aL Lhe Lechnlcal evaluaLlon
sLage lLself. 1he reasons for Lhe same are
llsLed below:
no global Lender was lssued, Lhe nl1
was only publlshed ln naLlonal news
papers, loaded on nuMC webslLe and
clrculaLed Lo a panel of 18 lndlan
conLracLors,
1he prlmary ellglblllLy condlLlon was
experlence of execuLlon of consLrucLlon
of new mulLl-sLorled block of CenLral
CovernmenL or SLaLe CovernmenL
deparLmenLs/ Munlclpal 8oards /
AuLonomous 8odles / Sus, lndlcaLlng
an lndlan conLexL. C8SCC produced
slmllar experlence of worklng ln Chlna
lnsLead of lndla, and
19.2.2.1 SelecLlon of Chlna 8allway Shlsl[u
Croup CorporaLlon (C8SCC) as
conLracLor for Shlva[l SLadlum
C8SCC dld noL produce requlslLe

reglsLraLlon cerLlflcaLes from compeLenL
auLhorlLles for local LaxaLlon and
reglsLered place of buslness ln lndla.
1hese were produced only posL openlng
of Lhe flnanclal bld, and
Cenerally, when forelgn parLlclpaLlon ls
envlsaged, formaLlon of !v wlLh a local
company or creaLlon of a separaLe legal
enLlLy ln lndla ls lnslsLed upon Lo ensure
compllance wlLh local law, famlllarlLy
wlLh local condlLlons and faclllLaLe
seLLlemenL of legal dlspuLes, lf any. no
such provlslons were made ln Lhls nl1.
326
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19.2.2.2 Avoldable expendlLure on
speclallzed lLems of LlecLrlcal
works
19.2.2.3 Avoldable exLra cosL on
procuremenL/lnsLallaLlon of
uC seLs
lLems such as alr condlLlonlng planL, llfL,
Lransformers, dlesel generaLlng seLs,
securlLy sysLem, flreflghLlng equlpmenLs,
eLc. were lncluded ln a composlLe Lender ln
Lhe case of Shlva[l SLadlum, unllke Lhe
pracLlce adopLed ln 1alkaLora SLadlum.
1hough a composlLe Lender for Shlva[l
sLadlum and separaLe Lenders for 1alkaLora
SLadlum were lnvlLed around Lhe same
Llme, raLes for Lhe laLLer were 11 Lo 43 per
cenL below LhaL of Lhe composlLe work of
Shlva[l sLadlum. Pad a separaLe Lenderlng
approach been followed, esLlmaLed savlng
of 8s. 2.23 crore could have been achleved.
nuMC's reply LhaL composlLe Lender was
S
floaLed ln compllance wlLh CWu Manual ,
ensure co-ordlnaLlon among varlous
agencles and ln vlew of Llme consLralnL, ls
noL accepLable slnce aL 1alkaLora lndoor
SLadlum, Lhe work was for more Lhan 8s. 10
crore buL a composlLe Lender was noL
floaLed and Lhe sLadlum was ready ln Llme
for CWC-2010 unllke Shlva[l SLadlum.
uesplLe Lhe power requlremenL of Lhe
sLadlum belng caLered from Lwo
lndependenL sources of power supply, Lwo
uC seLs of 1000 kvA each accounLlng for 62
per cenL of Lhe load requlremenL of 3240
kvA were procured for 8s.2.19 crore. 1he
venue 8rlef dld noL prescrlbe backup uC
seLs Lo caLer Lo Lhe Cames crlLlcal load for a
Lralnlng venue.
19.2.2.4 CrlenLaLlon of plLch noL as per
lnLernaLlonal Pockey lederaLlon
norms
19.2.2.3 non-compleLlon of Lhe Lralnlng
sLadlum ln Llme for CWC-2010
As per Lhe venue 8rlef submlLLed by LkS,
Lwo hockey plLches (maln & warmup)
complylng wlLh lnLernaLlonal Pockey
lederaLlon speclflcaLlons, were Lo be
provlded for CWC hockey Lralnlng, and
plLches should have a norLh-SouLh
allgnmenL (+/- 13 degrees).
1he sLadlum had provlslon of Lwo hockey
plLches, buL only one could be compleLed
before Lhe games and has a LasL-WesL
orlenLaLlon as agalnsL norLh-souLh
orlenLaLlon requlred, prlmarlly due Lo space
consLralnL. Clearly, Lhere was dlsconnecL
beLween Lhe venue brlef, Lhe concepLual
plan and drawlngs on Lhe ground. 1he flnal
usablllLy of Lhls sLadlum for Lop level hockey
evenLs ls open Lo doubL
Slmllarly, ln MuC Pockey SLadlum as well,
Lhe warm up plLch does noL have Lhe
requlred norLh-souLh orlenLaLlon and ls
prlmarlly LasL-WesL, belaylng clalms of
adherence wlLh lnLernaLlonal sporLlng
sLandards.
1he venue brlef for Lhe sLadlum was
recelved ln May 2007, Lhe archlLecL was
engaged ln CcLober 2006 and Lhe
composlLe conLracL for Lhe work was
awarded ln May 2008, wlLh Lhe scheduled
compleLlon as of november 2009. Cf Lhe
ma[or works only one hockey plLch could be
prepared. 1he oLher plLch, Lwo level
basemenL parklng, mulLl-sLoreyed faclllLles
bulldlng and Lhe sLadlum sLlll remaln
lncompleLe.
S
loto 15.J of clwu Mooool 2007 ptesctlbes composlte
teoJet fot wotks costloq mote tboo ks. 10 ctote.
1a|katora Indoor Stad|um - 8ox|ng
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We found LhaL desplLe very close
monlLorlng by Lhe Lmpowered CommlLLee
of CnC1u, headed by Lhe Chlef SecreLary,
and repeaLed assurances by Chalrman,
nuMC, Lhe faclllLy could noL be made
avallable for CWC-2010. 1he maln reason
was Lhe lnablllLy of nuMC Lo provlde
hlndrance free slLe Llll March 2009 due Lo
llLlgaLlon wlLh exlsLlng occupanLs of Lhe
resLauranLs and klosks wlLhln Lhe sLadlum
complex. uesplLe, Lhe declslon Lo upgrade
Lhe sLadlum ln !uly 2003, lL ls lnexpllcable
why nuMC walLed Llll Lhe lasL mlnuLe Lo
ensure vacaLlon and avallablllLy of a
hlndrance free slLe.
1he conLracLor as well falled Lo dellver
wlLhln Lhe scheduled Llme of 18 monLhs l.e.
by SepLember 2010 even afLer handlng over
of Lhe clear slLe ln March 2009.
8esponslblllLy for fallure Lo dellver Lhe
venue ln Llme needs Lo be flxed.
19.2.3 1a|katora Indoor Stad|um (1IS)
1here were Lwo ma[or clvll works Lo be
underLaken aL 1lS. 1he Lenderlng process
for each ls summarlsed below
19.2.3.1 LngagemenL of Slmplex ro[ecLs
LLd as Lhe maln conLracLor
Work 1ender|ng
rocess
nl1 lssued,
1ender opened
Work Awarded
1sL Call
1ender opened
re[ecLed due
Lo hlgh raLe
2nd Call
1ender opened
Work Awarded
AugusL 2007
SepLember 2007
uecember 2007
november 2007
uecember 2007
!anuary 2008
!anuary 2008
lebruary 2008
Aprll 2008
Sport
Iac|||ty
8|ock
Add|t|on
and
A|terat|ons
1|me ||ne
1oble 19.2 - 1eoJetloq ptocess fot
owotJ of wotks
328
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We found LhaL Lhough Lhe Lender was
adverLlsed ln Lhe newspaper, nuMC
webslLe and clrculaLed among Lhe panel of
conLracLors, ln boLh conLracLs only one
bldder, Slmplex ro[ecLs LLd. responded.
Whlle nuMC chose Lo reLender Lhe conLracL
for addlLlons/alLeraLlons, lL declded Lo
accepL Lhe slngle bld for Lhe consLrucLlon of
Lhe sporLs faclllLy block. lL ls perLlnenL Lo
noLe here LhaL Lhe perlod of execuLlon of
Lhe conLracL was 18 monLhs (sporLs faclllLy
block) and 12 monLhs (addlLlon/alLeraLlon
work), and, Lherefore, Lhere was scope for
reblddlng. lurLher, on analysls of [usLlfled
raLes of lLems consLlLuLlng 44 percenL of Lhe
[usLlfled cosL, we found LhaL Lhese were 16
per cenL hlgher Lhan CWu uS8 raLes
appllcable. under Lhe clrcumsLances, lL was
deslrable Lo re-bld and LesL Lhe markeL once
agaln.
ln Lhe absence of compeLlLlve blddlng and
dlfference ln Lhe [usLlfled cosLs and Lhose
worked ouL ln audlL on a LesL check basls, lL
ls dlfflculL Lo conclude LhaL Lhe besL prlce
was deLermlned for Lhe work ln a
compeLlLlve markeL.
ln november 2008, nuMC engaged SCS
lndla vL. LLd. as Lhe 1hlrd arLy
lnspecLlon/CuallLy Assurance (1lCA)
agency for ongolng consLrucLlon/ up
gradaLlon works aL Shlva[l SLadlum and
1alkaLora lndoor SLadlum for a lumpsum fee
of 8s. 1.06 crore. 1he followlng deflclencles
ln Lhe quallLy of works and 1lCA servlces
were noLed
1lCA was engaged ln november 2008,
slx monLhs afLer Lhe work had
commenced ln 1alkaLora lndoor SLadlum
19.2.3.2 CuallLy assurance for 1alkaLora
lndoor SLadlum and Shlva[l
SLadlum
wlLh 30 percenL overall achlevemenL of

work whlch was unsupervlsed by Lhe
1lCA,
1hough Lhe 1lCA was requlred Lo
conducL quallLy LesLs of lnpuL maLerlal, lL
only revlewed Lhe LesLlng faclllLles of Lhe
conLracLors and nuMC and Lhe reporLs
submlLLed by Lhem. lL dld noL revlew Lhe
LesL reglsLers malnLalned by nuMC,
nuMC also dld noL Lake effecLlve acLlon
on Lhe suggesLlons puL forLh by 1lCA ln
lLs perlodlcal reporLs, and
C1L, CvC also found several deflclencles
ln Lhe quallLy of work execuLed. 8oLh
Lhe cube LesL and core LesL of 1alkaLora
lndoor SLadlum falled, cemenL
consumpLlon was also reporLed as low
ln 1alkaLora lndoor SLadlum. nuMC had
senL clarlflcaLlons regardlng meLhod of
checklng of cemenL quanLlLy, buL C1L
had noL glven lLs flnal vlew as yeL.
19.2.3.3 LxLra expendlLure on subsLlLuLed

chalrs
1he conLracLed raLe for 3000 chalrs was 8s.
2190 per chalr, whlch was a parL of Lhe
composlLe conLracL. 1hese were subsLlLuLed
wlLh Llp up chalrs. 1lll daLe, a paymenL of 8s.
1.33 crore has been made Lo Lhe conLracLor
for 2704 chalrs [ 8s. 3000 and 446 chalrs
[ 8s. 4000 each. 1he cosL of slmllar Llp up
Cvera||, |t can be seen that the qua||ty of
construct|on works, part|cu|ar|y |n
1a|katora Indoor Stad|um, was
comprom|sed desp|te the engagement of
SGS Ind|a vt. Ltd. as 1IA. Strange|y,
NDMC gave an "exce||ent grad|ng for
techn|ca| prof|c|ency" to SGS Ind|a vt.
Ltd., even before the comp|et|on of work.
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chalrs ln Slrl lorL SLadlum was 8s. 2081,
resulLlng ln exLra expendlLure of 8s.0.82
crore ln 1lS, whlch Lhe deparLmenL assured
lL would recover.
Whlle deLermlnlng Lhe markeL raLe for Lhe
purpose of regulaLlng Lhe clalm of Lhe
conLracLor (Slmplex ro[ecLs LLd) for
devlaLed/subsLlLuLed/ exLra lLems, 10
percenL over Lhe cosL of Lhe maLerlal and
labour was Lo be allowed Lo cover
conLracLor's overhead and proflL as per Lhe
conLracL.
ln 21 of Lhe 83 cases of clalms of devlaLed/
subsLlLuLed/ exLra lLems revlewed by us, we
found Lhe conLracLor's overheads and proflL
was Laken as 13 percenL lnsLead of 10
percenL appllcable. ueLalls are glven ln
Annexe 19.1.1hls resulLed ln overpaymenL
Lo Lhe conLracLor of 8s.1.17 crore and
correspondlng exLra llablllLy of 8s.0.86 crore
Lo nuMC.
ln addlLlon we found LhaL ln Lhe clalm for
Lhe subsLlLuLed lLem of flxlng sLrucLural
glazed curLaln wall sysLem/space frame
glazlng sysLem, whlle calculaLlng Lhe markeL
19.2.3.4 lrregular framlng of raLe analysls for
devlaLed/ subsLlLuLed /exLra lLems
raLe of Lhe Lendered lLem, Lhe [usLlflcaLlon
raLe LhaL was deLermlned Lhree years ago
was adopLed, lnsLead of ad[usLlng lL Lo Lhe
currenL prlce lndex or obLalnlng fresh raLes
from Lhe markeL. 1hls resulLed ln an undue
beneflL Lo Lhe conLracLor of 8s. 0.60 crore,
based on Lendered raLes ad[usLed wlLh prlce
lndex.
As an englneerlng pracLlce, column plLs are
fllled wlLh earLh excavaLed on slLe, whlch
was also envlsaged ln Lhe conLracL. lnsLead,
ln Lhe lnsLanL case, Lhe conLracLor was
permlLLed Lo flll lL wlLh a much more
expenslve opLlon of ready mlx lean concreLe
resulLlng ln avoldable exLra cosL of 8s. 1.39
crore. ln addlLlon, 8s. 0.16 crore were also
pald Lo remove Lhe excavaLed earLh from
slLe.
ln lLs reply, nuMC sLaLed LhaL no space was
avallable aL Lhe consLrucLlon slLe Lo sLore
Lhe excavaLed earLh. 1he plcLure below
lndlcaLes Lhe space avallable aL Lhe
consLrucLlon slLe.
19.2.3.3 Avoldable expendlLure on ready
mlx lean concreLe for fllllng ln plL
of column
lcLure of Lhe consLrucLlon slLe aL 1alkaLora lndoor sLadlum lndlcaLlng space avallable
for consLrucLlon acLlvlLy.
330
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19.3.1 Construct|on] Upgradat|on of
1hyagara[ Stad|um
ConsLrucLlon/ upgradaLlon of 1hyagara[

SLadlum lnvolved:
ConsLrucLlon of a mulLlpurpose alr-
condlLloned lndoor sLadlum wlLh a
seaLlng capaclLy of 3000, whlch could be
used for varlous sporLs,
1wo warm up courLs and one
compeLlLlon courL for neL ball, and
SynLheLlc Lrack of 400m x 8 lane for
aLhleLlcs (Lralnlng venue).
19.3.1.1 Cvervlew
19.3.1.2 lannlng and Award
eddle 1horp Melbourne (AusLralla), ln [olnL
venLure wlLh kapoor & AssoclaLes, was
appolnLed as Lhe deslgn consulLanL aL a cosL
of 8s. 3.98 crore ln uecember 2006. 1he
prellmlnary esLlmaLed cosL of Lhe sLadlum
of 8s. 297.43 crore was approved by Lhe
CnC1u CablneL ln SepLember 2007, and
deLalled esLlmaLes for 23 works were
approved by Wu, CnC1u for 8s. 230.86
crore from SepLember 2007 Lo !anuary
2010. Work amounLlng Lo 8s. 304.07 crore
had been execuLed on Lhe 23 works agalnsL
whlch, paymenL of 8s. 281.60 crore had
been made Lo Lhe conLracLors Llll CcLober
2010.
1he maln works for sLrucLures under
packages l and ll were awarded Lo !MC
ro[ecLs (lndla) LLd. aL cosLs of 8s. 103.96
crore and 8s. 108.80 crore. 1he work of
1hyagara[ Stad|um
19.3 Venues constructed by
WD, GNC1D
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package-l was compleLed ln Aprll 2009 aL a
LoLal expendlLure of 8s. 112.09 crore whlle
under package-ll, an amounL of 8s. 96.87
crore had been pald Llll daLe.
We found:
lnadmlsslble paymenL of 8s. 3.03 crore
separaLely for plaLes, nuLs and bolLs ln
sLeel work (Lrusses), ln addlLlon Lo
paymenL for acLual lengLh of plpe, whlch
already lncluded cosLs of plaLes, nuLs
and bolLs,
Avoldable paymenL of 8s. 2.31 crore for
plaLes, nuLs and bolLs ln oLher lLem of
sLeel works (purllns) due Lo noL
speclfylng Lhe mode of measuremenL
for paymenL, as was done ln case of
sLeel work for Lrusses, and non adopLlon
of unlform mode of measuremenL and
paymenL, and
non-deducLlon of 8s. 0.33 crore on
accounL of reducLlon ln cusLoms duLy on
19.3.1.3 CverpaymenLs Lo Lhe conLracLor
(!MC ro[ecL)
sLeel ln Lhe 2007-08 budgeL, Lhe

ueparLmenL lndlcaLed Lhe amounL
recoverable was only 8s. 0.29 crore.
1he CWu Manual provldes LhaL percenLage
raLe Lenders should be resorLed Lo only
when Lhe ma[or parL of Lhe esLlmaLed cosL
puL Lo Lender ls based on Lhe uelhl
Schedule of 8aLe (uS8), lrrespecLlve of Lhe
value of Lhe Lenders. Powever, Wu,
CnC1u adopLed a percenLage raLe Lender,
alLhough more Lhan 80 per cenL of Lhe cosL
for Lhe Lwo packages were for non-uS8
lLems. Slnce Lhe bldder ls asked Lo quoLe a
slngle percenLage raLe and does noL have an
opLlon of quoLlng dlfferenL percenLages for
dlfferenL lLems, any error leadlng Lo an
lncrease ln Lhe esLlmaLed cosL of an lLem
cannoL be easlly facLored lnLo conslderaLlon
by Lhe bldder. ConsequenLly, an lnflaLed
cosL esLlmaLe provldes a hlgher basellne for
poLenLlal bldders. We found Lhe followlng
lnsLances of lnflaLlon of cosLs ln Lhe deLalled
esLlmaLes:
19.3.1.4 lnflaLlon of cosLs ln
deLalled esLlmaLes
1oble 19.J - lostooces of loflotloo of costs lo tbe JetolleJ estlmotes
(lo ks. ctote)
Lsca|at|on |n Cost Lst|mate Item
1.41
2.14
0.87
AdopLlon of lncorrecL exchange raLe (8s. 43/ uS$ lnsLead of
8s. 40.28/ uS$) ln compuLlng cosL of lmporLed sLrucLural sLeel
AdopLlon of hlgher wasLage raLe of 10 per cenL (lnsLead of 3 per
cenL) for fabrlcaLlon and commlsslonlng of Lrusses
lnflaLed esLlmaLlon for kalzlp rooflng [ 8s. 3627.77/ sq.m. 1he
conLracLor engaged anoLher agency Lo execuLe Lhe lLem [ 8s.
6
4393/ sqm. Lven afLer lncludlng CCP of 10 per cenL, Lhe acLual
markeL prlce would be only 8s. 4832.30/ sqm.
6
coottoctot's ltoflt ooJ OvetbeoJs
332
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19.3.1.3 Plgher cosL lLem for deLalled
esLlmaLes/ execuLlon
We found Lhe followlng lnsLances of
adopLlon of hlgher cosL lLems for deLalled
esLlmaLes and execuLlon from among Lhe
opLlons provlded by Lhe consulLanL ln Lhe
prellmlnary esLlmaLes (whlch lncluded
lower cosL lLems):
19.3.1.6 Speclfylng a rlcher/ hlgher
speclflcaLlon
We found LhaL cosLller acousLlc wall
panelllng (uslng perforaLed AC) was
execuLed even ouLslde Lhe lleld of lay
(lC) over Lhe corrldor and exLernal
concourse, lnsLead of applylng plasLer and
plasLlc palnL (as done ln Lhe vl area), Lhls
resulLed ln exLra cosL of 8s. 1.24 crore.
19.3.1.7 rocuremenL of lLems by
speclfylng a slngle 8rand
We found LhaL 31 lLems valulng 8s 24.28
crore (Annexe 19.2) were lncluded ln Lhe
deLalled esLlmaLes by speclfylng elLher a
slngle brand by name, or sLaLlng Lhe
requlremenL as brand x" or equlvalenL.
1hese lLems were lncluded as per Lhe
recommendaLlons of Lhe consulLanL and
raLe of Lhese lLems declded/ analysed on
Lhe basls of slngle quoLaLlons. no
[usLlflcaLlon was recorded for speclfylng Lhe
brand. Some examples of raLes of slngle
brand used for preparaLlon of esLlmaLes are
as under:-
1oble 19.4 - lostooces of oJoptloo of blqbet cost ltems
(lo ks. ctote)
Lsca|at|on |n Cost Lst|mate Item
1.8S
0.70
1.00
0.37
use of cosLller acousLlc false celllng (Sonapanel brand) cosLlng 8s.
4208.30 / sqm agalnsL Lhe alLernaLlve cosLlng 8s. 1630/ sqm
use of more expenslve nylon, flre reLardanL carpeL (of Mllllken"
make), raLed as moderaLe duLy, cosLlng 8s. 3464.30/ sqm agalnsL
Lhe esLlmaLed cosL of 8s. 1339.70/ sqm for heavy duLy usage
use of cosLller LolleL parLlLlons (Merlno 1lLan Serles Cublcal boxes)
cosLlng 8s. 19,336/ sqm agalnsL Lhe esLlmaLed cosL of parLlcle
board parLlLlons of 8s. 792.60/ sqm and lamlnaLed glass parLlLlons
cosLlng 8s. 18,300/ sqm.
lnsLallaLlon of composlLe panels of paper Lowel dlspenser, hand
dryer and wasLe paper blns (u-Llne make) ln LolleLs [ 8s. 2.42 lakh
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lurLher, paymenL of 8s. 18.22 crore was
made on execuLlon of 23 lLems of Lhe same
brand as speclfled ln Lhe 8CC and Lhree
lLems worLh 8s. 3.30 crore were execuLed as
equlvalenL brands. llve lLems speclfled wlLh
Lhe brand name were noL execuLed. Clearly,
speclflc brands were favoured, resulLlng ln
reduced compeLlLlon wlLh consequenLlal
lncreases ln pro[ecL cosL.
1he venue brlef for 1hyagara[ sLadlum
sLlpulaLed power supply from Lwo
lndependenL feeders and power backup for
crlLlcal supplles. lnsLead, Wu wenL ln for
Lwo addlLlonal power generaLlon unlLs,
purporLedly on accounL of Lhelr green and
envlronmenL frlendly naLure:
A roof Lop solar power generaLlng unlL
of 1 MW peak capaclLy was lnsLalled aL a
cosL of 8s. 14.10 crore. AlLhough excess
power supplled by Lhls solar unlL would
19.3.1.8 MulLlple forms of power back-up
recelve CeneraLlon 8ased lncenLlve

under Lhe !awaharlal nehru naLlonal
Solar Mlsslon, resulLlng ln a Larlff of 8s.
17.91/ unlL, 8s. 12.41/ unlL represenLed
an lncenLlve glven by Lhe Col,
A 2.3 MW dual-fuel gas Lurblne was
awarded aL a cosL of 8s.19.38 crore and
an add-on vapour AbsorpLlon Machlne
aL a cosL of 8s. 2.83 crore, ln addlLlon,
noL only were Lhese works awarded on
slngle Lender basls Lo 1urbomach lndla
vL. LLd., Lhe expendlLure on Lhls Lurblne
and vAM ls largely lnfrucLuous as lL
would be hlghly expenslve Lo generaLe
power from Lhls unlL posL-Cames.
1oble 19.5 - xomples of totes of sloqle btooJ oseJ fot ptepototloo of estlmotes
Name of Item S.No. 8rand of Item kate of
procurement
(rs. per un|t)
na|| wa|| hung WC. pan, seat w|th cover,
Concea|ed c|stern
Duo f|x mount|ng e|ement
S|ng|e ur|na| bas|n w|th VC 6 |ts. auto
f|ush|ng c|stern
Wash bas|n |nc|ud|ng Sensotron|c sensor
faucet
aper towe| d|spenser , nand dryer, Waste
paper b|n
8|ower] hand dryer
aper towe| d|spenser
aper waste b|n
1.
2.
3.
4.
3.
6.
7.
8.
9.
21,067
8,234
6,213
34,324
27,340
2,41,813
24,336
33,833
30,443
8oca
CeberlL
CeberlL
8oca

8oca, uuravlL, !aquar
u-llne
CLM or equlvalenL
u-llne or equlvalenL
u-llne or equlvalenL
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approved by Wu ln uecember 2008.
8en[amln, 8en[amln and vaLs were
appolnLed ln March 2008 as Lhe deslgn
consulLanL aL a cosL of 8s. 1.33 crore. 1he
maln work for Lhe sLrucLure was awarded Lo
Lra lnfra Lnglneerlng ln !anuary 2009 for 8s.
60.26 crore. aymenL of 8s.48.78 crore had
been made up Lo CcLober 2010 Lo Lhe
conLracLor.
19.3.2 Construct|on of Chhattrasa|
Stad|um
ChhaLrasal sLadlum was Lo be upgraded as a
Lralnlng venue for aLhleLlcs. 1he esLlmaLed
cosL of 8s. 83.00 crore was approved by Lhe
CnC1u CablneL ln AugusL 2008, and
deLalled esLlmaLes of 8s. 33.87 crore were
19.3.2.1 Cvervlew
welghLages had been adopLed as for
1hyagara[ SLadlum, 8en[amln, 8en[amln
and vaLs would noL have been
Lechnlcally quallfled.
As ln Lhe case of 1hyagara[ SLadlum, Wu
used Lhe percenLage raLe Lender, even
Lhough 40 per cenL of Lhe Lendered cosL
were for non-uS8 lLems (whlch should have
deLerred resorLlng Lo percenLage raLe
Lenderlng).
19.3.2.3 use of percenLage raLe Lender
19.3.2.2 AppolnLmenL of consulLanL
We found lrregularlLles ln Lhe appolnLmenL
of 8en[amln, 8en[amln and vaLs as Lhe
deslgn consulLanL:
1he condlLlon of relevanL experlence vls-
a-vls sporLs venues ln Lhe nl1 was
removed aL Lhe ress noLlce sLage,
ulfferenL welghLages for crlLerla for
Lechnlcal evaluaLlon were used for Lhe
ChhaLrasal SLadlum (as compared Lo Lhe
1hyagara[ SLadlum) glvlng less welghLage
Lo experlence of key personnel, lf Lhe
Chhatrasa| Stad|um
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We found LhaL for award of deslgn
consulLancy, LCl was noL followed and
llmlLed Lenders were lrregularly called,
purporLedly on accounL of shorLage of Llme.
Powever, alLhough Lhe consulLanL
appolnLmenL commlLLee had approved Lhe
proposal for appolnLmenL ln AugusL 2007,
Lhe work was awarded Lo AC krlshna
Menon only ln uecember 2007, belylng Lhe
purporLed sense of urgency.
As ln Lhe case of oLher sLadla, Wu resorLed
Lo percenLage raLe Lenderlng for Lhe maln
work, desplLe Lhe facL LhaL more Lhan 33
per cenL of Lhe Lendered cosL was for non-
uS8 lLems. lurLher, Lhe Lendered amounL of
8s. 11.23 crore was 32 per cenL above Lhe
esLlmaLed cosL of 8s. 8.30 crore. lor Lhls
purpose, a [usLlfled cosL of 8s. 10.30 crore
was arrlved aL. We found undue lnflaLlon of
Lhe [usLlfled cosL by 8s. 0.96 crore on
accounL of mlscellaneous charges (already
lncluded ln CCP) and hlgher [usLlflcaLlon
raLe of sLrucLural sLeel (compared Lo Lhe
same lLems for ChhaLrasal sLadlum).
19.3.3 Construct|on of 1ra|n|ng Venue
at Lud|ow Cast|e
CovernmenL Model Ludlow CasLle School
no. 2 was selecLed as a Lralnlng venue for
wresLllng. AC krlshna Menon was
appolnLed as Lhe deslgn consulLanL aL a cosL
of 8s. 0.60 crore ln uecember 2007.
LsLlmaLed cosL of 8s. 20.33 crore was
approved by Lhe CnC1u CablneL ln
november 2008, and deLalled esLlmaLes of
8s. 9.34 crore approved by Wu ln
uecember 2008. 1he work was awarded Lo
Arora ConsLrucLlon Company rlvaLe LLd. aL
8s. 11.23 crore.
1ra|n|ng venue at Lud|ow Cast|e Schoo|
In our Study keport of Iu|y 2009, we
had h|gh||ghted the fact that GNC1D
awarded des|gn consu|tancy |n
December 2007 wrong|y for
Government Mode| Lud|ow Cast|e
Schoo| No. 1 (|nstead of Schoo| No. 2).
1h|s was rect|f|ed on|y |n Iune 2008.
336
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As !Ml does noL provlde sporLs faclllLy or
Lralnlng ln 8ugby for Lhelr sLudenLs,
lmmedlaLely afLer Lhe Cames, !Ml
requesLed (november 2010) 8l1LS Lo sLarL
Lhe work of developmenL of crlckeL neLs
lncludlng crlckeL plLch alongwlLh Lhe maln
crlckeL wlckeLs, replaclng Lhe 8ugby 7s fleld.
8econverslon of Lhe 8ugby 7s fleld lnLo
crlckeL fleld defeaLs, aL leasL parLly, one of
Lhe sLaLed ob[ecLlves of CWC-2010 of
creaLlon of sLaLe-of-Lhe-arL sporLlng
lnfrasLrucLure.
19.4.1 Introduct|on
19.4.2 keconvers|on of kugby 7s f|e|d
|nto cr|cket f|e|d
ln !une 2006, !Ml was selecLed as one of Lhe
Lralnlng venue for 8ugby 7s and Lable
Lennls, and 8s. 42.37 crore were released by
M?AS.
1he 8ugby 7s fleld was prepared by
replaclng Lhe grass of Lhe exlsLlng crlckeL
fleld aL !Ml wlLh 8ermuda grass prlncess 77.
1lll AugusL 2010, 8s. 2.11 crore had been
pald for lL.
19.4.3 Dev|at|on from the Approved
Scope of Work
As per Lhe LlC memo, !Ml was Lo develop

Lralnlng venue for Lable Lennls,
Lralnlng venue for 8ugby 7s and
necessary lnfrasLrucLure for Lhese
venues.
Powever, ln addlLlon Lo Lhese works,
execuLlon of Lwelve sub- works was
underLaken by !Mlu, whlch lncluded
provldlng and laylng all season Lurf for
baskeLball courL, lawn Lennls courL and
[ogglng Lrack, renovaLlon of volleyball courL,
hockey/ fooLball fleld and provldlng
7
furnlLure and furnlshlng lLems . lunds Lo
Lhe Lune of 8s. 2.38 crore were dlverLed Lo
meeL Lhe expenses of Lhese works, as
lndlcaLed ln Lhe Lable glven below.
19.4 Venues deve|oped by
Iam|a M|||a Is|am|a
Un|vers|ty (IMI)
kestorat|on work of cr|cket f|e|d |n
kugby 7s tra|n|ng venue
7
1be ltem of loose fotoltote ooJ cofetetlo fotoltote wos
JeleteJ by tbe Mlolstty. Nevettbeless, tbls ltem of wotk
wos execoteJ by IMl.
S.No. Name of Work
Lawn tenn|s court and
basketba|| court
Iogg|ng track
nockey] footba|| f|e|d & vo||eyba||
court |nc|ud|ng hort|cu|ture work
rov|d|ng furn|ture and
furn|sh|ng |tems
0.62
0.33
0.49
1.12
2.S8
0.47
0.27
0.23
8lll has noL been
ralsed by Lhe flrm
1ota|
1.
2.
3.
4.
1ota| tendered
expend|ture
Upto date
Lxpend|ture
(ks. lo ctote)
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uevelopmenL of unlverslLy premlses for
provldlng sporLs faclllLles ls, no doubL
deslrable. Powever, ln Lhls case, Lhe
expendlLure on Lhese addlLlonal sporLs
Lawn tenn|s court
8asketba|| court
nockey ] Iootba|| I|e|d
Vo||ey ba|| court
faclllLles was lncurred ouL of expendlLure
sancLloned for cerLaln speclflc sporLs
faclllLles Lo be used durlng CWC-2010,
whlch ls lrregular.
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19.4.4 Lxecut|on of Sub-standard Work
Cur physlcal lnspecLlon of Lhe Lable Lennls
hall revealed LhaL Lhe acousLlc panels on
one porLlon of Lhe wall had compleLely
come ouL, exposlng Lhe unflnlshed wall
beneaLh lL. 1he flnlsh of flLLlng of oLher
acousLlc panels Loo was bad. 1he synLheLlc
sporLs surface carpeLlng of wooden floor
was uneven and bumpy aL a few places.
19.S.1 Introduct|on
1he uu-CWC 2010 pro[ecL of uelhl

unlverslLy lnvolved:
developmenL of Lhe maln compeLlLlon
venue for 8ugby 7s,
neLball & boxlng Lralnlng venue aL uu
maln venue,
Lralnlng venues for 8ugby 7s (aL seven
8
colleges ) and for women's wresLllng
lndoor hall aL S8CC,
19.S.2 De|ay of start of work of
tra|n|ng venues
1he work of Lralnlng venues vlz. aLhleLlcs
Lrack, 8ugby fleld wlLh faclllLy blocks ln
colleges and lndoor wresLllng, Lo be sLarLed
ln AugusL 2008, was held up and sLarLed
afLer !anuary 2009 for wanL of approval of
revlsed esLlmaLes by Mo?AS. 1hls resulLed
ln delay ln compleLlon of work. We found
LhaL Lhere was a delay of:
Lawn tenn|s court
19.S Venues deve|oped by De|h| Un|vers|ty
Netba|| & 8ox|ng 1ra|n|ng Venue
aLhleLlc Lrack aL uu polo ground, and

oLher assoclaLed lnfrasLrucLure works.
8
uoolot kom, kbolso, komjos, kltotlmol, 5t.5tepbeos,
5kcc ooJ nloJo.
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Conslderlng Lhe condlLlon of surroundlngs
of Lhese venues, especlally Lhe enLry areas
for boLh S8CC and olo Cround, lL ls evldenL
LhaL Lhere was a deflnlLe lapse and lack of
foreslghL ln selecLlng Lhese venues for
developlng Lralnlng faclllLles for Lhe Cames.
SkCC - 8oundary Wa||
SkCC - |ay Ground
SkCC koad towards Ma|n entrance
19.S.3 Work started w|thout the

approva| of DUAC and MCD
19.S.4 Non ut|||zat|on of rugby, ath|et|c

and wrest||ng tra|n|ng venues
flve monLhs ln sLarL of consLrucLlon work
of 8am[as College, SLephan College,
klrorl Mal College, S8CC WresLllng Pall
and ALhleLlc olo Cround,
four monLhs Lo elghL monLhs ln
compleLlon of all Lralnlng venues, and
flve monLhs ln handlng over of Lralnlng
venues Lo CC/uu.
uuAC had noL glven flnal approval Llll
compleLlon of Lhe CWC, and
MCu had nelLher accepLed Lhe
appllcaLlon nor glven approval for
consLrucLlon of faclllLy blocks ln Lralnlng
venues.
1he Lralnlng venues for rugby (8am[as and
S8CC), lndoor women wresLllng Lralnlng
venue (S8CC), and aLhleLlc Lralnlng venue
(olo Cround), consLrucLed aL an
approxlmaLe cosL of 8s.39.32 crore, were
noL used by Lhe parLlclpanLs for Lralnlng
purpose. 1hese venues were reporLedly
dropped by Lhe CC, as uelhl ollce had noL
glven securlLy clearance for Lhese venues.
Cur vlslL Lo S8CC Lralnlng venues revealed
Lhe followlng poslLlon:
340
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19.6 Venue deve|opment by A|| Ind|a 1enn|s Assoc|at|on (AI1A)
Centre court after renovat|on
19.6.1 Introduct|on
ln CcLober 2009, an esLlmaLed budgeL of 8s.

63.63 crore was allocaLed by M?AS for Lhe
renovaLlon and consLrucLlon of 8.k. khanna
sLadlum for 1ennls Lo All lndla 1ennls
AssoclaLlon (Al1A). lL covered Lhe followlng
works:
8evlslng speclflcaLlons of Lhe cenLre
courL wlLh lncreased seaLlng capaclLy of
3000 from Lhe exlsLlng 4000,
Converslon of grass courL wlLh
Lemporary seaLlng lnLo synLheLlc courL
wlLh permanenL seaLlng for 1000
specLaLors,
CreaLlon of slx maLch courLs and slx
pracLlce courLs, wlLh slmllar surface as
Lhe cenLre courL, and seaLlng capaclLy
for 1000 specLaLors from exlsLlng 16
synLheLlc courLs, grass courL and four
mlnl Lennls courLs,
SeLLlng up llghLlng sysLem of Lhe
prescrlbed lux levels for Pu1v coverage
(2200 lux ln Lhe cenLre courL), and
upgradaLlon of supporL faclllLles.
ln SepLember 2007, Al1A appolnLed S.C
Lakhanpal and assoclaLes as Lhe consulLanL
for preparlng esLlmaLes and supervlslon of
works aL 4.93 per cenL of Lhe pro[ecL cosL
wlLhouL lnvlLlng any blds.
19.6.2 Se|ect|on of ro[ect Management

Consu|tant (MC)
AI1A |nd|cated that SG Lakhanpa| was
chosen because of |ts |ong assoc|at|on
w|th AI1A |n the past. 1he se|ect|on of
the consu|tant on nom|nat|on bas|s, was
|rregu|ar.
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19.6.3 Se|ect|on of C|v||, |umb|ng and
e|ectr|ca| contractors
9
ln lebruary 2008, ouL of slx bldders , Lhree
10
bldders quallfled Lechnlcally - ouL of whlch
Lhe bld of only Clobe Clvll ro[ecLs was
uncondlLlonal. lnsLead of llmlLlng lLself Lo
Lhe only uncondlLlonal bldder, on 18 !une
2008, Al1A slgned an agreemenL wlLh
Skyllne Lngg ConLracLs for 8s.13.17 crore.
Cn 20 !une 2008, a supplemenLary
agreemenL was slgned, whereby 1M1 sLeel
was Lo be supplled by Al1A, Lhereby
reduclng Lhe conLracL value by 8s.2.12 crore
and Lhe negoLlaLed conLracL amounL was
8s.13.06 crore
1here was an lncrease of 8s.3.34 crore ln
cosLs, and 8s. 2.88 crore was pald Lo
conLracLor on accounL of llfLs, uvC
wlndows and revlslon ln Lhe cosL of faade.
ln our oplnlon, lnsLead of slgnlng a
supplemenLary agreemenL wlLh conLracLor
whereby 1M1 sLeel was Lo be supplled by
Al1A, lL would have been deslrable LhaL Lhls
aspecL had been LhoughL of before lnvlLlng
blds, whlch would have lncreased
compeLlLlon.
19.6.4 Appo|ntment of contractors for
stad|um cha|rs
11
ln CcLober 2009, ouL of Lhree bldders , only
Lwo bldders were Lechnlcally quallfled and
12
lndo Cfflce SoluLlons was Lechnlcally
re[ecLed. CamaLlc Ly quoLed 8s.4.28 crore
for supplylng sLadlum chalrs, whlle
Audlence gave a flnanclal bld of 8s.3.33
crore. Al1A consLlLuLed a commlLLee Lo vlslL
Audlence ln WllLshlre, Lngland Lo assess Lhe
capablllLy of Lhe company Lo supply and
lnsLall chalrs.
ln !anuary 2010, CamaLlc was awarded Lhe
work for 8s.3.44 crore, ouL of whlch 8s. 3.21
crore has been pald Lo conLracLor and 8s.
0.23 crore reLalned by Al1A for defecL
llablllLy perlod.
CamaLlc Ly dld noL submlL LMu wlLh Lhelr
flnanclal blds however Al1A appolnLed Lhem
for supplylng chalrs. Al1A lndlcaLed LhaL
CamaLlc had been supplylng chalrs for
Wlmbeldon, and was a repuLed
manufacLurer. lL was also sLaLed LhaL Lhere
were numerous valld grounds for re[ecLlng
lndo Cfflce soluLlons. As regards Audlence,
a CommlLLee of Al1A whlch had gone Lo
Lngland, had quesLloned lLs ablllLy Lo supply
Lhe chalrs ln Llme for Lhe LesL evenL. Clven
Lhe Llme avallable for Lhe LesL evenL, Al1A
had llLLle opLlon buL Lo award Lhe conLracL
Lo CamaLlc. Powever, Lhe conLracL lLself was
awarded only ln !anuary 2010, whereas Lhe
Lechnlcal and flnanclal blds were opened ln
CcLober 2009. uelay ln analyzlng and
awardlng Lhe conLracL had Lhe poLenLlal for
adversely affecLlng Lhe holdlng of Lhe LesL
evenL.
It was noted that the pr|ces of stee|
were vo|at||e dur|ng 2008, and the
concept of de|et|ng the stee| port|on
from the or|g|na| contract and AI1A
procur|ng |t d|rect|y from SAIL had |ts
advantages, espec|a||y c|ubbed w|th the
non |ntroduct|on of any esca|at|on]de-
esca|at|on c|ause |n the contract.
Accord|ng to AI1A, d|rect procurement of
stee| |ed to cost sav|ngs of ks. 0.83 crore.
9
10
Nlcc, uewoo cbooJ, cbowlo 1ecboo coottoctloos,
Clobe clvll ptojects, 5kylloe oqq coottocts, Iomll AbmoJ
ooJ soos
cbowlo tecboo coosttoctloos, Clobe clvll ltojects lvt ltJ,
5kylloe oqq coottocts (l) lvt ltJ
11
12
loJo Offlce 5olotloos lvt ltJ, AoJleoce 5ystems ltJ ooJ
comotlc lty ltJ.
loJo Offlce 5olotloos, tbooqb tecbolcolly tejecteJ by
Al1A, wos o slqolflcoot ployet lo sopply of ovetloys
moooqeJ by tbe Oc
342
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uantum cha|rs |nsta||ed |n a|| courts
19.6.S Conduct of 1est Lvents and
1ournaments
As per Lhe lnLernaLlonal 1ennls lederaLlon
(l1l) reporL, LesL evenLs (Aslan !unlor 1ennls
Champlonshlps) before CWC-2010 were
conducLed successfully, beLween 24-30 May
2010, ln Lhe SLadlum. l1l pralsed Lhe
compeLlLlon venue for lLs CenLre courL,
show courL 1, vl and medla lounges,
llghLlng, sporLs equlpmenLs eLc. and
concluded LhaL Lhe LesL evenL for Lhe CWC-
2010 provlded valuable pracLlce for all Lhe
funcLlonal areas ln operaLlon aL Lhe evenL.
lL allowed Lhe venue Lo operaLe ln evenL
condlLlons. AfLer CWC 2010, flve
LournamenLs have been conducLed aL Lhe
sLadlum, demonsLraLlng LhaL lL has use for
legacy purposes.
C
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Commonwea|th
Games V|||age
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1he commonweo/th 6omes vi//oqe, neor the 4kshordhom 1emp/e, hod three mojor
components - o residentio/ comp/ex for housinq the oth/etes ond officio/s, proctice oreos
for oth/etes, ond temporory structures {over/oys) for the internotiono/ tone, vi//oqe
operotions ond other oreos.
we found thot key issues re/oted to the se/ection of site were not proper/y oddressed.
xcept for strenqtheninq of the 4kshordhom bund, there wos no evidence of comp/ionce
with the mitiqotion/ obotement meosures on the river Yomuno os stipu/oted by the
Ministry of nvironment ond lorests whi/e occordinq conditiono/ environmento/
c/eoronce. uu4 essentio//y ottempted to obdicote responsibi/ity for this issue. we cou/d
o/so not verify comp/ionce with the orders of the non'b/e 5upreme court stipu/otinq
monitorinq of construction octivities by o PM-oppointed committee. lurther, the
temporory noise borriers erected on the Nn-24 f/yover were defective, but the ossocioted
test reports were, interestinq/y, received on/y on 29 October 2010.
we found serious irrequ/orities in the oword of the controct for construction of the
residentio/ comp/ex in PPP mode to moor M6l constructions Pvt. Ltd. 1here wos o series
of misrepresentotions ond occommodotions ot the kl ond klP stoqe thot resu/ted in
moor M6l constructions Pvt. Ltd, which wos not quo/ified in terms of the P criterio,
emerqinq os on e/iqib/e {ond successfu/) bidder throuqh the consortium route. moor
Properties Pl5c, presented ot the kl stoqe os the /eod portner with the requisite
experience, turnover ond net worth, foded behind /oyers of subsidiories/ ossociotes,
effective/y mokinq o mockery of the premise thot it wou/d brinq the necessory experience
ond finoncio/ strenqth, direct/y to the consortium /ed specio/ purpose compony. lurther, o
short time period of just seven doys wos o//owed ofter o siqnificont oddendum,
introducinq siqnificont chonqes to the bid conditions. ln response to the klP, two bids
were received from moor M6l constructions Pvt. Ltd ond uLl Ltd. whi/e uLl's
conditiono/ bid wos summori/y rejected without ony interoction or neqotiotion, uu4
chose to enqoqe in o series of correspondence with its finoncio/ consu/tonts, /eqo/
odvisors ond moor M6l constructions Pvt. Ltd to find so/utions to oddress the
deficiencies in its proposo/. lino//y, on/y moor M6l constructions Pvt. Ltd wos dec/ored
technico//y quo/ified, ond wos oworded the controct on the bosis of o sinq/e finoncio/ bid,
thus denyinq uu4 the benefit of finoncio/ competition.
1he execution of the residentio/ comp/ex project wos o/so p/oqued by severo/
irrequ/orities ond deficiencies. 1he l4k constructed by the project deve/oper substontio//y
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344
ChapLer 20 - CommonwealLh Cames vlllage
exceeded not on/y the sonctioned p/on, but o/so the moximum permissib/e l4k under the
Moster P/on for ue/hi - 2021. moor M6l o/so i//eqo//y constructed 17 odditiono/ dwe//inq
units in the bosement meont for porkinq. uu4 o//owed severo/ finoncio/ concessions to
moor M6l, inc/udinq revision of mi/estones ond de/oyed / non-/evy of /iquidoted
domoqes.
1he centro/ 8ui/dinq keseorch lnstitute, koorkee {c8kl) wos oppointed by uu4 os the
third porty independent quo/ity inspection oqency for the residentio/ comp/ex on/y ofter
most of the foundotion work wos executed. lt pointed out serious /opses in construction
work throuqh thirteen reports between lune 2008 ond October 2010. 1hese inc/uded
deficient secondory reinforcement of beoms ond co/umns, /ock of odequote concrete
cover to reinforcinq stee/, improper beom-co/umn joints, improper o/iqnment of co/umns
ond topered co/umns {which were p/ostered to cover up the deficiencies, controry to
c8kl's odvice), ond differences in the /eve/s of qrode s/obs /eodinq to seepoqe ond
/eokoqes in the bosements. c8kl conc/uded thot on seeinq the permeobi/ity of the
concrete ond the corrosion of reinforcinq stee/, it qove on impression thot the service /ife
of these towers cou/d not be more thon 20 yeors, without substontio/ expenditure on
repoir ond retrofittinq. uu4 did not toke odequote oction on these reports, os the
deficiencies continued to recur in c8kl's successive reports.
4qoinst the stipu/oted deod/ine of 1 4pri/ 2010, the residentio/ f/ots were honded over to
uu4 between lune ond 4uqust 2010 in incomp/ete condition. uu4 pointed out odditiono/
defects in the f/ots ot the time of tokinq over, which were on/y port/y ottended under
emerqent situotion.
1here were serious deficiencies with reqord to the desiqn consu/toncy for construction of
the proctice oreos. 4 consortium /ed by 5uresh 6oyo/ ond 4ssociote wos oppointed os the
desiqn consu/tont on the technico/ strenqth of its internotiono/ portner, who /oter bocked
out. uu4 took no steps to ensure thot the desiqn consu/tont brouqht in comporob/e
internotiono/ expertise ot their own cost os rep/ocements. 1here were siqnificont
deficiencies in preporotion of desiqns, drowinqs, bi//s of quontities ond estimotes ond
de/oys in ochievinq desiqnoted mi/estones, without odequote peno/ oction by uu4.
1he se/ection of 5portino Poyce lnfrostructure Ltd. os the moin controctor for the proctice
oreos wos monipu/oted to ensure thot 5portino Poyce construction {lndio) Pvt Ltd. pre-
quo/ified ond the successfu/ bidder for the project wos different from the pre-quo/ified
consortium. uu4 cou/d not produce evidence of the ossociotion with the execution of the
project of the projected /eod member with re/evont internotiono/ experience, on whose
strenqth the bid wos pre-quo/ified. 5ubsequent/y, due to poor performonce, the controct
wos terminoted, ond re-oworded.
1he se/ection of 6L Litmus vents Pvt. Ltd. os the controctor for de/iverinq temporory
structures {over/oys) for the internotiono/ tone ond other oreos wos equo//y f/owed. 4s in
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the cose of the controcts for the residentio/ comp/ex ond the PPP oreos, the successfu/
bidder wos entire/y different from the pre-quo/ified entity, ond the foreiqn entity with
re/evont expertise wos not port of the successfu/ biddinq entity. uue to de/oyed oword of
the controct in 4pri/ 2010, uu4 cou/d not imp/ement effective quo/ity meosures. 1he
controctor did not supp/y moterio/ os per specificotions ond its desiqns were rejected by
the proof checker. lurther, for o controct of ks. 41.l8 crore, the bu/k of the moterio/ for
which wos to be imported, the vo/ue ossessed ot the lndion customs wos on/y ks. 5.l2
crore.
ue/hi lo/ 8oord {ul8) constructed o 1 M6u woter 1reotment P/ont {w1P) for the 6omes
vi//oqe, 4kshordhom 1emp/e ond surroundinq oreos ot o cost of ks. l5.20 crore. we found
thot the need for o seporote 1 M6u wos not c/eor/y estob/ished ond the p/ont wos over-
desiqned with expensive membrone fi/trotion techno/oqy. lurther, the tenderinq process
wos f/owed ond irrequ/or, with undue ond inexp/icob/e de/oys. 1he bid evo/uotion wos
toi/ored to fovour oword of the work to o sinq/e bidder. 1he w1P is current/y shut down
ond its requirement on o /eqocy bosis is questionob/e.
uu4 o/so purchosed four 1250 kv4 eoch qenerotinq sets with excessive ond undue
redundoncy, which ore now /yinq id/e. P/ons to shift two of these sets to uu4
neodquorters {vlkos 5odon) oppeor unreosonob/e, os vikos 5odon's current /ood is just
12l0 kv4.
4t uu4's behest, l1uc furnished 1101 f/ots ot the 6omes vi//oqe ond 90 upqroded Ll6/
nl6 f/ots ot vosont kunj. we cou/d not oscertoin /eqocy p/ons for the furniture ond fixtures
procured for these f/ots. l1uc indicoted thot these items were purchosed on beho/f of
uu4, which necessori/y hod to toke over the some.
1he CommonwealLh Cames vlllage,
developed by Lhe uuA over an area of 39.28
hecLare near Lhe easL bank of Lhe 8lver
?amuna (near Akshardham 1emple), had
Lhree ma[or componenLs:
A resldenLlal complex for houslng Lhe
aLhleLes and offlclals,
racLlce areas for welghLllfLlng,
wresLllng, swlmmlng, aLhleLlcs and
flLness cenLre,
1emporary sLrucLures (overlays) for

lnLernaLlonal Zone, vlllage operaLlons
and supporL area, LransporL mall, dlnlng
hall, klLchen, polycllnlc eLc .
1he organlsaLlonal sLrucLure of uuA,
lncludlng commlLLees seL up speclflcally for
overseelng and maklng recommendaLlons
for CWC-2010 relaLed pro[ecLs ls glven ln
flgure 20.1
20.2 Crgan|sat|on Structure
20.1 Cverv|ew
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1
As of !anuary 2011, Lhe LoLal expendlLure lncurred on Lhe Cames vlllage was 8s. 243.38 crore
on pracLlce areas and supporLlng lnfrasLrucLure and 8s. 38.38 crore on overlays.
346
llqote 20.1 - Otqoolsotloool sttoctote of uuA
V|ce Cha|rman
n|gh ower Comm|ttee (nC)
Chalred by llnance Member and
lncluded Lnglneer Member,
Commlssloner (lannlng), Chlef
ArchlLecL and ulrecLors (SporLs)
as member secreLary
1o mon|tor the progress of
preparat|ons for CWG-2010
Works Adv|sory 8oard (WA8)
Cha|red by VC
Lmpowered to take dec|s|ons
for works execut|on
Cther Lva|uat|on
Comm|ttees set
up from t|me to t|me
L|eutenant Governor, De|h|
Cha|rman ,DDA
kes|dent|a| Comp|ex
1
xcloJloq tbe expeoJltote oo tbe teslJeotlol complex bollt tbtooqb lobllc ltlvote lottoetsblp.
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As per Lhe bld documenL (May 2003), an
ALhleLes Came vlllage was Lo be creaLed on
2
a 100 acre slLe, ln a prlme uelhl area. ln
3
AugusL 2003, Lhe slLe near nP-24 , nexL Lo
Akshardham Lemple, for Cames vlllage was
presenLed Lo Lhe CCl LvaluaLlon
commlsslon before Lhe Cames were flnally
awarded Lo uelhl.
Map |nd|cat|ng |ocat|on of Games V|||age
Sw|mm|ng oo| (ract|ce area)
20.3 Se|ect|on of S|te for
Games V|||age
2
3
MeotlooeJ os 100 bectotes, elsewbete lo tbe blJ Jocomeot
loclJeotolly, lo tbe blJ Jocomeot tbe locotloo lo tbe mop wos loJlcoteJ oo tbe westeto slJe of klvet omooo l.e. oo tbe New
uelbl slJe of tbe tlvet.
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1here were Lwo key lssues ln relaLlon wlLh
Lhe selecLlon of Lhe slLe:
LnvlronmenLal and oLher aspecLs,
prlmarlly focused on proxlmlLy Lo Lhe
8lver ?amuna, and
nolse polluLlon from Lhe nearby rallway
llne and vehlcular Lrafflc on nP-24.
AlLhough Lhe locaLlon of Lhe Cames vlllage
was known slnce AugusL 2003, uuA
approached Lhe MlnlsLry of LnvlronmenL
and loresL (MoLl) for envlronmenLal
clearance only ln SepLember 2006, reasons
for Lhls delay were noL documenLed. ln
november 2006, MoLl, recognlslng LhaL
Lhere were evldenL envlronmenLal concerns
Lo be addressed adequaLely, dlrecLed LhaL a
sLudy needed Lo be carrled ouL Lo:
llnd ouL Lhe magnlLude of addlLlonal
efflux ln Lhe rlver durlng hlgh flow
condlLlons ln Lhe sLreLch upsLream of
Lhe nlzamuddln brldge and Lhe bund
beLween Lhe naLlonal hlghway and Lhe
rallway brldge upsLream,
Assess Lhe posslblllLy of abaLlng Lhe
efflux by varlous measures,
LsLlmaLe Lhe exLenL of loss of recharge
of groundwaLer, and
LsLlmaLe Lhe lncremenL ln Lrafflc due Lo
Lhe proposed pro[ecL.
ln uecember 2006, MoLl cleared Lhe
pro[ecL on Lhe condlLlon LhaL as far as
poss|b|e, the works shou|d not be of a
permanent nature and un|ess the deta||ed
20.3.1 Lnv|ronmenta| and ke|ated

Aspects
20.3.1.1 CondlLlonal clearance by MlnlsLry

of LnvlronmenL and loresLs noL
complled wlLh
stud|es suggested otherw|se, the r|ver bed
wou|d have to be restored to the r|ver. ln
!anuary 2007, uuA reporLed LhaL lL
lnLended Lo commlsslon a sLudy on
"Pydraullc Model SLudles for assesslng Lhe
effecL of Akshardham 8und on Lhe flow
condlLlons ln Lhe 8lver ?amuna aL uelhl"
Lhrough Lhe CenLral WaLer and ower
8esearch SLaLlon, une (CW8S), Lhe sLudy
reporL was submlLLed Lo MoLl on 6 March
2007. MoLl flnally cleared Lhe pro[ecL on 2
Aprll 2007 afLer progresslvely relaxlng Lhe
condlLlons as lndlcaLed below:
Cn 29 March 2007, uuA was permlLLed
Lo commence plannlng of consLrucLlon
works, however, consLrucLlon of
permanenL naLure could commence
only afLer Lhe mlLlgaLlon/abaLemenL
measures agalnsL upsLream floodlng
ldenLlfled ln Lhe CW8S reporL were
compleLed, and
Cn 2 Aprll 2007, Lhls was relaxed Lo
permlL commencemenL of consLrucLlon
works sub[ecL Lo compleLlon of Lhe
mlLlgaLlng/ abaLemenL measures
ldenLlfled by CW8S, une before
compleLlon of Lhe bulldlngs.
1he maln mlLlgaLlve and abaLemenL
measures ldenLlfled by CW8S ln lLs reporL
were:
8alslng and sLrengLhenlng Lhe
embankmenLs along Lhe rlver ln uelhl Lo
ensure safe dlscharge and check over-
Lopplng,
SLrengLhenlng Lhe exlsLlng
embankmenLs and gulde bund Lo check
flood dlscharge,
Cne layer of sLone craLes on sloplng
porLlon as well as an apron over

348
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geofabrlc fllLer Lo be lald Lo proLecL
varlous bunds and brldges,
roLecLlon of Lhe exlsLlng brldge plers
and sLrengLhenlng of gulde bunds of
oLher sLrucLures exlsLlng beLween Lhe
lndraprasLha barrage and Lhe
nlzamuddln road brldge, and
ArrangemenLs Lo proLecL floodlng area
due Lo back flow of waLer on Lhe
upsLream slde of Lhe Akshardham
Lemple, on boLh sldes of Lhe rlver.
Powever, uuA Look acLlon only on one
aspecL vlz. sLrengLhenlng Lhe Akshardham
bund. 8egardlng Lhe oLher measures, uuA
sLaLed LhaL Lhey had wrlLLen Lo CnC1u and
norLhern 8allway buL could noL provlde any
deLalls of Lhe acLlon Laken, essenLlally
aLLempLlng Lo dlsclalm responslblllLy for Lhls
key aspecL. lndependenLly, we conflrmed
from Lhe lrrlgaLlon and llood ConLrol
4
ueparLmenL, CnC1u LhaL only one work
had been awarded ln !uly 2010, buL was yeL
Lo be compleLed.
20.3.1.2 CourL Case on slLe

ln 2007, a peLlLlon was flled ln Lhe Pon'ble
uelhl Plgh CourL, conLendlng LhaL Lhe
ongolng consLrucLlon would affecL Lhe
ecologlcal lnLegrlLy of Lhe "rlver bed",
besldes causlng lrreverslble damage Lo Lhe
"flood plaln". 1he Plgh CourL dlrecLed Lhe
seLLlng up of a separaLe CommlLLee for
ascerLalnlng wheLher Lhe slLe was locaLed
on Lhe ?amuna rlverbed or floodplaln, Lhls
CommlLLee was also requlred Lo examlne
and monlLor Lhe consLrucLlon carrled ouL by
Lhe uM8C on Lhe slLe ln Lhe same manner
as ln Lhe case of Cames vlllage.
1hls declslon was reversed by Lhe Pon'ble
Supreme CourL, whlch allowed uuA Lo
proceed wlLh consLrucLlon. Cn Lhe basls of
an assurance of Lhe ALLorney Ceneral LhaL
an exlsLlng CommlLLee appolnLed by Lhe M
conslsLlng of LL. Covernor of uelhl as
Chalrperson, Chlef MlnlsLer of uelhl as vlce-
chalrperson, and oLher members
represenLlng varlous deparLmenLs would, ln
assoclaLlon wlLh ur. 8.k. achaurl, monlLor
Lhe enLlre acLlvlLles, Lhe Supreme CourL
overLurned Lhe Plgh CourL's order for
consLlLuLlon of a separaLe commlLLee, and
allowed Lhe pro[ecL Lo proceed.
4
tolsloq ooJ stteoqtbeoloq of tlqbt embookmeot of tbe
tlvet omooo betweeo tbe NlzomoJJlo tollwoy btlJqe
ooJ tbe NlzomoJJlo tooJ btlJqe
Wh||e accord|ng cond|t|ona| c|earance to
the pro[ect, MoLI c|ear|y stated that the
f|ood m|t|gat|on and abatement measures
emerg|ng from the stud|es wou|d need to
be undertaken under the aeg|s of DDA,
the pro[ect proponent. nowever, DDA
comp|ete|y abd|cated |ts respons|b|||ty.
We cou|d a|so not ver|fy comp||ance w|th
the cond|t|ons st|pu|ated by the MoLI.
We found that comp||ance w|th the
assurance of the Attorney Genera| on
mon|tor|ng of construct|on act|v|t|es by
the sa|d Comm|ttee, |n assoc|at|on w|th
Dr. kk achaur|, (based on wh|ch the
Supreme Court a||owed the pro[ect to
proceed) cou|d not be ver|f|ed. Desp|te
enqu|r|es from Cab|net Secretar|at, DDA,
GNC1D (UD Department) and the LG's
Cff|ce, the status of mon|tor|ng, |f any, by
the comm|ttee cou|d not be ascerta|ned.
Cn our enqu|ry |n th|s regard from Dr. k k
achaur|, he stated that he had not had
any assoc|at|on w|th the sa|d comm|ttee,
nor had he attended any meet|ng for th|s
purpose.
ln !une 2006, uuA awarded a conLracL for
8s. 4.73 crore for flnanclal consulLancy for
Lhe Cames vlllage ro[ecL Lo a consorLlum
led by rlcewaLerhouse Coopers vL.
LLd.(WC) wlLh !ames La Salle roperLy
ConsulLanLs vL. (l) LLd. (lnLernaLlonal
experL).
20.4 Appo|ntment of I|nanc|a|
Consu|tant for the Games
V|||age ro[ect
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20.3.2 rov|s|on|ng for no|se barr|ers
1o address Lhe concern of Lhe CC
consulLanLs LkS, and Lhe resldenL, CCl,
regardlng nolse polluLlon aL Lhe Cames
vlllage slLe due Lo Lrafflc on Lhe rallway llne
and nP-24, nolse barrlers were erecLed
along Lhe rallway Lrack and Lhe flyover on
nP-24 aL a Lendered cosL of 8s. 4.73 crore.
1he conLracL Lo erecL nolse barrlers along
Lhe rallway Lrack was awarded Lo Lloyd
lnsulaLlon (lndla) LLd. ln !uly 2010 for 8s.
1.73 crore.
20.3.2.1 nolse barrler erecLed along Lhe
rallway Lrack
20.3.2.2 nolse barrlers erecLed along Lhe
flyover on nP-24
1he conLracL Lo erecL nolse barrlers along
Lhe flyover on nP-24 was awarded Lo
ConsLrucLlon CaLalyser vL. LLd. ln May 2010
for 8s. 3 crore. 1he conLracL speclfled Lhe
physlcal characLerlsLlcs of Lhe plexlglass
nolse barrler LhaL was Lo be lnsLalled. We
observed LhaL Lhe samples senL for LesLlng
Lo Lhe Lhlrd parLy laboraLory (Shrlram
lnsLlLuLe for lndusLrlal 8esearch) falled Lo
meeL Lhe deslred crlLerla subsequenLly.
lnLeresLlngly, alLhough Lhe samples were
senL ln !une 2010, Lhe reporL was recelved
from Lhe laboraLory only on 29 CcLober
2010, well afLer Lhe concluslon of CWC-
2010, Lhls effecLlvely ellmlnaLed all chances
of Laklng correcLlve measures ln a Llmely
manner.
lurLher, uuA chose noL Lo conducL a LesL of
Lhe maLerlal used for nolse barrler from an
lndependenL Lhlrd parLy quallLy assurance
agency, and relled upon Lhe LesL reporL of
Lhe manufacLurers. Slnce we are noL aware
of Lhe measures, lf any, Laken by Lhe
8allways durlng CWC-2010 Lo mlLlgaLe Lhe
nolse of rallway Lrafflc alongslde Lhe Cames,
we could noL verlfy Lhe efflcacy of Lhe nolse
barrlers consLrucLed on Lhe rallway slde.
3S0
As part of our Iu|y 2009 Study keport
on preparedness for CWG 2010, DDA
had c|ar|f|ed that |t wou|d be
|nsta|||ng permanent no|se barr|ers
for wh|ch approva| had a|ready been
rece|ved from the Nat|ona| hys|ca|
Laboratory, and the f|na| des|gns were
be|ng d|scussed w|th the ka||ways.
nowever, th|s was not done, and DDA
chose to |nsta|| temporary no|se
barr|ers a|ong the ra||way track.
No|se barr|er on Nn-24
20.S kes|dent|a| Comp|ex
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1he scope of work of Lhe flnanclal
consulLanL lncluded advlce on developmenL
opLlons for Lhe Cames vlllage on a ubllc
rlvaLe arLnershlp () mode or any oLher
approprlaLe mode lnvolvlng developmenL
Lhrough aucLlon of ploLs for developlng
hoLel/servlce aparLmenL, and Lhe posslblllLy
of prlvaLe parLlclpaLlon ln developmenL of
Cames vlllage /compeLlLlon venues. Slnce
Lhe lasL Lwo opLlons were noL pursued, a
noLe was puL up Lo Lhe Plgh owered
CommlLLee (PC) of uuA ln SepLember
2008 for foreclosure of Lhe consulLancy as
per Lhe agreemenL, for works no longer
requlred Lo be underLaken by Lhe flnanclal
consulLanL and resLrlcLlng Lhe consulLancy
fee on pro raLa basls. ln addlLlon, lL was also
lndlcaLed LhaL Lhe key personnel promlsed
by Lhe consulLanL were elLher noL deployed
or replaced wlLhouL prlor permlsslon of
uuA, as requlred.
20.S.1 Dec|s|on on construct|on of f|ats
|n mode
20.S.2 rocess of tender and award

ln Lhe bld documenL of May 2003, Lhe cosL
of consLrucLlng Lhe aLhleLes vlllage was
esLlmaLed aL uSu 163.83 mllllon (8s.733.62
S
crore) , of whlch uSu 106 mllllon
(8s. 487.60 crore) were expecLed Lo be
recovered from sale of 2-3 bedroom
aparLmenLs bullL Lo accommodaLe Lhe
parLlclpanLs.
ln AugusL 2003, Lhe Lhen LC, uelhl, Shrl vl[al
kapoor sLrongly recommended deslgnlng
Lhe Cames vlllage wlLh legacy use as hosLels
for varlous colleges, whlch would address a
ma[or deflclency ln Lhe exlsLlng educaLlonal
lnfrasLrucLure of uelhl. Powever, ln March
2003, Lhe CoM, declded LhaL Lhe opLlon of
consLrucLlng hosLels was noL feaslble,
malnly due Lo posL Cames malnLenance
dlfflculLles. ln !anuary 2006, afLer
conslderlng Lhe Lhree fundlng models l.e.
prlvaLe parLlclpaLlon Lhrough aucLlonlng
ploLs for bulldlng hoLels/servlce
aparLmenL/guesL house,
bulldlng Cames vlllage enLlrely Lhrough
CovernmenL fundlng, and
ubllc prlvaLe parLlclpaLlon () ln
developmenL of hoLels and resldenLlal
aparLmenLs,
CoM declded Lo develop Lhe Cames vlllage
Lhrough Lhe rouLe.
ln uecember 2006, Lhe 8lC was lssued and
13 agencles applled for pre-quallflcaLlon,
We found that the nC, |nstead of
restr|ct|ng the payments to be made to
the f|nanc|a| consu|tant, avo|ded tak|ng a
dec|s|on and noted that "a v|ew has to be
taken for reduc|ng the scope of work as
per the agreement and on|y those |ssues
wh|ch are re|evant for tak|ng serv|ces of
WC shou|d be worked out. D|rector CWG
wou|d work out the proposa| |n
consu|tat|on w|th the SLs." We cou|d not
ascerta|n the fo||ow up act|on, |f any, |n
th|s regard e|ther by the des|gnated
off|cers or by the nC. U|t|mate|y the
f|nanc|a| consu|tant was pa|d ks. 4.02
crore, wh|ch |nc|uded payment for
serv|ces actua||y not rendered.
S
coovetteJ ot 1u5u = ks.46
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6
ouL of whlch 11 agencles were
prequallfled. 1hese lncluded leadlng names
such as uLl LLd., Shapoor[l allon[l &
Company LLd., L&1, arsvanaLh, Ansal and
unlLech, besldes Lhe wlnnlng Lmaar MCl
consorLlum.
1he 8l was uploaded on Lhe uuA webslLe
and Lhe pre-quallfled agencles were
lnformed on 9 May 2007. 1he maln
condlLlons of Lhe 8l were:
developlng resldenLlal aparLmenLs on a
ploL of 11 hecLare,
7
lloor Area 8aLlo (lA8) of 200 percenL,
30 percenL of Lhe lA8 achleved Lo be
uuA's share,
a 8lddable upfronL fee aL a mlnlmum of
8s. 300 crore, and
8ank CuaranLee of 8s. 300 crore.
Slnce no response was recelved by 1 !une
2007, Lhe bld condlLlons were revlsed
Lhrough an addendum lssued on 8 !une
2007 and Lhe lasL day for submlsslon of bld
was reflxed as 13 !une 2007. Cnly Lwo
responses were recelved. uLl's condlLlonal
bld was re[ecLed, leavlng a slngle flnanclal
bld from Lmaar MCl ConsLrucLlons vL. LLd.
for 8s 321 crore. 1he Lol was lssued on 4
!uly 2007 and Lhe conLracL slgned on 14
SepLember 2007. 1he sequence of evenLs ls
plcLorlally deplcLed ln flgure 20.2.

3S2
6
7
coosottlom of moot ltopettles lI5c, uobol, ull ltJ.,
Omox ltJ., Noqotjooo coosttoctloo compooy ltJ.,
5bopootjl lolloojl & compooy ltJ., lotseo ooJ 1oobto
ltJ., lotsvoootb uevelopets ltJ., Aosol ltopettles ooJ
loftosttoctote ltJ., coosottlom of c5c-nk-5omo
otetptlses, coosottlom of Nomkwooq-5l5l-lul-cMcl,
ooJ coosottlom of uoltecb-ll&l5-l5uA-lcl
lloot Ateo totlo loJlcotes tbe totlo of tbe slze of tbe plot
ooJ tbe floot oteo of tbe coosttoctloo.
llqote 20.2 - 5epoeoce of teoJetloq
ptocess fot selectloo of uevelopet
kequest for qua||f|cat|on
uecember 2006
Issue of |etter of Intent
4 !uly 2007
Agreement s|gned
14 SepLember 2007
kequest for proposa|
9 May 2007
DLI b|d re[ected,
s|ng|e f|nanc|a| b|d of Lmaar |eft
13 !une 2007
Issue of addendum to kI w|th
s|gn|fcant rev|s|ons to kI
8 !une 2007
Last date for rece|pt of b|ds
13 !une 2007
20.S.3 Undue favour shown to Lmaar
MGI |n pre-qua||f|cat|on () and
techn|ca| qua||f|cat|on
As per Lhe 8lC, exlsLlng lncorporaLed
enLlLles could apply elLher lndlvldually or as
a consorLlum. Whlle an un-lncorporaLed
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consorLlum could apply on Lhe basls of an
Mou, whlch would also ldenLlfy a lead
parLner holdlng noL less Lhan 26 per cenL
equlLy shareholdlng and voLlng rlghLs, a
separaLe lncorporaLed enLlLy was Lo be
formed before blddlng, on Lhe same paLLern
of shareholdlng as lndlcaLed ln Lhe Mou.
1he crlLlcal C requlremenLs were:
l. Lxperlence of Lhree years of resldenLlal
faclllLy/properLy developmenL,
ll. Mlnlmum average annual Lurnover of
8s. 200 crore over Lhe lasL Lhree years,
and
lll. neL worLh of 8s. 100 crore on Lhe lasL
day of Lhe laLesL flnanclal year.
ln case of a consorLlum, Lhe lead member
was Lo fulfll condlLlons (l) and (ll), and all
members holdlng more Lhan or equal Lo 26
percenL of shareholdlng had Lo fulfll
condlLlon (lll).
lncldenLally, Lhe Culdellnes for on
8equesL for CuallflcaLlons of Lhe
CovernmenL of lndla do noL sLlpulaLe Lhe
formaLlon of an lncorporaLed enLlLy before
award of Lhe conLracL, buL merely requlre
Lhe submlsslon of a blndlng !olnL 8lddlng
AgreemenL by Lhe consorLlum parLners,
underLaklng Lo consLlLuLe a Speclal urpose
vehlcle for enLerlng lnLo Lhe concesslon
agreemenL. 1he 8lC floaLed by uuA,
however, requlred a separaLe lncorporaLed
enLlLy Lo be formed (wlLh Lhe same
shareholdlng paLLern as lndlcaLed ln Lhe
Mou submlLLed ln response Lo Lhe 8lC)
before submlsslon of blds.
We found a ser|es of m|srepresentat|ons
and accommodat|ons at the kI and kI
stages that resu|ted |n Lmaar MGI
Construct|ons vt. Ltd, an ex|st|ng
company at the kI stage but not
qua||f|ed on any of the three cond|t|ons,
to emerge as a successfu| b|dder through
the consort|um route. Lmaar ropert|es
ISC, presented at the kI stage as the
|ead partner w|th the requ|s|te
exper|ence, turnover and net worth, faded
beh|nd |ayers of subs|d|ar|es, effect|ve|y
mak|ng a mockery of the prem|se that |t
wou|d br|ng the necessary exper|ence and
f|nanc|a| strength, d|rect|y to the
consort|um |ed spec|a| purpose company.
An un-lncoporaLed consorLlum wlLh Lmaar
roperLles !SC, uubal, Lmaar MCl Land
vL. LLd., MCl uevelopmenLs LLd., and
ulscovery LsLaLes vL. LLd. applled aL Lhe
8lC sLage on Lhe basls of an Mou LhaL
pro[ecLed Lmaar roperLles !SC, uubal as
Lhe lead member LhaL would hold 26
percenL shareholdlng ln Lhe Speclal urpose
Company (SC) Lo be seL up before maklng
a bld aL Lhe 8l sLage (Lhe oLher members
of Lhe consorLlum holdlng 23 percenL, 23
percenL and 24 percenL shareholdlng,
respecLlvely). 1hls ls plcLorlally deplcLed ln
flgure 20.3 of Lhe four consorLlum
members, only Lhe lead member fulfllled
Lhe pre-quallflcaLlon crlLerla, and on lLs
sLrengLh Lhe consorLlum was shorLllsLed,
along wlLh 10 oLher agencles.
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In response to the kI, two b|ds were
rece|ved |.e. from Lmaar MGI
Construct|on vt. Ltd., the SC for the
consort|um |ed by Lmaar ropert|es ISC,
Duba| and DLI Ltd, both the b|ds were
cond|t|ona| and to that extent def|c|ent.
We found that DDA's Lva|uat|on
8
Comm|ttee for techn|ca| proposa| , wh|ch
f|rst cons|dered the two techn|ca|
proposa| on 1S Iune 2007, summar||y
re[ected the proposa| of DLI Ltd., but
chose to engage |n a ser|es of
correspondence w|th |ts f|nanc|a|
consu|tants]ch|ef |ega| adv|sor] |ega|
agenc|es and Lmaar MGI Construct|on
vt. Ltd to f|nd so|ut|ons to address the
def|c|enc|es |n the techn|ca| proposa| of
Lmaar MGI. I|na||y, on 28 Iune 2007,
Lmaar MGI Construct|on vt. Ltd. was
dec|ared techn|ca||y qua||f|ed for open|ng
the f|nanc|a| b|d on the strength of an
undertak|ng, rather than actua|
comp||ance w|th the terms of the kI and
kI.
1hus, by accept|ng the cond|t|ona|
proposa| of Lmaar MGI Construct|on vt.
Ltd. wh||e re[ect|ng the b|d of DLI Ltd, the
techn|ca| eva|uat|on comm|ttee
effect|ve|y e||m|nated f|nanc|a|
compet|t|on, w|th the approva| of VC,
DDA.
3S4
Lmaar MCl ConsLrucLlon vL. LLd. was a
company exlsLlng aL Lhe 8lC sLage, buL
lnellglble on Lhe Lhree C crlLerla ln lLs
lndlvldual capaclLy. lurLher, Lmaar
roperLles !SC, uubal dld noL dlrecLly hold
26 percenL lnLeresL ln Lhls company,
lnsLead, 73 per cenL was held by Lmaar
MCl Land vL. LLd. (as deplcLed ln flgure
20.4) - agaln a company whlch could noL
quallfy as Lhe lead parLner on Lhe C
crlLerla. lL was lndlcaLed LhaL Lmaar
roperLles uubal lndlrecLly held 26 per cenL
share ln Lhe SC Lhrough lLs shareholdlng ln
Lmaar MCl Land vL. LLd. 1hls was noL as
per Lhe C crlLerla whlch requlred a d|rect
|nvestment of aL leasL 26 per cenL by Lhe
lead parLner.
Lmaar roperLles !SC,
uubal (Lead member -
26 shareholdlng)
Lmaar MCl Land vL. LLd.
(Member-23
shareholdlng)
MCl uevelopmenLs LLd.
(member - 23
shareholdlng)
ulscovery LsLaLes
vL. LLd. (member -
24 shareholdlng)
llqote 20.J - klO stoqe (5botebolJloq os loJlcoteJ lo tbe Mou)
Spec|a|
urpose
Company
8
lloooce Membet (lo cbolt), oqloeet Membet, ltloclpol
commlsslooet, commlsslooet (lloooloq), commlsslooet
(lu), cblef Atcbltect, cblef leqol AJvlsot, lloooclol
AJvlsot ooJ cblef oqloeet (52).
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1he Lechnlcal proposals were opened on 13
!une 2007 and beLween 13 and 27 !une
2007, Lhere were a serles of
communlcaLlons beLween Lhe LvaluaLlon
CommlLLee, flnanclal consulLanL, chlef legal
advlsor of uuA, Lwo oLher legal agencles -
Amarchand Mangaldas and Shrl Caurav
Sarln - and Lmaar MCl ConsLrucLlons vL.
LLd. (buL noL dlrecLly wlLh Lmaar roperLles
!SC, uubal, Lhe lead member) regardlng
Lhe deflclencles wlLh regard Lo:
llqote 20.4 - 5botebolJloq potteto ot kll stoqe - moot ltopettles lI5c, uobol -
tbe leoJ membet, JlJ oot bolJ 26 petceot sbotebolJloq Jltectly
Lmaar MGI
Construct|on
vt. Ltd.
- a company
ex|st|ng at
kI Stage
Lmaar MGI
Land vt. Ltd.
73
shareho|d|ng
MGI
Deve|opments
Ltd - 2S
shareho|d|ng
D|scovery
Lstates Ltd. -
2
shareho|d|ng
Lmaar roperLles
!SC, uubal
holdlng 26
percenL ln
Lmaar MCl
ConLrucLlon vL.
LLd. lndlrecLly
Lhrough lLs
lnvesLmenL ln
Lmaar MCl Land
vL. LLd.
SC belng an exlsLlng company on Lhe

8lC daLe,
change ln Lhe shareholdlng paLLern of
Lhe SC as compared wlLh LhaL lndlcaLed
ln Mou, and
absence of 26 percenL dlrecL
shareholdlng of Lhe lead member
(Lmaar roperLles !SC, uubal) ln Lhe
SC.
1he chronology of evenLs beLween 13 and
28 !une 2007 are glven ln 1able 20.1.
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3S6
1oble 20.1 - cbtoooloqy of eveots betweeo 15 ooJ 28 Iooe 2007
Date Lvents] kemarks
1wo blds were recelved from uLl LLd. and Lmaar

ConsorLlum.
1he LvaluaLlon CommlLLee, as per Lhe mlnuLes of Lhe
meeLlng, ouLrlghLly re[ecLed Lhe proposal of uLl LLd., whlch
was approved by Lhe vC. Powever, we found no evldence of
communlcaLlon Lo uLl LLd. aL Lhls sLage. Lmaar ConsorLlum
was asked Lo make a Lechnlcal presenLaLlon.
LeLLer from a pre-quallfled vendor, CMCL, regardlng
lnsufflclenL Llme afLer amendmenLs Lo Lerms and condlLlons
of 8l.
CL (SLZ), uuA asked Lmaar ConsorLlum for clarlflcaLlons ln
respecL of fulfllmenL of condlLlons of 8l clause.
Lmaar MCl ConsLrucLlon vL. LLd. submlLLed clarlflcaLlons
on devlaLlon from Lhe 8lC proposal and 8lC/ 8l clauses,
regardlng Lhe exlsLlng company (Lmaar MC ConsLrucLlon
vL. LLd) belng presenLed as Lhe Speclal urpose Company.
uuA asked Lmaar ConsorLlum regardlng varlaLlon ln
shareholdlng paLLern from LhaL deplcLed ln Lhe Mou
submlLLed aL Lhe 8lC sLage.
Lmaar MCl ConsLrucLlon vL. LLd. submlLLed a clarlflcaLlon
regardlng lndlrecL shareholdlng of Lmaar !SC, uubal ln Lhe
SC.
uuA asked lLs flnanclal consulLanL, WC, for lLs oplnlon on
Lhe leLLers from Lmaar MCl ConsLrucLlon vL. LLd.
Lmaar MCl ConsLrucLlon LLd. wroLe Lo uuA, lndlcaLlng LhaL
as per ress noLe 2 (2003) of MlnlsLry of Commerce and
lndusLry, lorelgn ulrecL lnvesLmenL (lul) ln Lownshlps could
Lake place only afLer award of Lhe pro[ecL.
uuA, Lhrough WC, soughL Lhe oplnlon of Amarchand
Mangaldas regardlng 26 per cenL dlrecL equlLy of Lmaar
roperLles !SC, uubal ln Lhe SC, ln vlew of ress noLe 2
(2003).
Amarchand Mangaldas gave Lhelr oplnlons on Lmaar MCl
ConsLrucLlon LLd.'s leLLers of 19, 20 and 21 !une 2007,
regardlng a valld and blndlng underLaklng from Lmaar
ropert|es ISC for 26 per cenL dlrecL lnvesLmenL ln Lhe SC.
CL (SLZ) submlLLed a noLe Lo Lhe Chalrman, PC of uuA
seeklng exLenslon of Lhe deadllnes, "since the proposo/s
from the two bidders for the project ore sti// under
scrutiny". We could, noL, however, verlfy acLlon Laken, lf
any, on Lhls noLe.
1S Iune 2007
19 Iune 2007
20 Iune 2007
21 Iune 2007
22 Iune 2007
23 Iune 2007
2S Iune 2007
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CL (SLZ) wroLe Lo Chlef Legal Advlsor, uuA seeklng hls advlce

on Lhe maLLer.
uuA wroLe, Lhrough WC, Lo Amarchand Mangaldas for
Lhelr advlce on Lhe formaL of Lhe underLaklng from Lmaar
MCl ConsLrucLlon vL. LLd. (and noL from Lmaar roperLles
!SC, uubal).
Amarchand Mangaldas wroLe Lwo leLLers daLed 26 !une
2007 (w|th the same reference no. 48S7) Lo uuA, lndlcaLlng
Lhe formaL of an underLaklng from Lmaar MCl ConsLrucLlon
vL. LLd. LhaL Lmaar roperLles !SC, uubal would lnvesL ln
Lhe SC, Lhls was dlfferenL from Lhelr advlce of 23 !une 2007
regardlng an underLaklng from Lmaar roperLles !SC,
uubal. Cne leLLer had Lhree clauses, whlle Lhe oLher leLLer
had four clauses. 1he fourLh clause suggesLed removal of
Lhe Lerm "d|rect" before Lhe Lerm "shareho|d|ng", ln vlew of
Lmaar MCl ConsLrucLlon vL. LLd.'s leLLer of 21 !une 2007
conflrmlng LhaL Lmaar roperLles !SC LLd. would exerclse
26 per cenL voLlng rlghLs ln Lhe SC. lL also lndlcaLed LhaL
alLhough Lmaar roperLles !SC may rouLe Lhe lnvesLmenL
Lhrough one of lLs lnvesLlng companles of Lhe Lmaar Croup,
Lhe relevanL lnvesLmenL company musL clearly sLaLe LhaL lL
was maklng Lhe lnvesLmenL for Lhe beneflL of Lmaar
roperLles !SC, and Lhls declaraLlon would have Lo be flled
wlLh Lhe 8eglsLrar of Companles. Inc|denta||y, the
s|gnatures of the partner of Amarchand Manga|das, |yush
Iosh|, on the |etters of 26 Iune 2007 d|ffer from that of 23
Iune 2007.
uuA's Chlef Legal Advlsor soughL Lhe advlce of Shrl Caurav
Sarln, SLandlng Counsel on Lhe underLaklng, as well as on
dlrecL lnvesLmenL" by Lmaar roperLles !SC, uubal.
Lmaar MCl ConsLrucLlon vL. LLd. submlLLed an underLaklng
LhaL Lmaar roperLles !SC shall dlrecLly own 26 per cenL of
Lhe equlLy of Lmaar MCl ConsLrucLlon vL. LLd. wlLhln slx
monLhs from Lhe daLe of Lol.
Shrl Caurav Sarln wroLe Lo uuA, lndlcaLlng LhaL permlLLlng
lndlrecL shareholdlng of Lhe lead member would amounL Lo
devlaLlon from Lhe requlremenLs of Lhe 8l documenLs.
lurLher, Shrl Sarln lndlcaLed LhaL Lmaar MCl ConsLrucLlon
vL. LLd had lndlcaLed Lhe lnablllLy of Lhe lead member
(Lmaar roperLles !SC, uubal) Lo glve Lhe underLaklng, buL
had expressed lLs wllllngness Lo glve an underLaklng (LhaL
Lmaar roperLles !SC, uubal would make Lhe necessary
lnvesLmenL). Shrl Sarln lndlcaLed LhaL Lhe underLaklng glven
by Lhe blddlng company should be forwarded by uuA Lo Lhe
lead member (Lmaar roperLles !SC, uubal) and Lhelr
conflrmaLlon/ accepLance soughL, such conflrmaLlon
26 Iune 2007
27 Iune 2007
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3S8
amounLlng Lo raLlflcaLlon of Lhe underLaklng by Lhe lead
member. nowever, Lmaar MGI Construct|on vt. Ltd. had
a|ready subm|tted |ts undertak|ng on 26 Iune 2007.
1he LvaluaLlon CommlLLee, as per Lhe mlnuLes of Lhe
meeLlng, declded Lo recommend Lmaar MCl ConsLrucLlon
vL. LLd as Lechnlcally quallfled for openlng of Lhe flnanclal
bld, and Lhe bld of uLl Lo be reLurned. vC's approval for Lhe
proposal was soughL.
vC approved Lhe proposal for Lechnlcal quallflcaLlon of
Lmaar MCl and dlsquallflcaLlon of uLl.
Lmaar MCl was lnformed of lLs belng Lechnlcally quallfled,
whlle uLl was lnformed of lLs belng Lechnlcally dlsquallfled
and lLs bld was reLurned.
28 Iune 2007
1he sequence of events c|ear|y |nd|cates that the Lva|uat|on Comm|ttee gave a ser|es of
re|axat|ons to Lmaar MGI Construct|ons vt. Ltd. r|ght from the kI stage t||| |t f|na||y
emerged as the so|e f|nanc|a| b|dder for the pro[ect. In contrast, DLI's cond|t|ona| b|d was
summar||y re[ected w|thout any |nteract|on or negot|at|on w|th the app||cant.
1oble 20.2 - 5ommoty of Jeflcleocles lo blJs of
moot-MCl coosttoctloos lvt. ltJ. ooJ ull ltJ.
Lmaar-MGI
Construct|ons vt. Ltd.
DLI Ltd.
uLl dld noL submlL a Lechnlcal proposal (for whlch lL requesLed
addlLlonal Llme Llll 6 !uly 2007), and only submlLLed a flnanclal
bld.
uLl sLlpulaLed Lhe followlng condlLlons wlLh lLs bld:
An assurance from uuA Lo obLaln all requlslLe approvals
wlLhln Lhree monLhs from Lhe slgnlng of Lhe pro[ecL
developmenL agreemenL.
lncrease ln bldders' share of resldenLlal aparLmenLs from
10
2/3rd Lo 80 per cenL.
1he lead member (Lmaar

roperLles !SC, uubal) dld
noL hold Lhe sLlpulaLed 26
per cenL dlrecL
shareholdlng ln Lhe SC
(Lmaar-MCl ConsLrucLlons
9
vL. LLd).
1he shareholdlng paLLern of
Lhe SC was dlfferenL from
LhaL lndlcaLed ln Lhe Mou
submlLLed aL Lhe 8lC sLage.
9
10
uesplte tbe ooJettokloq fot Jltect sbotebolJloq of moot ltopettles lI5c, uobol wltblo 6 mootbs of lol, tbls cooJltloo of
Jltect sbotebolJloq wos oevet folfllleJ.
1be potteto of blJJets' sbote of teslJeotlol opottmeots wos sobsepoeotly cbooqeJ by uuA tbtooqb tbe Moy 2009 bolloot
pockoqe, wbete lt oqteeJ to boy JJJ opottmeots ks. 11000/ sp. feet ftom tbe Jevelopet's sbote.
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Lmaar-MGI
Construct|ons vt. Ltd.
DLI Ltd.
ermlsslon Lo deposlL balance bld upfronL amounL

(excludlng Lhe LMu) and Lhe flrsL lnsLalmenL of performance
securlLy of 8s. 100 crore only afLer obLalnlng approvals from
sLaLuLory auLhorlLles.
Mlnlmum Lechnlcal speclflcaLlons of Lhe proposed pro[ecL
work should be aL Lhe dlscreLlon of uLl LLd.
erformance securlLy Lo be correspondlngly reduced on
aLLalnmenL of mllesLones.
AllocaLlon of aL leasL a clear 28 monLhs for pro[ecL execuLlon
from obLalnlng of requlslLe approvals.
1he SC (Lmaar-MCl
ConsLrucLlons vL. LLd) was
an exlsLlng company aL Lhe
8lC sLage, whlch was noL
ln llne wlLh Lhe 8lC
crlLerla.
1he Lechnlcal quallflcaLlon of Lhe Lmaar-

MCl bld was noL ln conformlLy wlLh Lhe
Lerms of Lhe 8lC and 8l. 1he repeaLed
pleas of Lmaar-MCl ConsLrucLlon vL.
LLd for varlous dlspensaLlons only serve
Lo conflrm such non-compllance aL Lhe
Llme of blddlng.
Lmaar-MCl's plea regardlng Lhe
resLrlcLlons of ress noLe 2 (2003) on
lul before pro[ecL award ls Lo be
consldered ln Lhe conLexL of uuA's 8lC
maklng an lncorporaLed enLlLy wlLh Lhe
speclfled shareholdlng (as per Lhe Mou)
mandaLory before blddlng. Lmaar-
MCl's plea would be appllcable for all
consorLla wlLh forelgn parLnershlp. 1he
posslblllLy of oLher forelgn consorLla
belng dlscouraged from blddlng due Lo
Lhls crlLerlon cannoL be ruled ouL.
Lven Lhe underLaklng for dlrecL
lnvesLmenL was glven noL by Lhe lead
member (Lmaar roperLles !SC LLd.)
buL by Lhe SC lLself (Lmaar MCl
ConsLrucLlon vL. LLd.), commlLLlng LhaL
Lmaar roperLles !SC would, ln fuLure,
have a 26 per cenL shareholdlng ln lL,
Lhls does noL prlma facle appear Lo
make sense Lo us. lurLher, we have no
evldence Lo verlfy wheLher Shrl Caurav
Sarln's advlce LhaL Lhls underLaklng
should be senL Lo Lhe lead member for
conflrmaLlon/ raLlflcaLlon was carrled
ouL or noL.
1he need for obLalnlng a mulLlpllclLy of
legal oplnlons from dlfferenL agencles
(Amarchand Mangaldass, Shrl Caurav
Sarln, and Lhe Chlef Legal Advlser) only
suggesL an lnLenLlon Lo obLaln
favourable" advlce, faclllLaLlng
Lechnlcal quallflcaLlon of Lmaar MCl
ConsLrucLlon vL. LLd.
1he underLaklng from Lmaar MCl
ConsLrucLlon vL. LLd. had a provlslon,
sLlpulaLlng forfelLure of upfronL amounL
and performance guaranLee and
cancellaLlon of conLracL ln Lhe evenL of
lLs non-fulfllmenL (whlch was also
lncluded ln Lhe agreemenL) was largely
meanlngless. Clven Lhe pauclLy of Llme
and Lhe lmmoveablllLy of deadllnes,
such a provlslon was noL reallsLlcally
operaLable.
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360
1he underLaklng by Lmaar MCl
ConsLrucLlon vL. LLd was noL complled
wlLh, and no penal acLlon was lnlLlaLed.
LvenLually, ln Aprll 2008, nlne monLhs afLer
Lhe lssue of Lol and slx monLhs afLer Lhe
award of Lhe work, lL was clarlfled LhaL
Lmaar ropert|es ISC, Duba| he|d 100
percent shares, though |nd|rect|y, through
var|ous other subs|d|ar|es |n Lmaar no|d|ng
II Maur|t|us, wh|ch |n turn he|d 26 percent
|n the SC. A plcLorlal deplcLlon of Lhe
shareholdlng paLLern of Lhe SC aL
execuLlon sLage ls deplcLed ln f|gure 20.S.
llqote 20.5 - 26 petceot loJltect sbotebolJloq of moot ltopettles lI5c
os pet clotlflcotloo qlveo lo Aptll 2008 (os lotlmoteJ by uuA to os)
Lmaar ropert|es ISC
(UAL)
Lmaar Internat|ona|
LLC (UAL)
Lmaar Investment
no|d|ng LLC (UAL)
99
99
99
99
100
26
1
1
1
Ccean ark
Management Ltd.
(8r|t|sh V|rg|n Is|ands)
Lmaar ropert|es LLC
(UAL)
Lmaar no|d|ng II
(Maur|t|us)
Lmaar MGI
Construct|on vt. Ltd.
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20.S.4 Short t|me a||owed for b|dd|ng
after addendum
1he addendum Lo 8l lssued on 8 !une

2007, lnLroduced slgnlflcanL changes Lo Lhe
bld condlLlons. 1he addendum was
approved by vC, uuA who also recorded on
flle LhaL LC, uelhl had been lnformed abouL
Lhe changes. 1he changes ln Lhe condlLlons
broughL ln by Lhe addendum are lndlcaLed
below:
uuA's share ln Lhe lA8 reduced Lo one
Lhlrd from half,
8ank CuaranLee reduced from 8s 300
crore Lo 8s. 400 crore, and
enalLy for delays ln achlevlng
mllesLones reduced from 8s. 13-30 lakh
per day Lo 8s. 13-20 lakh per day, along
wlLh relaxaLlon ln quanLum of work and
sL nd
Llme for Lhe 1 and 2 MllesLone.
1he Llme allowed Lo bld was only 7 days.
uuA sLaLed lL consldered Lhe number of
days allowed enough for ad[usLlng blds
Lo Lhese amendmenLs. Powever, we
found LhaL Lwo agencles lndlcaLed LhaL
Lhe Llme allowed for blddlng was
lnsufflclenL
1he consorLlum of namkwang-
SSL-ul-CMCL lodged a complalnL wlLh
uuA lndlcaLlng LhaL due Lo lnsufflclenL
Llme, Lhe consorLlum, desplLe belng
keenly lnLeresLed, was unable Lo bld,
and
uLl LLd, whlle submlLLlng Lhe flnanclal
proposal on Lhe due daLe, requesLed for
an exLenslon of Llme for 21 days Lo
submlL lLs Lechnlcal proposal.
lL appears LhaL Lhe shorL perlod permlLLed
for submlLLlng blds acLed as a deLerrenL Lo
A arrangement |s pred|cated upon
appropr|ate a||ocat|on of r|sks between
the pub||c and pr|vate part|es. Wh||e,
under norma| c|rcumstances, obta|n|ng of
statutory approva|s cou|d reasonab|y be
termed as the respons|b|||ty of the pr|vate
party, |n th|s case, the cr|t|ca| |ssue
re|at|ng to approva|s was approva| for the
s|te |tse|f, wh|ch |s not |n the hands of the
deve|oper. In our op|n|on, the c|ause
mandat|ng the respons|b|||ty of the
deve|oper for a|| approva|s was undu|y
restr|ct|ve. Cn|y those deve|opers, who
were conf|dent of fu||est efforts by DDA]
GoI to ensure necessary approva|s for the
s|te (consequent|y m|n|m|z|ng f|nanc|a|
r|sks to the deve|oper), wou|d have been
act|ve and enthus|ast|c about subm|tt|ng
b|ds for the pro[ect.
compeLlLlon. SLrangely, of Lhe 11 shorLllsLed
parLles, many of whom are esLabllshed
consLrucLlon companles, only Lwo
responded on Lhe lasL daLe of submlsslon of
bld. Moreover, Lhe responslblllLy for
obLalnlng sLaLuLory approvals was casL on
Lhe bldder, whlle uLl had soughL assurance
from uuA ln Lhls regard.
llnally, only one flnanclal bld was opened
and accepLed, effecLlvely denylng uuA Lhe
beneflL of compeLlLlve Lenslon LhaL would
have ensured LhaL lL secured Lhe maxlmum
upfronL amounL.
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362
20.S.S 1he ba||out package
ln uecember 2008/lebruary 2009, Lmaar
MCl requesLed uuA for flnanclal asslsLance,
on accounL of slow down ln Lhe real esLaLe
secLor and lLs lnablllLy Lo ralse resources. ln
May 2009, uuA exLended a ballouL package
worLh 8s 766.89 crore ln Lhe form of
procuremenL of 333 aparLmenLs aL Lhe raLe
of 8s. 11000 / per sq fL pllnLh area on Lhe
ground LhaL Lhe pro[ecL was of naLlonal
presLlge and was Lo be compleLed ln Llme.
We had commenLed on Lhe exLra avoldable
expendlLure of 8s 89.94 crore on Lhe ballouL
package ln para 9.1 of Lhe 8eporL of Lhe
CompLroller and AudlLor Ceneral of lndla,
unlon CovernmenL (Clvll) AuLonomous
8odles no. 23 of 2009-10.
ln our vlew, Lhe need Lo exLend a ballouL
package arose prlmarlly, as nelLher Lhe
flnanclal arrangemenL nor Lhe Lerms and
condlLlons of Lhe conLracL Look lnLo
conslderaLlon Lhe overrldlng and lnflexlble
need Lo ensure compleLlon of Lhe pro[ecL
prlor Lo Lhe CWC-2010. 1he progress of
work on Lhe ground had already been
allowed Lo drlfL wlLh Lhe pro[ecL achlevlng
nd
only Lhe 2 MllesLone by uecember 2008,
rd
lnsLead of Lhe LargeLed 3 MllesLone. 1he
rlgldlLy of Lhe Llmellne necessarlly lenL an
opporLunlLy Lo Lhe pro[ecL developer Lo
force uuA's hand Lo agree Lo a ballouL
package, when faced wlLh a slLuaLlon of a
fasL approachlng deadllne. Cn Lhe oLher
hand, lf Lhe real esLaLe secLor had done
beLLer Lhan anLlclpaLed, addlLlonal beneflLs
would have accrued Lo Lhe developer, whlle
Lhe downslde would necessarlly have Lo be
borne by uuA/ CovernmenL.
20.S.6 IAk v|o|at|on
We found LhaL Lmaar-MCl consLrucLed lA8
ln excess of Lhe sancLloned plan as well as
Lhe maxlmum permlsslble llmlLs under Lhe
MasLer lan of uelhl as lndlcaLed ln Lhe
Lable 20.2 below:
In case the IAk as constructed |n excess of
the sanct|oned p|an, but w|th|n the
Master |an ||m|ts, |s regu|ar|sed by
fo||ow|ng due process, DDA shou|d secure
|ts one th|rd share |n |t and the
proport|onate |ncrease |n upfront money
as contracted, as |t shou|d do for IAk
ach|eved |n excess of the agreement as
we|| (act|on on wh|ch was st||| pend|ng as
of Ianuary 2011). nowever, the IAk
constructed by the Deve|oper |s |n excess
of that perm|tted under the MD -2021,
va|ued at ks. 130.17 crore Q ks 11000
]sqft and |t amounts to an undue benef|t
to the Deve|oper, un|ess DDA dec|des to
|mpound or demo||sh |t.
We also found LhaL Lmaar MCl falled Lo
noLlfy uuA, as per Lhe bulldlng by-laws, of
Lhe compleLlon of work upLo pllnLh level Lo
enable uuA Lo conflrm LhaL lL was ln
accordance wlLh Lhe sancLloned plan.
All consLrucLlon ln excess of Lhe lA8
permlsslble under Lhe MasLer lan of uelhl
ls unauLhorlsed.
arameter
201280 sqm
203140 sqm
220003 sqm
231000 sqm
As per agreement
As per sanct|oned p|an
Max|mum perm|ss|b|e
under the Master |an
for De|h|-2021
Comp|et|on p|an
IAk ach|evab|e]
ach|eved
1oble 20.J - lAk ot Jlffeteot stoqes
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20.S.7 I||ega| construct|on
ln addlLlon Lo Lhe lA8 vlolaLlon, Lmaar MCl
lllegally consLrucLed 17 dwelllng unlLs ln Lhe
basemenL meanL for parklng and noL
lncluded ln Lhe lA8. We found LhaL Lhe
developer sLarLed bulldlng Lhese unlLs afLer
Lhe submlsslon of Lhe compleLlon plan ln
!une 2010. uuA noLlced Lhls ongolng lllegal
consLrucLlon ln !uly 2010, buL could noL
enforce lLs noLlce Lo Lmaar MCl Lo
cease/demollsh such consLrucLlon.
CurrenLly, Lhe AppellaLe 1rlbunal for MCu
has ordered uuA Lo Lake approprlaLe acLlon
accordlng Lo law, afLer dlsposal of Lhe
appllcaLlon for regularlsaLlon.
20.S.8 Cther post award concess|ons
a||owed to the deve|oper
We found LhaL uuA allowed several
flnanclal concesslons Lo Lhe developer
durlng Lhe execuLlon of Lhe pro[ecL.
Lh
1he developer could achleve only Lhe 6
Lh
and 7 MllesLone (of Lhe LoLal 9 mllesLones)
as per Lhe orlglnal schedule. LlquldaLed
uamages were levlable for delays ln
sL Lh
achlevlng of 1 Lo 3 MllesLone and
Lh Lh
LhereafLer for Lhe 8 and 9 MllesLones .
Powever, Lhe PC exLended Lhe daLes for
sL Lh
Lhe 1 Lo 4 MllesLone, buL Lhe developer
Lh
could sLlll noL achleve Lhe revlsed 4 and
Lh
Lhe unrevlsed 3 MllesLone.
We found LhaL 8s. 81.83 crore llquldaLed
damages refundable on Lhe achlevemenL of
Lh
Lhe 6 MllesLone, were noL recovered from
Lhe developer resulLlng ln an undue beneflL
11
of 8s. 7.36 crore Loward lnLeresL cosLs.
20.3.8.1 8evlslon of mllesLones:
Lh Lh
lurLher, non-achlevemenL of 8 and 9
mllesLone aLLracLed a non-refundable
llquldaLed damages of 8s.106.9 crore, of
whlch uuA recovered 8s 90 crore ln
CcLober 2010, by lnvoklng Lhe 8ank
CuaranLee of 8s. 183 crore aL Lhe dlrecLlon
of MlnlsLry of urban uevelopmenL, Col.
uuA, ln lLs reply, has assured LhaL lL would
recover lnLeresL on Lhe llquldaLed damages
nd Lh Lh
for delays ln achlevlng 2 , 4 and 3
mllesLone and Lhe clalm for remalnlng
llquldaLed damages of 8s. 16.90 crore for
Lh Lh
non achlevemenL of 8 and 9 mllesLones
had been ralsed.
8ank CuaranLee of 8s. 100 crore was
released ln CcLober 2009 afLer delayed
Lh
achlevemenL of 4 MllesLone, wlLhouL
deducLlng any LlquldaLed uamages as
envlsaged under Lhe agreemenL.
uuA falled Lo recover lnfrasLrucLure charges
from Lhe developer ln respecL of lLs share of
Lhe cosL of Lhe WaLer 1reaLmenL lanL and
Sewage 1reaLmenL lanL creaLed by u!8 and
demanded from uuA, Lhls ls deLalled ln
paragraph 21.4.
1he conLracL wlLh Lhe developer lncluded
lnsLallaLlon of slgnages Lo be declded by Lhe
monlLorlng commlLLee ln consulLaLlon wlLh
Lhe CC. Powever, we found LhaL a separaLe
conLracL for lnsLalllng slgnages ln Lhe
resldenLlal complex was also glven by uuA
Lo Meroform lndla vL. LLd. for 8s. 0.11
crore wlLhouL any correspondlng recovery
from Lhe developer.
20.3.8.2 8efund of bank guaranLee
20.3.8.3 non - recovery of lnfrasLrucLure
charges
20.3.8.4 LxpendlLure on lnsLallaLlon of
slgnages
363
11
colcoloteJ ot tbe tote of 10 petceot pet oooom, tbe tote ot
wblcb mobllsotloo oJvooce ls qlveo ooJet clwu mooool
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364
20.S.9 ua||ty of construct|on
Lmaar MCl awarded mosL of Lhe
consLrucLlon work for Lhe resldenLlal
complex Lo Ahluwalla ConLracLs (lndla) LLd.
CenLral 8ulldlng 8esearch lnsLlLuLe, 8oorkee
(C88l) was appolnLed as Lhe 1hlrd arLy
lndependenL CuallLy lnspecLlon Agency
only ln May 2008, elghL monLhs afLer Lhe
sLarL of work, by whlch Llme mosL of Lhe
foundaLlon work had been execuLed. As
such C88l was unable Lo assure Lhe quallLy
of Lhe foundaLlon lald. ln our oplnlon, Lhls ls
a serlous lacuna conslderlng Lhe slLe
locaLlon and Lhe helghL of Lhe sLrucLure.
C88l submlLLed LhlrLeen 8eporLs beLween
!une 2008 and CcLober 2010 based on lLs
lnspecLlon of Lhe consLrucLlon ln whlch lL
reporLed serlous lapses ln consLrucLlon
work. Some of Lhe ma[or deflclencles
reporLed by C88l are summarlsed below. All
phoLographs ln Lhls secLlon are from C88l's
reporLs, excepL where lndlcaLed oLherwlse.
20.3.9.1 ueflclencles ln ducLlle deLalllng of
secondary relnforcemenL
(provldlng approprlaLe hooks for
Lhe sLlrrups and laLeral Lles)
uucLlle deLalllng ls an arrangemenL of
secondary relnforclng sLeel ln Lhe beams
and columns ln Lhe forms of sLlrrups and
laLeral Lles respecLlvely. roper spaclng of
Lhese lLems and bendlng of Lhelr hooks ls
mandaLory, so LhaL Lhe maln relnforclng
bars wlll remaln lnLacL, and lmmedlaLe
damage Lo Lhe sLrucLure ls avolded ln Lhe
evenL of earLhquake.
ueflclencles ln ducLlle deLalllng were
reporLed ln C88l's 8eporL nos. 1 and 2.
uesplLe some correcLlve acLlon Laken ln Lhe
lnlLlal sLages, Lhe deflclencles perslsLed as
reporLed ln C88l's 8eporL nos. 4 and 10.
Some plcLures of Lhe execuLlon of ducLlle
deLalllng by Lmaar MCl are shown below:
D|agramat|c
representat|on of
duct||e deta|||ng
1he hooks may be
benL as under and
lengLh of hook
shall be measured
from cenLre of
Lhe maln bar Lo
Lhe Llp of hook (as
shown ln flgure).
1he Lles ln Lhe
column shall be
provlded as
deLalled hereln.
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20.3.9.2 Lack of Cover Lo 8elnforclng SLeel
roLecLlon ls provlded Lo Lhe relnforclng
sLeel by properly coverlng Lhe bars wlLh
concreLe so LhaL Lhe relnforclng sLeel wlll
noL come ln conLacL wlLh oxygen, molsLure,
chlorldes, and acldlc envlronmenL, whlch
may promoLe lLs corroslon.
uesplLe C88l's repeaLed lnslsLence Lo
provlde adequaLe cover Lo Lhe relnforclng
sLeel (as menLloned ln 8eporL nos. 3, 9, and
10), no acLlon was Laken and negllgence on
Lhe parL of Lhe conLracLor conLlnued.
Chlpplng of Lhe cover concreLe, and cuLLlng
of secondary relnforcemenL was also
observed by C88l ln Lhe Lowers (8eference
C88l 8eporL nos. 9, 10, and 11). 1he
relnforcemenL was LoLally exposed Lo Lhe
open envlronmenL due Lo chlpplng of cover.
hoLographs glven below lndlcaLe Lhe
damage Lo Lhe consLrucLlon on Lhese counLs.
36S
lnadequaLe hook lengLh and absence
0
of 133 angle reporLed ln C88l 8eporL no. 2
All ln one (Lxposed SLeel, Pole ln
8eam Column !uncLlon, lnserLlon of
!uLe 8ag) 1ower 13 as reporLed
ln C88l 8eporL no. 9
ConcreLlng was ln progress wlLhouL bendlng
reporLed ln C88l 8eporL no. 4
All ln one (honey comblng, seepage,
corroslon, and [uLe bag) ln 1ower 7
as reporLed ln C88l 8eporL no. 9
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366
20.3.9.3 lmproper 8eam-Column !olnLs
1he [olnL beLween Lhe beam and column ls
a very lmporLanL aspecL from Lhe sLrucLural
englneerlng polnL of vlew. 1he column and
Lhe beam can be sLrong and be able Lo
carry more load, buL lf Lhe [olnL beLween
Lhese sLrucLural elemenLs ls weak, lL may
endanger Lhe safeLy of Lhe sLrucLure boLh ln
normal and selsmlc condlLlons.
C88l had polnLed on several occaslons
(8eference 8eporL nos. 2, 3, 4, 6, 9 and 12)
lmproper deLalllng of Lhese [olnLs. Powever,
uuA dld noL Lake any serlous noLe of C88l's
flndlngs and dld noL Lake acLlon agalnsL Lhe
conLracLor. C88l also lndlcaLed (8eference
8eporL 6) LhaL lmproper deLalllng of [olnLs
mlghL be dangerous ln Lhe evenL of an
earLhquake. Some plcLures of Lhe execuLlon
of lmproper deLalllng are shown as overleaf:
Lxposure of 8elnforcemenL Column cap
Lh
(8eporL no. 9 - 1ower 20, 4 floor)
Chlpplng of beam (8eporL no. 9-1ower 1)
8elnforcemenL ls seen ln beam boLLom
Lh
(8eporL no. 9-1ower 23 - 6 lloor)
Chlpplng and cuLLlng of
relnforclng sLeel - 8eporL no. 11
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367
Maln bars of Lhe beams locaLed ouLslde Lhe
verLlcal bars of Lhe column - 8eporL no. 3
Palf Lhe wldLh of Lhe beam ls ouLslde
Lhe column - 8eporL no. 3
Chldlya Char ln 8eam-Column !olnL
(- 8eporL no. 9 -1ower-3)
lasLlc 8ag ln 8eam and Shear Wall !olnL
(- 8eporL no. 9-1ower-13)
Lxposed bars ln Lhe [olnL
(- 8eporL no. 9-1ower-6)
Absence of monollLhlc consLrucLlon,
presence of gunny bags (8asemenL) -
8eporL no. 12
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368
20.3.9.4 lmproper AllgnmenL of Columns
erfecL verLlcal allgnmenL of columns ls
mosL lmporLanL ln mulLl-sLorled bulldlngs.
Any mlsallgnmenL produces geomeLrlcal
eccenLrlclLy ln Lhe columns and, ln Lurn,
produces addlLlonal momenLs (addlLlonal
loads) on Lhe columns.
C88l polnLed ouL (8eporL no. 3) LhaL many
columns ln Lhe basemenL floors of 1owers 3,
4 and 3 were ouL of plumb and some of
Lhem were Lapered (Lhe wldLh decreased
from 300 Lo 230 mm). 1hls slLuaLlon poses
a serlous problem ln Lhe evenL of an
earLhquake as Lhe consLrucLlon slLe ls
locaLed ln Selsmlc Zone-lv, LhaL Loo on
alluvlal soll. C88l reporLed Lhe maLLer Lo
Lmaar MCl, Ahluwalla ConLracLs (lndla)
LlmlLed and uuA wlLh a requesL Lo ensure
LhaL no cosmeLlc LreaLmenL (plasLerlng) be
made, as lL would be dlfflculL Lo ldenLlfy
Lhese columns aL a laLer sLage, when lL was
declded Lo repalr and reLroflL Lhese
columns. neverLheless, all Lhese columns
had been plasLered Lo cover up Lhe
deflclencles. C88l 8eporLs sLrongly
recommended sLrucLural repalr and
reLroflLLlng of Lhese columns.
C88l agaln polnLed ouL (8eporL no. 9) LhaL
some of Lhe columns had been ralsed by
adopLlng [ackeLlng and by uslng mlcro-
concreLe (cosmeLlc LreaLmenL). no acLlon
was Laken by uuA on Lhls flndlng also.
1apered Column ln Lhe 8asemenL
of 1ower-3 (8eporL no. 3)
8enL up Column ln Lhe 8asemenL
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369
1apered and 8enL up Column ln Lhe 8asemenL
lasLerlng of defecLlve column ln
1ower-3 (8eporL no. 3)
Column CuL of lumb ln Lhe 8asemenL
AnoLher column ln 1ower-3 afLer
cosmeLlc LreaLmenL (8eporL no. 3)
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370
20.3.9.3 WaLer-rooflng 1reaLmenL ln
8eLalnlng Walls and Crade Slab
WaLerprooflng ls lmporLanL ln Lhe
consLrucLlon of 8C sLrucLures, as lL helps Lo
prevenL Lhe lngress of molsLure lnLo Lhe
concreLe (whlch would promoLe Lhe
corroslon of relnforclng sLeel and
deLerloraLlon of concreLe, hence reduclng
lLs servlce llfe).
C88l (8eporL no. 2) suggesLed norms for
waLer-prooflng LreaLmenL, buL lndlcaLed ln
Lh
Lhelr 10 reporL LhaL Lhe conLracLor dld noL
follow Lhelr recommendaLlons.
20.3.9.6 ulfference ln Lhe Levels of Crade
Slabs
Accordlng Lo C88l 8eporL no. 10, Lhere was
a clear dlfference ln Lhe levels of grade
slabs of Lhe Lower area and Lhe non-Lower
area. no concreLlng and no waLerprooflng
LreaLmenL had been underLaken Lo cover
Lhe verLlcal surface of Lhe soll. 1he area
was laLer fllled up (ln burled under soll).
C88l had already polnLed ouL (november
2009- 8eporL no. 10) LhaL waLer mlghL
percolaLe ln Lhe basemenL area, as Lhe
waLer Lable rlses ln Lhe ralny season.
SubsequenLly, C88l reporLed (!uly 2010,
8eporL no. 12) LhaL Lhe basemenLs were
flooded wlLh ralnwaLer and Lhere were
seepages and leakage from Lhe [olnLs. 1he
leakage and seepage was noLlced even ln
!anuary 2011 by us ln a [olnL lnspecLlon (Lhe
phoLographlc evldence collecLed by us ls
glven below).
1ower -10: 1apered column (L8) 8eporL no. 9 1wo ln one: 1llL of Lhe column and lack of
cover for Lhe relnforclng sLeel (1ower-34,
upper 8asemenL) 8eporL no. 9
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20.3.9.7 ShorLened llfe of 1owers
lncldenLally uuA dld noL obLaln provlslonal
cerLlflcaLes from C88l for ma[or mllesLones,
as envlsaged under Lhe conLracL.
been duly followed. 1he reply ls noL
Lenable, as C88l was conLlnually polnLlng
ouL deflclencles (as summarlsed above) ln
lLs subsequenL reporLs, whlch lndlcaLed LhaL
no serlous efforLs were made.
Lmaar MCl was Lo hand over Lhe
compleLed pro[ecL (lncludlng landscaplng
work) on 1 Aprll 2010, ln a ready Lo
use/llveable condlLlon, wlLh no pendlng
consLrucLlon unflnlshed work, consLrucLlon
equlpmenL debrls, consLrucLlon maLerlal eLc
on Lhe slLe. 1he pro[ecL could noL be
12
compleLed even aL Lhe Llme of CWC-2010
and Lhe Lowers were handed over Lo uuA
beLween !une and AugusL 2010 for
furnlshlng of Lhe flaLs by l1uC and CC.
1hese flaLs were noL compleLed/flnlshed
and numerous defecLs were noLlced by
uuA. 1hese deflclencles are ln addlLlon Lo
Lhe varlous sLrucLural lssues polnLed ouL by
C88l ln lLs reporL. 1he maln defecLs noLlced
by uuA summarlsed below:
20.S.10 Unf|n|shed Games V|||age
uuA replled (lebruary 2011) LhaL quallLy
conLrol was a conLlnuous process and LhaL
observaLlons ln one reporL were aLLended
and acLlon Laken reporLs were submlLLed ln
Lhe subsequenL reporLs, Lhe process had
371
hoLograph of Lhe basemenL Laken by audlL ln !anuary 2011
C8kI, |n |ts report of Iu|y 2009, conc|uded
that "Cn see|ng the permeab|||ty of the
concrete and the corros|on of re|nforc|ng
stee|, |t g|ves an |mpress|on that the
serv|ce ||fe of these towers can not be
more than 20 years. 1hese towers demand
a |ot more expend|ture for the repa|r and
retrof|tt|ng beyond th|s per|od". C|ear|y,
the safety, serv|ceab|||ty and durab|||ty of
the res|dent|a| comp|ex was [eopard|zed
due to neg||gence of both the
contractor]deve|oper and fa||ure on the
part of DDA to |n|t|ate act|on on the
ser|ous |apses po|nted out by C8kI.
12
uuA bos lofotmeJ os tbot tbe Jote of completloo bos
oow beeo ooteJ os 1J uecembet 2010
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372
undulaLlng basemenL floor and absence

of floorlng (whlch was hldden under
debrls),
Peavy leakage of ground waLer ln all Lhe
llfL plLs (73 ln number) lndlcaLlng LhaL
no waLer LreaLmenL had been done ln
Lhe llfL plLs,
uefecLlve waLer prooflng of Lerrace,
resulLlng ln seepage ln aparLmenLs,
lmproper slope of floor ln baLhrooms,
ShafLs noL covered, leadlng Lo collecLlon
of waLer ln basemenLs,
Supply of slngle phase power ln some
aparLmenLs,
lmproper coverage of expanslon [olnLs,
Cunny bags embedded ln concreLe
surfaces ln Lhe basemenL,
Chokages ln Lhe draln plpes, and
Landscaplng noL compleLed and no
arrangemenL of waLer for Lhe
landscaped area.
Some of Lhese deflclencles were aLLended
Lo, ln an emergenL slLuaLlon, by uuA and
agencles of CnC1u (we are unable Lo
deLermlne Lhe amounL spenL by Lhese
agencles on Lhls acLlvlLy separaLely). Ma[or
consLrucLlon defecLs remalned unaLLended
durlng CWC-2010. 1lll daLe we do noL have
any record Lo lndlcaLe LhaL Lhese defecLs
were subsequenLly recLlfled by Lhe
developer, nor do we have any evldence
LhaL moneLary ad[usLmenLs have been
made.
uue Lo Lhe unflnlshed condlLlon of Lhe
resldenLlal complex, Lhe CC made alLernaLe
arrangemenLs for Lhe accommodaLlon of
Lhe delegaLlons of 41 counLrles LhaL were
enLlLled Lo sLay aL Lhe Cames vlllage durlng
lLs sofL openlng durlng Lhe perlod 16 Lo 29
SepLember 2010, aL a cosL of 8s.0.84 crore.
An addlLlonal expendlLure of 8s. 4.16 crore
was also lncurred for shlfLlng Lhe polycllnlc,
dope conLrol cenLre and resldenL cenLre
from lLs orlglnally ldenLlfled locaLlon ln Lhe
lower ground floor Lo a Lemporary sLrucLure
(overlay) due Lo llkellhood of floodlng,
sewerage and dralnage problem, clrculLous
approach and low helghL of ramp whlch
hlndered enLrance of ambulances.
20.6 Non-res|dent|a| ermanent
Structure - ract|ce Area
20.6.1 Introduct|on
20.6.2 Se|ect|on of Suresh Goya| and
Assoc|ates as Des|gn Consu|tant
1he Cames vlllage was Lo have sporLs
pracLlce and Lralnlng faclllLles for welghL
llfLlng, wresLllng, swlmmlng, and aLhleLlcs,
as well as a flLness cenLre. 1hese works
were underLaken aL a cosL of 8s. 284.43
crore. 1he maln consulLanL for Lhese works
was Suresh Coyal & AssoclaLes ln
consorLlum wlLh uecaLhlon SA and Shrl
uaryl !ackson(SCA), Lhe developers were
SporLlna ayce lnfrasLrucLure vL. LLd. and
SAM lndla vL. LLd.
ln lebruary 2006, an 8l for engaglng a
consulLanL for deslgnlng Lhe Cames vlllage.
Cf Lhe 12 blds recelved, 3 were shorLllsLed
based on presenLaLlons and Lhe conLracL
was awarded Lo Lhe agency LhaL scored
hlghesL on Lhe basls of a Lechno-commerclal
evaluaLlon ln lebruary 2007. 1he
chronology of evenLs deplcLed ln llgure
20.6.
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373
We found LhaL desplLe SCA belng declared
Lhe L1 bldder ln !une 2006, Lhe lssue of
leLLer of lnLenL was delayed by slx monLhs.
uurlng Lhls Llme, Lhe PC enLered lnLo a
raLe negoLlaLlon wlLh Lhe L1 bldder, (Lhe L1
bldder had quoLed 8s 17.23 crore whlch
was reduced Lo 8s. 13.63 crore) and
LhereafLer Look anoLher Lhree monLhs Lo
lssue Lhe Lol. Such lnexpllcable delays posL
Lenderlng are noL only deLrlmenLal Lo
Llmellnes, buL also lndlcaLe lack of
Lransparency.
lurLher, SCA's hlgh score on Lechnlcal
evaluaLlon was prlmarlly due Lo Lhe
lncluslon of uecaLhlon SA (wlLh experlence
of ALhens Clymplcs) as Lhe masLer planner
and sporLs archlLecLure speclallsL, ln lLs
consorLlum and 8s. 6.10 crore of Lhe
consulLanLs' fee was [usLlfled on Lhe
grounds of lLs engaglng lnLernaLlonal
experLlse.
SubsequenLly, uecaLhlon SA was noL
assoclaLed wlLh Lhe execuLlon of Lhe
conLracL, Lhus vlLlaLlng Lhe very premlse on
whlch SCA was selecLed. ln november
2007, uecaLhlon SA lnformed uuA LhaL
desplLe belng a member of Lhe consorLlum,
lL had noL been assoclaLed wlLh Lhe pro[ecL
due Lo an unresolved dlspuLe wlLh Suresh
Coel & AssoclaLes on Lhe scope of work and
assoclaLed fees. SubsequenLly, as laLe as
May 2008, Suresh Coel & AssoclaLes
lnformed uuA LhaL Lhe conLracL
dellverables Llll daLe had been submlLLed
wlLhouL Lhe assoclaLlon of uecaLhlon SA
and soughL an ex-posL facLo approval of
replacemenL of uecaLhlon's sLaff wlLh
cerLaln sLaff whlch lL had already engaged.
1hls was conLrary Lo Lhe agreed Lerms,
whlch requlred any replacemenL of Lhe sLaff
only wlLh prlor consenL of uuA.
lurLher, ln lebruary 2008, PC dlrecLed
reLalnlng 23 percenL of Lhe fee of SCA, buL
subsequenLly released Lhe reLalned amounL
as well beLween May 2008 and CcLober
2008, on Lhe plea LhaL work was sufferlng
and also conslderlng Lhe overall work done
by Lhe deslgn consulLanL.
llqote 20.6 - cbtoooloqy of eveots tesoltloq lo selectloo of ueslqo coosoltoots
kI |ssued
lebruary 2006
Negot|at|ons w|th
L1 b|dder
SepLember 2006
Issue o f LoI
uecember 2006
1echn|ca| b|ds opened
Aprll 2006
Dec|arat|on of the
L1 b|dder
13 !une 2006
Award of Contract
lebruary 2007
resentat|ons made
13-17 May 2006
I|nanc|a| b|d opened
1 !une 2006
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374
uevlaLlon due Lo change of speclflcaLlon
and scope of work (one case - 8s. 1.03
crore)
ueslgn of Lhe roof cover of swlmmlng pool
and overlay, whlch was lncluded ln Lhe
scope of work SCA was asslgned Lo oLher
13
agencles , buL Lhe fee pald Lo SCA was noL
reduced.
As per Lhe 8l, Lhe deslgn consulLanL was Lo
achleve 4 mllesLones, llquldaLed damages
were Lo be levled for any delays. We found
LhaL none of Lhe mllesLones were achleved
buL uuA lnsLead of levylng llquldaLed
damages as per conLracLed Lerms, wlLhheld
a lumpsum amounL of 8s. 0.23 crore. uuA
could noL provlde Lhe daLe of acLual
achlevemenL of mllesLones Lo us, however,
based on Lhe release of sLage wlse release
of paymenLs, we esLlmaLe LhaL maxlmum
penalLy as per conLracL l.e. 8s 0.78 crore ls
lnevlLably levlable (lncludlng 8s. 0.23 crore
already deducLed).
20.6.3.2 8educLlon ln scope of work
20.6.3.3 uelays ln achlevlng of mllesLones
20.6.3 erformance of Des|gn Consu|tant
20.6.3.1 ueflclencles ln preparaLlon of

deslgns, drawlngs, blll of
quanLlLles and esLlmaLes
1he deslgn consulLanL was responslble for
preparaLlon of deslgns, drawlngs, blll of
quanLlLles and esLlmaLes. 8ased on a LesL
check of records, we found LhaL several
devlaLlons of work/ exLra lLems had Lo be
underLaken due Lo deflclencles aLLrlbuLable
Lo Lhe deslgn consulLanL e.g.
uefecLlve esLlmaLes ( 7 cases of 8s. 8.97
crore),
MlsmaLch ln orlglnal and worklng
drawlngs and 8CCs (one case of 8s. 0.43
crore),
LsLlmaLes noL prepared as per slLe
requlremenL (3 cases of 8s. 3.41 crore),
Slab of Lhe underground reservolr noL
deslgned as per vehlcular load (one case
of 8s. 0.32 crore), and
20.6.4 Se|ect|on of Sport|na ayce
Infrastructure vt. Ltd. as
Deve|oper
ln !une 2007, Lhe 8lC for pre-quallflcaLlon
of agencles for consLrucLlon of aLhleLlc
Lrack, swlmmlng pool, flLness cenLre and
Lralnlng hall aL Lhe Cames vlllage and Lhree
oLher pro[ecLs relaLed Lo venue
14
developmenL was lssued. Cf Lhe 18
C|ear|y, SGA was engaged as the des|gn
consu|tant on the prem|se that |t wou|d
br|ng |n |nternat|ona| expert|se, and
accord|ng|y |ts fees were a|so [ust|f|ed.
nowever, no such benef|ts accrued to DDA
due to the d|spute w|th Decath|on SA, the
master p|anner and sport arch|tecture
spec|a||sts w|th the requ|s|te |nternat|ona|
exper|ence. DDA was not even aware that
SGA brought |n re|evant |nternat|ona|
expert|se (comparab|e to Decath|on) at |ts
own cost, and |rregu|ar|y accorded ex post
facto sanct|on for rep|acement of
Decath|on's staff w|th Suresh Goe|
Assoc|ates' own staff and thereafter even
re|eased fu|| payment.
13
14
koof of tbe swlmmloq pool wos JeslqoeJ by Mccoy
Atcbltecbtotol 5ystems ltlvote ltJ, ovetloys Jeslqo wos
ptepoteJ by Cl lltmos veot lvt. ltJ.
coosttoctloo of oew competltloo veooes fot spoosb ooJ
boJmlotoo (5l5c), coosttoctloo of oew competltloo
veooes fot 1oble 1eools (5c), ooJ tefotblsbmeot of
exlstloq focllltles ot 5l5c, 5c ooJ 55c.
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1S
appllcanLs, elghL were pre-quallfled on 13
SepLember 2007 by Lhe evaluaLlon
16
commlLee Lhese lncluded leadlng players
such as Cammon lndla LLd and Shapoor[l
allon[l. Cn 10 !anuary 2008, blds were
lnvlLed from C bldders, and only Lwo
agencles boughL Lhe Lender documenLs
(SporLlna ayce lnfrasLrucLure (vL.) LLd. and
8L 8llllmorla & Co. LLd.). 1he Lenders were
1he enLlre Lenderlng process Look 10
monLhs, of whlch 3 monLhs were spenL ln
examlnlng Lhe ellglblllLy of Lhe appllcanLs.
Powever, we found LhaL SporLlna ayce
ConsLrucLlon (lndla) vL. LLd. (Lhe Sv
represenLlng Lhe consorLlum led by ayce
ConsolldaLed LLd., AusLralla, ynLer ulxon
ConsLrucLlon Ly. LLd., AusLralla, SporLlna
Lxlm vL. LLd., lndla and 8oberLson + Marks
ArchlLecL Ly. LLd, AusLralla), submlLLed an
un-notar|sed MoU evldenclng Lhe
consorLlum, conLrary Lo Lhe 8lC
requlremenL. lnLeresLlngly, Lhough a|| four
opened on 19 lebruary 2008 and Lhe
conLracL awarded Lo SporLlna ayce
lnfrasLrucLure vL. LLd. on 17 Aprll 2008, Lhe
L1 bldder aL a negoLlaLed amounL of 8s.
63.10 crore wlLh Lhe approval of Lhe Works
17
Advlsory 8oard and concurrence of LC,
uelhl. flgure 20.7 represenLs Lhe chronology
of evenLs.
member of the consort|um were
purported|y |ncorporated bod|es, on|y two
s|gned w|th the compan|es' common seal.
uesplLe a scruLlny process of Lhree monLhs,
Lhls agency was declared pre-quallfled by
Lhe LvaluaLlon CommlLLee. lurLher, Lhough
Lhe company pre-quallfled was SporLlna
ayce ConsLruclLon (lndla) vL. LLd, Lhe
Lender documenLs were boughL by SporLlna
ayce lnfrasLrucLure vL. LLd., a dlfferenL
legal enLlLy, reglsLered only on 16 !anuary
2008, buL applled for Lhe Lender documenL
on 13 !anuary 2008,
1S
16
17
l1u-l1u cem Iv, 8l kosbyop ooJ 5oos ltJ., 8C 5bltke coottoctloo 1ecbooloqy lvt. ltJ., Commoo loJlo ltJ., coosottlom of
uolty-8tobmopotto, 5bopootjl lolloojl & co. ltJ., 8 8llllmotlo & co. ltJ., ooJ 5pottloo loyce coosttoctloo(loJlo) lvt. ltJ-
5lv .
lloooce Membet, oqloeet Membet, ltloclpol commlsslooet, commlsslooet (llq), cblef oqloeet (52), commlsslooet (lu),
cblef Atcbltect, cblef leqol AJvlsot ooJ lloooclol AJvlsot (n)
vlce cboltmoo- uuA, lloooce Membet, oqloeet Membet, cblef oqloeet(52) ooJ cblef Accooots Offlcet
llqote 20.7 - cbtoooloqy of eveots leoJloq to selectloo
of 5pottloo loyce (lvt.) ltJ.
kI |ssued
11 !une 2007
Date of award
of contract
17 Aprll 2008
agenc|es dec|ared
13 SepLember 2007
Letter of Intent |ssued
1 Aprll 2008
NI1 |ssued
10 !anuary 2008
19 lebruary 2008
It |s amp|y ev|dent that the MoU was
man|pu|ated to ensure that Sport|na ayce
Construct|on (Ind|a) vt Ltd. pre-qua||f|ed.
U|t|mate|y the successfu| b|dder was an
ent|ty, d|fferent from the pre-qua||f|ed
agency, w|thout any conf|rmed assoc|at|on
w|th ayce Conso||dated Ltd., Austra||a -
the pro[ected |ead member w|th
exper|ence of des|gn and construct|on of
m|xed use deve|opment |n Austra||a, on
the bas|s of wh|ch the consort|um was
pre-qua||f|ed. DDA cou|d a|so not produce
any ev|dence of the assoc|at|on of ayce
Conso||dated Ltd |n the execut|on stage as
per MoU.
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SubsequenLly, ln CcLober 2009, afLer a
paymenL of 8s. 17.79 crore had been made,
Lhe conLracL was LermlnaLed on Lhe grounds
of mlsmanagemenL, lack of resources, lack
of wlll and vlslon, englneerlng sklll and
managemenL experLlse - Lhus conflrmlng
Lhe agencles' lnellglblllLy ln Lhe flrsL
lnsLance. LlquldaLed damages of 8s 3.73
crore were levled on Lhe conLracLor, buL had
noL yeL been recovered.
1he balance work of 8s 43.31 crore was re-
awarded afLer Lenderlng Lo Sam (lndla) 8ullL
vL. LLd. for 8s. 29.39 crore (lncludlng an
addlLlonal work of 8s. 1.18 crore) and Lo
Shlv naresh SporLs vL. LLd. for 8s. 8.93
crore.
1he shareholdlng composlLlon of Lhe C
agency, as pro[ecLed ln Lhe Mou, was
ayce ConsolldaLed LLd., AusLralla - 72
per cenL,
ynLer ulxon ConsLrucLlon Ly. LLd.,
AusLralla - 2 percenL,
SporLlna Lxlm vL. LLd.- 23 per cenL, and
lndla and 8oberLson + Marks ArchlLecL
Ly. LLd, AusLralla - 1 percenL.
ln conLrasL SporLlna ayce lnfrasLrucLure
vL. LLd. (Lhe successful bldder) was
promoLed by
SmL SheeLal Plren SheLh w/o Plren
PlmaL Lal SheLh and
Shrl Plren PlmaL Lal SheLh s/o PlmaL Lal
ueepchand SheLh.who were also Lhe
shareholders of SporLlna Lxlm vL. LLd.
1hough Lhe ArLlcles of AssoclaLlon of Lhe
company sLaLed LhaL Lhe shareholdlng
would be ad[usLed as per Mou, and 2
dlrecLors would be from ayce
ConsolldaLed LLd. AusLralla, we found
Lhe evldence of Lhls ad[usLmenL only ln
Lhe reLurn flled wlLh 8eglsLrar of
Companles afLer Lhe Annual Ceneral
MeeLlng held on 30 SepLember 2009.
lurLher, we found LhaL as per 8lC
condlLlon, any consorLlum member holdlng
more Lhan or equal Lo 26 per cenL of Lhe
equlLy shareholdlng or voLlng rlghLs, was
requlred Lo have neL worLh equal Lo 40
percenL of Lhe esLlmaLed pro[ecL cosL.
SporLlna Lxlm vL. LLd. dld noL meeL Lhls
crlLerla, and clrcumvenLed lL by showlng a
shareholdlng of 23 percenL aL Lhe Mou
sLage. Powever, lL lncreased lLs holdlng Lo
26 percenL shareholdlng ln SporLlna ayce
lnfrasLrucLure () LLd., Lhe company whlch
was flnally awarded Lhe conLracL.
20.6.S ua||ty of works executed
1he quallLy assurance work was underLaken

prlmarlly Lhrough Lhe CuallLy Assurance Cell
(CAC) of uuA. Powever, we noLlced LhaL
1he swlmmlng pool consLrucLed ln Lhe
Cames vlllage was noL cerLlfled by any
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lnLernaLlonally or naLlonally recognlsed
agency,
CuL of 42 deflclencles polnLed ouL by
CAC perLalnlng Lo Lhe swlmmlng pool,
Lralnlng hall, flLness cenLre and aLhleLlc
Lrack, 22 remaln pendlng as of daLe, and
1hough Lhe Chlef Lnglneer, CWC had
expressed concerns abouL Lhe quallLy of
Lhe kerbsLones lald ln Lhe Cames vlllage,
we found no evldence on record of Lhe
correcLlve measure Laken LhereafLer.
20.6.6 rocurement of 8|o-to||ets

1olleLs were requlred ouLslde Lhe boundary
walls of Lhe Cames vlllage and venues for
use of securlLy personnel.
Cn 7 SepLember 2010, LC, uelhl dlrecLed
LhaL blo-LolleLs may be procured for Cames
vlllage and uuA owned venues. 1hereafLer,
afLer a flurry of acLlvlLy, orders for supply of
10 blo-LolleLs aL Lhe raLe of 8s. 4.73 lakh
each were placed on Lwo agencles (each Lo
supply flve blo-LolleLs) on 18 SepLember
2010. 1hese blo-LolleLs were Lo be kepL
lnslde Lhe Cames vlllage and venues (for
legacy and malnLenance), and hlred moblle
LolleLs were Lo be provlded ouLslde Lhe
boundary walls. LvenLually, 6 blo-LolleLs
(cosLlng 8s 0.29 crore) were lnsLalled
ouLslde Lhe boundary wall of Lhe Cames
vlllage and Srl lorL SporLs Complex,
supposedly for securlLy guards, ln addlLlon
Lo Lhe moblle LolleLs hlred from MCu. 1he
declslon Lo buy blo-LolleLs aL exorblLanL
prlces aL Lhe lasL mlnuLe, dupllcaLe faclllLles
hlred by MCu, ls lnexpllcable. 1he legacy
value of Lhese blo-LolleLs ls noL clear.
20.7 1emporary
structures]over|ays
Cverlays ln Lhe Cames vlllage prlmarlly
comprlsed Lemporary accommodaLlon
creaLed for houslng Lhe lnLernaLlonal zone,
dlnlng hall, polycllnlc, LransporL mall eLc.
ln Aprll 2009, an 8lC for deslgnlng,
bulldlng, malnLalnlng and renLal conLracL for
Lemporary accommodaLlon uslng Lenslle
fabrlc rooflng wlLh whlLe colour vC
polyesLer fabrlc was lssued, Lo whlch 12
responses were recelved. Cn 29 CcLober
2009, Lhe 1echnlcal LvaluaLlon CommlLLee
18
recommended four agencles for shorL-
llsLlng Lo Lhe re-quallflcaLlon board, whlch
19
appoved only Lhree agencles for pre-
quallflcaLlon. llnanclal blds were lnvlLed
from Lhese agencles ln uecember 2009, Lhe
blds opened on 13 !anuary 2010 and on 23
lebruary 2010, WA8 approved award of
conLracL Lo Lhe L-1, consorLlum led by CL
LvenLs Servlces SA (lrance). 1he conLracL
was flnally slgned on 12 Aprll 2010, a year
afLer Lhe lssue of 8lC. llgure 20.8 deplcLs
Lhe chronology of evenLs.
20.7.1 Se|ect|on of GL L|tmus Lvents
vt. Ltd.
8|o-to||et
18
19
Iv of 5C Ctoop ltJ. & Ateoo veots 5etvlces Ctoop ltJ.(botb oqlooJ boseJ compooles), coosottlom of Cl veots 5etvlces 5A (ltooce) ooJ
Metofotm loJlo lvt. ltJ., coosottlom of xpto veots (o oolt of lollojl & 5oos), losbetqet Cm8n ooJ lotekb Assoclotes, ooJ coosottlom of
ueepoll ueslqos ooJ xblblts lvt. ltJ. (loJloo), 2bobol lltl 1eot 1ecbooloqy co. ltJ. (cbloo) ooJ kloqsmoo lolttecb lotetootloool lvt. ltJ.
(loJloo)
1be coosottlom leJ by ueepoll ueslqos ooJ xblblts lvt. ltJ. wos tejecteJ oo tbe qtoooJs tbot ueepoll, tbe leoJ membet, wblcb excloslvely
JlJ oot folfll tbe pte-poollflcotloo ctltetlo excloslvely.
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As can be seen from Lhe above, Lhe enLlre
process Look a year wlLh slx monLhs
lnexpllcably spenL only aL Lhe pre-
quallflcaLlon sLage.
1he consorLlum led by CL LvenLs and
Servlces SA (lrance) lndlcaLed Lhe followlng
shareholdlng ln Lhe [olnL venLure company
(CL LvenLs-LlLmus vL. LLd.) Lo be seL up
subsequenLly:
CL LvenLs and Servlces SA (lrance) - 70
percenL, and
Meroform lndla vL. LLd. - 30 percenL.
We found LhaL evenLually Lhe agreemenL

was slgned wlLh CL LlLmus LvenLs vL. LLd.
wlLh Lhe followlng shareholdlng:
Shrl 8lnu nanu-70 percenL, and
Meroform lndla vL. LLd. - 30 percenL.
CL LvenLs and Servlces SA (lrance), on Lhe
experlence of whlch Lhe consorLlum had
been shorLllsLed was no longer a
shareholder of Lhe conLracLed bldder.
uuA replled LhaL before slgnlng Lhe
agreemenL ln Aprll 2010, CL LlLmus LvenLs
vL. LLd. approved Lhe resoluLlon Lo Lransfer
70 percenL of lLs shares held by Shrl 8lnu
nanu Lo CL LvenLs and Servlces SA (lrance).
Powever, no evldence of acLual Lransfer of
shares before slgnlng of Lhe conLracL was
produced Lo us.
llqote 20.8 - cbtoooloqy of eveots leoJloq to selectloo of Cl lltmos veots

Issue of kI
18 Aprll 2009
Approva| of |owest
tenderer by WA8
23 lebruary 2010
Date of |ssue
of |etter of |ntent
2 March 2010
1echn|ca|
Lva|uat|on Comm|ttee
recommendat|on
for agenc|es
29 CcLober 2009
13 !anuary 2010
Agreement s|gned
12 Aprll 2010
Approva| by
re-qua||f|cat|on 8oard
1 november 2009
kI |ssued
16 uecember 2009
As was the case w|th a|| other ma[or
contracts awarded by DDA for CWG-2010
and d|scussed |n th|s chapter th|s se|ected
consort|um d|d not have the compos|t|on
(and concom|tant|y the requ|s|te
exper|ence), as was pro[ected |n the MoU
presented at the stage.
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1he LeLLer of lnLenL was lssued on 2 March
2010, by whlch Llme Lhe conLracLor
reporLed LhaL all Lhe maLerlal for sLrucLures
had already been procured. As per Lhe
conLracL, Lhe deslgns had Lo be proof
checked and approved wlLhln 20 days of Lol
daLe, l.e. by 22 March 2010. Powever, Lhe
deslgns were senL Lo Lhe proof checker(ll1
uelhl) on 19 March 2010. 1hese were
re[ecLed by lL on 10 !une 2010 afLer
proLracLed correspondence and meeLlngs
wlLh Lhe represenLaLlves of Lhe conLracLor,
prlmarlly on Lhe ground LhaL Lhe deslgn dld
noL meeL Lhe requlremenL ln Lhe lndlan
conLexL malnly on Lhe crlLerla of wlnd
speed. lL also lndlcaLed LhaL Lhe alumlnlum
beams proposed ln Lhe deslgn were noL as
per conLracLed speclflcaLlons (2mm
Lhlckness agalnsL 4 mm).
lurLher, on Lhe pleas of pauclLy of Llme,
lnspecLlon aL bldder's workshop prlor Lo
dlspaLch of maLerlal, was also walved off by
uuA.
LvenLually, Lhe sLrucLures were puL up, buL
we found no deLalled record cerLlfylng LhaL
Lhese were of Lhe deLalled Lechnlcal
speclflcaLlons menLloned ln Lhe agreemenL.
We found LhaL for a conLracL of 8s.41.38
crores, Lhe bulk of maLerlal for whlch was
Lo be lmporLed, Lhe value assessed aL Lhe
lndlan cusLoms was only 8s. 3.32 crore.
Moreover, slnce cusLoms duLy exempLlon
for CWC-2010 had noL been noLlfled, aL
Llme of blddlng Lhe conLracLor bld was
lncluslve of prevalllng duLles. Whlle lL Look
Lhe beneflL of 8s. 1.43 crore as duLy
foregone, Lhe beneflL of Lhe same was noL
passed on Lo uuA. 1he addlLlonal bank
guaranLee of 8s. 1.27 crore Lo be obLalned
aL Lhe sLage of release of paymenL afLer
shop drawlng approval was noL obLalned
(and lncldenLally Lhe paymenL was released
wlLhouL Lhe drawlngs belng approved).
lurLher, Lhe bank guaranLee of 8s. 6.62
crore obLalned whlle releaslng paymenL
agalnsL procuremenL of maLerlal and lLs
lnspecLlon aL bldder's workshop, was also
released ln !uly 2010 desplLe re[ecLlon of
deslgns.
Due to the de|ay |n award of the contract
and subsequent compress|on of de||very
t|me, DDA cou|d not effect|ve|y |mp|ement
the qua||ty contro| measures env|saged.
1he contractor d|d not supp|y the mater|a|
as per spec|f|cat|ons, and |ts des|gns were
re[ected by II1 De|h| (the proof checker) as
these were not as per des|gn
requ|rements |n the Ind|an context.
Moreover, we found no deta||ed record,
cert|fy|ng that the contractor had
prov|ded adequate number of structures
of the contracted techn|ca| spec|f|cat|ons.
20.7.2 Non-ver|f|cat|on of des|gns,
qua||ty and quant|ty
20.8 Cther |nfrastructura|
fac|||t|es
20.8.1 Construct|on of 1 MGD Water
1reatment |ant by DI8
ln AugusL 2006, uuA lndlcaLed lLs
requlremenLs of waLer and sewage dlsposal
of 1 MCu and 0.80 MCu respecLlvely for
Lhe Cames vlllage, Akshardham 1emple and
surroundlng areas Lo Lhe uelhl !al 8oard
(u!8), and asked Lhem Lo make necessary
arrangemenLs. lncldenLally, u!8 had already
declded Lo seL up a separaLe 1 MCu WaLer
1reaLmenL planL.
A conLracL for seLLlng up a 1 MCu WaLer
1reaLmenL lanL (W1), wlLh membrane
fllLraLlon Lechnology was awarded by u!8 Lo
llqote 20.9 - cbtoooloqy of eveots fot owotJ of wotk fot coosttoctloo of w1l
DI8 appo|nted
S1U Consu|tants
!uly 2006
S|ng|e b|d - VA1ech
Wabag, re[ected
May/ !une 2008
nd
2 NI1
!une 2008
DDA |nd|cated water
and sewage d|sposa|
requ|rements to DI8
AugusL 2006
3 pre-b|d meet|ngs
March/ Aprll 2008
Work awarded to
VA1ech Wabag
CcLober 2008
re-b|d meet|ng
!uly 2008
8|ock budget est|mate
of ks. 9.36 crore
CcLober 2007
8|ds |ssued
to 3 b|dders (from
for Dwarka W1)
March 2008
3 b|ds rece|ved,
2 d|squa||f|ed,
s|ng|e f|nanc|a| b|d of VA1ech
Wabag opened
!uly/ AugusL 2008
Lst|mate rev|sed
to ks. 29.42 crore
AugusL 2008
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vA 1ech Wabag ln CcLober 2008 aL a cosL of
8s. 28.20 crore, wlLh an addlLlonal 8s. 7
crore for 1 year of uefecL LlablllLy erlod
(8s. 1.36 crore) and 3 years of operaLlon
ln our vlew, Lhe W1 was overdeslgned for
Lhe followlng reasons:
- uuA lndlcaLed lLs waLer
and sewage dlsposal requlremenLs for
Lhe Cames vlllage, Akshardham 1emple
ln AugusL 2006 and asked u!8 Lo make
necessary arrangemenLs, lL dld noL
speclflcally lndlcaLe Lhe need for a
separaLe 1 MCu W1. We could noL flnd
evldence of a formal requesL from uuA
for consLrucLlon of a separaLe W1.
lncldenLally, u!8 had already engaged
S1u ConsulLanLs ln !uly 2006 lLself for a
separaLe 1 MCu waLer LreaLmenL planL.
1he need for a separate 1 MGD W1
was not c|ear
and malnLenance (8s. 3.44 crore). 1he W1
was scheduled for compleLlon by !anuary
2010. llgure 20.9 deplcLs Lhe chronology of
evenLs
u!8's reply LhaL Lhe planL was
consLrucLed Lo creaLe an lndependenL
source of waLer free from dependence
on exLernal sources os tbe 5oolo vlbot
w1l ls JepeoJeot oo uttot ltoJesb fot
lts sopplles" ls unconvlnclng.
- 1he
waLer quallLy requlremenL was speclfled
as conformlng Lo WPC sLandards.
Powever, Lhe Lechnology for Lhe W1
was subsequenLly changed ln 2008-09
Lo membrane fllLraLlon Lechnology, on
Lhe purporLed grounds of a green
pro[ecL wlLh zero dlscharge". We goL Lhe
Cver-des|gned p|ant w|th expens|ve
membrane f||trat|on techno|ogy
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20
source waLer LesLed ln !anuary 2011
for 14 parameLers lndlcaLed ln Lhe nl1 of
!une 2008, and found LhaL all
parameLers (excepL for LoLal hardness)
were meL. Such hardness could have
been easlly LreaLed wlLh Lhe llme and
llme-soda sofLenlng process, ln
accordance wlLh Lhe MlnlsLry of urban
uevelopmenL's Manual on WaLer Supply
and 1reaLmenL (whlch ls based on WPC
sLandards). u!8's argumenL LhaL hlgher
LreaLmenLs were necessary Lo brlng Lhe
waLer Lo WPC sLandards, parLlcularly of
LurbldlLy below 0.3 n1u, ls noL Lenable.
WPC sLandards have lefL Lhe level of
LurbldlLy undeflned, slnce lL ls maLerlal
only for effecLlve dlslnfecLlon of waLer,
oLherwlse, waLer wlLh LurbldlLy of 3 n1u
or less ls usually accepLable Lo
21
consumers . lurLher conflrmaLlon of
Lhe planL's overdeslgn ls derlved from
Lhe facL LhaL Lhe proof of experlence
accepLed ln respecL of vA 1ech Wabag
(Lhe slngle and wlnnlng bldder) was LhaL
of a fully auLomaLed 1reaLed 8eflnery
Lff|uent kecyc|e |ant", and noL a mere
WaLer 1reaLmenL lanL.
lurLher, Lhe award of Lhe conLracL Lo vA
1ech Wabag was also flawed and lrregular
for Lhe followlng reasons:
- 1he
enLlre process Look an unduly long 26
monLhs from !uly 2006 (appolnLmenL of
consulLanLs) Lo CcLober 2008 (award of
work). ln parLlcular, beLween AugusL
2006 and March 2008, Lhere was
pracLlcally no progress, excepL Lhe
approval of a block esLlmaLe ln
Undue and |nexp||cab|e de|ays
uecember 2007. lnLeresLlngly, Lhere
were Lwo rounds of Lenderlng, wlLh only
a slngle quallfled bldder (vA 1ech
Wabag).
- ln
Lhe second round of blddlng, u!8 Look
an unduly harsh sLand ln dlsquallfylng
one bldder (1rlvenl Lnglneerlng and
lndusLrles) and an unduly lenlenL sLand
ln holdlng vA 1ech Wabag ellglble.
1rlvenl submlLLed experlence of Lhree
pro[ecL, all Lhree pro[ecLs were re[ecLed
- one was re[ecLed for noL belng
commlssloned ln Lhe lasL seven years,
Lhe second was re[ecLed for noL
submlLLlng cerLlflcaLe ln supporL of
experlence of successfully
commlsslonlng a LC/u8/u8C conLracL,
and Lhe Lhlrd was re[ecLed as Lhe
capaclLy of Lhe planL was 3.24 MLu
(whlch fell shorL of Lhe requlred 4.3
MLu). vA 1ech Wabag submlLLed
experlence of only one pro[ecL - an lCCL
pro[ecL commlssloned ln CcLober 2006.
Colng by Lhe same sLrlcL sLandards, Lhls
planL dld noL meeL Lhe nl1 crlLerlon of
belng ln operaLlon for aL leasL one year
afLer Lhe uefecL LlablllLy erlod as on 30
May 2008. u!8's records falled Lo
conLaln any deLalls of Lhe uL (whlch
22
would normally be 1 year) ,
consequenLly, such experlence would be
lnvalld.
- 1he esLlmaLe for Lhe W1 was
lncreased from 8s. 9.36 crore (as per Lhe
uecember 2007 block esLlmaLe) Lo 8s.
29.42 crore on 26 AugusL 2008, [usL
In[ud|c|ous eva|uat|on of b|dders
Increase |n est|mate [ust before b|d
rece|pt
20
21
koooey well l4
lo ooy cose, oot wotet tests sboweJ tbe totblJlty less
tboo 1 N1u.
22
lo tbe exlt coofeteoce, uI8 ottempteJ to te-lotetptet tbe
cloose to meoo opetotloo ooJ moloteoooce fot ooe yeot,
oftet completloo of o leok Cootootee 1est (ooJ oot
ull), tbls ls oot botoe oot by tbe wotJloq of tbe Nl1.
In short, the 1 MGD Water 1reatment
|ant awarded at a cost of ks. 3S.20 crore
was over-des|gned and overpr|ced, w|th
b|d eva|uat|on ta||ored to favour a s|ng|e
b|dder. 1he requ|rement for th|s p|ant on a
|egacy bas|s |s quest|onab|e, and the p|ant
|s current|y shutdown. Iurther, DI8 has a
||ab|||ty of f|xed C&M costs, tota||ng ks. 7
crore, t||| 2013. DDA has not ra|sed any
|nfrastructure charges on Lmaar MGI for
|ts share of the cost of the W1, a|though
Lmaar MGI |nd|cates |n |ts advert|s|ng
brochure that the res|dent|a| comp|ex has
a ded|cated W1.
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Lhree days before openlng of Lhe slngle
flnanclal bld of vA 1ech Wabag on 29
AugusL 2008. vA 1ech Wabag's bld was
for 8s. 43.42 crore. u!8 arrlved aL a
suggesLlve ([usLlfled) cosL of 8s. 32.39
crore, and Lhe prlce was negoLlaLed
down Lo 8s. 33.20 crore (whlch was
wlLhln 10 per cenL of Lhe [usLlfled cosL).
1he W1 was subsLanLlally compleLed" ln
!une 2010, alLhough no compleLlon
cerLlflcaLe ls on record. u!8 falled Lo levy
LlquldaLed uamages (Lu) of 8s. 2.82 crore
on Lhe conLracLor.
1he W1 was run only durlng Lhe Cames
perlod, and ls currenLly shuL down for wanL
of demand. uuA's esLlmaLed requlremenL
of waLer for Lhe Cames vlllage was [usL 0.27
MCu (ouL of Lhe LoLal of 1 MCu). 1he
balance requlremenL was for hoLels and
oLher faclllLles (whlch have noL come up)
and Lhe Akshardam 1emple (whlch ls sLlll
noL connecLed Lo Lhe W1). lurLher, Lhere
was an addlLlonal connecLlon from Lhe
dlsLrlbuLlon llne of Lhe Sonla vlhar W1 as a
sLandby arrangemenL, whlch would have
meL Lhe needs of Lhe Cames vlllage.
20.8.2 Construct|on of a 1 MGD Sewage
1reatment |ant by DI8
u!8 awarded a conLracL for seLLlng up a 1
MCu Sewage 1reaLmenL lanL (S1), wlLh
Membrane 8lo-8eacLor Lechnology, Lo uLM
lndla LLd. ln CcLober 2008 aL a cosL of 8s.
24.73 crore, wlLh an addlLlonal 8s. 7.20
crore for operaLlon and malnLenance of 10
years. 1he S1 was scheduled for
compleLlon by november 2009.
As ln Lhe case of Lhe W1, Lhere was an
lnexpllcable delay ln Lhe case of S1 also Llll
March 2008, when block esLlmaLes of 8s.
23.42 crore were prepared. 1he S1
commenced lLs operaLlon w.e.f. AugusL 2010
wlLhouL Lhe lssue of compleLlon cerLlflcaLe.
u!8 falled Lo levy LlquldaLed uamages (Lu)
of 8s. 0.92 crore on Lhe conLracLor.
1he S1 was Lo recelve sewage from Lhe
Cames vlllage and hoLels (0.33 MCu), Lhe
Akshardham 1emple complex and oLhers
(0.23 MCu). AfLer Lhe CWC, Lhe S1 was
geLLlng sewage only from Lhe Akshardham
1emple complex. We found LhaL Lhe S1
was uLlllsed upLo 44 Lo 70 per cenL of lLs
capaclLy beLween AugusL and CcLober 2010.
AfLer 31 CcLober 2010, for a shorL perlod of
Llme, uLlllzaLlon was nll due Lo non
evacuaLlon of Lhe effluenL from Lhe planL by
Lhe uuA (a pre-condlLlon for operaLlng Lhe
S1). ConsequenLly, Lhe sewage from
Akshardham was dlverLed Lo Mandawall
pumplng sLaLlon (whlch was already
operaLlng aL lLs full capaclLy of 43 MCu),
leadlng Lo dlscharge of unLreaLed sewage
lnLo Lhe ?amuna.
1hereafLer, Lhe S1 remalns grossly under-
uLlllsed (less Lhan 17 per cenL of lLs
capaclLy). WlLhouL adequaLe uLlllsaLlon, Lhe
requlred quanLlLy of Mlxed Llquor
Suspended Solld (MLSS) bacLerla (needed
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383
for proper LreaLmenL of sewage) was noL
sufflclenLly malnLalned, defeaLlng Lhe
purpose of lnsLalllng a M88 S1. uurlng Lhe
exlL conference, u!8 lndlcaLed LhaL Lhey
were brlnglng sewage from elsewhere and
ln[ecLlng lnLo Lhe S1 for Lhls purpose.
23
u!8 ralsed a demand of 8s. 32.70 crore on
uuA whlch lncluded 8s. 10.38 crore ln
respecL of Lhe resldenLlal complex of Lhe
Cames vlllage. Powever, uuA ald 8s. 24.73
crore Lo u!8 beLween lebruary 2008 and
March 2010, and ralsed a demand for 8s.
10.38 crore on Lmaar MCl only ln !uly
2010: Lhls yeL Lo be recovered.
ln Aprll 2010, u!8 awarded a conLracL for
securlLy arrangemenLs aL Lhe W1 and S1
aL Lhe Cames vlllage Lo lL&lS aL a cosL of
8s. 0.42 crore, whlch was lncreased Lo
8s. 0.73 crore ln AugusL 2010 Lhrough an
addlLlonal work order.
1he work was lrregularly awarded on
nomlnaLlon basls wlLhouL lnvlLlng Lenders
and wlLhouL recorded [usLlflcaLlon of Lhe
excepLlonal clrcumsLances for such award.
lurLher, u!8's conLenLlon of urgency ls
unLenable, slnce CnC1u had declded ln
lebruary 2008 lLself Lo provlde securlLy aL
Lhese slLes.
1he CC consulLanL, LkS, recommended Lwo
benchmark soluLlons for power supply for
Lhe Cames vlllage vlz. elLher Lwo hlgh
volLage maln feeders from of dlfferenL
20.8.3 Award of secur|ty contract for
W1 and S1 to IL&IS
20.8.4 rocurement of
D|ese| Generator sets
zones sub sLaLlons or one hlgh volLage maln
feeder and generaLors. uesplLe havlng
power supply from Lwo separaLe feeders l.e.
8SLS and 8?L, uuA procured four 1230
kvA ulesel CeneraLor (uC) seLs for 8s 6.96
crore as a source of back-up power supply
for Lhe Lralnlng venue and sLreeL llghLlng/
hlgh masL llghLlng, and dlnlng and
operaLlonal zone. LmaarMCl separaLely
made arrangemenLs for back-up power
supply for Lhe resldenLlal area. ln addlLlon,
8s. 0.62 lakhs were also spenL on
procuremenL of baLLery drlven uS.
We found LhaL Lhe procuremenL of uC
seLs/uS was redundanL conslderlng Lhe
Lwo lndependenL power supply sources
Lapped. Lven lf such back up had Lo be
arranged, lL would have been more
economlcal Lo do so on hlre. lurLher, we
found LhaL Lhese uC seLs were lylng ldle
posL games. Cn enqulry, uuA lnformed LhaL
lL plans Lo shlfL Lwo of Lhese uC seLs Lo
uuA's headquarLers aL vlkas Sadan - one as
Lhe back up Lo Lhe maln supply and Lhe
oLher as a sLand by for Lhe back up. 1he
soluLlons seem hasLlly puL LogeLher slnce
Lhe load of vlkas Sadan ls only 1230 kvA
and deploymenL of Lwo uC seLs LoLalllng
2300 kvA appears unreasonable, Lo say Lhe
leasL.
23
ks. 4.75 ctote lo 5eptembet 2007 ooJ ks. 27.95 ctote lo
Novembet 2009
20.9 A|ternate Accommodat|on
at Vasant kun[
ln november 2008, ln consulLaLlon wlLh
CM, l1uC, uuA declded Lo upgrade 1904
flaLs already under consLrucLlon (10-13
percenL compleLe) and 803 LlC flaLs (97
percenL compleLe) Lo Lhe level of Lhree sLar
hoLels by March 2010. ln Aprll 2009,
speclflcaLlons for Lhe upgrade were
flnallsed and lndlan 1ourlsm uevelopmenL
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384
schemes for Lhe Cames vlllage flaLs
dlffered ln respecL of 9 lLems. l1uC falled
Lo negoLlaLe approprlaLe reducLlons,
wlLh poLenLlal savlngs of upLo 8s. 1.08
crore.
l1uC had noL lnlLlaLed compensaLlon
clalms for 8s. 1.32 crore from suppllers
for delayed/ shorL supplles.
lurnlLure worLh 8s. 3.19 crore and 8s.
10.31 crore had noL yeL been lnsLalled aL
Lhe Cames vlllage and vasanL kun[ flaLs
respecLlvely. l1uC sLaLed LhaL slnce uuA
falled Lo consLrucL Lhe flaLs ln Llme aL
vasanL kun[ and handed over far fewer
flaLs Lhan envlsaged, lL was compelled Lo
sLore Lhe furnlLure supplled ln seml-
consLrucLed flaLs as well as a hangar
creaLed for Lhls purpose.
1he sLock of llnen lLems aL vasanL kun[
was found Lo be shorL by 8s. 0.77 crore
aL Lhe Llme of audlL.
lmporLanLly, we could noL ascerLaln legacy
plans for Lhe furnlLure and flxLures procured
for Lhese flaLs. l1uC lndlcaLed LhaL Lhese
lLems were purchased on behalf of uuA,
whlch necessarlly had Lo Lake over Lhe
same.
Crlglnally lL was envlsaged LhaL Lhese flaLs
were Lo be used by LourlsLs. 1hereafLer lL
was declded LhaL lnLernaLlonal and naLlonal
1echnlcal Cfflcers were Lo be
accommodaLed ln Lhese flaLs. Powever, we
found LhaL CC lncurred an expendlLure of
8s. 4.66 crore (approxlmaLely) on
accommodaLlng Lhese offlcers ln hoLels.
20.9.3 Lxtra expend|ture on a|ternate

accommodat|on |n hote|s
CorporaLlon LLd. (l1uC) was engaged on
nomlnaLlon basls for furnlshlng Lhe flaLs.
We found LhaL of Lhe 2709 flaLs, only 803
LlC and 182 PlC flaLs could be upgraded
and handed over Lo l1uC for furnlshlng.
1he remalnlng flaLs were only 28 Lo 30
percenL compleLe Llll november 2010. 1hls
was desplLe an aLLempL ln !uly 2010 Lo fasL
Lrack Lhe compleLlon of 376 flaLs by lssulng
work orders aL a premlum of 10 percenL
over [usLlfled cosL, as approved by LC, uelhl.
uuA enLrusLed l1uC, a Su, Lhe work of
supply and lnsLallaLlon of furnlLure and
flxLures. 1hls covered furnlshlng of
1101 flaLs aL Lhe Cames vlllage,
blfurcaLed lnLo Lwo schemes (1owers 1-
17 and 18-34),
1283 LlC, 416 MlC and 1008 PlC flaLs aL
vasanL kun[ (of whlch only 803 LlC and
182 PlC flaLs could be handed over by
uuA).
l1uC was Lo be relmbursed Lhe full cosL of
supply/ work orders plus 10 per cenL
deparLmenLal charges. ln Lurn, as of
november 2010, l1uC awarded work orders
for supply of furnlLure and flxLures for 8s.
49.41 crore. Powever, lL made paymenLs of
8s. 27.89 crore agalnsL Lhe advance
paymenL of 8s. 46 crore (lncluslve of
deparLmenLal charges) Lo l1uC.
We found cerLaln deflclencles ln Lhe award
and execuLlon of work orders by l1uC:
1he raLes quoLed by Lhe same suppller
for Lhe same lLems under Lhe Lwo
20.9.1 Incomp|ete upgradat|on of f|ats
20.9.2 Iurn|sh|ng of I|ats by I1DC
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Streetscap|ng and 8eaut|f|cat|on
of koads around CWG Venues
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5treetscope qenero//y refers to urbon roodwoy desiqn ond conditions os they impoct
street users ond neorby residents. 5treetscopinq proqrommes ore on importont
component of efforts to redeve/op urbon oreos ond con inc/ude chonqes to the rood cross
section, troffic monoqement, sidewo/k conditions, /ondscopinq, street furniture,
bui/dinq fronts, improvinq siqnoqes etc.
ln 2004, 6Nc1u decided to imp/ement streetscopinq ond beoutificotion of roods for
"oesthetics" before cw6-2010. nowever, in our view, the street-scopinq ond
beoutificotion project wos i//-conceived ond i//-p/onned, without o brood overorchinq
vision ond perspective of how this wou/d impoct urbon desiqn ond deve/opment. 1he
project wos not port of ue/hi's city ueve/opment P/on under the 6ol's f/oqship lNNukM
proqromme for urbon deve/opment ond renewo/. 4/thouqh preservinq, deve/opinq ond
mointoininq the oesthetic quo/ity of urbon ond environmento/ desiqn within ue/hi is
c/eor/y within the remit of the ue/hi urbon 4rt commission, 6Nc1u did not deem it
necessory to obtoin c/eoronce from uu4c for imp/ementotion of the streetscopinq/
beoutificotion project. 4/so, considerinq thot troffic monoqement is o key component of
streetscopinq projects, we o/so did not find evidence of consu/totion with the 1roffic
Po/ice ot on oppropriote/y eor/y stoqe to ossess ond co-ordinote the impoct of this project
on the monoqement of the huqe vo/umes of ue/hi troffic. 5treetscopinq ond
beoutificotion ot exorbitont overoqe oworded costs of ks. 4.8 crore/ km {compored to
Nn4l's estimoted cost of ks. 9.5 crore / km for constructinq o four-/one notiono/ hiqhwoy
or lndion koi/woys' estimoted cost of obout ks. 4.1 crore/km for constructinq roi/woy
trock) oworded ond executed in on od hoc ond orbitrory monner confirm woste of pub/ic
funds toto//inq ks. 101.02 crore.
1he project wos /orqe/y o consu/tont-driven project, with the se/ection of consu/tonts
beinq orbitrory ond non-tronsporent ond ot on exorbitont overoqe cost of ks. 12.5
/okh/km. lurther, 6Nc1u did not provide ony common desiqn quide/ines, with
correspondinq torqet budqetory estimotes per km of work. 1he consu/tonts were qiven
free hond to drow up desiqns ond estimotes for the pockoqes o//otted to them. 1his
resu/ted in odoption of richer specificotions in on orbitrory ond inconsistent monner in
different pockoqes {with on ovoidob/e cost of ks. 51.ll crore), with the cost of surfocinq
the povement for pedestrion wo/kinq ronqinq from ks. 717 to ks. 279 per sq. meter. we
o/so found odoption of hiqher rotes/ short recovery toto//inq ks. 8.27 crore, ond other
deficiencies in controct monoqement with on ovoidob/e cost of ks. 8.14 crore.
1hird Porty uo/ity contro/ throuqh the neods of the civi/ nqineerinq ueportments of the
ue/hi co//eqe of nqineerinq ond ll1 koorkee foi/ed to provide odequote ossuronce on the
specificotions ond moterio/s used in the works, despite expenditure of ks. 1.47 crore.
386
ChapLer 21 - SLreeLscaplng and 8eauLlflcaLlon of 8oads around CWC venues
SLreeLscape generally refers Lo urban
roadway deslgn and condlLlons as Lhey
lmpacL sLreeL users and nearby resldenLs.
SLreeLscapes are an lmporLanL componenL
of Lhe publlc realm (publlc spaces where
people lnLeracL), whlch help deflne a
communlLy's aesLheLlc quallLy, ldenLlLy,
economlc acLlvlLy, healLh, soclal coheslon
and opporLunlLy, noL [usL lLs moblllLy.
SLreeLscaplng programmes are an lmporLanL
componenL of efforLs Lo redevelop urban
areas and can lnclude changes Lo Lhe road
cross secLlon, Lrafflc managemenL, sldewalk
condlLlons, landscaplng (parLlcularly Lree
cover), sLreeL furnlLure (uLlllLy poles,
benches, garbage cans eLc.), bulldlng fronLs,
lmprovlng slgnages, and maLerlals
speclflcaLlons.
SLreeLscaplng can help creaLe more dlverse
LransporLaLlon sysLems and more accesslble
communlLles by lmprovlng non-moLorlsed
Lravel condlLlons, creaLlng more urban
envlronmenLs and lnLegraLlng speclal deslgn
feaLures such as pedesLrlan lmprovemenLs,
cycllng lmprovemenLs, Lrafflc calmlng, Plgh
Cccupancy vehlcles (buses eLc.) prlorlLy
sLraLegles and road space re-allocaLlon.
CWC-2010. 1he pro[ecL remalned more or
less ln a dormanL sLage Llll May 2008, when
CnC1u lnlLlaLed Lhe process of selecLlon of
consulLanLs.
Col's flagshlp programme for upgradaLlon of
clvlc lnfrasLrucLure - Lhe !awaharlal nehru
naLlonal urban 8enewal Mlsslon (!nnu8M)
was launched ln 2003, under whlch each
mlsslon clLy was Lo submlL a ClLy
uevelopmenL lan (Cu) wlLh a long Lerm
horlzon of 20-23 years Lo faclllLaLe
ldenLlflcaLlon of pro[ecLs. uelhl's ClLy
uevelopmenL lan for !nnu8M, whlch was
approved ln CcLober 2006, dld noL lndlcaLe
sLreeLscaplng and beauLlflcaLlon" as an
ldenLlfled pro[ecL. lurLher, we dld noL flnd
any pro[ecLs for sLreeLscaplng/
beauLlflcaLlon approved under !nnu8M ln
respecL of oLher clLles. 1he only !nnu8M
pro[ecLs remoLely llnked Lo Lhls aspecL were
focused on resLoraLlon and redevelopmenL
of herlLage areas.
We dld noL flnd evldence of CnC1u havlng
conducLed deLalled sLudles of experlences/
of sLreeLscaplng pro[ecLs ln lndlan/ world
clLles, and Lhelr lmpacL on Lhe local
communlLy. lurLher, alLhough preservlng,
developlng and malnLalnlng Lhe aesLheLlc
quallLy of urban and envlronmenLal deslgn
wlLhln uelhl ls clearly wlLhln Lhe remlL of
Lhe uelhl urban ArL Commlsslon (uuAC),
CnC1u dld noL deem lL necessary Lo obLaln
clearance from uuAC for lmplemenLaLlon of
Lhe sLreeLscaplng/ beauLlflcaLlon pro[ecL.
Also, conslderlng LhaL Lrafflc managemenL ls
a key componenL of sLreeLscaplng pro[ecLs,
we also dld noL flnd evldence of
consulLaLlon wlLh Lhe 1rafflc ollce aL an
approprlaLely early sLage Lo assess and co-
ordlnaLe Lhe lmpacL of Lhls pro[ecL on Lhe
managemenL of Lhe huge volumes of uelhl
Lrafflc.
21.2.1 Lack of overarch|ng v|s|on
Cne of Lhe ob[ecLlves of CWC-2010 was Lhe
developmenL of clLy lnfrasLrucLure. CnC1u
declded ln 2004 Lo lmplemenL sLreeLscaplng
and beauLlflcaLlon of uelhl roads before
21.2 |ann|ng for streetscap|ng]
beaut|f|cat|on |n De|h|
21.1 What |s Streetscap|ng?
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AJopteJ ftom vlctotlo 1toospott lollcy lostltote's Oolloe
1uM ocyclopeJlo 5tteetscope lmptovemeots -
oboocloq utboo kooJwoy ueslqo" - 18 Iooooty 2011.
1he scope of Lhe pro[ecL expanded
enormously from 2004 Lo 2008. lnlLlally, lL
was declded Lo lmplemenL Lhe pro[ecL ln 10
slLes around games venues coverlng 20 km
Lhrough engagemenL of consulLanLs. A
8oard of Assessors (8oA) was consLlLuLed ln
CcLober 2004 who shorLllsLed (2004) 19
consulLanLs for Lhe [ob. 1he scope of Lhe
pro[ecL was subsequenLly wldened,
accommodaLlng several roads coverlng
73.48 km perLalnlng Lo:
Wu - 41.08 km,
MCu - 22.90 km,
uuA - 2 km,
nuMC - 3.80 km, and
ulM1S - 3.70 km.
1he sLreeLscaplng works were spllL up lnLo
16 packages (Wu: elghL, MCu: Lwo and
nuMC: slx). lour consulLanLs were engaged
1he deparLmenL seL Lhe LargeL for

compleLlng Lhe pro[ecL before CWC
(CcLober 2010) Lhough Lhls was clearly an
unachlevable LargeL. As expecLed, Lhe works
were noL fully compleLed before CWC-2010.
21.3.1 Arb|trar|ness |n se|ect|on
of Consu|tants
lour consulLanLs were selecLed (May 2008-
CcLober 2008) Lhrough four rounds of
Lenders/negoLlaLlons, as evldenced by
Lhe chronology of evenLs glven ln 1able
no. 21.1.
21.3 Se|ect|on of Consu|tant
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1bete wete 9 pockoqes fot tbe coosoltoots. nowevet,
tbese wete te-qtoopeJ loto 16 pockoqes fot owotJ of
wotk.
In our v|ew, the street-scap|ng and
beaut|f|cat|on pro[ect was |||-conce|ved
and |||-p|anned, w|thout a broad
overarch|ng v|s|on and perspect|ve of
how th|s wou|d |mpact urban des|gn and
deve|opment. 1he pro[ect's
|mp|ementat|on at exorb|tant average
awarded costs of ks. 4.8 crore] km |n an
ad hoc and arb|trary manner, as
d|scussed subsequent|y, conf|rm the
waste of pub||c funds.
In our op|n|on, the pro[ect was a
consu|tant-dr|ven pro[ect. 1he
department d|d not prov|de any common
des|gn gu|de||nes, w|th correspond|ng
target budgetary est|mates per km of
work. 1he consu|tants were g|ven a free
hand to draw up des|gns and est|mates
for the packages a||otted to them.
2
for nlne packages . 1he scope of work
lnvolved survey, preparaLlon of plan/
deslgns, cosL esLlmaLlon and consLrucLlon
supervlslon. 1he consulLanL selecLlon was
flnallsed as laLe as May -CcLober 2008, afLer
four years, Lhus, creaLlng a slLuaLlon of
urgency ln execuLlon of Lhe works.
1oble 21.1 - cbtoooloqy of eveots leoJloq to selectloo
of stteetscoploq coosoltoots
Date Lvents ] Act|v|t|es
Lol for Lhe consulLancy works (spllL lnLo Lhree packages) called for from 19
shorL llsLed consulLanLs. 1wo blds recelved from arekh AssoclaLes
(Ahmedabad based flrm noL on Lhe panel) and Casls ueslgns.
8lds cancelled slnce only Casls ueslgns aLLended Lhe meeLlng wlLh LlC.
Lol agaln floaLed, grouplng Lhe [obs ln seven packages. 8lds recelved from
Lhe same Lwo consulLanLs - arekh AssoclaLes and Casls ueslgns. 1he 8oA
consldered Lhe flrms sulLable for only one package each, leavlng flve
packages.
AL Lhe lnsLance of Lhe Chlef SecreLary, roads ln Lhe remalnlng flve packages
were regrouped lnLo elghL packages (A Lo P) and Lhlrd call dellvered Lo 17 of
3
Lhe 20 shorL llsLed consulLanLs , sLlpulaLlng alloLmenL of maxlmum Lwo
packages Lo one consulLanL.
lour consulLanLs (arekh AssoclaLes, Casls ueslgns, radeep Sachdeva
ueslgn AssoclaLes and Slkka AssoclaLes) parLlclpaLed ln Lhe bld. no bld were
recelved for Lhree packages (A, 8 and C), and Cne Lo Lhree blds were
recelved for Lhe remalnlng packages (C,u, L and l) aL values ranglng beLween
8s. 8.26 lakh and 8s. 13.00 lakh per km.
8oA recommended no furLher alloLmenL of work Lo arekh AssoclaLes as
Lhey were Ahmedabad based and had no offlce aL uelhl, and for alloLmenL of
(aL mosL) one more package Lo Casls ueslgns.
8efore Lhe 8oA, Slkka AssoclaLes and radeep AssoclaLes expressed Lhelr
wllllngness for Lhe packages. 8oA consldered Lhem Lo be experlenced
consulLanLs, and recommended for alloLLlng Lwo or more packages each Lo
Lhese consulLanLs.
1he ConsulLanL AppolnLmenL CommlLLee (CAC) accepLed Lhe
recommendaLlon of Lhe 8CA, wlLh Lhe modlflcaLlon LhaL Casls ueslgn was
noL be glven any furLher work (aparL from Lhe one package alloLLed on 31
May 2008). ackage-L was scrapped. 1hls lefL only Lwo consulLanLs (Slkka
AssoclaLes and radeep AssoclaLes) for Lhe seven packages.
lor Lhese seven packages, quoLaLlons were avallable for only Lwo
packages, wlLh Slkka AssoclaLes quoLlng for package u and radeep
Sachdeva ueslgn AssoclaLes for packages C and u. AlLhough Lhe nl1
prohlblLed alloLmenL of more Lhan Lwo packages, Lhe Chlef SecreLary
approved alloLmenL of more Lhan Lwo packages Lo a consulLanL.
lL was declded Lo alloL package u Lo Slkka AssoclaLes (slnce Lhere were
mulLlple blds for Lhls package). lor Lhe remanlng slx packages, Lhe Lwo
consulLanLs submlLLed flnanclal blds wlLhln one day.
8ased on Lhe flnanclal blds, Lwo more packages were alloLLed Lo Slkka
AssoclaLes (A and C) and four Lo radeep Sachdeva ueslgn AssoclaLes (8,
l, C and P) aL negoLlaLed raLes, wlLhouL speclfylng Lhe Lechnlcal works Lo
be done.
02 May 2008
31 May 2008
07 Cctober 2008
12 November
2008 - 11
December 2008
388
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Now locloJloq lotekb Assoclotes
ln all, radeep AssoclaLes and Slkka
AssoclaLes recelved four and Lhree packages
respecLlvely, whlle arekh AssoclaLes and
4
Casls ueslgns recelved one package each .
We found LhaL Slkka AssoclaLes and
radeep AssoclaLes submlLLed blds aL Lhe
behesL (12 november 2008) of Lhe 8oA for
Lhe addlLlonal packages (13 november
2008) ln one day's Llme. no Lechnlcal blds
were submlLLed. 1he negoLlaLed raLes were
approved by Lhe CAC wlLhouL any
prellmlnary esLlmaLe/[usLlflcaLlon of raLes
and concepLual plan, Lhese negoLlaLed raLes
for Lhe slx packages ranged beLween 8s.
10.39 lakh and 8s. 12.30 lakh per km. ln all,
Lhe consulLanLs were engaged for Lhe
sLreeLscaplng works aL a cosL of 8s. 9.20
crore (averaglng 8s. 12.3 lakh/ km). 1he
AdmlnlsLraLlve Approval and LxpendlLure
SancLlons were accorded by CovernmenL on
posL conLracL sLage (uecember 2008/Aprll
2009). AlLhough Lhe process of shorL llsLlng
of consulLanLs was lnlLlaLed ln 2004, Lhe
process was lnexpllcably delayed up Lo
uecember 2008, creaLlng a slLuaLlon of
urgency ln execuLlon of Lhe works. Cn Lhe
ground of urgency, consulLanLs were
selecLed on dlrecL negoLlaLlon. 1he exLra
cosL on engagemenL of consulLanLs aL
varlable raLes, excess paymenL on accounL
of less execuLlon of work and non-levy of Lu
was 8s. 1.63 crore.
CuL of Lhe LoLal esLlmaLed cosL of 8s. 209.14
crore for Lhe elghL packages (Wu porLlon),
49 per cenL (8s. 101.71 crore) of Lhe cosL
was on lLems wlLh cosLs based on Lhe uelhl
Schedule of 8aLes (uS8) and remalnlng 31
per cenL (8s. 107.43 crore) on lLems wlLh
cosLs on MarkeL 8aLes (M8)/Analysls of
8aLes. We found LhaL Lhe M8 were
generally noL supporLed by any quoLaLlon,
lndlcaLlng LhaL Lhe esLlmaLes were noL a
Lrue reflecLlon of Lhe prevalllng markeL
raLes and Lhus, were noL rellable.
As polnLed ouL earller, Lhe deparLmenL dld
noL provlde any common deslgn guldellne
wlLh correspondlng LargeL budgeLary
esLlmaLe per km of sLreeLscaplng work. 1he
consulLanLs formulaLed plans /deslgns and
speclflcaLlons for Lhe works. 1he CLs whlle
accordlng Lechnlcal sancLlon, dld noL
underLake a comparaLlve examlnaLlon of
Lhe plan/deslgn and cosL esLlmaLes
(prepared by Lhe consulLanLs) across Lhe
elghL packages wlLh a vlew Lo brlnglng ln a
broad level of unlformlLy ln
deslgn/speclflcaLlon and cosL of execuLlon.
1hls resulLed ln adopLlon of dlfferenL
speclflcaLlons and raLes for ldenLlcal lLems
of works.
ln our vlew, lL was Lhe prlme responslblllLy
of Lhe deparLmenLal englneers Lo assess Lhe
acLual raLes and speclflcaLlons requlred for
Lhe lLems so as Lo ensure economy,
efflclency and effecLlveness ln execuLlon.
lurLher, slnce all Lhe zones were under Lhe
Lechnlcal conLrol of LlC, comparlson across
Lhe zones should have been
admlnlsLraLlvely ensured.
1he reLlred ulrecLors of CWu appolnLed as
Advlsor Lo Lhe Wu observed LhaL Lhe
21.4 Cost est|mat|on for works
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1bete wete 9 pockoqes fot tbe coosoltoots. nowevet,
tbese wete te-qtoopeJ loto 16 pockoqes fot owotJ of
wotk.
In our v|ew, the consu|tant se|ect|on was
arb|trary and non-transparent, s|nce s|x
packages were ass|gned s|mp|y on the
bas|s of f|nanc|a| quotat|ons and
negot|at|on w|th two consu|tants, that
too, w|thout spec|fy|ng the techn|ca|
works to be done.
390
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consulLanLs had noL gone lnLo Lhe
englneerlng deLalls and suggesLed varlous
deslgns. 1hey suggesLed dlspenslng wlLh
varlous unnecessary/unwarranLed works
durlng lmplemenLaLlon of Lhe ro[ecLs.
1hese were noL accepLed, and Lhe pro[ecLs
were lmplemenLed as suggesLed by Lhe
ConsulLanLs.
We noLlced LhaL due Lo lack of unlformlLy ln
speclflcaLlons, furnlshlngs/componenLs and
raLes beLween Lhe esLlmaLes, Lhe per km
cosL of Lhe works ranged beLween 8s. 3.14
crore (8oads around varlous games venues)
and 8s. 8.27 crore (8lng 8oad from Ashram
Lo 8halron Marg Crosslng)
lncldenLally, Lhe per square meLre cosL of
surfaclng Lhe fooLpaLh varled slgnlflcanLly
beLween roads, averaglng 8s. 717 for pavlng
wlLh normal paver blocks, 8s. 1430 wlLh
vlLrlfled Llles and 8s. 2679 wlLh pollshed
granlLe.
1he streetscap|ng works were f|na||y
awarded at per km costs rang|ng from ks.
3.63 crore to ks. 9.7S crore w|th an
average cost of ks. S.32 crore. 8y
contrast, NnAI adopts an est|mated cost
of ks. 9.S0 crore] km for construct|on of a
four-|ane h|ghway, and Ind|an ka||ways'
est|mated cost of construct|on of a
ra||way track |s around ks. 4.1 crore] km.
C|ear|y, costs of th|s magn|tude spent on
streetscap|ng and beaut|f|cat|on were
proh|b|t|ve and represented a waste of
pub||c money.
We found LhaL consulLanLs lncreased Lhe
cosL of Lhe pro[ecL aL Lhe esLlmaLlon sLage
by provldlng rlcher speclflcaLlons and hlgher
raLes for varlous lLems of work,
overlooklng/by-passlng Lhe
provlslons/speclflcaLlons of uS8, Mo81P,
CWu Manual and lS codes.
1he consulLanLs' esLlmaLes were cleared by
Lhe varlous levels upLo Lhe CL. Plgh cosL
blds were approved by Lhe Works Advlsory
8oard (WA8) by way of lrregular
[usLlflcaLlon of Lhe quoLed raLes aL Lhe
Lender sLage. 1he resulL of Lhe above
mlsmanagemenL was loss of 8s. 39.60 crore
Lo Lhe CovernmenL as summarlsed below:
21.4.1 Adopt|on of k|cher Spec|f|cat|ons]
n|gher kates] Short kecovery
1oble 21.2 - AJoptloo of klcbet 5peclflcotloos
S.No. Item of work I|nanc|a| Impact
(ks. |n Crore)
Aud|t I|nd|ng
Gran|te av|ng
1. Use of gran|te
and v|tr|f|ed
t||es for
footpath
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V|tr|f|ed pav|ng t||es
(ks. |n Crore)
Aud|t I|nd|ng
CnC1u declded (!uly 2008) LhaL Lhe pavemenL for
pedesLrlan walklng should be consLrucLed wlLh
coloured cemenL concreLe (CC) paver blocks. 1he
consulLanLs, however, proposed for use of gang
saw cuL mlrror pollshed machlne cuL granlLe
prescrlbed ln Lhe uS8 for klLchen plaLforms,
vanlLy counLers, wlndow sllls and slmllar
locaLlons. We ascerLalned LhaL Lhe baslc cosL of
granlLe ln Lhe markeL was around 8s. 1022/
square meLre, agalnsL whlch Lhe esLlmaLes
adopLed 8s. 1300/ 8s. 1763 per square meLre. We
also noLlced LhaL agalnsL 3 per cenL wasLage
admlsslble as per uS8 for all granlLe work, Lhe
consulLanLs consldered Lhe wasLage aL 13 per
cenL.
1hey also proposed vlLrlfled Llles for pavlng, ln
some packages even speclfylng a parLlcular brand
l.e. avlL". 1he CLs dld noL polnL ouL Lhe
dlscrepancles for recLlflcaLlon before puLLlng Lhe
works Lo Lender. 1hls lncreased Lhe cosL of Lhe
lLem of consLrucLlon of Lhe pavemenL. We also
noLlced LhaL Lhe flnlshed raLe of avlL brand Llle
(16 mm) Laklng lnLo accounL Lhe markeL cosL,
wasLage, overheads and oLher facLors was 8s.
963.24 per square meLre, whereas he esLlmaLes
adopLed 8s. 1834.16 per square meLre.
392
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(ks. |n Crore)
Aud|t I|nd|ng
Cement concrete paver
NMV |ane w|th obstruct|on
2.
4
Cement
Concrete
paver b|ock
Non
Motor|sed
Veh|c|e |ane
12.34
1.76
As per Lhe speclflcaLlons prescrlbed for such work
under CWu and lS code, facLory made 30 mm
Lhlck paver blocks of 8MC M-30 were Lo be flxed
on 30 mm Lhlck coarse sand spread over a hard
base. We noLlced LhaL Lhe consulLanLs proposed
for flxlng facLory made CC paver blocks of rlcher
speclflcaLlons and excess Lhlckness.
3 kerb stone 4.36
ulrecLor Ceneral (Works), CWu acLlng as Advlsor,
Wu, observed LhaL Lhe CC kerb sLones on Lhe
cenLral verge and Lhe fooLpaLhs were ln good
condlLlon and need noL be replaced. 1he opLlon
was lgnored and Lhe kerb sLones were replaced as
S
suggesLed by Lhe consulLanLs ln nlne packages.
We noLlced LhaL Lhe esLlmaLes provlded for flxlng
Lhe CC kerb sLones of rlcher speclflcaLlons
devlaLed from Lhe speclflcaLlons as per Mo81P.
S
5c, Aftlco Aveooe etc, ut kotol 5loqb, cwC vllloqe, Moll kooJ, klsoo Cbot etc, 8boltoo Motq ooJ two pockoqes of Mcu.
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(ks. |n Crore)
Aud|t I|nd|ng
1he non MoLorlsed vehlcle (nMv) lanes were
execuLed aL a LoLal cosL of 8s. 9.36 crore. 1he
deslgns had devlaLlons from Lhe guldellnes lssued
by u11lLC on sLreeL deslgn. 1he nMv lane also
dld noL fully meeL Lhe lnLended ob[ecLlves due Lo
lack of conLlnulLy LhroughouL Lhe lengLh of Lhe
roads on accounL of obsLrucLlons llke bus sLops,
plaza and road crosslngs ln Lhe mlddle of Lhe
6
nMv Lrack. We also noLlced LhaL whlle four
esLlmaLes provlded for lLs execuLlon ln 130 mm
Lhlck CC, roads around CWC vlllage/Mall 8oad
were execuLed wlLh rlcher speclflcaLlon of 200
mm Lhlck CC.
3
6
8|tum|nous
Mast|c
wear|ng
course
Dense
8|tum|nous
Concrete(D8C)
1ota| S1.33
3.40
2.10
Whlle Lhe esLlmaLe for Lhe work of roads around
CWC vlllage provlded for masLlc wearlng course
for 23 mm on Lhe carrlageway as per Lhe Mo81P
7
and CWu speclflcaLlons, flve oLher esLlmaLes
provlded lL for 40 mm Lhlckness over Lhe
carrlageway. We also noLlced LhaL such work was
execuLed on Mall 8oad as an exLra lLem aL hlgher
raLes.
1he esLlmaLes for roads around ?amuna SporLs
Complex (?SC) and roads around varlous Cames
venues (Afrlca Avenue) provlded for execuLlon of
u8C ln carrlageway and servlce roads uslng 60/70
8
grade blLumen. Powever, Lhe esLlmaLes for four
oLher works provlded for uslng hlgher
speclflcaLlon of blLumen (olymer Modlfled
8lLumen and Crumb 8ubber Modlfled 8lLumen)
for Lhe carrlageway and servlce roads. 8esldes,
Lhe u8C was execuLed aL varlable Lhlckness
ranglng beLween 40 mm and 30 mm.
6
7
8
ut kotol 5loqb 5bootloq kooqe/ 8boltoo Motq to l1O lly Ovet/ Asbtom ctossloq to 8boltoo Motq/tooJs otoooJ votloos
qomes veooes
k. Cbot, 8. Motq Asbtom ctossloq, Moll kooJ ooJ ut kotol 5loqb 5bootloq kooqe
cwC vllloqe/Moll tooJ/lC 5toJlom/ut kotol 5loqb 5bootloq kooqe
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ln response Lo our observaLlons, Wu
sLaLed LhaL each package had a separaLe
consulLanL wlLh hls own vlslon of
sLreeLscaplng, and hence speclflcaLlons
were dlfferenL across Lhe packages. CranlLe,
as proposed by Lhe consulLanLs, was used ln
Lhe fooLpaLh surface where pedesLrlan
denslLy was hlgh, wlLh Lhe approval of Lhe
hlghesL auLhorlLy of Lhe CnC1u. We
dlsagree wlLh Lhls, slnce CnC1u had
declded (!uly 2008) Lo use coloured paver
blocks on fooLpaLhs of Lhe sLreeLscaplng
works and LlC had also dlrecLed Lhe CLs Lo
avold exLravaganL provlslons ln Lhe
sLreeLscaplng works. Pence Lhe CLs should
noL have allowed surfaclng Lhe fooLpaLh
wlLh granlLe sLone adopLlng hlgher raLe
leadlng Lo escalaLlon ln pro[ecL cosL.
As regards dlscrepancles ln speclflcaLlon of
cemenL concreLe paver blocks, Wu sLaLed
LhaL dlfferenL speclflcaLlons of paver blocks
were prescrlbed by Lhe consulLanLs
dependlng upon Lrafflc caLegory and merger
of cycle Lrack wlLh servlce lane/maln
carrlageway. We, however, noLed LhaL Lhe
speclflcaLlons of cemenL concreLe base,
granular sub base and Lhlckness/sLrengLh of
paver blocks slgnlflcanLly varled across Lhe
packages lrrespecLlve of Lhe naLure of
Lrafflc.
1oble 21.J - AJoptloo of nlqbet kotes/ 5bott kecovety
S.No. Item of work
I|nanc|a| Impact
(ks. |n Crore)
Aud|t Cbservat|on
1.
2.
3.
4.
kerb Channe|
Granu|ar Sub
8ase and Wet
M|x Macadam
App||cat|on
of tack coat
ke|nforced
Cement
Concrete nume
|pes
0.23
0.83
0.34
0.93
Compared Lo Lhe raLe of CC kerb channel adopLed
ln Lhe esLlmaLe of ?amuna SporLs Complex, Lhe
9
esLlmaLes for flve pro[ecLs adopLed hlgher raLes.
10
ln flve packages, we found LhaL Lhe raLes for CS8
and WMM were provlded aL hlgher raLes
compared Lo Lhe raLe adopLed ln Lhe esLlmaLe for
Mall 8oad, compounded by a calculaLlon error
resulLlng ln an even hlgher raLe.
We found LhaL Lhe raLes for Lhe Lack coaL on
blLumlnous surface/sub base were provlded aL
11
hlgher raLes ln slx esLlmaLes compared Lo Lhe
lower raLe adopLed ln Mall 8oad.
We noLlced LhaL Lhe raLes of hume plpes were
12
hlgher ln Lhree esLlmaLes compared Lo Lhe raLes
adopLed ln Lhe esLlmaLe ln Mall 8oad.
9
10
11
12
Asbtom to 8boltoo Motq, 8boltoo Motq to l1O, Moll kooJ, cwC vllloqe ooJ ut kotol 5loqb 5bootloq kooqe
lC 5toJlom-J pockoqes, M 8 kooJ ooJ Aftlco Aveooe.
lC 5toJlom-J pockoqes, omooo 5potts complex (5c), cwC vllloqe ooJ M8 tooJ
lC 5toJlom, ut kotol 5loqb 5bootloq kooqe ooJ omooo 5potts complex
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CnC1u sLaLed LhaL Lhe lnaccuracles ln Lhe
esLlmaLed raLes cannoL affecL Lhe raLes
quoLed by Lhe conLracLors. As such, no loss
can be aLLrlbuLed. We dlsagree wlLh Lhls
asserLlon of Lhe deparLmenL slnce ln a
percenLage raLe Lender, Lhe bldder can
quoLe only a slngle flgure ( above or
below) for all Lhe lLems, unllke ln an lLem
raLe Lender where each lLem ls quoLed for
lndlvldually. 1hls makes lL essenLlal LhaL Lhe
base cosL for Lhe lLems puL up for
percenLage raLe Lender are conslsLenLly and
accuraLely assessed. 1he CWu manual also
prescrlbes use of percenLage raLe Lender
only ln case where mosL of Lhe lLems are
based on uS8 where Lhe cosLlng of Lhe
varlous lLems has been done by a panel of
experLs. We are of Lhe vlew LhaL any
dlscrepancy ln Lhe base raLe of an lLem ln a
percenLage raLe Lender cannoL be easlly
3.
D|smant||ng
|tems
0.83
6.
A|um|n|um
Compos|te
ane|
0.76
7.
Cement
Concrete |tems
0.34
8.
Short recovery
for retr|eved
mater|a|s
3.19
9.
Geo text||e
fabr|c
0.40
8.27
S9.60
S.No. Item of work
I|nanc|a| Impact
(ks. |n Crore)
Aud|t Cbservat|on
1he raLes for dlsmanLllng Lhe exlsLlng works were
provlded aL varlable and hlgher raLes ln Lhe
esLlmaLes of ?SC and varlous Cames venues
(Afrlca Avenue) compared Lo oLher esLlmaLes.
1he raLe for fabrlcaLlng, supplylng and lnsLalllng
Alumlnlum ComposlLe anel for Lhe roads around
lC SLadlum (8halron Lo l1C and Ashram crosslng
Lo 8halron) was lncorrecLly compuLed aL hlgher
raLe.
We found LhaL Lhe analysls was lncorrecLly
13
derlved ln slx esLlmaLes and flxed aL hlgher raLes
due Lo calculaLlon error.
1he cosL of Lhe useful maLerlals reLrleved ouL of
Lhe dlsmanLlemenL works was Lo be deducLed
from Lhe dues of Lhe conLracLors. 1hls was elLher
14
noL done, or done aL a lower raLe ln flve
esLlmaLes.
1S
1hree esLlmaLes adopLed a hlgher raLe for Ceo
LexLlle fabrlc membrane ln place of lower raLe
used ln esLlmaLe of roads around lC SLadlum.
1ota|
Grand 1ota|
13
14
1S
lC 5toJlom (tbtee pockoqes), M 8 kooJ, votloos qomes veooes ooJ 5c
cwC vllloqe, 5c, Moll kooJ, ut kotol 5loqb 5bootloq tooqe ooJ Aftlco Aveooe
Moll tooJ, cwC vllloqe ooJ M8 kooJ
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facLored ln by Lhe bldder, as he does noL
have Lhe flexlblllLy of quoLlng separaLe raLes
for dlfferenL lLems. A hlgher cosL esLlmaLe
for any glven lLem wlll lead Lo Lhe
advanLage belng passed on Lo Lhe bldder
along wlLh hls quoLed percenLage premlum.
lurLher, Lhe sLreeLscaplng work, Lhough
execuLed as mulLlple packages, was a slngle
pro[ecL and lL was Lhe prlme responslblllLy
of Lhe CLs Lo follow common raLes across all
Lhe packages for ldenLlcal lLems, especlally
slnce mulLlple exLernal consulLanLs had
been engaged for provldlng Lhe deslgn.
ln response Lo Lhe nl1 (CcLober 2009)

for execuLlon of Lhe sLreeLscaplng and
beauLlflcaLlon, Swadeshl ConsLrucLlon
Company, quoLlng Clvll Works 19.41 per
cenL above, LlecLrlcal 4.8 per cenL above
and PorLlculLure 4.8 per cenL above Lhe
esLlmaLed cosL, was Lhe lowesL. 1he nl1
sLlpulaLed LhaL ln case varlable
percenLages were quoLed, Lhe mlnlmum
of Lhe percenLages would be Laken for
calculaLlng Lhe cosL of Lhe Lender. 1he
LxecuLlve Lnglneer (LL), SuperlnLendlng
Lnglneer (SL) and Lhe CL, accordlngly,
consldered Lhe bldder as L1 and
conducLed negoLlaLlons.
Works Advlsory 8oard (WA8), however,
re[ecLed (CcLober 2009) Swadeshl's
Lender on Lhe ground LhaL Lhey had
quoLed componenL wlse raLes and
dlrecLed calllng of fresh flnanclal blds
from Lhose who were Lechnlcally
quallfled ln Lhe call noLlce floaLed ln
CcLober 2009.
llnanclal blds were called agaln
(CcLober 2009) and Swadeshl
ConsLrucLlon quoLlng 16.40 per cenL
above was Lhe lowesL, buL Lhe WA8
agaln re[ecLed lL on Lhe ground LhaL Lhe
flrm refused Lo negoLlaLe Lhe raLes and
dlrecLed for reLenderlng.
1he work was flnally awarded Lo Sharma
ConsLrucLlon aL 9 per cenL above Lhe
esLlmaLed cosL on fresh Lender (whereln
Swadeshl ConsLrucLlon dld noL
parLlclpaLe). 1hls resulLed ln a loss of 8s.
1.19 crore compared Lo Lhe lnlLlal valld
offer of Swadeshl ConsLrucLlon.
Wu sLaLed LhaL Swadeshl ConsLrucLlon had
quoLed Lhree dlfferenL raLes for clvll,
elecLrlcal and horLlculLure componenLs.
Conslderlng Lhese raLes, he was noL L1 and
21.S.1 Use of percentage rate tender
|nstead of |tem rate |n WD
21.S.2 Irregu|ar|ty |n award and
eva|uat|on of tender
CWu Manual provldes LhaL percenLage
raLe Lenders should be resorLed Lo only
when Lhe ma[or parL of Lhe esLlmaLed cosL
ls based on Lhe uelhl Schedule of 8aLe
(uS8), lrrespecLlve of Lhe value of Lhe
Lenders.
Cf Lhe esLlmaLes for 8s. 209.14 crore for Lhe
elghL packages under Wu, 49 per cenL of
Lhe value of Lhe works was esLlmaLed aL Lhe
uS8 and Lhe remalnlng 31 per cenL aL Lhe
MarkeL raLes/Analysls raLes. uesplLe Lhe
above poslLlon, whlch dld noL favour Lhe
call of percenLage raLe Lenders, Lhe CLs
chose Lo adopL percenLage raLe Lenders.
We found LhaL repeaLed efforLs were made
Lo deny Lhe award of a sLreeLscaplng and
beauLlflcaLlon package (8lng 8oad, 8halron
Marg Lo l1C llyover) Lo Swadeshl
ConsLrucLlon Company, unLll lL chose noL Lo
bld:
21.S 1ender|ng process
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1he works spllL up ln 16 packages were
awarded (CcLober-november 2009) Lo 10
conLracLors aL a cosL of 8s. 332.43 crore
(Shown ln 1able 21.4) for compleLlon by
SepLember 2010.
hence hls Lender was re[ecLed. 1hls was
facLually noL correcL slnce, as per Lhe nl1
clauses, Lhe lowesL of Lhe Lhree dlfferenL
quoLed raLes was blndlng for all Lhe
componenLs. 1he LL, SL and CL accordlngly,
consldered hlm Lhe L1 bldder and
conducLed negoLlaLlons. 1herefore,
subsequenL re[ecLlon of Lhe bld by Lhe WA8
was un[usLlfled.
1he CWu Works Manual 2007 provlded
LhaL one of Lhe crlLerla for selecLlon of Lhe
conLracLor for Lhe work was LhaL hls average
annual Lurnover durlng Lhe lasL Lhree years
should noL be less Lhan 30 per cenL of Lhe
esLlmaLed cosL of Lhe work and LhaL 14 days
lead Llme should be provlded for
submlsslon of Lenders. 1he CLs, however,
enhanced Lhe llmlL of average annual
Lurnover Lo 43 per cenL. Lead Llme beLween
4 days and 10 days were provlded ln seven
of Lhe elghL packages. 1he works were also
floaLed Lo Lender by Lhe LLs, before Lhose
were Lechnlcally sancLloned by Lhe CL. 1he
LLs dld noL follow elecLronlc-Lenderlng
desplLe speclflc lnsLrucLlons by governmenL.
CWu Manual provlded for comparlng bld
values wlLh [usLlfled cosL Lo assess Lhe
reasonablllLy of Lhe blds. 1he [usLlfled cosLs
are Lo be arrlved aL by Laklng markeL raLes
of labour, maLerlals and carLage, oLher valld
charges eLc. Any oLher sulLable meLhod can
also be adopLed ln arrlvlng aL Lhe [usLlfled
cosL dependlng upon Lhe klnd of work. 8lds
recelved aL more Lhan 10 per cenL above
Lhe [usLlfled cosLs are noL Lo be accepLed.
1he deparLmenL worked ouL Lhe [usLlfled
raLes for Lhe varlous works beLween 8s.
41.82 crore and 8s. 19.46 crore and [usLlfled
21.S.3 Mod|f|cat|on |n cod|f|ed cr|ter|a
21.S.4 Irregu|ar [ust|f|cat|on of the
quoted rates
LhaL Lhe lowesL blds were varylng beLween
mlnus 16 per cenL and plus 3 per cenL of Lhe
[usLlfled cosLs (Annexe-21.1).
We found LhaL Lhe [usLlfled cosLs were noL
supporLed wlLh evldence of Lhe correcLness
of Lhe raLes. 1herefore, we adopLed
alLernaLe meLhod for arrlvlng aL Lhe [usLlfled
cosLs, Laklng lnLo accounL Lhe cosL lndex
prevalllng Lhen and found LhaL Lhe quoLed
16
raLes of Lhe conLracLors ln flve packages
were more Lhan 10 per cenL of Lhe acLual
[usLlfled cosLs and Lhus, Lhe blds were llable
for re[ecLlon. 1he deparLmenL, however,
accepLed Lhe Lenders conslderlng Lhem
beLween 16 per cenL below Lo 3 per cenL
above of Lhe [usLlfled cosLs worked by
Lhem. ln our oplnlon, Lhe Lenders were
accepLed aL hlgh cosL.
Wu sLaLed LhaL Lhe [usLlfled raLes were
arrlved aL based on markeL raLes, as per Lhe
provlslons of CWu Manual.
We dlsagree, as we dld noL flnd
documenLaLlon ln supporL of Lhe markeL
raLes/analysls of raLes. lor Lhls reason, as
menLloned above, we arrlved aL Lhe
[usLlfled raLes uslng Lhe prevalllng cosL
lndex on Lhe daLe of Lender (AugusL 2009)
and found LhaL Lhe flve Lenders were
accepLed beyond Lhe permlsslble llmlL of
accepLance.
21.6 hys|ca| target v|s-a-v|s
ach|evements
16
klsoo Cbot, Asbtom to 8boltoo Motq, Moll kooJ, ut
kotol 5loqb 5bootloq tooqe ooJ Aftlco Aveooe
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aymenL of 8s. 208.02 crore had been made
Lo Lhe conLracLors for Lhe varlous packages
Llll daLe. 1he deparLmenL had reporLed
(uecember 2010) Lo have compleLed all Lhe
sLreeLscaplng works. We noLlced LhaL Lhe
works were noL compleLed before Lhe CWC
(CcLober 2010) on accounL of delays ln
execuLlon of works by Lhe conLracLors and
non-provldlng of deslgns on Llme by Lhe
consulLanLs. LvldenLly, Lhe ob[ecLlve of
sLreeLscaplng and beauLlfylng Lhe roads
around CWC venues was noL fully achleved.
ln flnanclal Lerms, Lhe paymenLs so far
made Lo Lhe conLracLors were beLween 34
and 97 per cenL (averaglng 63 per cenL) of
Lhe agreemenL values. ln none of Lhe
sLreeLscaplng works were Lhe flnal
measuremenLs/paymenLs recorded,
alLhough Lhe works were reporLedly
physlcally compleLe.
We found LhaL desplLe non execuLlon of Lhe
works as per Lhe mllesLones and non
compleLlon of Lhe works by Lhe sLlpulaLed
daLe, Lu of upLo 8s. 23.96 crore was noL
reallsed.
1oble 21.4 - AwotJ of 5tteetscoploq wotk
S.No.
ackages
awarded
Awarded Cost
(ks. |n Crore)
Name of the Contractor
SaLya rakash & 8roLhers (Wu: lour)
M8L lnfrasLrucLure (Wu: Cne and MCu: 1wo)
SAM (lndla) 8ullL Well (Wu)
Sharma ConsLrucLlons (Wu)
8alhan ConsLrucLlon (Wu)
uevl ConsLrucLlon (nuMC)
lndla CunlLlng CorporaLlon (nuMC)
8aunaq ConsLrucLlon (nuMC)
k8C Lnglneers (nuMC)
8aghav Lnglneer (nuMC)
1ota|
124.69
83.08
41.93
31.01
24.42
6.36
6.48
3.28
3.17
1.81
332.4S
4
3
1
1
1
1
1
2
1
1
16
1
2
3
4
3
6
7
8
9
10
under Lhe pro[ecL, Lhe works were awarded
Lo Lhe conLracLors ln Wu on Lhe
agreemenLs flnallzed on percenLage raLe
Lender. 1he managemenL of Lhe conLracLs
was Lhe responslblllLy of Lhe Lnglneers-ln-
Charge and Lhe Cfflcers supervlslng Lhe
works. 1he Lerms and condlLlons of Lhe
agreemenLs were vlolaLed on several lssues
leadlng Lo excess paymenL and undue
beneflLs Lo Lhe conLracLors, besldes exLra
and excess expendlLure of 8s. 8.14 crore
beyond Lhe cosL of Lhe pro[ecLs as dlscussed
ln 1able 21.3.
21.7 Contract management
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1oble 21.5 - lostooces of loot coottoct Moooqemeot
S.No. I|nanc|a| Impact
(ks. |n Crore)
8r|ef of the aud|t Cbservat|on
1.
2.
3.
4.
1.79
0.18
1.43
1.23
1he scope of Lhe conLracLs lncluded provlslon for all safeLy measures for
Lrafflc, pedesLrlan workmen, machlnery eLc. noLhlng exLra was payable
Lo Lhe conLracLors on Lhls accounL.
We not|ced that |n e|ght packages, an |tem was |nc|uded |n the 8C
for barr|cad|ng (traff|c safety), resu|t|ng |n extra payment to
contractors.
ln mosL of Lhe landscaplng works, precasL CC cyllndrlcal bollards were
used ln nMv lane. Powever, ln Mall 8oad, precasL CC bollard was
replaced durlng execuLlon wlLh more expenslve red sand sLone
readymade bollards.
We found LhaL durlng execuLlon of fooLpaLh of Mall 8oad, Paryana
CuarLzlLe sLone was replaced wlLh granlLe sLone/slab.
1he scope of Lhe work of Mall 8oad dld noL provlde for execuLlon of
u8M ln Lhe enLlre sLreLch of Lhe road. 1he conLracLor, SaLya rakash &
8roLhers rlvaLe LlmlLed, however, execuLed u8M ln Lhe enLlre sLreLch.
We noLlced LhaL durlng Lhe ldenLlcal Llme perlod, Lhe Lendered lLem
raLes for u8M ln oLher works were lower Lhan hls Lendered raLe. 1he
execuLlon of Lhe lLem Lhrough hlm aL hlgher raLe LranslaLed Lo an
addlLlonal flnanclal advanLage.
ked Sand Stone 8o||ard
Gran|te Stone 8|ock
recast Cement Concrete 8o||ard
naryana uartz|te
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S.No. I|nanc|a| Impact
(ks. |n Crore)
8r|ef of the aud|t Cbservat|on
3.
6.
3.49
8.14
As per condlLlons of Lhe conLracLs, Lhe conLracLors were Lo remove Lhe
malba aL Lhelr cosL and rlsk.
We found LhaL desplLe Lhe above speclflc provlslons, Lhe agreemenLs
provlded an lLem ln Lhe 8oC for removal of malba, enabllng exLra
paymenL Lo Lhe conLracLors.
We also noLlced LhaL SaLya rakash & 8roLhers rlvaLe LlmlLed dld noL
remove Lhe malba from Lhe work slLes of roads around ?SC and roads
around CWC vlllage. 1he deparLmenL removed malba Lhrough lL&lS
buL dld noL recover Lhe cosL from Lhe conLracLor. lL&lS was pald 8s.
280.32 per M1 of malba agalnsL 8s. 73.42 per M1 as per Lhe agreemenL
raLe for SaLya rakash & 8roLhers.
1ota|
Mehraull 8adarpur 8oad, a SLaLe Plghway, was scraped for consLrucLlon
of a fooLpaLh, reduclng Lhe wldLh of Lhe road. 1hls had reduced Lhe
Lrafflc carrylng capaclLy of Lhe road.
Scar|f|ed Mehrau|| 8adarpur koad
1he agreemenLs provlded for 1hlrd arLy
CuallLy ConLrol (1CC) for Lhe pro[ecLs
elLher by Lhe uelhl College of Lnglneerlng
(uCL)/C88l/ll1, 8oorkee or any oLher agency
appolnLed by Lhe LlC for lndependenL
quallLy assessmenL/conLrol. necessary LesLs
of Lhe maLerlals and speclflcaLlons were Lo
be conducLed ln Lhe laboraLory of
uCL/Wu/C88l/ll1 uelhl/ll1 8oorkee or any
oLher laboraLory approved by Lhe LlC.
1he 1CC works were enLrusLed for four
packages each Lo Lhe uCL (ur S k Slngh for
21.8 Unwarranted engag|ng of
1h|rd arty ua||ty
Assurance]Contro| (1C)
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21.9.1 Adopt|on of d|fferent rates |n the
est|mates for |dent|ca| |tems
As per CWu Works Manual, Lhe deLalled
esLlmaLe should be based on Lhe raLes glven
ln Lhe uS8 for Lhose lLems of work covered
by lL and by analyslng markeL raLes for Lhe
remalnlng lLems. We noLlced slgnlflcanL
varlaLlons beLween raLes adopLed ln Lhe
1he consulLanLs suggesLed deslgn for
elecLrlcal llghLlng work by speclfylng cosLly
elecLrlcal furnlshlng, some of Lhem
lmporLed. 1he quoLaLlons for Lhe lLems
were obLalned by Lhe consulLanLs. 1he
esLlmaLes were Lechnlcally sancLloned by
Lhe CLs wlLhouL verlfylng Lhe acLual cosL of
Lhe lLems prevalllng ln Lhe markeL. 1he
posslblllLy of procurlng such lLems from
lndlgenous companles was noL explored.
We observed one lnsLance where elecLrlcal
flLLlngs cosLlng over 8s. 30 lakh were
lnsLalled ln a small area of 10 meLre by 13
meLre.
21.9 nort|cu|ture Works
21.10 Unwarranted Cost|y
L|ectr|ca| Iurn|sh|ng
Lhree packages of lC SLadlum and roads
around varlous Cames venues) and ll1
8oorkee (ur S S !aln for Lhe ?amuna SporLs
Complex, around Lhe Cames vlllage, M 8
8oad and Mall 8oad) afLer lapse of abouL 30
per cenL of Lhe perlod of Lhe agreemenLs.
Whlle Lhe scope of Lhe works for ur Slngh
covered Lhe clvll works ln enLlreLy, for ur
!aln lL covered only Lhe blLumlnous and
concreLe lLems.
We found LhaL Lhe Leam led by ur !aln
vlslLed Lhe work slLes for Lwo days each and
submlLLed [ob mlx reporLs of blLumlnous
lLems for Lhree packages and raLed Lhe
sLandard of work as very good. ur Slngh
conducLed slLe vlslLs beLween elghL Lo 14
days for four packages and submlLLed only
Lwo-Lhree page reporLs for each package
broadly lndlcaLlve of vlsual work supervlslon
suggesLlng mlnor lmprovemenLs ln flnlshlng
lLems. 1he amounL of supervlslon provlded
by 1CC, and Lhe quallLy and quanLlLy of
ouLpuL by Lhe consulLanLs leads us Lo
conclude LhaL Lhe 1CC had acLually falled
Lo provlde lndependenL quallLy assurance Lo
Lhe managemenL of Lhe speclflcaLlons and
maLerlals used ln Lhe works renderlng Lhe
expendlLure of 8s. 1.47 crore (ur. S S !aln:
8s. 0.48 crore and ur. S k Slngh: 8s.0.99
crore) on 1CC wasLeful.
esLlmaLes for ldenLlcal lLems of horLlculLure
work across Lhe packages under Wu. 1he
varlaLlons ranged beLween 12 and 400
percenL. 1he adopLlon of varlable raLes for
same lLems wlLhouL conslderlng Lhe
mlnlmum posslble raLe/uS8 raLe led Lo
exLra cosL of 8s. 1.08 crore as shown ln Lhe
Lable ln Annexe 21.2.
lurLher, Lhe reLlred ulrecLor (PorLlculLure)
acLlng as ConsulLanL Lo LlC for horLlculLure
works menLloned LhaL Lhe consulLanLs had
suggesLed landscaplng planLlng wlLh
expenslve planLs llke Cycus revoluLe, llcus
panda and lurcarla wlLhouL conslderlng
cllmaLlc condlLlons, and Lhelr adapLablllLy
and sulLablllLy for uelhl roads/ venues. Also
hoenlx (kha[oor), a deserL planL, and alm,
a coasLal planL, had been suggesLed for
uelhl roads. Pls suggesLlons for dlspenslng
wlLh Lhese planLs were, however, lgnored.
1he overall esLlmaLed flnanclal lmpacL of
Lhese planLs was 8s. 1.10 crore ln seven
packages covered ln audlL.
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A few hlgh cosL elecLrlcal flxLures are shown
below. We are of Lhe vlew LhaL Lhe
governmenL was unnecessarlly burdened
wlLh Lhls expendlLure on overprlced llghL
flLLlngs ln Lhe name of aesLheLlcs. Lach of
Lhese lLems was speclfled by brand name
wlLhouL glvlng a generlc descrlpLlon,
Lhereby favourlng a parLlcular
manufacLurlng company. lurLher, Lhese
hlgh cosL lLems were lncluded ln a
percenLage raLe Lender, whereby Lhe Lrue
cosL of procuremenL cannoL be easlly
assessed. We have found from some
lnvolces LhaL Lhe cosLs of Lhe flxLures were
far less Lhan Lhe cosLs adopLed ln Lhe
esLlmaLes. uue Lo adopLlon of hlgh cosL,
undue beneflL for 8s. 0.83 crore (Appendlx-
lll) was passed on Lo Lhe conLracLors.
I|tt|ngs worth over ks. S0 |akh |nsta||ed oppos|te IG Stad|um
S.No.
kate per un|t
(ks. |n |akh)
Amount
(ks. |n crore)
hotograph of the |tem Item
Nemo 1orch
keselec
Schreder
(8oads around
lC SLadlum)
4.30 1.03 1.
1oble 21.6 - lostooces of blqb cost electtlcol ltems
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S.No.
kate per un|t
(ks. |n |akh)
Amount
(ks. |n crore)
1rapeze o|e
keselec Schreder
(8oads around
lC SLadlum)
4.34
0.33
0.49
0.33
2.07
0.73
Decorat|ve Street
llghL-!unlL8,
8a[a[ (8oads
around
lC SLadlum)
Nemo o|e
keselec Schreder
(8oads around
lC SLadlum)
2.
3.
4.
404
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S.No.
kate per un|t
(ks. |n |akh)
Amount
(ks. |n crore)
8er||n Lamp
& o|e
hlllps/8a[a[
(8oads around
lC SLadlum)
0.37
0.08
0.28
1.2
0.71
0.48
1S L|ght f|xture
A1L
(8oads around
lC SLadlum)
8o||ard
keselec
Schreder
(8oads around
lC SLadlum)
3.
6.
7.
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S.No.
kate per un|t
(ks. |n |akh)
Amount
(ks. |n crore)
Schreder-
CIL36
waLL
(Safdar[ang
llyover)
2.91 1.11 8.
1he Chlef SecreLary, CnC1u proposed
(AugusL 2008) for creaLlon of 30-30 lakh
poLLed planLs for deploymenL around Lhe
CWC venues and oLher areas for provldlng a
pleaslng envlronmenL. Pe also soughL
lmmedlaLe approval of Chlef MlnlsLer (CM)
slnce creaLlon of such a large pool of poLLed
planLs would requlre aL leasL Lwo years
Llme. 1he CM approved Lhe proposal ln
AugusL 2008. We could noL flnd any venue
wlse break-up of Lhe planLs requlred or any
oLher yard sLlck ln supporL of Lhe
assessmenL of Lhe requlremenL of Lhe
planLs. 1he SecreLary (L&l), however,
declded ln a meeLlng for arranglng 60 lakh
planLs elLher by local plannlng or lmporLlng
from ouLslde Lhe sLaLe and asslgned Lhe
Lask Lo uuA, MCu, nuMC, loresL
ueparLmenL (lu), and uelhl arks & Carden
SocleLy (uCS) for 10 lakh each, and Wu
and CWu aL 3 lakh each.
21.11 Green|ng of Games
venues by us|ng potted
p|ants
CnC1u sancLloned 8s. 28 crore for Lhls
pro[ecL, of whlch an amounL of 8s. 24 crore
had been spenL by Lhe agencles (under
CnC1u) glven Lhe Lask of arranglng Lhe
poLLed planLs.
We observed LhaL:
1he LargeL for arrangemenL of poLLed
planLs was seL 20 per cenL hlgher Lhan
Lhe amounL esLlmaLed earller and
approved by Lhe CM.
MosL of Lhe poLLed planLs were
procured lnsLead of belng creaLed ln Lhe
deparLmenLal nurserles as orlglnally
envlsaged. Commlssloner of ollce
lnLlmaLed (!une/AugusL 2010) Lo keep
Lhe planLs away from Lhe venues and Lhe
rouLes on accounL of securlLy concerns.
Cf Lhe amounL of 8s. 24 crore spenL on
Lhe procuremenL of Lhe poLLed planLs,
uCS, lu and Wu spenL 8s.10.73 crore
on procuremenL (!une-CcLober 2010) of
18.76 lakh planLs from prlvaLe nurserles/
governmenL nurserles ouLslde Lhe sLaLe
(aL average raLes ranglng beLween 8s.44

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and 8s.63 per planL), even afLer recelpL
of Lhe lnformaLlon from Lhe
Commlssloner of ollce.
1he orlglnal ob[ecLlve of greenlng Lhe
venues could noL be achleved ln Lhe llghL
of Lhe advlce of Commlssloner of ollce,
renderlng Lhe expendlLure wasLeful.
Wu lnformed LhaL posL Cames, of Lhe 3.82
lakh poLLed planLs procured by Lhem, 0.79
lakh perlshed belng seasonal and mosL of
Lhe remalnlng planLs were dlsLrlbuLed Lo
varlous governmenL offlces. We vlslLed Lwo
of Lhose slLes aL random, and could noL flnd
Lhe poLLed planLs sLaLed Lo have been
lssued.
appolnLed as Lhe 1ransacLlon Advlsor (!une

2009) on nomlnaLlon basls for evaluaLlng
LCl submlsslons, daLa collecLlon and pro[ecL
sLrucLurlng, and preparaLlon of bld
documenLs and bld process managemenL.
1he Sl pro[ecL was Lo be lmplemenLed on
8C1 basls, wlLh adverLlsemenLs on Lhe
sLreeL furnlLure creaLed and revenue from
operaLlons durlng Lhe conLracL perlod ln Lhe
form of quarLerly concesslon fee (CCl)
belng Lhe revenue source.
1o achleve unlformlLy ln deslgn of Sl lLems
around a parLlcular venue, ulM1S, ln
consulLaLlon wlLh nuMC/MCu/ Wu
grouped roads around Lhe Cames venues
lnLo flve clusLers - uelhl unlverslLy, lCl
SLadlum, 8.k. khanna 1ennls Complex, Slrl
lorL SporLs Complex and ur. karnl Slngh
ShooLlng 8ange, and Lhe Cames vlllage and
?amuna SporLs Complex.
1he chronology of evenLs for Lhe plannlng
and award of conLracLs for sLreeL furnlLure
ls summarlsed ln 1able 21.7.
21.12 Street furn|ture |n the
v|c|n|ty of Games venues
21.12.1 |ann|ng for Street Iurn|ture
SLreeL lurnlLure (Sl) ls a collecLlve Lerm for
ob[ecLs and pleces of equlpmenL lnsLalled
on sLreeLs and roads for varlous purposes.
As parL of clLy lnfrasLrucLure upgradaLlon,
Lhe sLreeLscaplng and beauLlflcaLlon
consulLanLs (appolnLed beLween May 2008
Lo november 2008 by dlfferenL agencles)
also prepared Lhe sLreeL furnlLure plans for
Lhe Lhree agencles (MCu, Wu and CWu).
1he sLreeL furnlLure lLems Lo be puL up
lncluded lnformaLlon klosks, pollce booLhs,
vendlng klosks, publlc LolleLs, Lree guards,
bus queue shelLers, dusL blns, lnformaLlon
panels, benches and free sLandlng panels.
1he consulLanLs provlded sLreeL furnlLure
drawlngs conLalnlng naLure, quanLum and
locaLlon of Lhe Sl lLems ln accordance wlLh
Lhelr overall landscaplng plan for ldenLlfled
roads.
nuMC was appolnLed as Lhe nodal agency
ln AugusL 2008 for Lhe pro[ecL. ulM1S was
Street furn|ture - ub||c conven|ence
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21.12.2 1ender|ng |rregu|ar|t|es
CuL of elghL companles LhaL responded Lo

Lhe LCl floaLed ln May 2009 by nuMC, flve
companles fulfllled Lhe crlLerla of neL worLh
glven ln Lhe LCl documenL and were also
pre-quallfled for lssulng of 8ls.
!.C.uecaux AdverLlslng vL. LLd.
Craphlsads vL. LLd.
Laqshya Medla vL. LLd.
Adlabs lllms lLd.
PlndusLan ubllclLy vL. LLd.
A slxLh company, MLC, dld noL fulfll Lhe neL
worLh crlLerla, buL was lrregularly pre-
quallfled on Lhe sLrengLh of lLs parenL
company.
Street furn|ture - 1raff|c po||ce booth
1oble 21.7 - cbtoooloqy of veots fot AwotJ of 5tteet lotoltote coottocts
1|me Lvents]Act|v|ty
nuMC appolnLed as nodal agency
SLreeLscaplng consulLanLs appolnLed by dlfferenL agencles
LCl called by nuMC
ulM1S appolnLed as 1ransacLlon Advlsor
ShorL llsLlng of bldders
SLreeL furnlLure requlremenL reporL by ulM1S
lssue of 8l by MCu for 3 clusLers
lssue of 8l by u11uC (on behalf of Wu) for 3 clusLers
Cpenlng of flnanclal blds by MCu and u11uC/ Wu
Award by MCu for clusLers 2,3 and 4 for concesslon perlod of 7 years
Award by u11uC/Wu for clusLers 1, 2, 3, 4 and 3 for concesslon perlod of
13 years
August 2008
May-November 2008
May 2009
Iune 2009
Iune 2009
November 2009
Ianuary 2010
Apr|| 2010
Iebruary] May 2010
March] Iune 2010
May] Iune 2010
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LeLLer of Award fell beyond Lhe daLe of
concluslon of Lhe Cames.
ln case of MCu Loo, slngle blds were
recelved for Lhree clusLers - Craphlsads
for lCl and !Ln Complex clusLer and 8.k.
khanna clusLer, and MLC for Lhe Slrl lorL
SporLs Complex clusLer. 1he slngle blds
were accepLed on Lhe ground LhaL Lhe
capLloned pro[ecLs relaLed Lo Lhe CWC.
1he works were awarded [usL Lhree and
a half monLhs before Lhe Cames, wlLh a
compleLlon perlod of Lhree monLhs.
1he agencles had noL esLlmaLed Lhe
revenue expecLaLlon from Lhe clusLers, and
no reserve prlces were seL. Slnce nearly all
of Lhem (7 ouL of 8) were slngle blds, Lhere
was lack of compeLlLlve Lenslon, and Lhere
ls no assurance regardlng generaLlon of
maxlmum revenue.
1he Lable 21.8 shows wlde varlaLlons
beLween Lhe monLhly concesslon raLes
(calculaLed on a per sq.m basls) across
dlfferenL agencles, whlch furLher conflrms
lnadequaLe explolLaLlon of Lhe full revenue
poLenLlal, and correspondlng undue favour
Lo Lhe blddlng conLracLors.

Lenderlng procedure adopLed by Lhe
agencles:
SelecLlon of slx bldders merely on Lhe
basls of neL worLh flxed for each clusLer
was resLrlcLlve. 1he value of work ln Lhe
deslred fleld ln Lhe lasL few years was
noL consldered aL all. lurLher, u11uC
(whlch lmplemenLed Lhe pro[ecL on
behalf of Wu) and MCu lncreased Lhe
neL worLh crlLerla flxed by nuMC
(dlfferenLly for dlfferenL clusLers),
maklng lL even more resLrlcLlve.
Slx bldders quoLed for four clusLers ln
case of u11uC/ Wu. ln Lhe Lechnlcal
evaluaLlon by Lhe 8oard of Assessors,
Lhe mlnlmum quallfylng marks were
flxed as 70 for Lhe Lechnlcal bld. 1wo
agencles, MLC and PlndusLan ubllclLy
vL. LLd. scored less Lhan 70 marks and
Lhelr flnanclal blds were noL opened.
1hus, ln Lhree ouL of four clusLers, slngle
blds were recelved/ remalned.
8lds for clusLer 3, l.e. Cames vlllage and
?amuna SporLs Complex were re-
Lendered by u11uC wlLh modlfled
numbers of sLreeL furnlLure lLems,
modlfled neL worLh and bld securlLy
requlred from Lhe Lhree ellglble bldders,
glvlng Lhem 7 days for blddlng. 1he
work was awarded Lo Lhe sole bldder
Adlabs lllms LLd (8ellance Medla
World).
lnLeresLlngly, all Lhe four bldders who
had quallfled Lhe Lechnlcal blds for
u11uC/ Wu, secured one conLracL
each. ln our oplnlon, Lhere was no need
for urgency for re-Lenderlng for clusLer
3, slnce Lhe sLlpulaLed Llme for
compleLlon of four monLhs from Lhe

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1oble 21.8 - wlJe tooqe of mootbly coocessloo totes fot stteet fotoltote ltems
Street Iurn|ture
Items
WD]D11DC
Mlnlmum Mlnlmum Maxlmum Maxlmum
WD]D11DC
CWD
Cther
benchmarks
34
32
32
76
124
32
714
606
303
1816
629
397
238
33
20
91
97
-
472
132
48
439
830
-
270
161
161
380
692
139
MCu Plgh
Lnd 1olleLs
(l88
sLaLemenL) -
1291
17
ul - 2983
u1C - 796 Lo
1392
ub||c to||ets
Vend|ng k|osks
o||ce booths
Informat|on ane|s
Iree stand|ng pane|s
Auto pre pa|d booths
(8ange of raLes ln 8s. per sq.m)
1he raLes for Wu/ u11uC and MCu are
comparaLlvely lower, desplLe Lhe concesslon
perlod of 13 years and 7 years (agalnsL Lhe
orlglnal perlod of Lhree years lndlcaLed ln
Lhe LCl). 1he long Lerm revenue loss ls
serlous, alLhough lL cannoL be fully
quanLlfled ln Lhe absence of rellable and
comparable benchmarks.
1he delayed plannlng and award of Sl
conLracLs for dlfferenL clusLers meanL LhaL
mosL were noL ready ln Llme for CWC-2010.
21.12.3 Status
ln facL, Lwo bldders - !C uecaux and Adlabs
- lndlcaLed, even before Lhe award, LhaL
compleLlon would Lake longer, slnce many
of Lhe Sl lLems were lmporLed and dellvery
would Lake Llme.
MosL of Lhe Sl clusLers for u11uC/Wu
(whlch were awarded laLer Lhan MCu) were
lncompleLe, ranglng from 60 - 90 per cenL
for 4 clusLers, wlLh only one clusLer
compleLe as of March 2011. 1he MCu
clusLer had, however, been compleLed as of
March 2011.
17
uepottmeot of lofotmotloo ooJ lobllclty
C
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ZZ
1he project for modernisotion of ue/hi 5treet Liqhtinq 5ystem wos conceived by 6Nc1u in
lune 200, with p/ons to imp/ement it ocross ue/hi within 2 yeors. uetoi/ed /iqhtinq
stondords were prepored in November 200 to be fo//owed by o// the deportments
concerned vit - Pwu, NuMc, ond Mcu. 1he project wos executed on oround 800 km of
ue/hi roods ot o tendered cost of ks. 28 crore.
1he /iqhtinq stondords provided on/y the technico/ porometers of performonce of /omps
ond /uminories . Pwu, whi/e odoptinq the some specificotion stipu/oted the use of o mix of
imported ond indiqenous /uminories for different coteqories of roods. 1he decision on use
of imported /uminories wos token with the opprovo/ of the cM. 5omp/e /uminories of some
of the /eodinq monufocturers were disp/oyed before the cM in 5eptember 2007.
5ubsequent/y, os per the directions of the cM, /uminories consistinq of both indiqenous
ond imported mokes were insto//ed on o somp/e stretch, which wos inspected by the cM in
October 2007. 8osed on the inspection ond opprovo/ of cM, Pwu decided to use imported
/uminories for certoin roods. No technico/ note reqordinq reosons for use of imported
/uminories o/onq with cost benefit ono/ysis wos found on record. 1he decision token by
Pwu reqordinq use of imported /uminories wos o/so odopted by Mcu ond NuMc. 1he
technico/ specificotions did not distinquish ot o// between indiqenous ond imported
/uminories. 1he imported /uminories were procured ot o for hiqher cost thot the
indiqenous /uminories, /eodinq to ovoidob/e extro expenditure of ks. l1.07 crore ocross
the three oqencies.
1he technico/ specificotions for both imported ond indiqenous /uminories were identico/.
ueportment se/ected os opproved, the mode/s demonstroted by the bidders on the bosis of
inspection by cM. kecord of ony techno-economic evo/uotion of the options offered by the
bidders in support of such se/ection wos not documented. consequent/y, mode/s of vorious
componies of vost/y different repute ond of different price ronqe were se/ected ot the
some /eve/. we found thot the procurement price of imported /uminories, which voried
from ks.25,704 to ks.l2,000 per unit, wos for hiqher thon the foir price computed on the
bosis of octuo/ invoice price.
1he owordinq of work in NuMc ofter co//inq of desiqn bosed tenders resu/ted in on extro
expenditure of ks. .77 crore, os work wos oworded to the bidder with hiqher unit rotes for
vorious items. NuMc o/so oworded odditiono/ work of 18.445 km to Phi/ips, incorrect/y
terminq it os deviotions to the oriqino/ controct, but this time without the constroint of
efficient desiqn. whi/e the fino/ meosurements ond poyment on this occount hove not yet
been fino/ised, we be/ieve thot this moy /eod to on odditiono/ /oss of ks. .1l crore.
1
1
llqbt flxtote/ flttloq
Upgradat|on of Street L|ght|ng
of koads |n De|h|
412
ChapLer 22 - upgradaLlon of SLreeL LlghLlng of 8oads ln uelhl
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1he pro[ecL for ModernlsaLlon of uelhl
SLreeL LlghLlng SysLem" was concelved by
CnC1u ln !une 2006 for compleLlon wlLhln
2 years. Accordlngly, sLandards for
lnLegraLed sLreeL llghLlng pro[ecL for uelhl
were released ln CcLober 2006 by CnC1u
and were subsequenLly revlsed ln
november 2006, afLer conslderlng
suggesLlons/ observaLlons of vendors and
lmplemenLlng agencles. 1he sLandards were
Lo be followed by all Lhe agencles. 1he
llghLlng sLandards were deslgned Lo meeL
Lhe followlng ob[ecLlves:
1o adopL Lhe laLesL Lechnology ln sLreeL
llghLlng based on lnLernaLlonal
sLandards adapLed Lo uelhl's condlLlons.
use of energy efflclenL elecLrlcal
equlpmenLs.
use of auLomaLlc swlLchlng on and off
and monlLorlng of sLreeL llghLs, Lhus
savlng energy consumpLlon and
enabllng qulck malnLenance of
equlpmenLs.
lmprovlng Lhe urban landscape of uelhl
repare for CommonwealLh Cames,

2010.
1he sLandards speclfled Lhe Lechnlcal
speclflcaLlons llke Lhe Lype and waLLage of
lamps and lumlnarles, Lhe helghL of elecLrlc
poles, maxlmum spaclng beLween Lhe poles
and deslred lllumlnaLlon levels for varlous
Lypes of roads (uual/slngle carrlageway,
servlce road, sllp road eLc.). 1he sLandards
were brand neuLral.
22.1 Introduct|on
ln vio/otion of the recommendotions of the /iqhtinq stondords, the tenders were
restricted to monufocturers of /uminories of internotiono/ repute, ond hiqher finoncio/
e/iqibi/ity wos stipu/oted, thereby restrictinq the competition. 1he work wos sp/it into
three ports in Pwu, with requirement of not more thon one work to one bidder, reducinq
the competition between the biddinq firms. 4fter once beinq dec/ored disquo/ified, one of
the firms, 5poceoqe wos irrequ/or/y dec/ored quo/ified on subsequent re-ossessment
fo//owinq his oppeo/ to the cM.
we found thot Mcu did not ensure conforminq to the desiqn specificotions qiven in the
/iqhtinq stondords, /eodinq to the use of /orqer number of po/es ond /uminories on certoin
roods ond o consequent ovoidob/e expenditure of ks. 2.54 crore. we o/so suspect post
tender o/terotion of bids in both Phose-l ond Phose-ll of tenderinq in Mcu, which hod
resu/ted in enhoncement of the quoted omount by ks. l.l crore in Phose-l ond by ks. l.l4
crore in Phose-ll.
Modern|sed Street L|ght|ng |n De|h|
1he sLandard also gave guldance on Lhe
conLracLual obllgaLlons Lo be fulfllled by
varlous agencles ln lmplemenLlng Lhe
22.2.1 Dec|s|on on use of |mported
|um|nar|es
1he lnlLlal proposal for sLreeL llghLlng ln
Wu was senL for governmenL approval ln
november 2006 buL was noL sancLloned on
accounL of change ln scope of work. A
revlsed esLlmaLe lnvolvlng use of
lndlgenously manufacLured lumlnarles was
senL ln May 2007 and was accorded
approval ln !une 2007, buL Lhe approval was
wlLhdrawn.
Meanwhlle, Lhe CM deslred (!uly 2007) LhaL
whlle Wu was lmplemenLlng a
comprehenslve plan for sLreeL llghLlng, such
llghLlng may be demonsLraLed on aL leasL
one or Lwo roads ln Llme for ulwall 2007.
Wu lnvlLed spoL quoLaLlons Lo lnsLall sLreeL
llghLlng on a sample sLreLch of roads. 1he
sequence of evenLs ls as deLalled below:
22.2 Use of |mported |um|nar|es
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llghLlng sysLems and malnLenance of Lhese
sysLems.
1he work was lmplemenLed by Wu, MCu
and nuMC. 1he deLalls of lengLh of road
and Lendered cosL for Lhe works under Lhe
Lhree agencles are LabulaLed below:
Agency S.No. koad
Length
(km)
1ota|
1endered
Cost
444.39
238.36
86
134.93
96.33
34.40
WD
MCD
NDMC
1
2
3
1oble 22.1 - 5ommoty of
5tteet llqbtloq wotks
(lo ks. ctote)
We acknow|edge the |mprovement |n
|||um|nat|on |eve|s of De|h| roads,
brought |n by the |mp|ementat|on of a
we|| prepared ||ght|ng standards
document, wh|ch has contr|buted to an
overa|| cons|stency |n |mp|ementat|on
and marked |mprovement |n urban
|andscape and c|ty |nfrastructure.
1oble 22.2 - cbtoooloqy of veots fot 5tteetllqbtloq oo 5omple kooJ
er|od Lvents
SpoL quoLaLlon from Lhree flrms uslng lndlgenous lumlnarles for a

sample sLreLch of roads was lnvlLed.
Second call for spoL quoLaLlon was lnvlLed from Lhe same Lhree flrms
on Lhe same condlLlons. 1he bldders now quoLed for lmporLed and
lndlgenous lumlnarles. Whlle hlllps quoLed only for lndlgenous
lumlnarles, 1rllux quoLed for lmporLed lumlnarles and keselec-
Schreder quoLed for boLh lndlgenous and lmporLed lumlnarles.
1hlrd call for spoL quoLaLlon from Lhree flrms lnvlLed ln Lwo separaLe
secLlons, one each for lmporLed and lndlgenours lumlnarles. 1he work
was however noL execuLed.
Sample lumlnarles of some of Lhe leadlng manufacLurers were
dlsplayed before Lhe CM ln SepLember 2007.
2
lndlgenous and lmporLed lumlnarles lnsLalled on a sample sLreLch
were lnspecLed by Lhe CM, and also by Lhe Wu mlnlsLer.
Iu|y 2007
August 2007
September 2007
Cctober 2007
2
kloq kooJ ftom l1O to kojqbot
Agency
Name
Number of
Imported
Lum|nar|es
Add|t|ona|
Lxpend|ture
Incurred*
10,631
2,337
4,166
17,20S
19.81
4.30
6.76
31.07
WD
MCD
NDMC
1ota|
1oble 22.J - AvolJoble xpeoJltote
oo lmpotteJ lomlootles
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lL may be noLed LhaL Lhls 'A', '8' and 'C'
caLegorlsaLlon of roads was noL speclfled ln
Lhe llghLlng sLandard. 1hereafLer, Wu
revlsed Lhe prellmlnary esLlmaLe by
lncorporaLlng use of lmporLed along wlLh
lndlgenous lumlnarles
1he declslon of Wu on use of lmporLed
lumlnarles on 'A' caLegory roads was also
adopLed by MCu and nuMC. nuMC
speclfled all of lLs roads as 'A' caLegory, and
called Lenders for lmporLed lumlnarles only.
A LoLal of 8s. 43.80 crore was spenL on
procuremenL of lmporLed lumlnarles, wlLh
8s. 28.93 crore by Wu, 8s. 6.31 crore by
MCu and 8s. 10.34 crore by nuMC.
1he lmporLed lumlnarles were procured aL a
cosL much hlgher Lhan Lhe cosL aL whlch
lndlgenous lumlnarles were procured,
|ead|ng to avo|dab|e extra expend|ture of
ks. 31.07 crore across the three agenc|es
(Wu, nuMC, MCu) as LabulaLed below:
Mean|ng|ess d|fferent|at|on between
|nd|genous and |mported |um|nar|es |s
stark|y exemp||f|ed |n the case of a
|um|nary of kese|ec-Schreder make
(Ambar-3), procured by WD as an
|nd|genous |um|nary at ks. 1S,160 but by
MCD as an |mported |um|nary at over
tw|ce the cost at ks.32,000.
8ased on the |nspect|on and approva| of
CM, WD dec|ded to use |mported
|um|nar|es on 'A' category roads, a m|x of
|mported and |nd|genous |um|nar|es on
'8' category roads, and on|y |nd|genous
|um|nar|es on 'C' category roads.
Ambar-3, Imported (MCD), r|ce: ks.32,000
Ambar-3, Ind|genous (WD), r|ce: 1S,160
(lo ks. ctote)
* Aqolost ovetoqe ptocotemeot cost of loJlqeooos lomlooty
(400 w ooJ 250w) of ks. 8600 lo Mcu
10 Lo 13 per cenL more efflclency as

measured by Lhe hlgher llghL ouLpuL
raLlo
8eLLer aesLheLlc appearance and flnlsh
Lower malnLenance cosL
We are of Lhe vlew LhaL Lhe deparLmenL's
reasonlng regardlng superlorlLy of lmporLed
lumlnarles on accounL of hlgher llghL ouLpuL
raLlo ls essenLlally an afLerLhoughL Lo [usLlfy
Lhelr declslon. lf llghL ouLpuL raLlo was
consldered such a crlLlcal performance
parameLer, lL should have been lncluded ln
Lhe llghLlng sLandard lssued by CnC1u, and
also speclfled by Wu as a requlremenL for
lmporLed lumlnarles, whlch was noL done.
lurLher, producL brochures of none of Lhe
lumlnarles used ln Wu (lndlgenous or
lmporLed) speak abouL Lhe llghL ouLpuL
raLlo, leL alone sLaLe lLs value. Cf Lhe
lumlnary LesL reporLs supplled by Lhe
deparLmenL, we found LhaL Lhe llghL ouLpuL
raLlo of lmporLed lumlnarles varled from
78.4 Lo 88.9, whlle for lndlgenous
lumlnarles, lL varled from 73.3 Lo 89.3. 1hls
ls aL varlance wlLh Lhe deparLmenL's
asserLlon Lhe lmporLed lumlnarles havlng
efflclency greaLer Lhan Lhe lndlgenous
lumlnarles by 10 Lo 13 per cenL.
no documenLary evldence has been
provlded regardlng lower malnLenance
cosLs for lmporLed lumlnarles. ln any case,
all lumlnarles are under a slx year
comprehenslve malnLenance conLracL, and
none of Lhe bldders were asked Lo quoLe
separaLely for malnLenance of lndlgenous
and lmporLed lumlnarles, as should have
been Lhe case lf Lhe malnLenance cosLs
were known Lo be subsLanLlally dlfferenL.
ln Lhe case of selecLlon of lumlnarles of CL
(Ceneral LlecLrlc) and Al-8abLaln brands
offered by SpaceAge, no evldence of any
on-slLe demonsLraLlon was found on record.
lurLher, aL Lhe Llme of award of work Lo
SpaceAge, Lhe Works Advlsory 8oard
(SepLember 2008) had deslred LhaL
lumlnarles of CL make should be used by
SpaceAge. Wu was unable Lo enforce Lhe
same, and could noL prevenL SpaceAge
from lnsLalllng lumlnarles of Al-8abLaln
make ln place of CL.
ln reply Lo our observaLlons on use of
lmporLed lumlnarles leadlng Lo avoldable
expendlLure, Wu sLaLed LhaL Lhese were
speclfled for use on selecLed roads on
accounL of Lhe lmporLed lumlnarles havlng
Lhe followlng advanLages over Lhe
lndlgenous ones:
22.2.2 Manner of enro|ment of |mported
|um|nar|es
1he Lechnlcal speclflcaLlons for boLh
lmporLed and lndlgenous lumlnarles were
ldenLlcal, and Lechnlcal LesL reporLs of Lhe
lmporLed and lndlgenous lumlnarles
supplled by Lhe varlous flrms were equally
compllanL wlLh speclflcaLlons for lumlnarles
glven ln Lhe llghLlng sLandards.
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WD se|ected and enro||ed as approved,
the mode|s demonstrated by the
b|dders, except SpaceAge who was
dec|ared qua||f|ed |ater, on the bas|s of
|nspect|on by the CM. We cou|d not f|nd
any techno-econom|c eva|uat|on of the
opt|ons offered by the b|dders |n
support of such se|ect|on. Consequent|y,
mode|s of var|ous compan|es of vast|y
d|fferent repute and of d|fferent pr|ce
ranges were se|ected at the same |eve|.
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22.3.1 n|gh cost procurement of |mported
|um|nar|es
AudlL scruLlny of Lhe acLual prlce of Lhe
lmporLed lumlnarles LhaL had been lnsLalled
by Lhe successful bldders, as ascerLalned
from Lhe lnvolces, revealed a wlde gap
beLween Lhe lmporLed prlce, and Lhe prlce
pald by Lhe deparLmenL for Lhe flLLlngs, as
glven ln Lhe Lable below:
We found LhaL Lhe procuremenL process dld
noL ensure procuremenL aL compeLlLlve
raLes, as explalned below:
22.3 n|gh Cost of procurement
of |um|nar|es
1oble 22.4 - wlJe qop betweeo lmpott ptlce ooJ
ptlce octoolly polJ fot lmpotteJ lomlootles
Cost |nc|ud|ng
mark up
(fa|r r|ce)
Contracted
rocurement
r|ce
n|gher pr|ce
pa|d per
Lum|nary
Name of Lxecut|ng
Agency
Make & 8rand
WD, 2one M1
WD, 2one M2
WD, 2one M3
MCD
MCD
NDMC
1rllux: Lumega 900
Schreder: Maya-Maxl /
Sapphlre 3
Al-8abLaln-
smarL /03
Schreder: Ambar 3
hlllps: Modena
hlllps: Modena
26,222
16,323
9,318
11,082
22,660
22,386
28,242
26,371
23,704
31,328*
26,421*
24,819*
2,020
10,046

16,386

20,246

3,761

2,433
* welqbteJ Avetoqe cost of ptocotemeot
1he cosL of procuremenL by all agencles was
subsLanLlally hlgher Lhan Lhe falr prlce
3
lncludlng mark up , belng hlgher by 8
percenL Lo 183 percenL. 1he selecLlon of
lmporLed lumlnary makes and flxlng of Lhelr
base prlce aL hlgh levels, parLlcularly ln case
of SpaceAge and keselec Schreder, was ln
vlolaLlon of flnanclal proprleLy. A pr|ce
prem|um was be|ng pa|d s|mp|y on
account of the |um|nar|es be|ng |mported.
Consequent|y, contractors managed to
earn extra prof|t of ks. 10.33 crore.
22.3.2 n|gh cost procurement of
Ind|genous |um|nar|es |n WD
We noLlced LhaL boLh Wu and MCu had
used a comblnaLlon of lndlgenous and
lmporLed lumlnarles for Lhelr sLreeL llghLlng
pro[ecLs. 1he analysed raLe for provldlng
and flLLlng of lndlgenous lumlnary by Wu
was 8s. 13,322 per unlL (hlllps veloclLy
400W) based on a slngle quoLaLlon,
whereas Lhese (Model MC3 by keselec-
Schreder and Model veloclLy by hlllps)
were supplled ln MCu by Lwo leadlng
manufacLurers aL 8s. 9100 per unlL.
3
locloJloq cottoqe, 5l1c, cost of bolb, coottoctot ptoflt of
10 pet ceot fot lwu ooJ 15 pet ceot fot Mcu ooJ NuMc
ooJ cost of moloteoooce Jotloq tbe uefect lloblllty
letloJ (ull).
(lo ks.)
noL speclfy how Lhe clause would be
assessed and was very selecLlvely applled.
Whlle lnlLlally, Spaceage SwlLchgear lndla
LLd. was found as lnellglble, and laLer found
ellglble durlng reassessmenL done when Lhe
flrm represenLed Lo Lhe CM, lLs compllance
wlLh requlremenL of belng a manufacLurer
of lumlnarles of lnLernaLlonal repuLe was
never assessed. 1he vendor lnsLalled
lumlnarles from a Saudl Arablan flrm, Al
8abLaln, wlLh whom Lhe vendor had no
declared sLandlng relaLlonshlp, puLLlng Lo
quesLlon Lhe ellglblllLy of Lhe vendor as a
manufacLurer of lumlnarles of lnLernaLlonal
repuLe.
1he resLrlcLlve clause was used Lo re[ecL Lwo
flrms, SLreeL Scape, AusLralla and uLkal
Calvanlzers LLd on Lhe grounds LhaL Lhey dld
noL have lumlnarles' manufacLurers as lead
parLners.
Wu, ln lLs reply, sLaLed LhaL Lhe compeLenL
auLhorlLy, Chlef englneer, had Laken Lhe
declslon LhaL lumlnary manufacLurers
should be made lead parLner for execuLlon
of work for Lhe followlng reasons:
proper malnLenance of Lhe lumlnarles
durlng Lhe 6 year malnLenance perlod.
genulneness of Lhe supplles
Lhelr percepLlon LhaL only a few repuLed
lumlnary manufacLurers are equlpped
for provldlng deslgn work for
lllumlnaLlon.
ln our vlew, Lhe beneflLs of lncreased
compeLlLlon could have been broughL ln by
complylng wlLh Lhe CnC1u prepared
llghLlng sLandards requlremenL of Lhe maln
conLracLor procurlng Lhe lumlnarles from
Lhe manufacLurers. Such beneflLs would
have been far ln excess of Lhe percelved
beneflLs sLaLed by Wu.
1hus, Lhe execuLlon of lLems of Lhe same

make aL hlgher raLe by Wu resulLed ln an
exLra expendlLure of 8s. 3.39 crore.
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22.4.1 Cond|t|ons |n LCI
1he llghLlng sLandards prescrlbed pre-

quallflcaLlon crlLerla for Lhe prospecLlve
bldders. 8oLh Wu and MCu prescrlbed
more resLrlcLlve ellglblllLy crlLerla for
flnanclal and Lechnlcal capablllLy, whlle
nuMC used Lhe llsL of vendors declared
ellglble by Wu.
We found LhaL Wu kepL Lhe requlred
annual Lurnover aL 8s. 40 crore ln place
of 8s. 20 crore lndlcaLed ln Lhe llghLlng
sLandards, Lhereby resLrlcLlng
parLlclpaLlon. 1he llmlL also exceeded 30
per cenL of esLlmaLed cosL crlLerla of
CvC. MCu made Lhe prequallflcaLlon
crlLerla for boLh Lhe phases sLrlcLer by
flxlng Lhe condlLlon of average annual
Lurnover aL 30 percenL of esLlmaLed cosL
durlng Lhe lasL seven years lnsLead of
Lhree years.
1he llghLlng sLandards sLlpulaLed LhaL
tbe molo coottoctot sboll ptocote ltems
ftom tespectlve mooofoctotets."
Powever, boLh Wu and MCu ln Lhelr
LCl speclflcally sLaLed LhaL Lhe bldder
should be a manufacLurer of lumlnarles
of lnLernaLlonal repuLe. 1hls severely
resLrlcLed Lhe compeLlLlon, and gave
dlsproporLlonaLe leverage Lo Lhe
lumlnary manufacLurers ln conLrolllng
Lhe blddlng process.
1he parameLer of belng a lumlnary
manufacLurer of lnLernaLlonal repuLe" dld
22.4 kestr|ct|ve and ant|-
compet|t|ve cond|t|ons |n
tender|ng
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8oA, who, Lhls Llme, found Lhe flrm Lo be
quallfled.
We found LhaL Lhe followlng aspecLs of Lhe
re-evaluaLlon, leadlng Lo an lncrease ln Lhe
score from 48 Lo 67 (ouL of 83), as
unreasonable:
1he score for experlence ln slmllar class
of work lncreased from 10 Lo 13 (ouL of
13), Lhough Lhe relevanL work was done
by anoLher flrm, relaLed by havlng a
common ma[orlLy shareholder, buL
whlch was ln facL, a separaLe legal
enLlLy, and noL a parL of Lhe blddlng
enLlLy as a !v or consorLlum member.
1he flrm dld noL submlL any new
flnanclal sLaLemenLs ln supporL of Lhe
requlred average annual Lurnover, yeL lLs
score lncreased from 10 Lo 19 (ouL of
19).
1he flrm dld noL submlL any new
documenLs relaLlng Lo personnel,
esLabllshmenL, and planL and
equlpmenL, yeL lLs score ln Lhls regard
lncreased from 10 Lo 12.
1he score on presenLaLlon before Lhe
8oA was also lncreased from 13 Lo 16.
1he flnanclal bld of SpaceAge was Lhe
lowesL for M3 zone buL Lhe Works Advlsory
8oard (WA8) dld noL approve Lhe award of
work ln March 2008 on Lhe grounds LhaL
Lhe flrm had already been re[ecLed by Lhe
8oA, and Lhe reassessmenL and subsequenL
4
lncluslon was lmproper .
22.4.2 D|v|s|on of work |n WD

1he sLreeL llghLlng work ln Wu was dlvlded
lnLo Lhree parLs (AugusL 2007) on Lhe
grounds of admlnlsLraLlve convenlence and
early compleLlon, buL wlLh Lhe apparenL
lnLenLlon of glvlng one work each Lo each of
Lhe Lhree shorLllsLed (lnlLlally) flrms.
lurLher, nl1 sLlpulaLed LhaL only one work
alone would be glven Lo one conLracLor.
1hls condlLlon conLrlbuLed Lo lesser
compeLlLlon among Lhe pre-quallfled
vendors as only one among Lhe four pre
quallfled bldders ran Lhe rlsk of noL wlnnlng
any bld.
22.4.3 Irregu|ar|t|es |n assess|ng
qua||f|cat|on of a f|rm |n WD
SpaceAge SwlLch Cears LLd. submlLLed (!uly

2007) LCl as a manufacLurer of lumlnarles
of lnLernaLlonal repuLe, and of poles ln
lndla. 1he bld by Lhe flrm was nelLher as a
!v nor as a consorLlum, buL was ln Lhe name
of Spaceage SwlLch Cears LLd.
1he 8oard of assessors (8oA) dlsquallfled
(november 2007) Lhe flrm on Lhe followlng
grounds:
non supply of lmporLed as well as
lndlgenous flLLlngs.
non clarlflcaLlon of works done by Lhelr
forelgn concern.
1he flrm could noL obLaln Lhe requlred
quallfylng marks of 73 ouL of 100,
scorlng only 48 marks ouL of 83.
Cn belng dlsquallfled by Lhe 8oA, Lhe flrm
appealed (november 2007) Lo Lhe CM for
lncluslon as a Lenderer for Lhe work. 1he
vendor's plea Lo Lhe CM was forwarded Lo
Lhe L-ln-C. SubsequenLly, a re-assessmenL of
Lhe ellglblllLy of Lhe flrm was done by Lhe
4
loclJeotolly, two of tbe membets fotmloq tbe 8oAs wete
olso membets of tbe wA8, bot botb tbe Jlomettlcolly
opposlte Jeclsloos teqotJloq tbe fltm's ellqlblllty boJ
beeo tokeo oooolmoosly.
All Lhe agencles followed dlfferenL
approaches for calllng of Lenders. Wu
called Lenders based on percenLage raLe,
MCu adopLed lLem raLe Lender, whlle
nuMC called for deslgn based Lenders.
1he esLlmaLes for Lhe sLreeL llghLlng work
prepared by Wu was based on markeL
raLe, buL Wu resorLed Lo percenLage raLe
Lenderlng lnsLead of lLem raLe, ln
conLravenLlon Lo Lhe provlslons of Lhe
CWu manual.
1he cosLs of Lhe followlng lLems were over-
esLlmaLed by Wu wlLh dlrecL lmpllcaLlon
on Lhe flnal cosL of procuremenL:
Imported |um|nar|es: 1he esLlmaLed
raLe for lmporLed lumlnarles was kepL aL
8s. 27,000 per unlL agalnsL Lhe average
22.S.1 Def|c|ency |n tender|ng |n WD
22.3.1.1 lncorrecL use of percenLage

raLe Lender by Wu
22.S Def|c|enc|es |n 1ender|ng
and award of work
S
cosL of lmporLed lumlnarles acLually
used belng 8s. 17,288, whlle Lhe
mlnlmum cosL was [usL 8s. 9,318.
Ind|genous |um|nar|es: 1he esLlmaLed
cosL Laken by Lhe deparLmenL for
lndlgenous lumlnarles was 8s. 13,322,
buL Lhe same flLLlngs were supplled ln
MCu aL raLes of 8s. 8000 Lo 8s. 9200 per
unlL.
o|e (12 m): 1he base raLe of 8s. 26,730
Laken for esLlmaLlon of cosL of 12 meLre
pole was lncluslve of all charges for
fabrlcaLlon, supply and erecLlon eLc. buL
Lhe same was agaln loaded, Lhereby
lnflaLlng Lhe cosL of a pole Lo 8s. 31,302.
Wu lncluded Lhe lLem of rebaLe ln Lhe
Lender on accounL of adverLlsemenL Lo be
quoLed by each bldder for a perlod of flve
years. Powever, Lhls lLem was lncluded ln a
separaLe secLlon, Subhead-C of Lhe Lender,
whlch was noL Lo be consldered for bld
evaluaLlon. Pence, Lhe conLracLors were
under no compulslon Lo glve compeLlLlve
raLes.
As a resulL, Lhe successful bldder of zone
M2 dld noL quoLe aL all for adverLlsemenL
rlghLs, whlle ln M1 and M3, Lhe raLes
quoLed were 8s. 1230 and 8s. 300 per pole
per monLh. 1he deparLmenL had no opLlon
buL Lo ca[ole Lhe bldder ln zone M2 Lo
quoLe a prlce of 8s. 730 whlle Lhe wlnnlng
bldder of M3 lncreased hls offered prlce Lo
8s. 730 per pole per monLh. 1hus, Lhe raLes
for adverLlsemenL rlghLs were noL
deLermlned compeLlLlvely, buL were glven
22.3.1.2 Selllng of adverLlsemenL rlghLs ln

Wu wlLhouL compeLlLlve blddlng
process
1he flrm approached (May 2008) Lhe
Pon'ble uelhl Plgh CourL whlch quashed
Lhe declslon of WA8 of re[ecLlon of Lender
(!uly 2008). ConsequenLly, and ln vlew of
urgency of work, Lhe CovernmenL declded
(SepLember 2008) Lo award Lhe work Lo Lhe
flrm.
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locloJloq cost of bolb, cottoqe, ooe yeot moloteoooce
ooJ coottoctot ptoflt of teo petceot.
1he f|rm, SpaceAge, went on to supp|y
|ow cost |mported |um|nar|es of Saud|
make, cost|ng ks.S,040, and charg|ng
ks.2S,704 for the same and |n the process
earn|ng super prof|ts of ks.2.68 crore.
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lnsLalllng 10 m poles on 80 feeL (24 m) wlde
road.
We are of Lhe vlew LhaL such approval,
Laken wlLhouL a Lechno-commerclal
evaluaLlon of Lhe lmpacL, and ln vlolaLlon of
Lhe already lssued llghLlng sLandard was
lncorrecL.
1he llghLlng sLandards provlded for use of
130 waLL Pl1 (MeLal Pallde) lamps for
pedesLrlan crosslng, sllp roads and bus bays.
Powever, MCu speclfled decoraLlve
lumlnarles uslng 140 waLL lamp of a
parLlcular brand, Cosmopolls ln Lhe
agreemenL. As per records, a LoLal of 670
such Cosmopolls lamp flLLlngs aL a cosL of
8s.13,000 per unlL were used, whereas
comparable 130 waLL PSv flLLlngs were
avallable aL 8s. 7800. ln Lhese flLLlngs, Lhe
PSv lamps could have been replaced wlLh
130 waLL meLal hallde lamps for provldlng
whlLe colour llghL, as done by Wu. 1hus,
speclfylng decoraLlve lumlnarles wlLh
Cosmopolls lamps ln place of sLandard
lumlnarles wlLh meLal hallde lamps resulLed
ln exLra cosL of 8s. 0.48 crore.
As per Lhe CWu manual, Lhe offlcer
openlng Lhe Lenders should enclrcle all
correcLlons, cuLLlngs, condlLlons and over-
wrlLlngs, number Lhem and aLLesL Lhem ln
red lnk on each page of Lhe prlce bld lLself,
lndlcaLlng LhaL Lhe cuLLlngs, over-wrlLlngs
and correcLlons were made before
submlLLlng Lhe bld.
22.3.2.2 LxLra cosL of 8s.0. 48 crore due Lo
speclfylng decoraLlve lumlnarles
uslng lamps of a parLlcular brand
ln MCu
22.3.2.3 SuspecLed posL-Lender alLeraLlon
ln prlce blds ln MCu
away as a reward for wlnnlng Lhe bld aL any
prlce LhaL Lhe wlnner deemed approprlaLe.
1he selllng of adverLlsemenL rlghLs wlLhouL
compeLlLlve blddlng ls hlghly lrregular and
has poLenLlally led Lo loss ln revenue.
In the present scenar|o, where|n non
compet|t|ve b|dd|ng prevented
determ|nat|on of true va|ue for the
advert|sement r|ghts and th|s component
of the agreement |s yet to be executed,
the department shou|d exp|ore the
opt|on of exp||c|t|y scrapp|ng th|s part of
the agreement.
22.S.2 Def|c|ency |n award of work |n
MCD
We found LhaL Lhe llghLlng sLandards were
noL complled wlLh on many dual
carrlageway roads, where 10 meLre poles
had been used ln place of Lhe prescrlbed 12
meLre poles.
1hls led Lo an esLlmaLed avoldable exLra
expendlLure of approxlmaLely 8s. 2.34 crore
due Lo use of larger number of poles and
lumlnarles. lL was also seen LhaL ln hase-l
of execuLlon, Lhe offered prlce of a 10
meLre pole (8s. 28974) was more Lhan Lhe
prlce of a 12 meLre pole (8s. 28338) due Lo
suspecLed posL bld Lamperlng. lnsLallaLlon
of a 10 meLre pole was more lucraLlve Lo
Lhe conLracLor Lhan Lhe 12 meLre pole.
MCu, ln reply Lo our observaLlon, sLaLed
LhaL Lhe deslgnlng was done based on slLe
condlLlons, and LhaL approval of Lhe
compeLenL auLhorlLy, L-ln-C, was Laken for
22.3.2.1 Avoldable expendlLure of 8s. 2.34
crore due Lo non-compllance wlLh
deslgn speclflcaLlons
1he posslblllLy of Lhese alLeraLlons aL posL
Lender sLage cannoL be ruled ouL. 1he LoLal
resulL of enhancemenL of quoLed amounL
by such alLeraLlons was 8s. 3.63 crore.
A slmllar paLLern of alLeraLlon of blds was
seen ln hase-ll also ln Lhe case of blds of
Lhe same bldder, Sweka ower 1ech
Lnglneers vL. LLd. ScruLlny of prlce bld of
Sweka ower 1ech Lnglneers vL. LLd. (L-l)
revealed LhaL Lhere were cuLLlngs/over
wrlLlngs/correcLlons ln Lhe quoLed raLes of
several lLems. 1he correcLlons made ln Lhe
quoLed raLes agalnsL Lhe above sald lLems
were noL enclrcled lndlvldually.
lL ls suspecLed LhaL Lhe correcLlons ln Lwo
lLems have been made afLer openlng of
Lenders. 1he neL effecL of Lhe suspecLed
Lamperlng was enhancemenL of Lendered
amounL by 8s. 3.34 crore, whlle sLlll keeplng
lL below Lhe nexL hlgher bldder (L-2) by 8s.
4.69 crore l.e. wlLhouL changlng Lhe overall
sLaLus of L-1 bldder.
1he deLalls of Lhe alLeraLlon are shown ln
Annexe-22.1
nuMC opLed for a deslgn based approach",
whereln each bldder was asked Lo submlL
road wlse deslgn and compuLe Lhe quanLlLy
for each lLem requlred Lo meeL Lhe LargeL
lllumlnaLlon level and Lo quoLe Lhe raLes for
lLems requlred. 1he llghLlng sLandard dld
noL provlde for calllng Lenders on deslgn
basls.
We are of Lhe vlew LhaL deslgn based Lender
does noL ensure procuremenL of lLems aL
Lhe lowesL cosL. ueslgn based Lender" has
22.S.3 Def|c|ency |n tender|ng]award of
work |n NDMC
22.3.3.1 Calllng of deslgn based Lender by
nuMC and consequenL loss
1hese condlLlons were vlolaLed ln Lhe
Lenderlng for boLh phases of Lhe work ln
MCu. 1he wlnnlng bld of Sweka owerLech
for hase-l and hase-ll had large number
of over wrlLlngs/ correcLlons/ alLeraLlons. ln
nelLher of Lhe blds dld Lhe conLracLor flll up
Lhe column for 'AmounL' ln Lhe schedule of
quanLlLy, and Lhe LoLal for Lhe bld was
sLruck and recorded only ln one case
(hase-ll).
1he maLLer ls under lnvesLlgaLlon by C8l.
hoLocoples of Lhe records were obLalned
from C8l for Lhe purpose of audlL.
A scruLlny of prlce bld of Sweka ower 1ech
Lnglneers vL. LLd. (L-1) for hase-l revealed
many cuLLlngs and over wrlLlngs ln Lhe raLes
of lLems quoLed ln Lhe schedule of
quanLlLles. 1he cerLlflcaLes recorded by Lhe
accounLanL elLher dld noL Lally wlLh Lhe
number of correcLlons made ln Lhe page or
Lhe cerLlflcaLes Lhemselves had cuLLlngs/
overwrlLlng. ln all Lhe cases where such
overwrlLlng and correcLlons ln raLes were
noLlced, Lhe flnal effecL was Lo enhance Lhe
quoLed prlce and noL vlce versa. 1he
correcLlons ln flgures have been done ln a
manner as Lo mlnlmlze Lhe physlcal
alLeraLlon ln Lhe number by resLrlcLlng Lhe
changes Lo a slngle dlglL, leadlng Lo an
lncrease ln Lhe amounL. lurLher, Lhe
correcLlons had noL been asslgned separaLe
numbers as requlred.
AnoLher correcLlon noLed was ln Lhe
dlscounL offered by Lhe flrm ln Lhe form of a
noLe aL Lhe end of Lhe quoLed raLes whlch
read-paymenL wlll be released wlLhln 10
days afLer submlsslon of Lhe 8A blll, Lhen
we are ready Lo glve dlscounL of nll per cenL
on Lhe LoLal amounL". ln Lhls case also,
Lhere was apparenL Lamperlng, by changlng
1 per cenL Lo nll per cenL by preflxlng 'nl' Lo
1 per cenL.
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28.69 crore, whlch ls less Lhan Lhe amounL
quoLed by hlllps by 8s. 6.77 crore.
ln reply Lo our observaLlon, nuMC sLaLed
LhaL deslgn based Lenders raLher Lhan
convenLlonal mode were lnvlLed keeplng ln
vlew Lhe speclal needs of Lhe nuMC area
wlLh lLs dense Lree cover.
ln our oplnlon, Lhe deslgn" could have
been elLher done ln-house or could have
been execuLed as a separaLe consulLancy
asslgnmenL, Lhereby provldlng a level
playlng fleld Lo obLaln compeLlLlve raLes for
each lLem of work. 1hls could have saved
Lhls huge premlum of 8s. 6.77 crore, whlch
was oLherwlse earned by hlllps on Lhe
basls of Lhelr deslgn.
Chalrman, nuMC gave approval for
addlLlonal work of 18.443 km for 14 roads
and servlce/ sllp roads whlch were noL parL
of Lhe orlglnal agreemenL. 1he works were
awarded on Lhe same raLes as Lhe exlsLlng
conLracL for sLreeL llghLlng wlLh hlllps
(awarded ln AugusL 2009) under Lhe
devlaLlon clause sLaLlng LhaL Lhe lncrease ln
quanLlLy was under Lhe devlaLlon llmlL of 23
percenL. ln Lhls case, Lhe addlLlonal work
valulng 8s. 7.38 crore was for new roads noL
covered by Lhe orlglnal agreemenL, and
hence could noL be consLrued as devlaLlon
ln quanLlLy alone. 1hls was noL even
approved by Lhe Councll-Lhe compeLenL
auLhorlLy. nuMC lnLlmaLed LhaL Lhe Councll
ln lLs meeLlng held subsequenLly on 23rd
lebruary 2011, raLlfled Lhe expendlLure. We
found LhaL Lhe agenda noLe puL up for
approval of Lhe Councll ln Lhls regard made
no menLlon of Lhe audlL ob[ecLlon
communlcaLed Lo nuMC.
22.3.3.2 lrregular award of work ln nuMC
under devlaLlon clause leadlng Lo
loss
also acLually placed hlllps aL an
advanLageous poslLlon wlLh respecL Lo
oLher bldders, as desplLe quoLlng hlgher
(lLem wlse) for each of Lhe key lLems,
hlllps managed Lo be lowesL(L-1) bldder
due Lo proposlng use of lower quanLlLles of
varlous lLems.
hlllps was Lhe lowesL wlLh Lendered
amounL of 8s. 34.40 crore agalnsL 8s. 37.32
crore quoLed by SpaceAge (second lowesL).
1he scruLlny of raLes of 10 ma[or lLems
formlng 88.44 per cenL of gross Lendered
cosL (of hlllps) of 8s. 33.46 crore revealed
LhaL ln none of Lhese lLems was hlllps Lhe
lowesL bldder. 1he overall bld amounL of
hlllps was lowesL only due Lo Lhelr
proposed deslgn lnvolvlng lower
consumpLlon of varlous lLems. lor lnsLance,
Lhe deslgn proposed by hlllps lnvolved
use of 3813 poles and 4166 lumlnarles
agalnsL Lhe esLlmaLed quanLlLy of 6364 and
9329 respecLlvely, whlle Lhe quanLlLles
quoLed by second lowesL bldder were 6492
poles and 7126 lumlnarles.
Lven Lhe 1echnlcal LvaluaLlon CommlLLee
(1LC) was unable Lo assess Lhe dlfferenL
deslgns due Lo wlde varlaLlon ln number of
poles and oLher lnfrasLrucLure offered Lo be
lnsLalled by Lhe bldders. lL flnally
recommended LhaL Lhe prlce blds may be
opened afLer obLalnlng an underLaklng from
all Lhe four blddlng flrms LhaL Lhey would
noL charge for any exLra work/
lnfrasLrucLure requlred Lo be provlded ln
case Lhe requlred levels of lllumlnaLlon as
per nl1 speclflcaLlon were noL meL wlLh
Lhelr deslgn.
We observed LhaL Lhe second lowesL bldder
l.e. SpaceAge aL Lhe quoLed quanLlLy of
hlllps could have execuLed Lhe work aL 8s.
none of Lhe agencles could compleLe Lhe
pro[ecL wlLhln Lwo years as planned.
Wu planned ln !une 2007 Lo compleLe Lhe
pro[ecL by lebruary 2009. 1he pro[ecL was
execuLed as 3 separaLe packages ln Lhree
Wu zones, buL Lhe work was flnally
compleLed by SepLember 2010 afLer a delay
of abouL 19 monLhs. 1here was delay aL
every sLage, wlLh delay ln awardlng of work
lLself of abouL 11 monLh. 1here were delays
ln execuLlon Loo, as Lhe work sLlpulaLed Lo
be compleLed by !anuary 2010 was also
delayed by abouL elghL monLhs.
lurLher, Wu has noL declded Lhe penalLy
Lo be lmposed on accounL of delay, as none
of Lhe Lhree conLracLors had submlLLed Lhelr
flnal bllls (Lhough Lhey have been lssued
physlcal compleLlon cerLlflcaLe ln AugusL/
SepLember 2010).
1he sLlpulaLed daLe of compleLlon for
phase-l was 9 !uly 2009. Powever, a
cerLlflcaLe was lssued (!anuary 2011)
lndlcaLlng provlslonal compleLlon on 2
AugusL 2010. MCu nelLher sancLloned LC1,
nor recovered llquldaLed damages of 8s.
3.43 crore for a delay of 33 weeks.
AfLer lapse of Lhe sLlpulaLed daLe of
compleLlon of 7 !uly 2010 for hase ll, Lhe
conLracL value was enhanced from 8s.60.74
crore Lo 8s.73.36 crore by awardlng
addlLlonal work on 24 !uly 2010 wlLh
sLlpulaLed daLe of compleLlon exLended Lo
uecember 2010. 1he LoLal work was
subsequenLly resLrlcLed Lo 8s.61.99 crore
22.6.1 De|ays |n WD
22.6.2 De|ays |n MCD
Loss to NDMC on account of award of
add|t|ona| work under dev|at|on c|ause
1he exlsLlng agreemenL wlLh hlllps was
deslgn based, where Lhe work was
awarded on accounL of Lhe bld belng of
lowesL LoLal cosL, and noL necessarlly
Lhe lowesL ln unlL cosL of Lhe lLems.
1hus, award of addlLlonal work Lo
hlllps aL lLs quoLed (hlgher) lLem raLes
led Lo an addlLlonal loss of 8s. 1.43
crore, when compared wlLh Lhe raLes of
second lowesL bldder.
As per Lhe LenLaLlve execuLlon daLa
provlded by nuMC, Lhe addlLlonal work
on 14 roads led Lo an excess
expendlLure of 8s. 1.30 crore beyond
whaL would have enLalled lf Lhe roads
had orlglnally been lncluded ln Lhe
conLracL, and opLlmally deslgned.
AgalnsL Lhe pro-raLa cosL of 8s. 7.37
crore, hlllps has submlLLed a blll of 8s.
6
11.03 crore .
1he full execuLlon/conslderaLlon of proposal
of hlllps as per Lhe clalm submlLLed would
flnally enLall a LoLal cosL of 8s.12.06 crore
for addlLlonal work, leadlng Lo an lncrease
ln Lhe currenLly compuLed loss flgure of
8s.1.30 crore Lo 8s. 4.68 crore, ln addlLlon
Lo Lhe loss of 8s. 1.43 crore lncurred on
accounL of hlgher raLes of hlllps durlng
award of addlLlonal work. 1he LoLal loss on
accounL of award of work ls, Lherefore,
esLlmaLed aL 8s. 6.13 crore.
nuMC, ln lLs reply, sLaLed LhaL paymenL for
addlLlonal work would be resLrlcLed on pro-
raLa basls or on Lhe acLual quanLlLy
execuLed, whlchever was less.
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8lll fot 2.5 kM of tooJ leoqtb owotJeJ lo Octobet 2010,
wltb pto-toto cost estlmote of 1 ctote bos oot yet beeo
sobmltteJ
22.6 De|ay |n pro[ect |n|t|at|on
and comp|et|on
424
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process. 1enders were lnvlLed ln March
2009 afLer a delay of 14 monLhs, and lL Look
anoLher flve monLhs Lo award Lhe work. 1he
conLracLor was glven addlLlonal work for
18.43 km beLween uecember 2009 and
CcLober 2010, whlch would lmply a
proporLlonaLe lncrease ln Lhe Llme perlod
up Lo november 2010. 1he execuLlon of
work was delayed by more Lhan Lwo
monLhs, and nuMC had nelLher lssued
compleLlon cerLlflcaLe nor recorded Lhe
flnal measuremenL. lurLher, compensaLlon
for delay valulng 8s. 1.23 crore was also noL
levled.
for a LoLal road lengLh of 160.3 km on 03
AugusL 2010, buL Lhe sLlpulaLed daLe of
compleLlon was noL changed. 1hough Lhe
cerLlflcaLe for provlslonal compleLlon of
work was lssued on 24 SepLember 2010, no
Llme exLenslon was sancLloned.
We have compuLed Lhe delay ln compleLlon
by 30 days, wlLh a correspondlng Lu of
8s.4.23 crore, whlch has noL been levled by
MCu.
AfLer approval of esLlmaLe (uecember
2007), nuMC delayed Lhe Lenderlng
22.6.3 De|ays |n NDMC
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ZJ
1he chief Minister of ue/hi desired in lebruory 200 thot the entire city of ue/hi shou/d
hove stote of the ort rood siqnoqes with oppropriote structuro/ system for the forthcominq
commonweo/th 6omes 2010. 4 pi/ot project wos token up by Pwu in Moy 2008 throuqh
outhorised converters of lM Limited ond 4very uennison {the two /eodinq monufocturers
of the retro ref/ective sheets).
1he deportment did not foci/itote heo/thy competition, but mere/y ensured shorinq of
siqnoqe work between the two mojor sheet monufocturers, lM ond 4very-uennison.
lnsteod of co//inq o sinq/e tender for the comp/ete work, the project work wos divided
omonq three Pwu 2ones for seporote tenderinq ond execution, with two restrictive
conditions :
1he 5heet monufocturer wou/d necessori/y be o port of the biddinq porty, ond hove on
exc/usive Mou, ond
not more thon two out of three works re/otinq to the three Pwu tones wou/d be
oworded to ony one sheet monufocturer.
1his /ed to on/y two vo/id biddinq porties in Pwu, with work outomotico//y qettinq
distributed between them.
1he onti-competitive biddinq conditions /ed to:
work of one tone beinq oworded ot /eost ks. 1.40 crore obove the correspondinq cost
in the other two tones.
niqher overo// costs of procurement in Pwu, os compored with NuMc {where there
were no such restrictive conditions of the monufocturer to be o port of the bidder).
Neqotiotion to the tune of ks 4.75 crore hod to be done in cose of the fino/ bid, indicotinq
/ock of competition in the biddinq process.
5ubsequent to the oword of work, the desiqns for the siqnoqes were substontio//y revised,
/eodinq to /orqe number of extro ond substituted items of dubious uti/ity. 1hese were
opproved under the recommendotion of the odvisor to Pwu, primori/y bosed on the
desiqns submitted by one of the controctors.
we ore of the view thot the desiqn modificotions were of /itt/e uti/ity, the monner of
imp/ementotion wos o/so uneconomico/, /eodinq to hiqher cost of execution. 1hese extro
ond substituted items /ed to on odditiono/ ovoidob/e expenditure of ks 14.88 crore.
koad S|gnages
426
ChapLer 23 - 8oad Slgnages
ln lebruary 2006, Lhe Chlef MlnlsLer of
uelhl deslred (lebruary, 2006) LhaL Lhe
enLlre clLy of uelhl should have sLaLe of Lhe
arL road slgnages wlLh approprlaLe
sLrucLural sysLem for Lhe forLhcomlng CWC
2010. A presenLaLlon was made by 3M lndla
LlmlLed before Lhe CM on Lhe slgnage
sysLem Lo be developed ln uelhl. ln keeplng
wlLh Lhe CM's dlrecLlon, a sLreLch of road
was selecLed beLween 1llak Marg and 8a[
ChaL and a feeder road golng up Lo uelhl
SecreLarlaL for a plloL pro[ecL ln Aprll 2006
aL an esLlmaLed cosL of 8s.1.77 crore. 1he
plloL pro[ecL was Laken up (May 2008) uslng
1
AS1M 1ype xl reLro-reflecLlve (88) sheeLs
and was compleLed ln uecember 2008 by
Lhe auLhorlsed converLers of 3M LlmlLed
and Avery uennlson, Lhe Lwo leadlng
manufacLurers of reLro reflecLlve sheeLs of
Lype-lx and xl.
CnC1u accorded ln prlnclple approval ln
March 2009 for Lhe work of lnsLallaLlon of
reLro reflecLlve slgnages uslng Lype-lx
(based on plloL sLudy of nuMC uslng 1ype
lx 8eLro-reflecLlve sheeL), Lhough Lhe plloL
sLudy by Wu was conducLed uslng 1ype-xl
sheeLlng. 1he Lype of supporL sLrucLure
(M.S. lpes/1ubes) and colour of slgnages
(blue coloured sheeL wlLh whlLe leLLers) was
also declded.
23.1 Introduct|on
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Ametlcoo 5oclety fot 1estloq ooJ Motetlols
Cant||ever mounted s|gnage
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lnsLead of calllng a slngle Lender for Lhe
compleLe work, Lhe pro[ecL work was
dlvlded among Lhree Wu Zones for
separaLe Lenderlng and execuLlon,
purporLedly on grounds of admlnlsLraLlve
convenlence. ln our oplnlon, a slngle Lender
would have faclllLaLed greaLer compeLlLlon.
1hough Lhe plloL pro[ecL was declded upon
ln Aprll 2006, Lhere were lnexpllcable delays
ln execuLlng lL (2008), wlLh Lhe maln works
flnally belng awarded only ln CcLober 2009,
wlLh a sLlpulaLed perlod of compleLlon of 6
monLhs, aL a LoLal conLracL amounL of 8s.
33.13 crores.
As of uecember 2010, Lhe works were ln
progress and an amounL of 8s. 23.06 crore
was pald whlch lncluded provlslonal
paymenL of 8s.2.83 crore for exLra lLems
under Lwo zones (M2 & M3), agalnsL Lhe
accepLed exLra lLems of 8s. 7.88 crore. 1he
deLalls of execuLlon and paymenL for exLra
1he deparLmenL was aware LhaL Lhere were
only Lwo manufacLurers of reLro reflecLlve
sheeLs (88 sheeL) and LhaL Lhe componenL
of 88 sheeL formed only abouL 33 per cenL
of Lhe LoLal pro[ecL cosL. ?eL Lhe followlng
resLrlcLlve ellglblllLy condlLlons were
lncluded ln Lhe noLlce lnvlLlng Lender (nl1),
flnallsed on Lhe basls of dlscusslon beLween
r. SecreLary Lo Chlef MlnlsLer, r. SecreLary
(Wu) and r. Chlef Lnglneer.
23.2 kestr|ct|ve cond|t|ons |n
tender|ng
We acknow|edge the |mprovement
brought to the |ook of De|h| by the
cons|stent |mp|ementat|on of the road
s|gnages pro[ect. 1he aesthet|c and
ut|||tar|an upgrade by the use of these
s|gnages |s commendab|e.
NDMC a|so undertook the work of
s|gnages of NDMC roads. 1he work was
executed |n seven separate packages
between Iebruary 2009 and Cctober
2009 at a tota| contract cost of ks 19.S2
crore.
We found better compet|t|on and costs
obta|ned by NDMC, and th|s has been
used as a benchmark |n eva|uat|ng the
s|gnage work undertaken by WD.
lLems ln M1 were noL avallable, buL are
llkely Lo be slmllar as Lhe naLure of work ls
slmllar ln all zones.
koad name - doub|e arrow s|gnage Caut|onary and d|rect|ona| shou|der
428
1he bldder shall elLher be a reLro-

reflecLlve (88) sheeL manufacLurer or
shall have an excluslve Mou wlLh Lhe
manufacLurer of 88 sheeL ln Lhe case of
a flrm or !olnL venLure (!v).
CuL of Lhe Lhree packages of road
slgnage works, noL more Lhan Lwo
packages shall be awarded Lo any one 88
sheeL manufacLurer.
1he sequence of bld openlng was sLaLed,
wlLh Lhe flnanclal bld of Zone M1 Lo be
opened afLer Lhe oLher Lwo zones (M2
and M3).
1hus, lncluslon of above condlLlons resulLed
ln followlng:
lL was ensured LhaL aL leasL one zone
each would be awarded Lo boLh Lhe
sheeL manufacLurers, lrrespecLlve of Lhe
compeLlLlveness of Lhelr blds.
lL enabled Lhe 88 sheeL manufacLurers
elLher Lo collude Lo spllL Lhe order
among Lhemselves, or Lo conslsLenLly
bld hlgh ln all Lhe blds, knowlng LhaL no
parLy would Lake all Lhe blds.
lL presenLed a slLuaLlon for boLh Lhe
sheeL manufacLurers Lo charge a
premlum for Lhelr assoclaLlon/excluslve
Mou as Lhey were an lndlspensable
componenL of blddlng process.
We found LhaL Lhe bldders backed by Avery-
uennlson won Lhe conLracLs ln zones M2
and M3. Powever, ln zone M1 Lhe flnanclal
bld of Lhe Avery-uennlson backed vendor
(rakash 8eflecLlve uevlces) was lncorrecLly
re[ecLed by an exLreme lnLerpreLaLlon of Lhe
clause for Lurnover crlLerla. ConsequenLly ln
zone M1, Lhe deparLmenL was forced Lo
accepL Lhe sole Lechnlcally quallfled bld of
3M-8a[a[ consorLlum, by negoLlaLlng down
Lhe quoLed raLe by 13.93 percenL of quoLed
amounL, buL sLlll aL hlgher raLes Lhan M2
and M3. 1he esLlmaLed value of work of M1
was slmllar Lo Lhe sum of works for M2 and
M3.
1he lmpacL of Lhe resLrlcLlve clauses was
LhaL Lhe work ln Lhe Lhree zones of Wu
were awarded aL raLes hlgher Lhan Lhe
Lhree works of nuMC awarded ln Lhe same
perlod (CcLober 2009). 1he cosL of ma[or
2
comparable lLems of 88 sheeL and vP8
Lape was hlgher by 21 Lo 73 percenL
respecLlvely, ln Wu when compared wlLh
nuMC.
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ln zone M1, alLhough Lhe bld of Avery
uennlson backed vendor was lncorrecLly
re[ecLed, Lhe bld was ln any case noL Lo be
consldered as Lhe deparLmenL had already
sLlpulaLed LhaL noL more Lhan Lwo work
would be awarded Lo one sheeL
manufacLurer. 1hls lefL 3M-8a[a[-C8M
consorLlum as Lhe only Lechnlcally quallfled
bldder. 3M-8a[a[-C8M consorLlum quoLed 8
per cenL above esLlmaLed cosL. ln facL, ln all
Lhe Lhree zones, Lhe 3M consorLlum quoLed
varylng raLes, and each Llme hlgher Lhan lLs
compeLlLor.
1he |ack of compet|t|on |n WD resu|ted
|n h|gher tender rates and consequent
|oss to government.
2
vety nlqb-stteoqtb 8ooJ 1ope, o ptoptletoty ptoJoct
of JM
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Wu replled LhaL nl1 condlLlons were
deslgned ln Lhls manner for fasLer
execuLlon, and Lo ensure LhaL a slngle
agency dld noL Lake up Lhe enLlre slgnage
work for all Lhe Lhree zones, so LhaL lf one
agency falled, Lhe oLher agency could be
used Lo counLer Lhe fallure.
We do noL accepL Lhls argumenL, as such
recourse Lo awardlng Lhe work Lo anoLher
agency ln case of fallure by Lhe selecLed
agency was always avallable, and Wu need
noL have ensured LhaL boLh Lhe agencles
were awarded a share of Lhe work for Lhls
purpose, whlch led Lo reduced compeLlLlon.
We compared Lhe cosL of Lhree slmllar Lypes
of slgnages execuLed by nuMC wlLh LhaL of
Wu and found LhaL Lhe cosL of acqulslLlon
ln Wu was subsLanLlally hlgher Lhan LhaL ln
nuMC. 1he dlfference ln cosL ls boLh due Lo
a hlgher cosL of Lhe lnpuL maLerlal and a
more expenslve deslgn, consumlng more of
Lhe lnpuL maLerlal. nuMC used sLrucLure of
sLalnless sLeel whlle Wu used mlld sLeel
We noLlced LhaL ln Lwo zones (M2 and M3),
ldenLlcal exLra lLems valulng 8s. 7.88 crore
(28 per cenL of conLracL amounL of 8s. 28.12
crore) were accepLed by Lhe deparLmenL,
whlle ln zone M1 Lhe value of exLra lLem ls
esLlmaLed Lo be approxlmaLely 8s. 7 crore
on Lhe same basls.
23.3 More expens|ve des|gn
and execut|on |n WD
v|s--v|s NDMC
23.4 Lxecut|on of extra and
subst|tuted |tem |ead|ng to
cost esca|at|on
1he department negot|ated the b|d of
3M-8a[a[-C8M consort|um down by
ks. 4.7S crore. 1he work was f|na||y
awarded to the consort|um at 9.2 per
cent be|ow est|mated cost, wh|ch was
st||| S.1 per cent h|gher than the rates for
other two zones. 1hus the acceptance of
s|ng|e tender at h|gher rate due to
restr|cted compet|t|on has resu|ted |n a
m|n|mum |oss of ks. 1.40 crore to
government.
1he cost |ncurred by WD for var|ous
s|gnages exc|ud|ng structure work, was
substant|a||y h|gher by 82 to 127 per cent
than NDMC. 1h|s |nd|cated |neff|c|ent and
expens|ve des|gn and procurement.
sLrucLures Lo flx Lhe slgnages. 1he cosL
comparlson wlLh and wlLhouL sLrucLure was
worked ouL by us, and ls LabulaLed below.
S|gnage 1ype
S|gnage 1ype
NDMC
NDMC
WD
WD
31,178
10,029
18,739
31,129
23,400
33,827
36,809
21,310
42,437
61,344
24,313
43,336
|ace
Ident|f|cat|on
Caut|onary
koad name-
Doub|e arrow
|ace
Ident|f|cat|on
Caut|onary
koad name-
Doub|e arrow
1oble 2J.1 - uolt cost (ks) of 5lqooqes
(wltboot 5ttoctote)
1oble 2J.2 - uolt cost (ks) of 5lqooqes
(wltb 5ttoctote)
(lo ks. ctote)
(lo ks. ctote)
430
As Lenders for Lhe work were lnvlLed on Lhe
basls of Lhe plloL pro[ecL carrled ouL by Lhe
Wu whereln boLh Lhe sheeL manufacLurers
had parLlclpaLed, lL was expecLed LhaL Lhe
requlremenLs for execuLlon of pro[ecL
would be well known leavlng mlnlmum
posslblllLy for subsLlLuLlon of lLems or
execuLlon of new lLems. 1hls was noL Lhe
case. 1he expendlLure on exLra/subsLlLuLed
lLems, esLlmaLed aL 8s. 14.88 crore across
Lhe Lhree zones, was prlmarlly on accounL
of Lhe followlng lLems:
ln reply Lo our observaLlons on exLra and
subsLlLuLed lLems, Wu sLaLed LhaL
declslons on execuLlon of Lhese were Laken
solely ln Lhe lnLeresL of work, for lmproved
aesLheLlcs or on Lechnlcal grounds, afLer
due dellberaLlon under Lhe guldance of
Advlsor (Wu) - a reLlred uCW/ CWu.
As explalned ln Lhe followlng secLlons, we
are noL convlnced of Lhe need for Lhese
exLra and subsLlLuLed lLems, whlch has
subsLanLlally lnflaLed Lhe cosL of Lhe pro[ecL.
ln an lLem wlse scruLlny of lmpacL of
subsLlLuLed lLems on overall cosL of varlous
Lypes of slgnages, we found Lhe cosL per
unlL lncreased from 21.3 per cenL Lo 71.9
per cenL as LabulaLed below:
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Inc|us|on of a |arge number of
extra]subst|tuted |tems after award of
work, w|thout documented techn|ca|
reasons, ra|ses doubt on the|r actua|
ut|||ty, espec|a||y when the des|gns
f|na||sed by Shr|. D.S Sachdeva, Adv|sor
(w|thout spec|f|c author|ty) was based
on the methodo|ogy subm|tted by
I|bref|||, one of the executors of the
s|gnage work.
3
Alomlolom composlte Motetlol
Nature of Lxtra]Subst|tuted |tem Amount
2.83
3.31
3.83
0.93
Subst|tut|on of MS Ang|e w|th
Square no||ow Sect|on for
mak|ng S|gnage frame
Cover|ng back face of s|gnages
3
w|th ACM as extra |tem
Use of A|um|n|um channe|]
1r|m as extra |tem
ayment for precast bend,
bo|ts and anchor p|ates as
extra |tem
1oble 2J.J - xpeoJltote oo mojot
extto/ sobstltoteJ ltems
(lo ks. ctote)
(let oolt cost lo ks.)
1oble 2J.4 - locteose lo cost oo occooot of sobstltoteJ ltems
Agreement Cost
Lxecuted Cost 1ype of S|gnage
CanLry mounLed
CanLllever mounLed
uSM (ulrecLlonal Shoulder MounLed)
CauLlonary Slgnboard
lace ldenLlflcaLlon slgnboard
8oad name Slgnboard: uouble slded
8oad name Slgnboard: Slngle slded
8oad name Slgnboard: uouble arrow, Slngle slded
8,87,201
2,37,067
87,328
26,397
48,690
28,983
37,831
43,082
3,32,399
1,93,272
34,623
13,482
40,092
23,479
23,479
27,239
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1he deLalls of Lhe exLra/subsLlLuLed lLems
leadlng Lo Lhe sLark lncrease ln cosL are
glven below. 1he avoldable expendlLure
lncludes esLlmaLes for zone M1 for whlch
flnal paymenLs are yeL Lo be made.
uurlng Lhe plloL pro[ecL for slgnages ln Wu,
Lhe frame for flxlng of reLro reflecLlve sheeL
was consLrucLed uslng MS Angle, and Lhe
same was speclfled aL Lhe Llme of
Lenderlng. no quesLlons regardlng Lhe
frame were ralsed by any of Lhe bldders
durlng Lhe pre bld conference.
We found LhaL durlng lssue of deLalled
drawlng by Wu, whlch was done
subsequenL Lo Lhe award of work, Lhe lLem
of MS frame uslng MS angle was
subsLlLuLed by SPS and conLracLor was pald
for Lhe dlfference ln Lhe raLes beLween MS
angle and SPS as exLra lLem.
1he use of cosLller SPS has acLually
beneflLLed Lhe conLracLor by way of
reduclng hls fabrlcaLlon cosL, whlle
lncreaslng Lhe cosL of Lhe pro[ecL. 1h|s
subst|tut|on of |tem has |ed to avo|dab|e
expend|ture of ks. 2.8S crore, of whlch
8s. 0.73 crore has already been pald ln Lwo
zones.
1hls has also led Lo lncrease ln welghL of
larger slgnage sLrucLures llke ganLry and
canLllever, whlch runs counLer Lo Lhe reason
glven by Lhe deparLmenL ln supporL of use
of SPS.
1he scope of work under agreemenL dld noL
provlde for coverlng Lhe back face of some
of Lhe slgnboards. Powever, durlng
execuLlon, Lhe back of slgnages were
covered uslng 4mm Lhlck ACM. Coverlng
Lhe back of Lhe slgnboard served no
funcLlonal purpose, and was done for Lhe
sLaLed purpose of lmproved aesLheLlcs. 1he
execuLlon of Lhls exLra lLem enhanced Lhe
cosL of slgnage by 8s. 4926 per sqm leadlng
to avo|dab|e expend|ture of ks. 3.S1 crore
as of november 2010.
We are of Lhe oplnlon LhaL slnce only Lhe
fronL porLlon of Lhe slgnboard had
lnformaLlon Lo be seen by Lhe clLlzen/user,
any expendlLure on lmprovlng Lhe
aesLheLlcs of Lhe back surface was wasLeful.
23.4.1 Subst|tut|on of MS Ang|e w|th
Square no||ow Sect|on (SnS)
23.4.2 Need|ess sanct|on of work for
cover|ng back face of s|gnages w|th
ACM as extra |tem
Square no||ow Shape
(SnS)
M||d Stee| (MS) Ang|e
k|vet|ng of ACM to frame
432
Analysls of Lhe cosL componenLs of 8s. 4926
per sqm for assessed value of work of
coverlng Lhe back face wlLh ACM, done
based on slngle quoLaLlon, revealed LhaL Lhe
cosL of vP8 Lape used for flxlng ACM was
8s. 1666 per sqm (34 per cenL) whlle
8s. 1239 per sqm (26 per cenL) was for lLs
rouLlng, bendlng, maklng Lray, flxlng of vP8
Lape eLc. ln facL, Lhe vP8 Lape used for
bondlng ACM wlLh Lhe MS frame ls
manufacLured by 3M, one of Lhe sheeL
manufacLurers.
uurlng compuLaLlon of cosL for exLra lLem of
coverlng back face of Lhe slgnages wlLh
ACM, excess area (Lhan requlred) was
consldered, causlng a furLher loss of
8s. 0.23 crores Lo Lhe governmenL.
proprleLary producL of 3M), Lhereby
exposlng Lhe Lrlm Lo lnevlLable LhefL by
peellng lL off. lL has been removed ln
some places, and ln some oLher places,
Lhey are ln Lhe process of belng
removed.
As Lhe ACM sheeL used ln Lhe board
already had an alumlnlum layer as an
lnLegral parL, Lhe overlay by anoLher
alumlnlum layer as Lrlm was wasLeful.
1he acLual aesLheLlc uLlllLy of alumlnlum
Lrlm on slgnboards mounLed on ganLrles
and canLllevers flxed aL a helghL of
above 6m, meanL for vehlcles runnlng aL
subsLanLlal speed ls also quesLlonable.
1hus, Lhe declslon Lo use alumlnlum Lrlms
was unwarranLed and has resulLed ln
wasLeful expendlLure of 8s. 3.83 crore.
lurLher, an expendlLure of 8s. 0.42 crore for
Lhls lLem was lncurred wlLhouL approval of
raLes by Lhe compeLenL auLhorlLy.
1he conLracL provlded for welded bends for
Lhe Lubular supporL sLrucLure. 1he
deparLmenL replaced welded bends wlLh
23.4.4 Inadm|ss|b|e payment for precast

bend, bo|ts and anchor p|ates as
extra |tem
1he guldellnes lssued for execuLlon afLer
awardlng works lncluded an lLem of
provldlng 2 mm Lhlck Alumlnlum channel/
Lrlm around Lhe sldes of 88 boards for
agaln, purporLedly, aesLheLlc reasons.
ConsequenLly Lhls lLem of Lrlm was
execuLed as an exLra lLem. We found LhaL:
1he alumlnlum Lrlm was Lo be flxed by
uslng vP8 Lape (an expenslve
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Lven |f the sheets had to be used, the
who|e cost of f|x|ng ACM w|th Vn8 a|ong
w|th |ts rout|ng and bend|ng cou|d have
been d|spensed w|th, by s|mp|y r|vet|ng
the ACM sheets. In th|s process, the
extra cost of cover|ng the back face
cou|d have been reduced by ks. 2.03
crore.
23.4.3 Wastefu| expend|ture on |nc|us|on
of a|um|n|um channe|]tr|m as
extra |tem
A|um|n|um 1r|m pee||ng off from frame
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precasL bend as an exLra lLem, desplLe Lhe
clarlflcaLlon glven ln Lhe pre-bld meeLlng
LhaL noLhlng exLra would be payable on Lhls
accounL. 1hls replacemenL on Lhe grounds
of lmproved aesLheLlcs wlLhouL any
funcLlonal purpose led Lo an addlLlonal cosL
of 8s. 0.40 crore.
lurLher, as per Lhe descrlpLlon of work, raLe
analysls of Lhe lLem, drawlngs appended
wlLh agreemenL, and CWu speclflcaLlons
for sLeel works, Lhe componenL of anchor
bolLs and anchor plaLes were Lo be pald
under Lhe relevanL lLem of sLeel work lLself.
Powever, we noLed LhaL Lhe same was
separaLely pald as exLra lLem aL Lhe raLe of
8s. 116.73 per kg lnsLead of Lhe agreemenL
raLe for sLeel work of 8s. 63 per kg, leadlng
Lo lnadmlsslble expendlLure of 8s. 0.36
crore.
We found LhaL Lhe execuLed quanLlLy of Lhls
lLem lncreased by 139 per cenL, resulLlng ln
undue flnanclal beneflL of 8s. 0.24 crore Lo
conLracLors, as of november 2010.
We noLed LhaL all Lhe Lhree works execuLed
by Wu were delayed by 198 days as on 30
november 2010, buL penalLy of 8s. 3.26
crore for Lhe delay was noL levled on
conLracLors.
ln M3 zone, an amounL of 8s. 4.30 crore
was pald (!uly 2010) Lo Lhe conLracLor
wlLhouL any measuremenL (progresslve/
deLalled) slnce Lhe sLarL of work (november
2009).
We conslder Lhls Lo be a serlous flnanclal
lrregularlLy, especlally when Lhe conLracLor
was responslble for recordlng
measuremenLs.
uurlng Lhe pre-bld meeLlng, Lhe deparLmenL
clarlfled LhaL Lhe barrlcade can be reLalned
by Lhe conLracLor afLer compleLlon of work.
23.S Undue f|nanc|a| benef|t to
contractor for barr|cad|ng
work
23.6 Non |mpos|t|on of pena|ty
23.7 ayment for work not
recorded
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Z4
6Nc1u undertook construction of 25 roods ond bridqes for upqrodotion of city
infrostructure ond in preporotion for cw6 2010. 4t the time of the 6omes, 17 of these
were fu//y comp/eted. 1he remoininq 8 were substontio//y comp/eted ond open to troffic
with physico/ comp/etion stotus voryinq between 90 per cent ond 99.5 per cent. we
se/ected seven of these projects for detoi/ed review.
4// the seven projects odopted controctor's Profit ond Overheod chorqes {cPOn) of l7.5
per cent for the bridqe/ f/yover components in controst to cPOn of 15 per cent {roised from
10 per cent in uecember 2007/ 4pri/ 2008) stipu/oted by cPwu. 1his resu/ted in increosinq
the justified cost, worked out by the deportment ofter openinq of the finoncio/ bids, by ks.
l52.47 crore. 4 hiqher cPOn /eods to o hiqher cost bose/ine for potentio/ bidders. 1he
cPOn rote o/so forms on indirect input into the process of preporotion of justified costs,
where required, ond the ossocioted bond of 5/10 per cent for ossessinq the
reosonob/eness of rotes for fino/ oword of the controct.
1here wos irrequ/or oword of work in two projects where L-1 wos determined by
considerinq seporote /etters quotinq o /ump-sum omount, in vio/otion of the monuo/
provisions qoverninq item rote tenders. use of correction f/uid in tender documents, ond
/orqe number of cuttinqs/corrections were seen in onother bid. 1hese bids, os per ru/es,
were /iob/e for rejection, but were occepted by Pwu.
we noticed coses of non-comp/ionce with quo/ity stondords, with two coses where
botches of stee/ with voriotion in weiqht outside of the permitted to/eronce /imit were not
rejected, ond one cose where on importont test for ossessinq strenqth of pi/es wos not
corried out.
Pwu incorporoted, ot the /eve/ of c, o new c/ouse for price voriotion in six projects by
de/etinq existinq stondord c/ouses.
we found instonces of inoccurocies in the preporotion of detoi/ed estimotes. ln one cose,
this /ed to wronq ossessment of the /owest bidder, ond in the process on expenditure of ks.
l.55 crore wos incurred in excess of requirement. lncorrect estimote of onother item,
mostic ospho/t, /ed to on odditiono/ ovoidob/e poyment of ks. 1.l4 crore due to poyment
for the item ot morket rotes.
1wo works costinq ks. 2.l crore were qot executed by Pwu throuqh deviotions of
onqoinq works, insteod of co//inq for fresh tenders, on qrounds of urqency, but were not
comp/eted in time for the qomes.
C|ty Infrastructure Deve|opment:
koads and I|yovers
436
ChapLer 24 - ClLy lnfrasLrucLure uevelopmenL : 8oads and llyovers
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Pwu oworded work for construction of two orch foot over bridqes {lO8) for ks. 10.l5
crore ot lLN 5todium usinq for the first time, o suspension bridqe desiqn usinq imported
Moco//oy suspension system. One of the lO8s co//opsed ond the work wos subsequent/y
stopped on both the lO8s, which ore sti// /yinq incomp/ete, renderinq the poyment ti//
dote of ks. 8.5 crore infructuous.
we noticed thot the Pwu is dependent on consu/tonts for o// core octivities inc/udinq
formu/otinq project proposo/s, its imp/ementotion ond third porty quo/ity ossuronce
{1P4). 1he consu/toncy oqreements, however, did not odequote/y brinq in the
consu/tont's occountobi/ity for defects ond /osses orisinq from inoccurocy of desiqns ond
estimotes. nqoqement of 1P4 consu/tonts is o recent deve/opment bosed on odvice of
cvc for se/ected mojor projects. we, however, found thot 1P4 consu/toncy is not
sufficient/y independent, ond is now more o norm rother thon on exception, with the
consequent increose in the cost of the projects by 1 to 2 per cent.
As a parL of upgradaLlon of clLy
lnfrasLrucLure and ln preparaLlon for Lhe
Cames, CnC1u had Laken up 73 pro[ecLs
llnked Lo clLy lnfrasLrucLure lmprovemenL.
SubsequenLly, 23 pro[ecLs were sLaLed Lo be
dlrecLly llnked Lo CWC for close monlLorlng.
As ldenLlfled ln our earller reporL, Lhree
1
pro[ecLs were dellnked from CWC, and noL
Laken up. ln all, CnC1u underLook
consLrucLlon of 23 roads and brldges
pro[ecLs Lo lmprove lnfrasLrucLure of Lhe
clLy durlng CWC 2010. Cf Lhese 23 pro[ecLs,
one pro[ecL each was sLarLed ln 2004, 2003
and 2006. nlne pro[ecLs were sLarLed ln
flrsL half of 2007 and four ln Lhe second
half. 1hree pro[ecLs began ln flrsL half of
2008 and four ln Lhe second half. 1wo
pro[ecLs were sLarLed as laLe as ln 2009. Cf
Lhese 23 pro[ecLs, 17 were fully compleLed,
and Lhe remalnlng 8 were subsLanLlally
compleLed and open Lo Lrafflc, wlLh physlcal
compleLlon sLaLus varylng beLween 90 per
cenL and 99.3 per cenL.
We selecLed seven of Lhese pro[ecLs for
deLalled revlew - slx execuLed by Wu vlz.
8a[a 8am kohll Marg llyover Chazlpur
llyover, 8arapulla LlevaLed 8oad, u Llnk
8oad, Corrldor lmprovemenL on 8oad no.
36 (lS81-Anand vlhar), and 8lng 8oad
8yepass, and one flyover by uuA on nP 24
near Lhe Cames vlllage. 1hese seven
pro[ecLs lnvolved a LoLal sancLloned amounL
of 8s. 2239.40 crore.
24.1 Introduct|on
1
levoteJ ost west cottlJot, 852 Motq llyovet, ooJ 5bosttl lotk 1oooel cottlJot
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ro[ect 1|me||nes: MosL of Lhe pro[ecLs were awarded ln 2008, leavlng hardly any margln for
delay wlLh Lhe CWC [usL Lwo years away. 1he daLes by whlch varlous lmporLanL mllesLones
were meL for Lhe seven pro[ecLs examlned by us are LabulaLed below:
1oble 24.1 - kooJ ooJ llyovet ltojects selecteJ fot JetolleJ ooJlt
1oble 24.2 - lmpottoot Mllestooes fot selecteJ kooJ/ llyovet ltojects
Name of the ro[ect
Name of the ro[ect
Contractor
Date of
AA]LS
Date of
Ieas|b|||ty
Lst|mated
Cost
Date of
approva|
of DUAC
1endered
Amount
Date of
NI1
Date of
Award
Date of
Award of
Work
St|pu|ated
date of
comp|et|on
St|pu|ated
date of
comp|et|on
ayment
made as of
Dec 2010
Actua|
date of
comp|et|on
Afcons
Afcons
uSC
uSC
valecha
Slmplex
Cammon
!ul 06
Apr 08
Aug 08
May 08
!un 08
May 08
nov 09
Sep 03
Aug 04
!une 08
Mar 07
Sep 04
--
!an 08
146.40
173.36
332.40
177.80
97.60
330.20
68.79
CcL 06
!ul 07
--
uec 07
!an 08
Sep 07
!ul 08
214.37
199.79
433.71
263.04
140.33
409.43
89.90
leb 07
uec 07
!ul 08
!ul 08
Aug 08
!ul 08
Sep 08
CcL 08
Mar 07
Apr 08
Aug 08
Sep 08
nov 08
uec 08
!an 09
leb 09
Mar 07
Apr 08
Aug 08
Sep 08
nov 08
uec 08
!an 09
leb 09
Apr 09
Apr 10
Mar 10
Apr 10
May 10
!une 10
!uly 10
Sep 10
Apr 09
Apr 10
Mar 10
Apr 10
Mar 10
!un 10
!ul 10
Sep 10
238.26
173.79
382.93
187.83
120.97
137.64
127.49
78.88
Apr 10
99
compleLed
99
compleLed
93
compleLed
99
compleLed
99
compleLed
Aug 10
kk koh|| Marg I|yover
Ghaz|pur I|yover
8arapu||a L|evated koad
U L|nk koad
koad No. S6-Anand V|har IS81
k|ng koad 8ye pass
Nn 24 f|yover near Games
V|||age (DDA ro[ect)
kk koh|| Marg
I|yover
Ghaz|pur I|yover
L|evated koad over
8arapu||a Na||a
U L|nk koad
koad No.S6-Anand
V|har IS81
k|ng koad 8ye pass
Nn 24 f|yover near
Games V|||age
(DDA ro[ect)
(8s. ln Crore)
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All Lhe slx pro[ecLs adopLed ConLracLor's
roflL and Cverhead Charges (CCP) of 37.3
2
per cenL for Lhe brldge/ flyover
componenLs (whlch represenLed Lhe bulk of
Lhe work lnvolved). 1hls ls ln conLrasL Lo
CCP of 13 per cenL (ralsed from 10 per
3
cenL ln uecember 2007/ Aprll 2008 )
4
sLlpulaLed by CWu .
1he [usLlflcaLlon adduced by Wu, CnC1u
for adopLlng Lhls percenLage of 37.3 per
cenL (as opposed Lo 10/ 13 per cenL
adopLed by CWu) ls LhaL Lhls CCP raLe
was based on Lhe SLandard uaLa 8ook for
Analysls of 8aLes" lssued by Lhe MlnlsLry of
8oad 1ransporL and Plghways (Mo81P). 1he
foreword Lo Lhls daLa book lndlcaLes LhaL lL
ls belng adopLed by varlous agencles for
pro[ecLs oLher Lhan naLlonal Plghways
(whlch ls Lhe prlmary purpose for Lhls daLa
book). 1he esLlmaLes for Lhese pro[ecLs
were prepared uslng Lhe daLa elemenLs
lndlcaLed ln Lhe daLa book.
We found LhaL Lhe baslc approach for Lhe
S
preparaLlon of Lhe Mo81P daLa book
hlghllghLs common elemenLs of overhead
charges for boLh road and brldge works, buL
speclfles dlfferenL raLes for CCP (varylng
from 18.8 per cenL Lo 43 per cenL) for
dlfferenL caLegorles of road and brldge
works. Powever, Lhe Mo81P daLa book and
Lhe CCP raLes (lndlcaLed ln Lhe daLa book)
6
have noL been formally adopLed by CnC1u .
uesplLe such non-adopLlon, Wu, CnC1u
have adopLed Lhe CCP raLe of 37.3 per
cenL (as per Lhe Mo81P daLa book), whlch ls
subsLanLlally hlgher Lhan Lhe CCP raLe of
13 per cenL sLlpulaLed by CWu. 1hls
resulLed ln lncreaslng Lhe [usLlfled cosL,
worked ouL by Lhe deparLmenL afLer
openlng of Lhe flnanclal blds, by 8s. 332.47
crore.
Whlle oLher SLaLe Wu ueparLmenLs are
adopLlng Lhe Mo81P daLa book for Lhe
purposes of esLlmaLlon of road and brldge
works, our scruLlny of selecLed pro[ecLs ln
Crlssa, for example, lndlcaLed LhaL Lhe daLa
elemenLs lndlcaLed ln Lhe Mo81P daLa book
were adopLed, buL Lhe overhead raLe
7
adopLed was [usL 10 per cenL.
lurLher, uM8C whlch rouLlnely consLrucLs
elevaLed vladucLs, slmllar Lo flyovers, does
noL use Lhe Mo81P daLa book for lLs cosL
esLlmaLlon. lor any non-scheduled lLem of
work execuLed by uM8C, wheLher followlng
Mo81P speclflcaLlons or oLherwlse, Lhey
apply a unlform flxed C&CP of 20 per
cenL.
lL ls also noL clear Lo us wheLher Lhe
overhead componenLs for consLrucLlng of
naLlonal hlghways (generally by nPAl) are
appllcable as such Lo Lhe brldge and flyover
pro[ecLs ln uelhl. 1he currenLly preferred
mode for award of naLlonal hlghways ls on
8C1-Loll mode, where CovernmenL fundlng
ls resLrlcLed Lo vlablllLy Cap lundlng (vCl)
upLo a maxlmum of 40 per cenL of Lhe
24.2 Adopt|on of Contractor's
rof|t and Cverhead
Charges of 37.S per cent
for 8r|dge] I|yover
ro[ects
2
3
4
S
25 pet ceot os ovetbeoJ cbotqes, ooJ 10 pet ceot ptoflt
tbeteoo, tbls wotks oot to oo ovetoll J7.5 pet ceot
1be locteose wos commoolcoteJ by uC, clwu lo
uecembet 2007, bot opptoveJ by Mouu ooly lo Aptll
2008.
clwu's mooools, coottoct clooses ooJ otbet tetms ooJ
cooJltloos/ cltcolots ote qeoetolly oJopteJ by
lwu,CNc1u.
loJlcoteJ lo tbe Joto book ltself
6
7
lt ls oot cleot wbeo lwu, CNc1u commeoceJ osloq
tbese blqbet clOn totes.
wltboot ooy oJJltloool motqlo fot coottoctot's ptoflt
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24.3 Irregu|ar|t|es |n tender|ng
procedure
esLlmaLed pro[ecL cosL. 1he amounL of vCl
lLself ls Lhe blddable parameLer, and hence
Lhe accuracy or rellablllLy of esLlmaLes ls
perhaps noL as of much concern as ln Lhe
case of brldge and flyover pro[ecLs belng
execuLed wlLh 100 per cenL CovernmenL
fundlng.
1he crlLlcal lmporLance of Lhe CCP raLe ls
LhaL once adopLed for esLlmaLlon purposes,
Lhe deLalled esLlmaLes Lhus prepared
consLlLuLe a basellne for poLenLlal bldders.
1he CCP raLe also forms an lndlrecL lnpuL
lnLo Lhe process of preparaLlon of [usLlfled
cosLs, where requlred, and Lhe assoclaLed
band of 3/10 per cenL for assesslng Lhe
reasonableness of raLes for flnal award of
Lhe conLracL.
(nl1), sLlpulaLe LhaL ln case of lLem raLe
Lenders, Lenderers are expecLed Lo quoLe
on Lhe Lender form. Any Lender conLalnlng
percenLage below/above Lhe raLes quoLed ls
8
llable Lo be re[ecLed . We observed Lhree
lnsLances where blds were accepLed by
Wu desplLe belng quoLed on papers oLher
Lhan Lender forms:
Wu called (!uly 2008) for lLem raLe
Lenders for work of consLrucLlon of
elevaLed road on 8arapulla nalla (ln Lwo
packages) from Lhe empanelled
conLracLors/flrms. Slx blds were
recelved for each package. 1he works
were awarded Lo uSC llmlLed aL
8s.218.79 crore and 8s.214.92 crore
respecLlvely for boLh Lhe packages. We
noLlced LhaL uSC became Lhe lowesL
bldder noL on Lhe basls of hls bld ln Lhe
prescrlbed formaL of bld documenLs, buL
on Lhe basls of separaLe leLLers quoLlng
a lump sum amounL, sLaLed Lo be found
ln envelopes conLalnlng flnanclal bld.
Slmllarly, ln case of u Llnk 8oad
pro[ecL, where Wu lnvlLed (!uly 2008)
lLem raLe Lenders, Lwo blds were
recelved, and work was awarded ln
SepLember 2008 Lo uSC LlmlLed aL a
cosL of 8s. 263.04 crore. Agaln uSC
became Lhe lowesL on Lhe basls of
separaLe leLLer quoLlng a lump sum
amounL sLaLed Lo be found ln envelope
conLalnlng flnanclal bld.
Award of works Lo uSC was lrregular as:
Lhe leLLers were noL parL of Lhe Lender
documenLs lssued by Lhe deparLmenL
buL were sLaLed Lo be found ln
envelopes conLalnlng flnanclal blds,
8
we ooteJ mooy lostooces, e.q. Cbozlpot flyovet, wbete
petceotoqe Jlscooot/ ptemlom wos offeteJ oo tbe
teoJet fotm, bot occepteJ lo vlolotloo of tbls stlpolotloo.
In our op|n|on, the de facto use of the
CCn rate of 37.S per cent for
preparat|on of the est|mates for the
br|dge] f|yover pro[ects |s |nappropr|ate.
GNC1D needs to carry out an |n depth
study of the actua| e|ements of
overhead |nvo|ved (|nc|ud|ng the extent
of equ|pment |ntens|ve construct|on
methods actua||y |n use for s|m||ar
pro[ects) and pract|ces fo||owed |n other
States for s|m||ar pro[ects, before
dec|d|ng on the appropr|ate CCn rate
for a|| such pro[ects.
8ules and guldellnes on form of Lhe Ceneral
CondlLlons of ConLracL (CCC), whlch are
essenLlally parL of noLlce lnvlLlng 1enders
24.3.1 Acceptance of b|ds quoted on papers
other than tender documents
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ln Lhe sald leLLers, Lhe flrm had quoLed
Lhe lump sum cosL oftet Jlscooot oo oll
ltems.". lL was Wu whlch converLed
Lhe dlfference beLween Lhe lump sum
amounL and amounL worked ouL as per
lLem-wlse bld, Lo a percenLage dlscounL
Lo Lhe quoLed raLe.
1aklng cognlsance of Lhe leLLer whlch dld
noL form parL of Lhe prescrlbed Lender
documenLs, and conslderlng Lhe lump sum
cosL quoLaLlon agalnsL Lhe lLem raLe Lender
was noL ln order and awardlng of work Lo
uSC LlmlLed was lrregular. lurLher, audlL
could noL ascerLaln wheLher Lhe sald leLLers
were submlLLed along wlLh Lhe bld
documenLs or placed aL a laLer sLage.
percenLage raLe Lender, lnsLead of lLem raLe
Lender, as ls requlred by Lhe CWu Works
Manual.
We also noLlced LhaL Lhough Lhe Lenders for
Lhe work were lnlLlally lnvlLed on lLem raLe
basls, yeL lL was subsequenLly changed Lo
percenLage raLe Lender wlLhouL menLlonlng
any reason desplLe Lhe facL LhaL scheduled
lLems based on uS8 consLlLuLed only 2
percenL of Lhe work.
1hus, lnvlLaLlon and accepLance of
percenLage raLe Lender was lrregular.
24.4 Unwarranted |nc|us|on of
|tems |n 8C of
agreement
9
5ectloo 112
CWu Manual prohlblLs Lhe use of
correcLlon fluld anywhere ln Lender
documenLs and, lf used, such Lender ls
llable for re[ecLlon. We found LhaL Lhe bld
documenLs of Slmplex lnfrasLrucLure
LlmlLed who was awarded Lhe work of 8lng
8oad bypass (ackage ll) had 12
cuLLlngs/correcLlons, besldes Lhree cases of
use of correcLlon fluld for changlng Lhe
flgures, havlng an lmpacL of lncreaslng Lhe
bld amounL by 8s.6.23 crore.
use of correcLlon fluld ln Lhe Lender
documenL made lL llable for re[ecLlon. ln
splLe of Lhese obvlous shorLcomlngs ln Lhe
bld documenL, Lhe deparLmenL dld noL
re[ecL Lhe bld.
We found LhaL ln slx pro[ecLs of Wu and
one pro[ecL of uuA examlned by us,
agencles had lncluded separaLe lLems for
provldlng Lemporary barrlcades and plle
LesLlng aL Lhe Lendered cosL of 8s. 11.84
crore and 8s.11.27crore respecLlvely,
agalnsL whlch, a paymenL of 8s. 13.33 crore
had already been made.
aymenL for boLh Lhe lLems ls lnconslsLenL
9
wlLh Mo81P SpeclflcaLlons for 8oad and
8rldge Works, agalnsL whlch Lhese pro[ecLs
had been cosLed and execuLed, whlch
clearly sLaLes LhaL Lrafflc safeLy
arrangemenLs lncludlng erecLlon and
malnLenance of barrlcades and plle LesLlng
would be consldered as lncldenLal Lo Lhe
works and would be conLracLor's
responslblllLy.
We found LhaL Lenders for 88 kohll Marg
llyover were lncorrecLly lnvlLed as
24.3.2 Acceptance of b|d desp|te over-
wr|t|ngs]use of correct|on f|u|d
24.3.3 Irregu|ar |nv|tat|on of percentage
rate tender
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24.S Non comp||ance w|th
qua||ty standards
24.6 Contract Management
10
11
loJloo 5tooJotJ coJe of ltoctlce fot ueslqo ooJ
coosttoctloo of llle loooJotloos
10c, 10cA, 10cc
24.S.1 Usage of stee| not conform|ng to
standards |n 8arapu||a L|evated
koad
24.S.2 Usage of stee| not conform|ng to
the standards |n k|ng koad
8yepass
24.S.3 ||e tests to conf|rm qua||ty not
carr|ed out
We noLlced LhaL ouL of 387 baLches of sLeel
conslgnmenL welghlng 9048 M1, samples of
26 baLches havlng Lhe LoLal baLch welghL of
642.01 M1 and cosLlng 8s. 3.79 crore were
found by Lhe deparLmenL Lo be of welghL
lower Lhan Lolerance llmlL prescrlbed ln lS
1786. 1hese were, however, noL re[ecLed
by Lhe deparLmenL leadlng Lo use of non-
compllanL sLeel. CuL of Lhese 26 baLches,
samples of only four were senL Lo Lhlrd
parLy laboraLorles, whlch, on LesLlng, found
Lhem Lo be conformlng Lo sLandards.
lL ls noL clear why baLches of sLeel whlch
falled ln Lhe baslc LesLs had been senL Lo
exLernal labs and were noL ouL-rlghLly
re[ecLed and why only selecLed samples
were sub[ecLed Lo Lhlrd parLy LesLs.
AnoLher lnsLance of non-conformance wlLh
sLandards was seen ln Lhe 8lng 8oad bye-
pass pro[ecL where flve baLches of sLeel
havlng LoLal baLch welghL of 370.78 M1 and
cosLlng 8s. 2.69 crore were found by Lhe
deparLmenL Lo be of welghL hlgher Lhan
Lolerance llmlL prescrlbed ln lS 1786. 1hese
were, however, noL re[ecLed by Lhe
deparLmenL, leadlng Lo use of non-
compllanL sLeel.
We found LhaL rouLlne LesLs of plles were
noL carrled ouL durlng consLrucLlon of Lhe
24.6.1 Adopt|on of rev|sed pr|ce var|at|on
c|ause
rlce varlaLlon ln Wu ls payable as per
11
sLandard clauses ln Ceneral CondlLlons of
ConLracL (CCC). We noLlced LhaL Wu
lncorporaLed a new clause 10CCA for prlce
varlaLlon ln all Lhe slx pro[ecLs. 1he
sLandard prlce varlaLlon clauses of CCC
sLlpulaLe LhaL for each pro[ecL, Lhe
proporLlon of key componenLs of sLeel,
cemenL, labour and maLerlal ls compuLed
based on Lhe esLlmaLed usage of Lhese
lLems ln Lhe pro[ecL, whlch varles from
pro[ecL Lo pro[ecL. ln conLrasL, Lhe new
clause lnLroduced by Wu adopLed flxed
percenLages of use for all Lhe componenLs,
vlz, labour (22per cenL), sLeel (23per cenL),
cemenL (13per cenL), fuel (3per cenL) and
elevaLed road over 8arapulla nallah, ln
vlolaLlon of Mo81P speclflcaLlons and lS
10
2911-1983 .
As per lndlan SLandard Code lS 2911-1983,
rouLlne LesLs for plle are necessary prlmarlly
Lo deLermlne Lhe safe load on plle, and
beLween one-half per cenL Lo Lwo percenL
of Lhe plles are requlred Lo be LesLed. 1hls
LranslaLes Lo a mlnlmum of seven rouLlne
LesLs Lo be conducLed ln case of 8arapulla
nallah. As noL even a slngle rouLlne LesL was
carrled ouL, we could noL ascerLaln how Lhe
Wu auLhorlLles saLlsfled Lhemselves LhaL
plles were execuLed as per Lhe lS
speclflcaLlons.
Wu, ln reply, sLaLed LhaL Lhese LesLs could
noL be underLaken due Lo shorLage of Llme.
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machlnery and machlne Lools (18per cenL).
lurLher, Lhe CWu manual does noL
prescrlbe any prlce varlaLlon payable on
machlnery and machlne Lools, Lhough lL
was prescrlbed ln Lhls new prlce varlaLlon
clause.
As Lhe proporLlon of sLeel used ln Lhese
pro[ecLs was far hlgher Lhan 23 per cenL,
and Lhere was a downward Lrend ln prlces
of sLeel durlng Lhe consLrucLlon perlod of
four of Lhese pro[ecLs, Lhe amounL of
recovery was lesser by 8s. 18.01 crore Lhan
LhaL whlch would have become recoverable
wlLh Lhe sLandard prlce varlaLlon clause.
We also noLed LhaL no flnanclal or legal
advlce was Laken by Lhe Chlef Lnglneer
before lncorporaLlon of Lhls new clause, as
ls requlred vlde Cl8 and CWu manual.
Wu sLaLed LhaL Lhe nl1 approvlng
auLhorlLy was fully auLhorlzed Lo make any
change ln non-sLaLuLory clauses conLalned
ln Lhe CCC, and prlce varlaLlon clause belng
a non-sLaLuLory clause, amendlng Lhe same
ls a maLLer of admlnlsLraLlve dlscreLlon.
We are unab|e to apprec|ate the
Department's stand |n th|s regard. Cn|y a
forma|, we|| thought out po||cy dec|s|on at
the department |eve| after tak|ng f|nanc|a|
and |ega| adv|ce for amend|ng cr|t|ca|
cond|t|ons of the GCC can ensure that the
|nterests of the government are protected.
1h|s cannot be |eft to the d|scret|on of
|nd|v|dua| NI1 approv|ng author|ty on a
contract to contract bas|s.
We observed LhaL 3184.26 M1 of
relnforcemenL sLeel bars were found
underwelghL by 48.842 M1 ln Lerms of
24.6.2 Incorrect measurement of
underwe|ght stee| resu|t|ng |n
excess payment of ks. 0.3S crore
sLandard unlL welghL ln Lhe 8lng 8oad
8yepass pro[ecL. Powever, paymenL has
been made as per sLandard welghL ln
12
vlolaLlon of CWu speclflcaLlons , resulLlng
ln excess paymenL of 8s. 0.33 crore.
Wu replaced an lLem of work, consLrucLlon
of Lhree plpe culverLs, wlLh an exLra lLem for
execuLlng Lhe same uslng a dlfferenL
Lechnology (Lrenchless dlgglng), ln Lhe
pro[ecL of consLrucLlon of grade separaLor
aL lS81 Anand vlhar crosslng of 8oad no.
36. 1hls enLalled an addlLlonal expendlLure
of 8s. 1.13 crore. 1he replacemenL was
done on Lhe plea LhaL lL was a busy road
and lL was dlfflculL Lo cuL open Lhe road
wlLhouL dlsrupLlng Lhe Lrafflc. 1he sancLlon
of Lhe compeLenL auLhorlLy, Chlef Lnglneer,
was also noL obLalned for Lhe exLra lLem.
We are of Lhe vlew LhaL Lhe lLem could have
been lncluded ln Lhe orlglnal pro[ecL
deflnlLlon wlLh Lhe approval of Lhe
compeLenL auLhorlLy, and compeLlLlve raLes
obLalned lnsLead of Lhe work belng
awarded laLer as an exLra lLem.
24.6.3 Lxtra expend|ture of ks. 1.13
crore due to post tender change
24.7 Loss due to |ncorrect
est|mat|ons
12
13
5ectloo 5.J.4
1ooJoo coosoltoots lvt. ltJ
24.7.1 Loss of ks. 3.SS crore due to
|ncorrect est|mat|on
We found LhaL esLlmaLlon for quanLlLles
13
prepared by Lhe consulLanL ln package-ll of
work relaLlng Lo LlevaLed 8oad over
8arapullah nallah was noL very accuraLe
wlLh large devlaLlons. As a resulL, based on
Lhe acLual execuLed quanLlLles of maLerlal
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24.8 Lxecut|on of works
w|thout tender|ng
14
1S
16
17
M/s u5c ot teoJeteJ cost of ks. 214.92 ctote
M/s looj lloyJ ot teoJeteJ cost of ks. 218.86 ctote
MobeoJto koj coosoltoots
uelbl wotks 8ootJ, lo cose of lwu, CNc1u
14 1S
used, Lhe lnLer-se ranklng of L1 and L2
bldders changed, wlLh Lhe bld of L2 bldder
now lower by 8s. 3.33 crore Lhan L1.
CreaLer accuracy ln esLlmaLe preparaLlon
would have led Lo Lhe work belng awarded
Lo a dlfferenL conLracLor, and a sum of
8s. 3.33 crore could have been saved.
1he ueparLmenL dld noL lnvoke Lhe relevanL
penalLy clause agalnsL Lhe consulLanL for hls
error ln esLlmaLe preparaLlon.
We found LhaL ln 88 kohll pro[ecL, Lhe
requlremenL of masLlc asphalL had been
grossly underesLlmaLed ln Lhe deLalled
16
esLlmaLes prepared by Lhe consulLanL , wlLh
Lhe acLual execuLed quanLlLy of masLlc
asphalL lncreaslng by 813 per cenL.
1hls has resulLed ln avoldable expendlLure
of 8s. 1.34 crore for paymenL for Lhe exLra
quanLlLy of masLlc asphalL aL markeL raLes.
24.7.2 Avo|dab|e expend|ture of ks. 1.34
crore due to |naccurate
est|mat|on
1he Lwo cases are dlscussed ln succeedlng
paragraphs.
uurlng Lhe consLrucLlon of 8arapulla
elevaLed road, Lhe uelhl ollce requesLed
Wu Lo provlde proper connecLlvlLy of Lhls
road wlLh Lala La[paL 8al Marg so as Lo
provlde unlnLerrupLed dedlcaLed lane for
aLhleLes Lo move from CWC vlllage Lo all
sporLs venues durlng CWC 2010. Wu
proposed Lo CnC1u Lo provlde for Lhls
connecLlvlLy Lhrough Lhe maln conLracLor
wlLhouL calllng for Lenders so LhaL work
could be compleLed before CWC. 1he
proposal for 8s. 31 crore was approved by
CnC1u ln !uly 2009 keeplng ln vlew of Lhe
fasL approachlng CWC 2010, buL
connect|v|t|es were not comp|eted |n t|me
for the Games, and the work was ongo|ng
as of December 2010.
CnC1u conveyed Lhe appproval for 8s.
11.63 crore for wldenlng of Lhe exlsLlng
brldge and on 1runk uraln no. 2 aL Lhe 1
!uncLlon of 8oad no. 36-71 and brldge on
8oad no. 36-38A, and wldenlng of 8oad no.
36 from 6 lane Lo 8 lane ln fronL of lS81
Anand vlhar Lo provlde smooLh and slgnal
free Lrafflc on 8oad no. 36. 1he LxecuLlve
Lnglneer declded Lo geL work execuLed
(wlLhouL call of open Lenders, and wlLhouL
Lhe approval of compeLenL auLhorlLy), by
valecha, Lhe conLracLor who was execuLlng
Lhe ongolng work for Corrldor
lmprovemenL of 8oad no 36-lS81 Anand
vlhar and allled works", so LhaL Lhe work
could be compleLed before Lhe Cames. 1he
work was |n progress as on date of aud|t.
24.8.1 Work cost|ng ks. S1 crore
w|thout tender|ng
24.8.2 Work cost|ng ks. 11.63 crore
w|thout tender|ng
We noLlced LhaL Lwo ma[or works were goL
execuLed as devlaLlon Lo ongolng works,
l.e., wlLhouL call of fresh Lenders Lhough as
per appendlx l (delegaLlon of flnanclal
powers) of CWu Works Manual, only Chlef
Lnglneer wlLh Lhe prlor approval of CW
17
8oard ls empowered Lo award Lhe work
wlLhouL calllng of Lender.
444
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We are of Lhe vlew LhaL nelLher was Lhe
wldenlng of brldges necessary for CWC-
2010, nor was lL a parL of work already
belng execuLed ln LhaL area, and was Lhus
noL a devlaLlon ln any sense. Pence, award
of work Lo valecha wlLhouL call of open
Lenders ls unauLhorlsed.
24.9 Infructuous expend|ture of
ks. 8.6S crore on IC8s
and was belng aLLempLed for Lhe flrsL Llme
by Wu uelhl. Clven Lhe llmlLed amounL of
Llme avallable for Lhe games, lL may have
been beLLer for Wu Lo sLlck Lo Lhe Lrled
and LesLed meLhod of lC8 consLrucLlon.
Powever, Wu declded Lo use an lmporLed
suspenslon sysLem (Macalloy make) ln splLe
of Lhe facL LhaL a suspenslon brldge wlLh a
slmllar suspenslon sysLem had collapsed ln
Clasgow ln 2008. lnsLead of awardlng Lhe
deslgn consulLancy work Lo speclallzed
agency havlng Lhe experlence ln relaLed
fleld, Lhe work was awarded as exLra lLem
Lo Lhe consulLanL for Lhe maln work
(1andon ConsulLancy).
1he deck of one of Lhe lC8s collapsed
durlng consLrucLlon, whlle concreLe was
belng lald.
1he work for consLrucLlon of Lwo arch fooL
over brldges (lC8s) was awarded Lo &8
lnfra ro[ecLs LlmlLed aL a Lendered cosL of
8s.10.33 crore Lo faclllLaLe Lhe publlc Lo
reach !Ln SLadlum durlng CWC. 1he deslgn
of Lhe lC8 was of a suspenslon Lype, and
noL Lhe ordlnary plllar supporLed sLrucLure,
Co||apsed IC8 near ILN Stad|um
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24.10 Lngagement of
Consu|tants |n WD
ln Lhe absence of lC8s Lo provlde approach
Lo !Ln SLadlum, Wu arranged for
consLrucLlon of Lemporary lC8 by lndlan
Army.
1he uogra CommlLLee, seL up by CnC1u Lo
enqulre lnLo Lhe reasons for Lhe accldenL,
ldenLlfled lmproper deslgn as Lhe reason for
fallure of Lhe [olnL and collapse of Lhe deck
slab. AcLlon Laken by CnC1u Lo flx
responslblllLy for Lhe lncldenL would be
reporLed ln fuLure audlLs.
As drawlng and deslgn prepared by Lhe
consulLanL were sub[ecL Lo Lhe approval of
Lhe deparLmenL, fallure of Lhe Wu ln
ensurlng correcL meLhodology and deslgn
for Lhe lC8 and Lo ldenLlfy a consulLanL
compeLenL Lo aLLend Lo Lhls work has
resulLed ln lnfrucLuous expendlLure of 8s.
8.63 crore, whlch has already been pald Lo
Lhe conLracLor and consulLanL.
ln response Lo our observaLlon, Wu sLaLed
LhaL Lhe compleLlon of Lhe work had only
been posLponed and noL alLogeLher
shelved, and as such, Lhe expendlLure could
noL be Lermed as lnfrucLuous.
lor deslgn and lmplemenLaLlon of flyover
pro[ecLs, Wu appolnLed consulLanLs for
feaslblllLy sLudy of Lhe pro[ecLs, preparaLlon
of sLrucLural deslgns/ drawlngs/ esLlmaLes/
[usLlfled amounL sLaLemenLs, proof
consulLanLs for checklng of Lhe proposed
deslgns & drawlngs and Lhlrd parLy quallLy
assurance (1CA) of Lhe pro[ecLs aL a LoLal
Lendered cosL of 8s. 14.74 crore. We noLed
Lhe followlng:
24.10.1 Inadequate defect ||ab|||ty
prov|s|ons and |ack of
accountab|||ty |n the consu|tancy
agreement
24.10.2 ko|e of th|rd party qua||ty
assurance
1he consulLancy agreemenLs provlded for
performance guaranLee and performance
securlLy aL flve per cenL of Lhe Lendered
cosL for Lhe performance of Lhe conLracL.
Whlle we noLe LhaL deslgn consulLancy
agreemenLs provlde a clause Lo deal wlLh
Lhe posL conLracL varlaLlons ln assessed
quanLlLles lf any, lL dld noL expllclLly sLaLe
Lhe accounLablllLy for lack of accuracy on
deslgns and esLlmaLlon. We noLlced gross
varlaLlons ln quanLlLles of Lwo ma[or lLems
vlz. relnforcemenL work and sLeel llner for
plle ranglng beLween 28 and 100 percenL ln
slx pro[ecLs lnvolvlng lmpacL on Lhe cosL of
Lhe pro[ecLs. Wrong esLlmaLlon of
quanLlLles led Lo loss of 8s. 3.33 crore Lo Lhe
deparLmenL ln respecL of a work menLloned
ln our reporL. Slnce Lhe pro[ecLs are
consulLanL drlven, ln our vlew, Lhe defecL
llablllLy for Lhe consulLanL should have been
sLrengLhened wlLh speclflc provlslon for
accounLablllLy ln vlew of Lhe facL LhaL Llmely
compleLlon of Lhe pro[ecL, as per speclfled
deslgns and also wlLhln Lhe esLlmaLed cosL,
ls relaLed Lo Lhe performance of Lhe
consulLanLs.
1he works were awarded Lo Lhe conLracLors
for execuLlon followlng Lhe norms
prescrlbed ln CWu Manual and
speclflcaLlons of MC81P and relevanL 8lS
codes. Lnsurlng quallLy and speclflcaLlons
for Lhe works was Lhe responslblllLy of Lhe
conLracLors execuLlng Lhe works and Lhe
offlcers (Lnglneer ln Charge, ro[ecL
Manager, CL and LlC) supervlslng lL. ln
446
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addlLlon, Lhe consulLanLs enLrusLed wlLh Lhe
deslgns of Lhe pro[ecLs were also Lasked
wlLh ensurlng execuLlon of Lhe works as per
Lhe deslgns/drawlngs and speclflcaLlons.
1he deparLmenL had furLher engaged Lhlrd
parLy quallLy assurance (1CA) for
lndependenL assessmenL of Lhe quallLy and
speclflcaLlon of Lhe works. AlLhough Lhe
1CA ls Lo be selecLed from among Lhe
shorL llsLed panel for such [ob, Lhe
deparLmenL dld noL have any speclfled
pollcy and quallfylng crlLerla for selecLlon of
Lhe 1CA.
1he pracLlce of engaglng 1CA ln Wu ls
sLaLed Lo be a recenL developmenL, arlslng
from a memorandum lssued by Lhe
ConLracL SpeclflcaLlons and CuallLy
Assurance (CSCA) unlL of CWu ln March
2006. lL ls based on an advlce from CvC for
Lhe engagemenL of exLernal agency for Lhlrd
parLy quallLy assurance ln cerLaln selecLed
ma[or pro[ecLs.
We noLlced LhaL 1CA consulLanLs were
engaged ln all Lhe pro[ecLs examlned by us,
maklng 1CA consulLancy more a norm
raLher Lhan excepLlon, addlng 1 Lo 2 per
cenL Lo Lhe cosL of Lhe pro[ecL. We also
observe LhaL Lhe quallLy assurance
consulLanLs are acLually noL lndependenL
from execuLlon slnce 1CA were engaged
by Lhe LxecuLlve Lnglneers dlrecLly ln
charge of Lhe execuLlon and Lhe
LesL/lnvesLlgaLlon reporLs were also
submlLLed Lo hlm. 1o ensure LhaL Lhe Lhlrd
parLy quallLy assurance agency ls Lruly
lndependenL of boLh Lhe execuLlng agency,
and Lhe conLracLor, ln our vlew, Lhe 1CA
should be engaged and monlLored aL a level
hlgher Lhan Lhe LxecuLlve Lnglneer, or by an
lndependenL unlL wlLhln Wu. lurLher,
Wu should sLrengLhen and sLreamllne lLs
sysLems for quallLy assurance, and come
ouL wlLh clear guldellnes on engagemenL of
1CA provldlng agencles.
ConnaughL lace (C) and
lLs surroundlngs have a
hlsLorlcal legacy and have
emerged as Lhe
MeLropollLan ClLy CenLer,
as per Lhe MasLer lan for
uelhl 2021. ln Aprll 2004,
Chalrman, nuMC dlrecLed
nuMC Lo lnlLlaLe acLlon for
resLoraLlon of ConnaughL
lace before CWC-2010.
1he chronology of
subsequenL evenLs ls
summarlsed below:
2S.1 Introduct|on
C
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Z
4/thouqh the project for renovotion ond restorotion of connouqht P/oce wos envisoqed in
4pri/ 2004, it wos p/oqued by undue de/oys. 1he oriqino/ estimoted cost of ks. 7 crore {os
of Moy 2005) went up neor/y nine-fo/d to ks. 71 crore by lu/y 2007, with o huqe increose in
scope of work. ln our opinion, it is /ike/y thot this increose in scope ond cost wos driven, ot
/eost port/y, by the /ounch of the loworhor/o/ Nehru Notiono/ urbon kenewo/ Mission
{lNNkuM) by 6ol in November 2005 ond the subsequent inc/usion of this project under
lNNukM.
1he opproved uPk for the project wos submitted on/y in lebruory 2008, ond it wos,
therefore, unreosonob/e to expect thot the project cou/d hove been comp/eted in time for
the 6omes, especio//y in view of the constroints of troffic monoqement ond considerinq
the importonce of connouqht P/oce to ue/hi's troffic. NuMc chose not to fo//ow the
opprooch of dividinq the project into monoqeob/e pockoqes, so orqonised os to minimise
troffic disruption ocross the who/e of cP, ond tokinq up those project components which
cou/d hove been comp/eted in time. lnsteod, the project wos divided into pockoqes
sponninq the who/e of cP, with o// octivities qettinq underwoy oround the some time.
4port from the pi/ot project for focode restorotion of 'c' b/ock {which wos comp/eted in
4uqust 2008), the project remoined incomp/ete ot the time of the 6omes. we o/so found
siqnificont deficiencies in controct monoqement, with consequent ovoidob/e expenditure.
kenovat|on and kestorat|on
of Connaught |ace
In our op|n|on NDMC shou|d have
d|v|ded th|s pro[ect |nto manageab|e
packages, so organ|zed as to m|n|m|ze
traff|c d|srupt|on across the who|e of C
and then taken up on|y those pro[ect
components, wh|ch cou|d have been
comp|eted by Iune 2010 (before the
onset of the monsoon). NDMC,
however, chose not to fo||ow such an
approach.
1he pro[ecL was plagued by undue delays.
1he declslon Lo lnlLlaLe acLlon was Laken ln
Aprll 2004. 1he u8, however was
submlLLed only ln lebruary 2008 and uuAC
clearance recelved ln november 2008. lL
was, Lherefore, unreasonable Lo expecL LhaL
Lhe pro[ecL could have been compleLed ln
Llme for Lhe Cames. lurLher, Lhe
consLralnLs of Lrafflc managemenL,
conslderlng Lhe lmporLance of C Lo uelhl's
Lrafflc, made Lhls Lask even more dlfflculL.
2S.2 Undue De|ays
1he orlglnal esLlmaLed cosL of 8s 76 crore ln
May 2003 wenL up nearly nlne-fold Lo 8s
671 crore by !uly 2007. 1hls was malnly due
Lo an lncrease ln Lhe scope of work on
accounL of Lhe followlng componenLs:
2S.3 nuge expans|on |n scope
of work
448
ChapLer 23 - 8enovaLlon and 8esLoraLlon of ConnaughL lace
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1oble 25.1 - cbtoooloqy of eveots telotloq to testototloo of cl
1|me||ne Lvents
ulrecLlon by Chalrman, nuMC Lo lnlLlaLe acLlon
CosL esLlmaLe for pro[ecL prepared for 8s.76 crore
Lnglneers lndla LlmlLed (LlL) appolnLed as ro[ecL ManagemenL
ConsulLanL (MC)
CosL esLlmaLe and mllesLones for pro[ecL lmplemenLaLlon by LlL approved
by Councll
u8 and revlsed cosL esLlmaLe of 8s.671 crore prepared by LlL/ approved
by Councll
u8 senL Lo CnC1u and Mouu for fundlng under !nnu8M
8edevelopmenL plan senL Lo uuAC for approval
AdmlnlsLraLlve approval of 8s 613.20 crore by nuMC for Lhe pro[ecL, and
LlL appolnLed Lurnkey consulLanLs uuAC clearance recelved
uuAC clearance recelved
Apr|| 2004
May 200S
November 200S
Iebruary 2006
Iu|y ] November 2007
Iebruary 2008
Apr|| 2008
November 2008
Clearly, Lhere was an enormous lncrease ln
Lhe scope of work and cosLs. lL ls llkely LhaL
Lhls lncrease ln scope and cosL was drlven,
aL leasL parLly by Lhe launch of Lhe
!awaharlal nehru naLlonal urban
8ehablllLaLlon Mlsslon (!nnu8M) by Col ln
november 2003, and subsequenL lncluslon
of Lhls pro[ecL under !nnu8M.
under !nnu8M, 33 per cenL of Lhe cosL
would be funded by Col, and 63 per cenL
would be funded dlrecLly or lndlrecLly meL
by CnC1u. 1lll uecember 2010, ouL of LoLal
expendlLure of 8s 163 crore on Lhe pro[ecL,
8s 22.21 crore was meL from !nnu8M
funds, 8s 37.86 crore from CnC1u funds,
and Lhe remalnlng amounL of 8s 102.93
crore ouL of nuMC funds (Lo be relmbursed
subsequenLly by CnC1u).
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1oble 25.2 - locteose lo 5cope of wotk / costs
Sr.
No.
Item Descr|pt|on Amount |n or|g|na|
rough |nd|cat|on of cost
by NDMC (May 200S)
Amount |n rev|sed
|nd|cat|on of cost
prepared by LIL
(Iu|y 2007)
Cvera|| L|ectr|ca| System etc.
Ut|||ty Duct]Serv|ce 1unne| |n
M|dd|e C|rc|e
Lsca|ators
Cther |tems
1ota|
Iaade kestorat|on
Centra||zed nVAC
1ota|
Inc|ud|ng |mprovement of ex|st|ng
subways and new subways, Cuter
C|rc|e deve|opment)
Underground park|ng
C|v|| & L|ectr|ca| Works (kad|a| koads,
M|dd|e C|rc|e & Inner C|rc|e)
Cthers
1ota|
Grand tota|
10.00
-
-
20.00
30.00
8.00
-
8.00
-
-
-
30.00
30.00
76.00
46.80
69.21
80.00
46.70
242.71
77.33
33.73
133.28
63.03
111.99
66.08
31.88
229.93
670.99
(say 671.00
1.
2.
3.
4.
1.
2.
1.
1.
2.
3.
A. Lng|neer|ng Serv|ces]Infrastructure
8. Iacade restorat|on] Areas to be taken up w|th stakeho|ders' part|c|pat|on
C. edestr|an movement areas
D. Street furn|ture] |nner p|aza deve|opment
(ks. lo ctote)
A plloL pro[ecL for faade resLoraLlon of C-
8lock was awarded ln AugusL 2007, and
compleLed ln AugusL 2008. 1he resL of Lhe
pro[ecL was dlvlded lnLo nlne packages
spannlng Lhe whole of C, wlLh all acLlvlLles
geLLlng underway around Lhe same Llme.
1he sLaLus of lmplemenLaLlon of varlous
works ls summarlzed below:
2S.4 ro[ect p|ann|ng
4S0
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1oble 25.J - 1lmelloe of lmplemeototloo of wotks
Works Iu|y
'07
May
'09
Iune
'09
Iu|y
'09
Nov.
'09
Ian.
'10
Ieb.
'10
Mar.
'10
Apr||
'10
Iune
'10
Iu|y
'10
Aug.
'10
Ieb
'11
(C b|ock) 1
(faade) 2
(faade) 3
(serv|ce corr|dor-
m|dd|e c|rc|e)
4
(e|ectr|ca| works-
outer c|rc|e, subways)
S
(Area dev- |nner and
outer c|rc|e)
6
(faade ||ght|ng- C
p||ot b|ock)
7
(to||ets, k|osks
everywhere)
8
(esca|ators |n
subways)
9
(faade - ||ght|ng-
others)
10
(hort|cu|ture) 11
(s|gnage,
everywhere)
12
(road works |n |nner
and outer c|rc|e)
13
Note: Otooqe. owotJ of wotk, Ctey. wotk lo ptoqtess
ueLalls of Lhe cosL of dlfferenL pro[ecL
componenLs and expendlLure Llll daLe are
lndlcaLed ln Annexe 23.1.
As can be lmaglned, a 24 x 7 schedule of
consLrucLlon work ln C was compleLely
lmpracLlcable, conslderlng Lhe lmporLance
of C Lo Lrafflc flow ln uelhl. nuMC's
response LhaL Lhe execuLlon of Lhe work
was delayed due Lo non-recelpL of
clearance from Lhe Lrafflc auLhorlLles ls
llloglcal.
LlL soughL permlsslon from Lhe 1rafflc ollce
ln uecember 2008, who lssued an nCC for
240 days (effecLlve from 1 !anuary 2010)
only ln uecember 2009. Powever, Lhe nCC
was wlLhdrawn subsequenLly as descrlbed
below:
uue Lo sLarLlng of work aL nlne locaLlons

slmulLaneously, Lhere were proLesLs by
Lhe shopkeepers. ConsequenLly, Lhe
nCC lssued for Lrafflc dlverslon durlng
consLrucLlon of Lhe subways ln Lhe ouLer
clrcle and servlce corrldor ln Lhe mlddle
clrcle was wlLhdrawn ln !anuary 2010 by
Lhe uC (1rafflc), sLaLlng LhaL Lhe new
uelhl 1raders AssoclaLlon (nu1A) had
sLrongly opposed Lhe consLrucLlon and
1
redevelopmenL work .
1he 1rafflc ollce sLaLed LhaL due Lo Lhls
consLrucLlon work, a large number of
buses had been dlverLed, creaLlng
congesLlon ln Lhe surroundlng areas of
Lhe enLlre new uelhl ulsLrlcL and CenLral
2S.S 1raff|c Management
As expecLed, all works were underway more or less aL Lhe same Llme, wlLh Lhe scheduled
compleLlon by november 2010 belng compleLely lmpracLlcal. A brlef summary of Lwo ma[or
works ln progress ls glven below:
1oble 25.4 - 5ommoty of two mojot wotks lo ptoqtess
Work 8r|ef Deta||s
A consorLlum of AlCCnS-SLerllng and Wllson ConsLrucLlon was
awarded Lhe conLracL ln november 2009 aL a cosL of 8s 236.70
crore for compleLlon by May 2011 wlLh Lhe sLrucLural works Lo be
compleLed by AugusL 2010 l.e., before Lhe Cames.
We found LhaL LlL accepLed and nuMC approved a condlLlonal
rebaLe of 8s 3 crore offered by Lhe Lenderer for worklng round Lhe
clock for all days of Lhe week. 1he above Llme schedule and Lhe
esLlmaLed prlce were based on 24 hours worklng ln a day and 7
days ln a week, on round Lhe clock basls.
1hls work was awarded Lo Lra lnfra Lnglneerlng vL. LLd. ln
november 2009 for 8s 36.04 crore on slngle Lender basls on
grounds of urgency and compleLlon by CWC 2010.
C|v||, L|ectr|ca| and I|n|sh|ng
Works for Serv|ce Corr|dor |n
M|dd|e C|rc|e
kenovat|on of new subways
and construct|on of
new subways
1
NuMc lofotmeJ tbe 1tofflc lollce tbot tbe ttoJets
ossoclotloo boJ beeo tokeo loto cooflJeoce. nowevet,
tbe 1tofflc lollce wete lofotmeJ by tbe Nu1A tbot tbey
boJ sttooqly opposeJ tbe coosttoctloo wotk lo tbelt
lotetoctloo wltb NuMc.
ulsLrlcL. 8oad llnk for Lhe general publlc
Lo new uelhl 8allway SLaLlon had been
slmllarly affecLed, leadlng Lo unLold
mlserles faced by commuLers. uC
(1rafflc), Lherefore, asked nuMC Lo Lake
a relook aL Lhe enLlre pro[ecL of
consLrucLlon of subways and relaLed
redevelopmenL work ln consulLaLlon
wlLh all Lhe sLakeholders l.e. 1rafflc
ollce, u1C, nu1A, eLc. endlng a
declslon ln Lhe maLLer, consLrucLlon
work was asked Lo be lmmedlaLely
sLopped, and Lhe barrlcades coverlng Lhe
road space be removed.
SubsequenLly, Lhe LleuLenanL Covernor
(LC) lssued lnsLrucLlons for slowlng
down Lhe pace of consLrucLlon. ln a
meeLlng ln !anuary 2010 called by Lhe LC
Lo dlscuss Lrafflc problems and access
lssues durlng renovaLlon works ln C, Lhe
Commlssloner of ollce oplned LhaL Lhe
requlremenL of subways needed Lo be
revlslLed. Some sub-ways had been
planned on elLher slde of Lhe
lnLersecLlon, and some, for example Lhe
one aL anchkulan 8oad, aL areas where
noL much of pedesLrlan movemenL
exlsLed. Some of Lhe relaLlvely less
lmporLanL subways could be Laken up
afLer Lhe CommonwealLh Cames, and
concreLlng of Lhe CuLer Clrcle road
should be done lane-wlse.
1he LC sLaLed LhaL Lhe nu1A dld noL
have any problem wlLh resLoraLlon of
faade renovaLlon work ln Lhe lnner
clrcle, and Lhe problems due Lo ducLlng
work ln Lhe mlddle clrcle seemed
manageable by approprlaLe segregaLlon
of works so as Lo keep Lwo roads for
enLry and Lwo for exlL Lo and from Lhe
lnner clrcle open aL all Llmes. 1he ma[or
problem seemed Lo be wlLh Lhe works ln
Lhe ouLer clrcle, whlch needed Lo be

looked lnLo ln greaLer deLall and Lhe
rlghL soluLlon found.
1lll uecember 2010, Lhe conLracLor
could compleLe only one sub-way l.e. aL
Super 8azar (old), Lhe earLhwork done
for Lhe four new sub-ways had Lo be
refllled, due Lo non-recelpL of clearance
from uelhl ollce. 1he work of
lnsLallaLlon and commlsslonlng of
escalaLors ln Lhe sub-ways (awarded Lo a
dlfferenL conLracLor) was
correspondlngly delayed.
nuMC's response LhaL Laklng up

consLrucLlon of subways one by one would
have led Lo compleLlon ln elghL years wlLh
assoclaLed cosL over-runs and
lnconvenlence Lo Lhe people appears Lo be
unLenable, as Laklng up so many works
slmulLaneously led Lo even greaLer
dlfflculLles ln execuLlon.
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Covered subway entrance after re-f||||ng
We also noLed Lhe followlng deflclencles ln
conLracL managemenL.
CranlLe was used as floorlng maLerlal ln
Lhe plloL pro[ecL for 'C' 8lock, conLrary
Lo Lhe lnlLlal uuAC approval of
november 2006. ConsequenLly, afLer
lnspecLlon, Lhe uuAC ordered
sandblasLlng of granlLe floorlng ln
november 2008 Lo reduce Lhe colour
conLrasL, resulLlng ln avoldable
expendlLure of 8s 0.19 crore
ln area developmenL works for lnner

and ouLer clrcle of C, granlLe sLone kerb
lnsLead of concreLe kerb was used, wlLh
a dlfference ln expendlLure of 8s 3.97
crore. 1hls lncluded avoldable
expendlLure of 8s 0.61 crore, due Lo an
un[usLlfled change ln colour of granlLe
sLone kerb from 'Slndoorl 8ed' colour Lo
'8a[ashrl 8ed' colour.
nuMC sLaLed LhaL granlLe was mosL sulLable
for such areas because of lLs durablllLy,
hardness, long llfe, and aesLheLlc value
compared Lo oLher pavlng maLerlals.
lurLher, Lhe samples of '8a[shree 8ed' wlLh
compleLe lald floorlng samples, lncludlng
kerb sLones, were approved by Lhe Chlef
MlnlsLer durlng her vlslL Lo C ln March
2010.
We do noL agree wlLh nuMC's reasonlng.
1he uS8 provldes for concreLe kerb sLones.
We have, however, consldered koLa sLone
as a comparable maLerlal ln Lerms of lLs
belng durable, anLl-skld and sLaln-reslsLanL
(besldes belng more economlcal). lf a
granlLe flnlsh was deemed essenLlal, Lhls
could have been achleved Lhrough 18 mm
granlLe coverlng on a concreLe kerb sLone.
We also noLlced award of work of
olymer ConcreLe uraln cosLlng 8s 2.44
crore along Lhe clrcumference of CenLral
ark. ln our oplnlon, Lhe expendlLure ls
unnecessary, due Lo Lhe exlsLlng road
slde dralns. lurLher, our lnspecLlon
revealed choklng of polymer draln ln
some places wlLh mud due Lo lLs narrow
wldLh.
2S.6 Contract Management

Gran|te kerb f|xed at work s|te
C-8|ock w|th Gran|te I|oor|ng
nuMC sLaLed LhaL Lhe draln had been
provlded as Lhe fooLfall was hlgh, and
provldlng a draln wlLh graLlng was noL
sulLable for Lhls area, furLher, malnLenance
would be Laken care of, afLer compleLlon of
Lhe work. We do noL agree, ln vlew of Lhe
exlsLlng road slde dralns.
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Choked po|ymer dra|n
Current|y, the pro[ect for renovat|on and
restorat|on of C |s nowhere near
comp|et|on, g|ven the d|ff|cu|t|es of
traff|c management and |||-conce|ved
p|ann|ng. We f|nd |t d|ff|cu|t to assess
the t|me||ne by wh|ch th|s pro[ect |s
||ke|y to be comp|eted to prov|de
necessary benef|ts to the c|t|zens of
De|h|.
C
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Cther Infrastructure
Deve|opment Act|v|t|es
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Z
11k4 is o professiono/ mobi/e communicotion service essentio//y meont for emerqency
services ond qovernment oqencies. ln 5eptember 2008, 6Nc1u decided to introduce o
11k4 network in time for cw6-2010, bosed on the experience of 8eijinq O/ympics 2008.
6Nc1u oworded the controct for 11k4 to ncL-Motoro/o ot ks.99.81 crore for on 87
month period, coverinq not on/y the 6omes period but o/so o seven yeor /eqocy period. ln
our view, the decision to extend 11k4 for /eqocy use for seven yeors wos i//-conceived. 4
proper ossessment of the requirements of ue/hi Po/ice {the moin user) ond other pub/ic
oqencies os we// os the rep/ocement of existinq networks with 11k4 {since no
communicotion wos permitted by uo1 between 11k4 ond other networks) wos not
corried out.
uurinq cw6-2010, ue/hi Po/ice conveyed its dissotisfoction with the siqno/ quo/ity ond
termed it o foi/ure. 4s reqords /eqocy use, it is not c/eor how these l57 rented 11k4 sets
wi// rep/oce ue/hi Po/ice's existinq rodio communicotion system of neor/y 11000 sets. Post
cw6-2010, most of these expensive 11k4 sets ore, in effect, no more thon mobi/e
phones.
uurinq cw6-2010, tronsportotion services were provided for ferryinq the oth/etes,
technico/ officio/s ond medio persons, for which the /ow f/oor buses of u1c were used.
Other improvements to the tronsport foci/ities/infrostructure inc/uded construction of
new bus porkinq, ticketinq booths ond bus queue she/ters, ond providinq Lu destinotion
boords on stondord buses.
lor keepinq the buses 'new' for cw6-2010, u1c kept obout 1 per cent of its /ow f/oor f/eet
{471 buses) id/e between Morch ond 4uqust 2010. lurther, 78 per cent of the 8/ue/ine
f/eet wos o/so token off the roods in the NuMc oreo {but not in the Mcu oreo) for the
durotion of the 6omes. 4s u1c diverted 1ll8 drivers fu// time for the purpose of the
6omes, it cou/d not de/iver its schedu/ed ki/ometre coveroqe for the pub/ic. 1hus, pub/ic
tronsport wos qreot/y disrupted, this cou/d hove been reduced by showinq qreoter
empothy for the needs of the common mon.
Modernisotion projects /ike Lu destinotion boords on stondord buses, construction of
1ime keepinq 8ooths ond modern bus queue she/ters {85s) cou/d not be comp/eted
before cw6-2010 os envisoqed. 1he construction of 48 ticketinq booths o// over the city
oppeors to be on onochronism ot o time when the buses ore beinq fitted with 6P5/ 4v15.
lor qettinq 1500 8us ueue 5he/ters {85s) constructed before the 6omes, u1c ond the
1ronsport ueportment of 6Nc1c resorted to vorious methods of execution, which
indicoted orbitroriness, od hocism ond /ock of c/ority in imp/ementotion of such o /orqe
4S6
ChapLer 26 - CLher lnfrasLrucLure uevelopmenL AcLlvlLles
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project. 5o for, on/y 472 85s cou/d be comp/eted. lnterestinq/y, ulM15, o non-
6overnment entity with 50 per cent privote shoreho/dinq, wos oworded two projects for
85 on nominotion bosis - 800 85s with 6overnment fundinq ond 250 85s on 8O1. 1he
1ronsport ueportment hod qone oheod with construction of 800 85s with 6overnment
fundinq of ks.9.70 crore, despite the linonce ueportment's protestotions of /ock of
funds. lurther, the concession fee for the 8O1 85 oworded to ulM15 wos kept undu/y
/ow compored to simi/or projects in ue/hi /ike 8O1-l of u1c.
1he bus porkinq constructed ot the 4sh Pond opposite the Mi//ennium Pork is not mere/y o
temporory structure but hos certoin permonent constructions /ike the fi//inq stotions,
woshinq oreo, boundory wo// etc. lts use hos continued we// beyond the short
requirements of the 6omes. 1his wos c/eor/y in vio/otion of the Moster P/on for ue/hi
2021 ond the proposed 2ono/ p/on of ue/hi, which eormorks the oreo os o qreen tone with
recreotiono/ uses but without permonent construction.
6Nc1u p/onned to commission o new power p/ont ot 8owono on the qrounds of increosed
dependence on own power qenerotion sources. 1he construction of the 1500 Mw
8owono qos-bosed power p/ont wos, however, de/oyed, ond cou/d not be comp/eted in
time for the 6omes.
ue/hi 1ronsco Ltd. {u1L) o/so took up five 220 kv4 substotions ond seven correspondinq
cob/inq projects to strenqthen the power supp/y situotion in ue/hi in time for the 6omes.
Most of these projects were oworded very /ote {in the second ho/f of 2009) ond cou/d not
be comp/eted before the 6omes.
lurther, the controct oword process wos not tronsporent, os u1L hod opp/ied conditions
inconsistent/y to oword controcts to fovoured porties.
26.1.1 Introduct|on
1L18A or 1erresLrlal 1runk 8adlo ls a
professlonal moblle communlcaLlon servlce
whlch permlLs communlcaLlon elLher
Lhrough a neLwork of base sLaLlons or polnL
Lo polnL communlcaLlon llke a walkle-Lalkle.
Compared Lo commerclal moblle neLworks
(CSM or CuMA), 1L18A's maln advanLages
are:
longer range whlch permlLs very hlgh

level of geographlc coverage wlLh fewer
base sLaLlons,
very fasL call seL-up,
faclllLaLlon of mlsslon crlLlcal neLwork
wlLh a number of fall-back modes, and
avallablllLy of communlcaLlon servlces
even durlng overload slLuaLlons e.g.
ma[or publlc evenLs or dlsasLers, and
sulLablllLy for worklng aL hlgh speeds
e.g. hlgh speed Lralns.
1L18A was speclflcally deslgned for use by
governmenL agencles, emergency servlces,
26.1 Secured Commun|cat|on
System (1L1kA)
for publlc safeLy neLworks, rall
LransporLaLlon sLaff for Lraln radlos,
LransporL servlces and Lhe mlllLary. As
regards ma[or sporLlng evenLs, lL was used
for Lhe ALhens Clymplcs ln 2004, Lhe uoha
Aslan Cames ln 2006 and Lhe 8el[lng
Clymplcs ln 2008.
1he 1L18A vendor was selecLed afLer
followlng a compeLlLlve blddlng process.
PCL-MoLorola was awarded Lhe conLracL on
weL lease basls for 8s.99.81 crore for an 87
monLh perlod from !anuary 2010 Lo March
2017 (l.e., noL only coverlng Lhe CWC
perlod buL also for legacy use.)
1he declslon Lo adopL 1L18A for secured
communlcaLlon durlng CWC-2010 was
Laken ln SepLember 2008:
ln a meeLlng of Lhe CoS on 9 SepLember
2008, CS, CnC1u, expressed Lhe need
for seLLlng up an efflclenL
communlcaLlons sysLem among varlous
agencles lnvolved ln CWC-2010
arrangemenLs. Whlle suggesLlng a
1L18A based soluLlon, he proposed Lhe
seLLlng up of a Lask force.
Cn 11 SepLember 2008, LC, uelhl called
a meeLlng wlLh Shrl Suresh kalmadl,
SecreLary, SporLs, CCl, CS, CnC1u and
oLher senlor offlclals of CnC1u for
esLabllshlng a secure communlcaLlon
sysLem for CWC-2010 on Lhe llnes of Lhe
8el[lng Clymplcs. A presenLaLlon by Lhe
suppllers of 1L18A aL 8el[lng was made
aL Lhls meeLlng, and lL was declded Lo
adopL Lhe 1L18A as a secure
communlcaLlon neLwork ln uelhl for
CWC-2010. An lnLer-Agency Croup
(lAC) was consLlLuLed Lo draw up Lhe
26.1.2 Se|ect|on of 1etra and Award of
1etra Contract
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speclflcaLlons. 1he ueparLmenL of
lnformaLlon 1echnology (uol1) was
named as Lhe nodal agency for Lhe
pro[ecL and 1ClL, a Su, was hlred as Lhe
ro[ecL ManagemenL ConsulLanL.
1he declslon LhaL 1L18A would be used
noL only for CWC 2010, buL also for
legacy use, was Laken ln SepLember
2008 aL Lhe very flrsL meeLlng of Lhe lAC,
and Lhe requlremenLs of dlfferenL
deparLmenLs, as well as lnformaLlon on
exlsLlng communlcaLlon sysLems, was
soughL beLween CcLober and uecember
2008.
An 8l was lssued ln Aprll 2009. 3 blds
(from PCL-MoLorola, 1CS-LAuS, and 1ech
Mahendra-Selex SA) were recelved, all of
whom were found Lo be Lechnlcally
quallfled. Cn openlng and evaluaLlon of
flnanclal blds, PCL-MoLorola was found Lo
be L-1 (aL a cosL of 8s. 99.81 crore plus
servlce Lax) and was awarded Lhe work ln
uecember 2009. All Lhe acLlvlLles Lo
1
operaLlonallse Lhe sysLem were Lo be
compleLed wlLhln 24 weeks of award of
conLracL, buL were compleLed ln AugusL
2010 wlLh a delay of 7 weeks.
8lghL aL Lhe ouLseL (ln SepLember 2008),
1L18A was envlsaged Lo cover noL only
CWC-2010, buL also legacy use, on a weL-
lease basls for an addlLlonal perlod of 7
years. 1he usage lndlcaLed by ma[or
deparLmenLs durlng CWC-2010 and legacy
are summarlsed below:
26.1.3 I||-conce|ved dec|s|on for

|egacy use of 1etra
1
lo lebtooty 2010, tbe uepottmeot of 1elecommoolcotloo
qtooteJ coptlve llceose to tbe CNc1u fot estobllsbloq
wlteless teleqtopb stotloos ooJ flxeJ specttom cbotqes
of ks. 16.70 lokb p.o. fot 50 bose stotloos ooJ 72
ftepoeocles.
1hus, desp|te |ts re|uctance to [o|n the
1L1kA for |egacy use, D d|d not take a
dec|s|on |n th|s regard |n t|me, and was
effect|ve|y forced to go a|ong w|th the
proposa|.
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ln our vlew, Lhe declslon Lo provlde 3636
seLs Lo Lhe uelhl ollce (u) for legacy use
was lll-founded and lll-concelved. u
already had an exLenslve lnLegraLed
wlreless communlcaLlon sysLem wlLh:
10894 seLs coverlng pollce sLaLlons,
pollce posLs, plckeLs, border check
posLs, C8 vans/ moLorcycles/
ambulances and LourlsL C8s,
42 hoLllnes connecLlng wlLh CC8s,
hosplLals, clvlc bodles, CovernmenL
agencles, and
SaLelllLe audlo phones for CC8s aL
selecLed uelhl llre sLaLlons, Moblle
conLrol rooms and rescue and rellef
Leams.
u was Lhe largesL user of 1L18A boLh
durlng CWC-2010 and Lhe legacy perlod. ln
SepLember 2009 Lhey expressed an
lnLenLlon Lo llmlL Lhelr parLlclpaLlon ln Lhe
1L18A sysLem only Lo CWC-2010 and
wlLhdraw Lhe prevlously pro[ecLed
requlremenL for Lhe legacy perlod.
Powever, LC, uelhl Lhrough hls rlnclpal
SecreLary and Lhe Chlef SecreLary, CnC1u

prevalled upon Lhe Commlssloner of ollce,
uelhl (C) noL Lo wlLhdraw Lhe requlremenL
pro[ecLed for uelhl ollce:
CS, CnC1u ln hls leLLer addressed Lo C
daLed 26 SepLember 2009, sLaLed LhaL
such reducLlon aL Lhe sLage of Lechnlcal
evaluaLlon would LanLamounL Lo
vlolaLlon of CvC guldellnes lndlcaLlng
lnflaLed demand ln Lhe 8l documenL
and lack of due dlllgence ln flrmlng up
Lhe requlremenL. Pe furLher wroLe oo
wlll oqtee tbot ptoceJotol fotmolltles
ooJ vlqllooce losttoctloos ote to be
sttlctly oJbeteJ to lo teoJet mottets.
commooweoltb Comes ote cotcbloq
meJlo otteotloo ooJ ooy sllppoqe ot tbls
stoqe ls oot Jesltoble. lo cose lofloteJ
JemooJ bos beeo ptojecteJ eotllet, tbe
some moy be exomloeJ ot yoot eoJ. lt
moy oot be posslble fot Covt. of uelbl ot
tbls stoqe to cooslJet ooy teJoctloo lo
tepoltemeots of 11kA sets."
1he LC, uelhl also communlcaLed Lo C
Lhrough hls rlnclpal SecreLary Lo
ensure LhaL u requlremenLs are noL
reduced or compromlsed ln Lhe
proposed fully Secured CommunlcaLlon
neLwork for CommonwealLh Cames
whlch ls now aL Lhe sLage of scruLlny of
Lechnlcal blds."
lL ls also perLlnenL Lo menLlon here, LhaL
alLhough u was represenLed ln Lhe lAC,
Lhey chose Lo wlLhdraw only aL a very laLe
sLage.
Department CWG-2010 Legacy

De|h| o||ce
CC
D1C
MCD
D|v|s|ona|
Comm|ss|oner
Cff|ce
n&IW
WD
Cthers
3363
413
170
3221
747
362
100
863
nll
82
133
nll
80
1oble 26.1 - lloooeJ ose of 11kA
(lo ks. ctote)
Wh||e we do not quest|on the dec|s|on to
emp|oy 1L1kA for CWG-2010, the
dec|s|on to extend |t for |egacy use for 7
years was |||-conce|ved, w|thout a proper
assessment of the requ|rements of
e|ther D or other pub||c agenc|es. L|tt|e
thought was g|ven to the task of
rep|ac|ng the ex|st|ng networks w|th the
1L1kA (s|nce no |nterconnect|on was
perm|tted by the DC1 between the
1L1kA network and other networks).
ost-CWG-2010, most of these expens|ve
1L1kA sets (at month|y renta|s rang|ng
from ks. 2168 to ks. 236S ] month) are,
|n effect, no more than mob||e phones
and are not be|ng proper|y used for the
under|y|ng ob[ect|ve of m|ss|on-cr|t|ca|
commun|cat|ons serv|ces for pub||c
secur|ty] safety, emergency response
and other a|||ed pub||c serv|ces.
CnC1u sLaLed LhaL uelhl ollce had noL
lnvesLed ln Lhe old communlcaLlon sysLem
ln 2-3 years wlLh a vlew Lo havlng Lhe laLesL
communlcaLlon sysLem expecLed from
1L18A.
We do noL agree wlLh Lhls vlew, as Lhe
exlsLlng radlo communlcaLlon sysLem of u
comprlsed of 10894 seLs wlLh a llfe of aL
leasL 13 years. lL ls lncomprehenslble how
[usL 3636 renLed seLs would meeL Lhe legacy
requlremenLs of uelhl ollce, especlally
when 1L18A would noL be connecLed or
lnLegraLed wlLh Lhe exlsLlng communlcaLlon
sysLem (as per Lhe uo1's sLlpulaLlon). 1hls
effecLlvely means LhaL 1L18A users ln Lhe
u would also have Lo carry Lhe exlsLlng
analogue seLs for communlcaLlon across Lhe
u neLwork.
Lven ln respecL of oLher user deparLmenLs,
Lhe legacy use was noL properly LhoughL
Lhrough:
MCu had publlc moblle radlo Lrunklng
seLs and moblle phones ln closed user
group (CuC) mode. MCu reduced lLs
requlremenL of 1L18A from 300
handheld seLs Lo 413 and deployed lL ln
deparLmenLs llke horLlculLure,
educaLlon, sanlLaLlon eLc. and even Lhe
A Lo Lhe Commlssloner, Lhls ls noL ln
keeplng wlLh Lhe ob[ecLlve of uslng
1L18A for emergency servlces.
u1C had 27 Lrunk radlo seLs and moblle
phones provlded Lo offlcers, cenLral
conLrol rooms, and reglonal conLrol
rooms. u1C abandoned lLs funcLlonlng
radlo communlcaLlon sysLem ln Aprll
2010, replaclng lL wlLh Lhe 1L18A
sysLem, and deployed lLs 82 seLs ln all
depoLs (47), recovery vans (10) , alrporL
26.1.4 Cther |egacy users
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express servlces (9), conLrol rooms (7)
lnspecLlng sLaff (6) and oLhers (3).
1he PealLh and lamlly Welfare
ueparLmenL had a wlreless uPl based
Lrunk radlo sysLem and a publlc moblle
neLwork on CuC mode for key docLors
and hosplLal sLaff. 1hey lssued 83 seLs
Lo Lhe Lmployee SLaLe lnsurance
CorporaLlon, who soughL clarlflcaLlon as
Lo how Lhe seLs were Lo be uLlllsed. Cf
Lhe remalnlng 30 seLs, 17 were
dlsLrlbuLed Lo CMCs and oLher offlcers,
and 33 sLaLlc Lermlnals were kepL ln Lhe
emergency rooms of varlous hosplLals.
170 seLs were glven Lo Lhe offlcers of
Lhe 8evenue ueparLmenL ln Lhe
ulvlslonal CommlssloneraLes. 1hese
lnclude 12 seLs glven Lo Lhe uuMA
(uelhl ulsasLer ManagemenL Agency).
26.2.1 Introduct|on
CnC1u dlrecLed u1C Lo provlde

LransporLaLlon servlces for ferrylng Lhe
aLhleLes, Lechnlcal offlclals and medla
persons durlng Lhe Cames. 1he
requlremenL of buses for ferrylng ln
dlfferenL caLegorles was:
600 AC low floor buses for Lhe aLhleLes
/Cames famlly,
630 non- AC low floor buses for uelhl
ollce, and
1316 low floor (AC/non-AC) buses Lo
2
Lhe CC for mass CasL ", work
force/volunLeers and specLaLors.
26.2 1ransportat|on serv|ces
for CWG-2010
In our v|ew, cons|der|ng the deta||ed
stat|st|cs ava||ab|e w|th the De|h| o||ce,
payment to nCL-Motoro|a for the sets
dep|oyed for use of the D for CWG 2010
shou|d be appropr|ate|y deducted for
non-performance.
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however, does noL LranslaLe Lo effecLlve and
compleLe coverage, whlch was Lhe
grlevance of u.
1he vendor ralsed a blll of 8s. 9.46 crore for
Lhe CWC-2010 perlod (SepLember -CcLober
2010), whlch ls noL [usLlfled, conslderlng
LhaL Lhe sysLem was flnally opLlmlsed ln
mld-SepLember 2010, and pro-raLa
reducLlon should be made.
26.1.S Ut|||sat|on of 1L1kA dur|ng
CWG-2010
We found LhaL Lhe lmplemenLaLlon of Lhe

1L18A could be compleLed only by mld-
SepLember 2010, buL lLs uLlllsaLlon had noL
sLablllzed by Lhe Llme of Lhe Cames due Lo
lnsufflclenL Llme for famlllarlsaLlon. We also
found LhaL Lhe largesL 1L18A users durlng
Lhe CWC-2010 perlod - u - were unable Lo
use lL due Lo poor slgnal quallLy, whlle Lhe
CC could noL produce sufflclenL evldence of
usage:
u, whlch held 38 per cenL of Lhe seLs
durlng CWC -2010 and 79 per cenL for
legacy use, conveyed lLs dlssaLlsfacLlon
wlLh Lhe slgnal quallLy lnslde Lhe
bulldlngs and underground afLer
surveylng Lhe venues and oLher areas
durlng CWC-2010, as deLalled ln Annexe
26.1. 1he Speclal Commlssloner
(lnLelllgence and CperaLlons) called Lhe
1L18A sysLem a fallure" and noLed LhaL
lL was Lhe exlsLlng pollce communlcaLlon
neLwork LhaL was uLlllsed successfully
for securlLy relaLed communlcaLlon
durlng Lhe Cames.
ln response Lo our enqulry regardlng
dlsLrlbuLlon of communlcaLlon Lermlnals
from Lhe CC, !uC (neLwork-
1echnology), CC could furnlsh deLalls of
dlsLrlbuLlon Lo lndlvlduals of only 130
seLs and LhaL Loo only aL Lhe Cames
vlllage. 1he deLalls of dlsLrlbuLlon of Lhe
remalnlng 3071 communlcaLlon
Lermlnals Lo Lhe CC could noL be
produced, beyond a broad deploymenL
Lo 23 venues.
ln response, CnC1u sLaLed LhaL Lhe average
duraLlon of Lalk Llme on 1L18A by uelhl
ollce was 72 hours/ day, whlle lL was 130
hours/ day for all ueparLmenLs. 1hls,
2
cost fot cetemooles of cwC-2010
26.2.2 urchase of |ow f|oor buses
uurlng 2008-09, u1C procured 2300 low
floor buses (1000 AC and 1300 non-AC) aL
an lnordlnaLely hlgh prlce, whlch was
reporLed by us ln ara 3.2.6 of 8eporL of Lhe
CAC (Clvll and Commerclal), CnC1u, for Lhe
year ended March 2009. We found LhaL
beLween SepLember and november 2009,
u1C procured addlLlonal 623 buses aL Lhe
same hlgh prlce, exerclslng an opLlon
clause, whlch cosL Lhe exchequer an
addlLlonal 8s. 61.10 crore over Lhe [usLlfled
cosL.
26.2.3 keduced transport serv|ces pr|or to
and dur|ng CWG-2010
We found LhaL aL Lhe dlrecLlon of Lhe
MlnlsLer of 1ransporL (CnC1u) u1C dld noL
deploy 382 of Lhe new low floor AC buses
(dellvered ln March and !uly 2010), Llll 31
AugusL 2010 ln order Lo ensure LhaL Lhese
remalned ln new and unused condlLlon"
for Lhe Cames. AnoLher, 89 low floor AC
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buses were also wlLhdrawn from Lhe acLlve
3
fleeL beLween !une and AugusL 2010 Lo
avold furLher damage Lo Lhese buses, and
kepL ldle. 1ogeLher, Lhese formed 16.44 per
cenL of Lhe low floor bus fleeL of Lhe u1C
and 8.33 per cenL of Lhe overall fleeL.
8eLween SepLember and CcLober 2010,
1338 drlvers were wlLhdrawn from regular
bus schedule, and aLLached Lo 600 buses
belng plled on CWC-2010 duLy. We found
LhaL Lhe average fleeL uLlllsaLlon per bus per
day decreased from 182 kms Lo 168 kms
durlng Lhe Cames perlod of 17 days l.e., 1
Lo 17 CcLober. ln addlLlon, from 26
SepLember 2010 Lo 17 CcLober 2010,
operaLlon of 737 rlvaLe SLage Carrlage
(8luellne/WhlLellne) buses was sLopped and
rouLes of 981 buses curLalled ln Lhe nuMC
area (buL noL ln MCu area) ln vlew of Lhe
CWC.
3
57 ftom tbe lost week of Iooe 2010 to J1 Aoqost 2010
ooJ J2 ftom tbe lost week of Aoqost 2010
1hus, pub||c transport was great|y
d|srupted, |nconven|ence cou|d have
been reduced by show|ng greater
empathy for the needs of the common
man.
We found that poor p|ann|ng and |ack of
c|ar|ty t||| the |ate stage of award of the
contract resu|ted |n |ncomp|ete
|nsta||at|on of LLD dest|nat|on boards
not on|y pr|or to CWG-2010 but even t|||
date.
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26.2.4 Incomp|ete |mp|ementat|on of
LLD pro[ect
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lssued ln !uly 2010, wlLh Lhe sLlpulaLlon
of pro[ecL compleLlon wlLhln four
monLhs.
LvenLually, LLu uesLlnaLlon 8oards could
be lnsLalled only ln 300 buses Llll
uecember 2010. As per Lerms of 8C1
conLracL Lhe concesslonalre was Lo pay
8s. 430 per bus per monLh ln Lhe flrsL
year, and 8s. 473 per bus per monLh
durlng second year of Lhe conLracL. no
such monles have been recelved. AfLer
we ralsed Lhe lssue, u1C ln !anuary
2011, ralsed Lhe monLhly concesslon fee
blll for 603 buses where compleLlon
cerLlflcaLes had been lssued, and also
assured LhaL llquldaLed damages would
be lmposed on Lhe flrm.
ln uecember 2009, u1C 8oard approved
consLrucLlon of 26 modern deslgn 1lme
keeplng 8ooLhs (1k8) aL lmporLanL CWC
locaLlons, aL an esLlmaLed cosL of 8s.66.88
lakh, Lhe number was lncreased Lo 60 aL Lhe
lnsLance of Lhe MlnlsLer of 1ransporL.
lnlLlally ln lebruary 2010, Lenders were
lnvlLed aL an esLlmaLed cosL of 8s. 1.48
crore, whlch was lncreased Lo 8s. 2.03 crore
on Lhe ground of lncrease ln scope of Lhe
work vls. flxaLlon of LLu board and
lnsLallaLlon of adverLlsemenL boxes. Work
was awarded Lo SMl ulsplay SysLem (lndla)
vL. LLd. ln May 2010 wlLh a sLlpulaLlon Lo
compleLe lL ln 120 days.
26.2.S Un[ust|f|ed expend|ture on

construct|on of 60 1|me keep|ng
8ooths for the CWG
ln CcLober 2009, u1C declded Lo lnsLall

LLu uesLlnaLlon 8oards on 1300 of lLs
sLandard 8uses on 8C1 basls ln lleu of
adverLlsemenL rlghL. ln november
2009, Lender speclflcaLlons were
prepared and LhereafLer Lhe lssue was
dlscussed aL varlous levels ln u1C and
1ransporL ueparLmenL CnC1u. ln
lebruary 2010, SecreLary cum
Commlssloner 1ransporL dlrecLed (afLer
dlscusslon wlLh MlnlsLer 1ransporL)
declded LhaL Lhe conLracL would be
awarded on 8C1 basls (ln lleu of
adverLlsemenL rlghLs) and ulM1S was
nomlnaLed as Lhe 8ld rocess Manager.
llnally ln !uly 2010, Lhe conLracL was
awarded Lo CasLmasLer MoblLec lndla
rlvaLe LlmlLed and leLLer of lnLenL
CnC1u's reply LhaL Lhe buses were kepL
aslde for varlous acLlvlLles l.e. lnsLallaLlon of
global poslLlonlng sysLem, 1eLra, radlo
frequency ldenLlflcaLlon Lag eLc. ls noL
convlnclng slnce Lhese acLlvlLles do noL
requlre deploymenL of buses Lo be kepL on
hold upLo flve monLhs.
1|me keep|ng 8ooths have been a part of
the c|ty transport management and
contro| system, pr|mar||y for enforc|ng
punctua||ty of bus operat|on. 1he staff
dep|oyed |n the 1k8s regu|ate bus
operat|ons, curta|| or d|vert bus
operat|on as per requ|rement of pub||c,
and a|so d|ssem|nate bus transport
re|ated |nformat|on to passengers and
tour|sts. In our op|n|on, the pro[ect of
construct|on of these k|osks at a cost of
about ks.3 |akh each a|| over the c|ty
appears to be an anachron|sm at a t|me
when the buses are be|ng f|tted w|th
GS] AV1S and the GNC1D |s
|mp|ement|ng e-governance |n a b|g way.
We found LhaL clvll work had been
compleLed only ln respecL of 48 klosks up Lo
03 CcLober 2010, before Lhe sLarL of CWC-
2010 and elecLrlc connecLlon had been
lnsLalled only ln 10 klosks.
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26.2.6 Ad hoc|sm |n methodo|ogy
adopted for construct|on of 8us
ueque She|ters (8Ss)
ln a meeLlng held by Lhe Chlef MlnlsLer,
CnC1u on 22 !une 2006, lL was declded Lo
upgrade 1000-1300 8CSs ln Lhe clLy wlLh
modern deslgns on 8ullL, CperaLe and
1ransfer (8C1) basls for Lhelr upkeep and
malnLenance. 1he concesslonalre would
generaLe revenue from dlsplay of
adverLlsemenLs on Lhe 8CSs and pay an
agreed amounL as Concesslon lee Lo
CnC1u. We found LhaL for geLLlng 1300
8CSs consLrucLed before Lhe Cames, Lhe
u1C and Lhe 1ransporL ueparLmenL resorLed
Lo varlous meLhods, whlch lndlcaLed
arblLrarlness, adhoclsm and lack of clarlLy ln
lmplemenLaLlon of such a large pro[ecL.
lrom 2006 Lo 2010, 4 models of
consLrucLlon of 8CSs have been followed.
?eL, only 472 8CSs could be compleLed so
far.
1he deLalls of Lhe varlous meLhods of
consLrucLlon and our flndlngs Lhereof are
glven below:
D1C's t|me keep|ng booth
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I|gure 26.1 - D|fferent mode|s of construct|on of 8S
May 2007 Ianuary 2010 Apr|| 2010 May 2010
on 8C1 model ln four

segmenLs
only one segmenL of
248 8CSs
successfully awarded
Lo Creen uelhl vL.
LLd aL a concesslon
fee of 8s. 93,800 per
8CS per monLh
248 compleLed
before CWC-2010
ConsLrucLlon of 8CSs
from CnC1u fundlng
by u1C ln 3 packages
Cnly one package of
137 8CSs
successfully awarded
Lo Czone kLA !v for
8s. 18.98 crore
99 compleLed
before CWC-2010
by ulM1S on 8C1
model on
nomlnaLlon basls
230 8CSs awarded
for a concesslon fee
of 8s. 9239 per 8CS
per monLh or 16 per
cenL of earnlng,
whlchever, ls hlgher
73 compleLed before
CWC-2010
CnC1u fundlng
Lhrough ulM1S
ConLracL awarded on
nomlnaLlon basls Lo
ulM1S for
consLrucLlon of 800
8CSs aL a cosL of 8s
97.70 crore
30 compleLed before
CWC-2010
ConsLrucLlon by
1oble 26.2 - Molo floJloqs lo tespect of Jlffeteot moJels of 8O5 coosttoctloo
Mode| Cbservat|ons
Lscrow accounL noL opened by Creen uelhl 8CS vL LLd.,

Lhough conLracLually requlred, and
lL had noL pald Lhe concesslon fee slnce March 2008
followlng whlch u1C encashed lLs bank guaranLee on Lwo
occaslons and recovered 8s. 13.31 crore. 1he LoLal amounL
ouLsLandlng from ConLracLor as on 30 SepLember 2010 was
8s.28.77 crore.
u1C gave adverLlslng space on 79 8CSs covered under Lhe
8C1 conLracL Lo CC, lnsLead of offerlng lLs own 8CSs.
lncldenLally, CC speclflcally asked for Lhese by encloslng a
llsL and u1C agreed Lo CC's llsL wlLhouL maklng any efforL Lo
offer lLs own 8CSs.
1he work could noL be compleLed wlLhln Lhe scheduled Llme of
seven monLhs and Llll 30 SepLember 2010, only 99 8CSs were
bullL,
u1C was loslng ouL on Lhe revenue LhaL lL could have earned
from adverLlsemenLs on Lhese 8CSs, and
As of november 2010, 8s. 13.62 crore had been pald Lo Lhe
conLracLor by Lhe u1C whereas no funds have been recelved
from Lhe CnC1u.
1he concesslon fee was based on a slmllar conLracL enLered by
nuMC (wlLh !C uecaux) ln 2006, when reference raLes of 2007
were avallable,
1he concesslon fee flxed for ulM1S of Lhe hlgher of 8s. 9239 or
16 per cenL of earnlngs, ls much lower Lhan Lhe 8C1 raLe of
8s.93,800 per 8CS per monLh flxed wlLh Creen uelhl 8CS vL.
LLd, !C uecaux offer of 8s.21,000 and u1C's reserve prlce of
8s.20,000 for 8C1 l.
ulM1S had noL deposlLed Lhe performance securlLy as
requlred and Lhe deparLmenL appolnLed an lndependenL
englneer Lo revlew Lhe progress of work compleLed by Lhe
concesslonalre only ln uecember 2010 and aL Lhe lnsLance of
AudlL also dlrecLed ulM1S Lo pay Lhe concesslon fee ln respecL
of Lhe 73 compleLed 8CSs.
ConLracL awarded desplLe Lhe llnance ueparLmenL's
proLesLaLlons of lack of funds,
MandaLory conLracLual provlslons llke deposlLlng of bank
guaranLee and performance securlLy noL lnslsLed upon,
ueparLmenL of 1ransporL released paymenLs of 8s. 42 crore
(excludlng MoblllzaLlon funds of 8s. 10 crore) on demand Lo
ulM1S wlLhouL havlng Lhe deLalled bllls duly scruLlnlsed by Lhe
englneer as requlred ln Lhe conLracL agreemenL,
8C1 for construct|on of
248 8Ss awarded to
Green De|h| 8S vt. Ltd
Construct|on of 2S0
8Ss by DIM1s on
8C1 bas|s
Construct|on of 800 8S
by DIM1s on nom|nat|on
bas|s
Construct|on of 1S7
8Ss by Czone kLA IV
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Mode| Cbservat|ons
no sLaLuLory deducLlon on accounL of 1uS (8s.117.42 lakh),

Worker Welfare Cess (8s.37 lakh) were made aL Lhe Llme of
release of funds and collecLed only aL Lhe lnsLance of audlL
from Lhe subsequenL paymenL of 8s.3 crore.
ln Lhe absence of funds, 8s.32 crore was made avallable by Lhe
deparLmenL from oLher plan schemes Ma[or Pead 3033 uu-1
(3) (1) ' AlLernaLe mode of LransporL' and Ma[or Pead 3033
uu-1(1) (4) 'urchase of land for new 8us 1ermlnal'.
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As can be conc|uded from above, not
on|y d|d the Government |ose s|ght of |ts
ob[ect|ve of creat|ng 1000-1S00 8Ss
between 2007 and 2010, but, |n |ts very
be|ated and frant|c effort |n 2010 to
bu||d them before CWG-2010, fa||ed to
secure proper ut|||sat|on of pub||c money
or exp|o|t the revenue potent|a| of the
scheme fu||y.
26.2.7 Award of var|ous contracts to a
DIM1S, a non-government
Company on nom|nat|on bas|s
As ls evldenL from Lhe observaLlons glven ln
Lhe precedlng paragraphs, ulM1S has been
unduly favoured, by belng awarded a
number of consulLancy conLracLs on
nomlnaLlon basls, desplLe belng a non
CovernmenL Company. 1he ma[or conLracLs
awarded Lo lL by u1C durlng 2007- 2010 are
summarlsed below.
1oble 26.J - AwotJ of coottocts to ulM15
art|cu|ars of Work
1ypes of contract
and contract va|ue
Cur Cbservat|ons
ulM1S could noL prepare Lhe [usLlfled prlce
for Lhe low floor buses, clLlng reasons of
lack of hlsLorlcal daLa and even delayed
preparaLlon of bld documenLs.
ulM1S was appolnLed dlrecLly by SecreLary
cum Commlssloner (1ransporL). When
u1C refused Lo pay more Lhan 8s.16 lakh
for Lhe work, Lhe clalm of ulM1S of 8s. 32
lakh was released dlrecLly by Lhe 1ransporL
ueparLmenL.
1he u1C 8oard had earller declded Lo
make ulM1S 8M only and lf lL was
requlred, have a Lhlrd parLy as MC for
Lransparency. Powever, ulM1S was
appolnLed MC and ex posL facLo approval
of 8oard Laken.
urchase of 8uses
LLD Dest|nat|on
8oard |n Standard 8uses
Construct|on of S00
8Ss by D1C
ConsulLancy (MC)
8s. 1.3 crore
ConsulLancy (8M)
8s 0.32 crore
ConsulLancy (MC)
1.33 crore
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Irequent nom|nat|on of DIM1S by
GNC1D |s to be v|ewed |n the context of
|ts |ega| |dent|ty. It |s a [o|nt venture of
GNC1D w|th IDIC (a pr|vate sector
company) w|th S0:S0 share ho|d|ng, and
|s not a Government Company as per the
Compan|es Act, 19S6 prov|s|ons.
Lffect|ve|y, wh||e |t |s engaged on
nom|nat|on bas|s on the [ust|f|cat|on
that |t |s a [o|nt venture of GNC1D w|th
Ch|ef Secretary, De|h| as |ts Cha|rman, |t
|s not bound by any estab||shed
Government f|nanc|a| procedures.
Lngag|ng DIM1S |ncreas|ng|y, on
nom|nat|on bas|s tantamount to |ts
be|ng used as a dev|ce to c|rcumvent
government procedures and contro|s.
Un||ke Government Compan|es wh|ch
come under the aud|t prev|ew of the
Comptro||er and Aud|tor Genera| of
Ind|a, a|| act|v|t|es of DIM1S are outs|de
our aud|t purv|ew. nence, |t |s
gross|y |rregu|ar of GNC1D to patron|se |t
and accord undue favours to |t on the
p|ea that |t has Government |nvestment.
art|cu|ars of Work
1ypes of contract
and contract va|ue
Cur Cbservat|ons
ClLlng reason of urgency before Lhe
Cames, CnC1u awarded Lhe work of
consLrucLlon of 800 8CSs (for 8s. 96.70
crore) from CovernmenL fundlng and 230
8CSs on model Lo ulM1S, wlLh several
favours/relaxaLlons menLloned ln
paragraph 26.2.3. 1he work was, however,
noL compleLed.
ro[ect of Construct|on
of 2S0 8Ss on
mode| a||otted by Do1
ro[ect of Construct|on
of 800 8Ss by Do1
ConsLrucLlon ()
ConsLrucLlon 96.70 crore
We had rev|ewed the execut|on of the
8us kap|d 1rans|t Corr|dor (8k1C) |n
paragraph 4.8 of our Aud|t keport on
the GNC1D for the year ended March
2008. In th|s report, we had
commented adverse|y on the need to
h|re DIM1S as superv|s|on consu|tants
|n add|t|on to kI1LS who was the
ro[ect Management Consu|tant and
a|so h|gh||ghted certa|n |nstances of
undue benef|ts to DIM1S. We had
a|so rev|ewed the funct|on|ng of the
1ransport Department |n paragraph
4.1.6 of our Aud|t keport on GNC1D
for the year ended March 2009
where|n we had commented on the
|rrat|ona| rate of fees for works
ass|gned to DIM1S, desp|te |ts be|ng a
pr|vate company. Cur aud|ts focused
on the 1ransport Department, s|nce
DIM1S was not |n w|th|n our aud|t
purv|ew.
468
26.2.8 Construct|on of bus park|ng at
Ash ond oppos|te M|||enn|um
ark
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lncludes permanenL sLrucLures llke
workshop, baggage scannlng work, washlng
plL wlLh underground Lank, blLumlnous
road, boundary wall, sub sLaLlon and hlgh
masL llghL cosLlng abouL 8s.47.90 crore.
ln AugusL, 2009, nuMC proposed Lhe
creaLlon of a ark and 8lde and holdlng
faclllLy aL Safdar[ung AlrporL, as per Lhe
approved Lrafflc plan for CWC-2010. 1he
faclllLy was Lo caLer Lo Lhe Lrafflc durlng
CWC-2010 evenLs aL !Ln sLadlum and
LhereafLer be dlsmanLled. ln CcLober 2009,
whlle approvlng Lhe proposal for 8s. 31.23
crore, LlC advlsed Lhe dlsmanLllng of asseLs
should be kepL aL mlnlmum.
Cf Lhe expendlLure of 8s. 39.11 crore
lncurred on creaLlng Lhe faclllLy, 8s.
24.93 crore was on asseLs some of
whlch have been dlsmanLled and oLhers
Lo be evenLually dlsmanLled, 1hls ls noL
ln llne wlLh LlC approval,
ln addlLlon pavers blocks cosLlng 8s.
10.91 crore, LhaL were Lo be dlsmanLled
and reused by u1C, have sLlll noL been
removed desplLe repeaLed requesL of
nuMC, u1C has noL responded afLer Lhe
lnlLlal assurance of !uly 2010 for llfLlng
of paver blocks,
Slgnages were Lo be provlded aL an
esLlmaLed cosL of 8s. 2.17 crore for Lhe
Cames perlod. rovldlng sLeel/
alumlnlum slgnages for Lhe shorL
duraLlon of Cames perlod appears Lo be
un[usLlfled,
8s. 0.13 crore were also pald Lo C88l
and ueslgn AcLlon Croup for
consulLancy servlces. 1hls was
26.2.9 Creat|on of ark and k|de fac|||ty
at Safdar[ung A|rport by NDMC
ln CcLober 2009, LC, uelhl on Lhe

recommendaLlons of Lhe Chlef SecreLary
and Lhe CM, CnC1u, approved Lhe proposal
Lo develop ALhleLe 8us arklng laclllLy aL
Lhe Ash ond opposlLe Lhe Mlllennlum ark.
1hereafLer, ln uecember 2009, 1ransporL
ueparLmenL sancLloned Lhe work aL an
esLlmaLed cosL of 8s.61 crore.
We found LhaL u1C had noL obLalned Lhe
necessary approvals for Lhe use of Lhe land
from Lhe uuA, whlch was Lhe land ownlng
agency. 1he consLrucLlon was ln vlolaLlon of
Lhe MasLer lan for uelhl 2021 and Lhe
4
proposed Zonal plan earmarks Lhe area as
S
belng meanL for recreaLlon (green) .
ln a recenL reply Lo Lhe ?amuna !lye
Abhlyaan and ln reply Lo Lhe audlL
observaLlon, Lhe SecreLary-cum-1ransporL
Commlssloner sLaLed LhaL all Lhe sLrucLures
ln Lhe faclllLy were seml-permanenL ln
naLure and lL would be necessary Lo
conLlnue Lo use Lhe faclllLy so long as Lhe
CovernmenL was unable Lo make
alLernaLlve provlslons for bus parklng. ln
uecember 2009, LC, uelhl dlrecLed Lhe uuA
Lo place Lhe maLLer Lo change Lhe land use
of Lhls slLe for 8us uepoL ln Lhe Zonal
uevelopmenL lan for Zone 'C' before Lhe
AuLhorlLy.' u1C also senL a leLLer Lo uuA
requesLlng for change ln land use.
Powever, Lhe facL remalns LhaL Lhe
sLrucLure ls vlolaLlve of Lhe zonal plan and
4
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Altbooqb tbe zoool ploo bos beeo opptoveJ, tbe
ootlflcotloo ls yet to be lssoeJ
letmltteJ tecteotloool oses locloJe qteeo sttetcbes, blo-
Jlvetslty potk, fotest, botoolcol potk/ betbol potk,
scleoce potk, tbeme potk etc. wltboot pocco /
petmooeot coosttoctloo
un[usLlfled as Lhe naLure of work was
laylng roads and lnLerlocklng paver
blocks, whlch are commonly execuLed
works ln uelhl and CnC1u had ob[ecLed
Lo Lhls expendlLure,
1hough Lhe conLracLor (k8 Anand)
delayed Lhe execuLlon of work by 70
days, llquldaLed damages of 8s.0.92
crore were noL levled on Lhe plea of
delay due Lo vvl movemenLs aL
alrporL, however Lhe hlndrance reglsLer
showed only 3 Z days of delay due Lo
vvl movemenLs and Lhe ma[or reason
recorded was ralns. 1haL does noL hold
good slnce Lhe works were lnlLlally Lo be
compleLed ln mld- !uly, before Lhe onseL
of monsoons,
1he conLracLor (M/s llber llll) engaged
for consLrucLlng publlc uLlllLy servlces
was Lechnlcally lnellglble aL Lhe Llme of
openlng of flnanclal blds. 1he requlred
experlence cerLlflcaLe was recelved posL
openlng of flnanclal blds, and oLher
bldder (k8 Anand) who was oLherwlse
ellglble, was declared lnellglble, and
uCL was engaged 1ClA on offer basls
for a fee of 8s.0.38 crore, buL no
agreemenL deLermlnlng lLs scope of
work and Lerms of paymenLs llnked Lo
mllesLones achleved by Lhe conLracLors
was slgned. uCL was pald 8s. 3.38 lakhs
ln excess of 1 percenL of Lendered cosL
as sancLloned by LlC.
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Lo make avallable 1230 MW of power
before Lhe Cames, on Lhe grounds of
lncreaslng dependence on own generaLlon
sources from Lhe currenL 17 per cenL Lo 30
per cenL. 1he LargeL was however noL meL,
as Lhe 1300 MW 8awana gas based power
pro[ecL was delayed (by elghL monLhs as of
CcLober 2010, desplLe an expendlLure of
8s.2330 crore) for Lhe followlng reasons.
AfLer Lhe ragaLl ower Company LLd (a
CnC1u Su) puL up a proposal for Lhe
pro[ecL ln 2003, Lhe CablneL of CnC1u
flnally approved Lhe seLLlng up of Lhe
1000 MW power planL aL 8awana under
governmenL execuLlon only ln
november 2006. CnC1u Look over
Lhree years Lo declde wheLher Lhe
pro[ecL should be CovernmenL funded,
prlvaLe funded or a , as also wheLher
Lo seL up Lwo power planLs aL 8awana
and ragaLl Maldan or a slngle planL aL
8awana.
1he Lurnkey conLracLor, 8PLL, who was
awarded Lhe work ln Aprll 2008, could
noL reporLedly moblllse adequaLe
resources aL Lhe slLe.
ConsequenLly, Lhe MlnlsLry of ower
allocaLed addlLlonal power supply of 100
MW Lo CnC1u for Lhe CWC perlod (afLer
Laklng lnLo accounL lnLernal and exLernal
sources of power) from Lhe unallocaLed
power of Lhe cenLral generaLlng sLaLlons of
Lhe norLhern 8eglon.
1he LoLal capaclLy of 220 kvA elecLrlcal sub-
sLaLlons was LargeLed Lo be lncreased from
6920 MvA ln 2009-10 Lo 12,340 MvA by
2011-12. As a flrsL prlorlLy, uelhl 1ransco
LLd. (u1L), a CnC1u Su, Look up pro[ecLs of
seLLlng up flve 220 kvA elecLrlcal sub
26.3.2 ower 1ransm|ss|on

26.3.1 ower Generat|on
1he CWC perlod (CcLober) was a lean
season ln Lerms of power demand ln uelhl.
neverLheless, CnC1u planned Lo
commlsslon a new power planL aL 8awana
26.3 ower Serv|ces
470
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consldered Lhe cosL of Lype LesL for
evaluaLlon of flnanclal blds, buL walved
Lhe Lype LesL for Lhe L-1 bldder,
Pyosung, korea. lf Lhe Lype LesL had noL
been consldered for evaluaLlon of
flnanclal blds, Lhen Areva, lrance would
become Lhe L-1 bldder and Pyosung L-2.
u1L's clalm LhaL Lhe Lype LesL condlLlon
was added for belng applled Lo flrms
who had noL supplled Lhe equlpmenL ln
lndla prevlously ls noL Lenable slnce Lhls
condlLlon should have been sLaLed
upfronL ln Lhe 8l. ln any case Areva,
lrance had already supplled equlpmenL
earller ln Lhe counLry.
ln Lhe conLracL for Lhe 220 kv sub-
sLaLlon aL AlrporL complex, u1L lncluded
a resLrlcLlve clause ln Lhe conLracL
sLaLlng LhaL Lhe compleLlon perlod for
Lhe conLracL should be 12 monLhs ln
vlew of CWC-2010, when Lhe prevlously
awarded 8ldge valley sLlpulaLed a
compleLlon Llme of 18 monLhs.
Accordlngly, Areva was re[ecLed as lL had
sLaLed a compleLlon perlod of 18
monLhs. Pere Loo, Pyosung was Lhe L-1
bldder, buL acLually Look 21 monLhs Lo
compleLe Lhe pro[ecL.
sLaLlons (AllMS, 8ldge valley, LlecLrlc Lane

and Mas[ld MoLh and AlrporL Complex) and
7 correspondlng cabllng pro[ecLs ln souLh
and cenLral uelhl, Lo sLrengLhen Lhe power
supply poslLlon for compleLlon ln Llme for
Lhe Cames.
MosL of Lhese pro[ecLs were awarded very
laLe (ln Lhe second half of 2009) and could
noL be compleLed before Lhe Cames. Cnly
Lwo (8ldge valley and AlrporL complex,) ouL
of flve sub-sLaLlons were compleLed and
Lwo (8ldge valley Lo naralna and 8amnaull
Mehraull (LlLC aL AlrporL complex) ouL of
seven cabllng pro[ecLs had been compleLed.
8easons glven by u1L for delay lncluded
non-avallablllLy of land and permlsslon for
cuLLlng Lrees from Lhe loresL ueparLmenL,
clearances from CAlL and oLher clvlc
agencles, unprecedenLed ralns, Lrafflc
permlsslons eLc. 1hese delays, LogeLher
wlLh delayed award, made delayed
compleLlon almosL lnevlLable.
lurLher, Lhe conLracL award process was noL
LransparenL, as u1L had applled condlLlons
lnconslsLenLly Lo award conLracLs Lo
favoured parLles.
ln Lhe conLracL for esLabllshlng Lhe 220
kvA sub-sLaLlon aL 8ldge valley, u1L
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Crgan|sat|on of Commonwea|th
outh Games - 2008, une
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1he commonweo/th Youth 6omes 2008 {cY6-2008), o sub-event of cw6-2010, wos he/d
in Pune between 12 ond 18 October 2008. vents were conducted in 9 sportinq discip/ines,
ond 17l oth/etes ond officio/s ottended. cY6-2008 wos he/d ot the existinq 5hiv
chhotropoti 5ports comp/ex 8o/ewodi- Mho/unqe, Pune, which wos refurbished ond
upqroded for the event. 1wo new hoste/s ond o three-stor hote/ were constructed to
occommodote the porticiponts.
we found serious deficiencies with reqord to the construction of the l-stor hote/ on PPP
bosis. 1he p/ot for the hote/ wos /ocoted in o pub/ic-semi-pub/ic /ond use tone, ond
commercio/ use wos not permitted. 1he proposo/ for chonqe of /ond use to commercio/,
o/onq with permission for hiqher bui/dinq heiqht thon permitted, wos moved to the
6overnment of Mohoroshtro {6oM) on the qrounds of urqency/ /ote stoqe, work o/reody
hovinq commenced on the qround, ond /ock of other o/ternotives. 1his wos opproved by
the then chief Minister in October 2007. 1he keview committee, heoded by the chief
5ecretory, obdicoted its responsibi/ity in this reqord.
lurther, the tenderinq process for the hote/ wos severe/y f/owed:
1he proposed PPP mode/ wos not submitted for exominotion by the existinq
lnfrostructure committee ond linonce ueportment ond wos introduced without
oppropriote vettinq.
1ender conditions were re/oxed substontio//y in vorious stoqes, purported/y on
qrounds of /ock of response. ln our opinion, such ombiquities in the biddinq process
wou/d hove octed os o deterrent for bidders, which is confirmed by the dwind/inq
interest of potentio/ bidders from the first pre-bid meetinq to the second pre-bid
meetinq.
1he issue of chonqe of /ond use wos not roised ot o//. lt is possib/e thot on/y bidders
who were confident of qettinq post focto c/eoronce from the 6oM wou/d hove qone
oheod with the biddinq process.
1he controct wos fino//y oworded on o sinq/e finoncio/ bid to unity lnfro Projects with
on NPv for be/ow thot recommended by the linonce ueportment.
lurther, the deve/oper poid on/y the first insto/ment of onnuo/ premium {due in November
2008) in fu//, ond no peno/ oction hos been token oqoinst it.
cY6-2008, Pune wos expected to be o /eorninq experience for the stoqinq of cw6- 2010 ot
ue/hi. 1he deficiencies noticed ot Pune, ond the resu/tinq recommendotions were
Sh|v Chhatrapat| Sports Comp|ex, 8a|ewad| - Mha|unge, une
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472
ChapLer 27 - CrganlsaLlon of CommonwealLh ?ouLh Cames - 2008, une
rd
1he 3 CommonwealLh ?ouLh Cames 2008
(C?C-2008), a sub-evenL of CWC-2010, was
held ln une beLween 12 and 18 CcLober
2008. LvenLs were conducLed ln 9 sporLlng
dlsclpllnes, and 1673 aLhleLes and offlclals
aLLended. C?C-2008 was held aL Lhe exlsLlng
Shlv ChhaLrapaLl SporLs Complex 8alewadl-
Mhalunge, une whlch was refurblshed and
upgraded for Lhe evenL. 1wo new hosLels
27.1 Introduct|on
intended to ensure thot these were not repeoted in cw6-2010. we, however, noticed thot
Oc /ost this opportunity to /eorn ond test its preporedness for ue/hi 2010, ond
consequent/y repeoted its mistokes in key functiono/ oreos durinq cw62010, notob/y
techno/oqy, ticketinq, sponsorship ond merchondisinq, press operotions, coterinq ond
occommodotion.
we o/so found severo/ deficiencies in the procurement of e/ectronic, sports ond other
equipment for cY6-2008, in porticu/or sinq/e tenderinq ond other tenderinq
irrequ/orities. Most of the security equipment indented for cY6-2008, Pune wos either
ordered ofter the 6omes, or received ofter the 6omes. lurther, most of the city
infrostructure projects {token up /orqe/y under lNNukM) cou/d not be comp/eted in time
for the 6omes.
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and a Lhree-sLar hoLel were consLrucLed,
and Lhe exlsLlng Lhree hosLels renovaLed
and refurblshed Lo accommodaLe Lhe
parLlclpanLs. ConsLrucLlon and upgradaLlon
of new and exlsLlng clLy - lnfrasLrucLure ln
une and ad[olnlng areas was underLaken
Lo provlde connecLlvlLy wlLh Lhe sporLs
complex and also for beLLer Lrafflc
managemenL. SecurlLy arrangemenLs for
C?C-2008 were made by Lhe Commlssloner
of ollce (C), une.
1he governance and overslghL sLrucLure for
C?C-2008, une are summarlsed below:
27.2 Governance and Cvers|ght
Structure
1oble 27.1 - Covetoooce ooJ Ovetslqbt 5ttoctote fot cC-2008
Arrangement 8r|ef Deta||s
1he LC was consLlLuLed by Lhe CovernmenL of MaharashLra (CoM) ln May
2006. lL was headed by Lhe ulvlslonal Commlssloner, une. lLs
responslblllLles lncluded:
lannlng and developmenL of lnfrasLrucLure aL Lhe Shlv ChhaLrapaLl
SporLs Complex, une,
AdmlnlsLraLlve and Lechnlcal plannlng of C?C-2008,
1enderlng and award of all pro[ecLs, and
uay-Lo-day declslons relaLlng Lo Lhe above acLlvlLles
1hls commlLLee, whlch was consLlLuLed ln !une 2006 and was headed by Lhe
Chlef SecreLary, was Lo oversee Lhe sLaLus of works aL Lhe CovernmenL level.
1hls commlLLee was chalred by Lhe Chlef MlnlsLer (CM) and lncluded Lhe
uepuLy CM, MlnlsLers of School LducaLlon and SporLs and WaLer 8esources,
Cuardlan MlnlsLer, une, llnance and lannlng uepuLy Commlssloner and all
MLAs/Ms of une and une-Chlnchwada clLles.
1hls was Lhe nodal agency for organlslng C?C-2008, une
Lxecut|ve
Comm|ttee (LC)
kev|ew Comm|ttee
Apex Comm|ttee
Department of
Sports and outh
Serv|ces, une
(DSS)
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474
* Also locloJes expeoJltote locotteJ by lMc & lcMc ftom owo fooJs.
1he fundlng for sLaglng of C?C-2008 came
from Lhe Col, CoM, and Lhe munlclpal
bodles of une - une Munlclpal
CorporaLlon (MC) and lmprl Chlnchwad
Munlclpal CorporaLlon (CMC), as
summarlsed below:
lor C?C-2008, exlsLlng faclllLles aL Shlv
ChhaLrapaLl SporLs Complex, une were up-
graded/ refurblshed aL a cosL of 8s. 106.38
crore, Lhls lncluded re-furblshlng/ relaylng
of aLhleLlcs sLadlum, cenLre Lennls courL,
Lable Lennls hall, swlmmlng pool, and hosLel
bulldlngs and converslon of Lhe old
wresLllng hall lnLo a boxlng hall. lurLher,
new faclllLles for shooLlng and badmlnLon,
and a weapons sLore, sporLs sclence cenLre
and flLness cenLre were creaLed aL a LoLal
cosL of 8s. 102.06 crore.
27.3 8udget and Iund|ng
attern
27.4 Venue Deve|opment
1oble 27.2 - 8oJqet ooJ fooJloq fot cC-2008
Lxpend|ture
|ncurred as of
December 2010
art|cu|ars
8udget
a||ocat|on
Imp|emented
by whom
Iund
re|eased
by
Amount of
funds
re|eased
Venue and
equ|pment
C|ty
Infrastructure
Secur|ty Aspects
1ota|
423.30

434.22
312.14
17.64
1189.30
uS?S
Commlssloner,
MC
Commlssloner,
CMC
C, une
Col
CoM
Col
CoM
MC
Col
CoM
CMC
CoM
210.00
213.30
162.83
64.73
97.70

136.07
62.43
93.64
17.64

1080.34
424.77
162.83
64.73
*112.23
136.07
62.43
*178.38
9.40

1170.86
27.4.1 Cverv|ew of venue up-gradat|on
kenovated Ath|et|c Stad|um
(lo ks. ctote)
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kefurb|shed box|ng ha||
27.4.2 n|r|ng of Consu|tant
27.4.3 Ma|n work - renovat|on and
construct|on of sports fac|||t|es
Shashl rabhu and AssoclaLes, Mumbal
(SA) was engaged as Lhe ro[ecL
ManagemenL ConsulLanL (MC) ln AugusL
2006 aL a consulLancy cosL of 3.3 per cenL of
Lhe esLlmaLed cosL of works (pegged aL 8s.
192.30 crore), excludlng paymenLs made
Lowards prlce escalaLlon, moblllsaLlon
advance and machlnery advance. We found
LhaL SA was lrregularly pald LoLal fees of
8s. 11.28 crore (upLo CcLober 2009), agalnsL
Lhe enLlLled amounL of 8s. 6.74 crore. 1he
excess consulLancy paymenL of 8s. 4.34
crore was on accounL of consulLancy fees on
prlce escalaLlon, equlpmenL procured, and
works execuLed beyond Lhe conLracL value,
whlch were noL provlded for ln Lhe
consulLancy conLracL.
8C Shlrke ConsLrucLlon 1echnologles rlvaLe
LLd, une, was Lhe L-1 bldderfor Lhe maln
work aL a quoLed prlce of 8s. 263.44 crore.
27.4.3.1 Award of work
Slnce Lhls amounL was 30.49 per cenL over
Lhe esLlmaLed prlce, Lhe evaluaLlon
commlLLee recommended excluslon of nlne
speclallzed lLems for 8s. 83.21 crore from
Lhe scope of work of Lhe maln conLracLor
and execuLlng Lhem Lhrough speclallsed
agencles. AfLer negoLlaLlons, a work order
was lssued ln lebruary 2007 Lo 8C Shlrke
ConsLrucLlon 1echnology vL. LLd for
8s.191.74 crore for a revlsed scope of work,
afLer addlng back flve speclallsed lLems aL
23 percenL dlscounL for Lhree lLems for
compleLlon by May 2008. ln addlLlon, works
cosLlng 8s. 31.13 crore were awarded by
Lhe LC dlrecLly ln uecember 2007 Lo 8C
Shlrke aL Lhe orlglnal Lendered 8CC raLes
wlLhouL blddlng.
In our op|n|on, the changes |n scope of
work dur|ng post b|d and award of
add|t|ona| work w|thout b|dd|ng was
|rregu|ar. DSS' content|on of urgency
and ava||ab|||ty of resources w|th the
ma|n contractor |s not tenab|e, as 8G
Sh|rke stated award of the add|t|ona|
work as one of the reasons for seek|ng
extens|on of t|me.
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476
27.4.4 ua||ty of Construct|on
We found Lhe quallLy of works execuLed ln
Lhe sporLs complex Lo be prlma facle
saLlsfacLory, excepL ln Lhe case of
badmlnLon hall and Lennls halls. roblems
llke cracks, damages, false celllng [olnLs and
leakages were ldenLlfled ln Lhe badmlnLon
hall and reporLed ln !anuary 2009 as havlng
been correcLed. uurlng our [olnL lnspecLlon
wlLh uS?S ln uecember 2010, we found LhaL
Lhe cracks were prepared over by chemlcal
soluLlon.
uurlng heavy ralns ln !uly/AugusL 2010,
Lhere was waLer leakage ln Lhe badmlnLon
and Lable Lennls halls floodlng Lhe wooden
floorlng. uS?S sLaLed LhaL Lhese were mlnor
leakages, whlch were recLlfled by Lhe
rooflng conLracLor, and dld noL damage Lhe
floorlng. lL furLher clalmed LhaL Lhe
conLracLor had replaced a porLlon of Lhe
Lable Lennls hall floorlng, buL Lhe quallLy of
Lhe work was noL saLlsfacLory.
8andm|nton ha|| w|th cracks on the wa||
27.4.3.2 ayments to the ma|n contractor
We found Lhe followlng deflclencles ln
paymenLs Lo Lhe maln conLracLor
1uS of 8s 6.36 crore for vA1 and 8s. 0.13
crore for lncome 1ax was noL deducLed/
shorL deducLed
aymenL of 8s. 20.39 crore for prlce
varlaLlon ln cemenL and sLeel for
dlfference beLween Lhe approved
purchase raLes and baslc raLes (l.e raLes
prevalllng 28 days before Lhe lasL daLe
for Lender recelpL) was made by
adopLlng baslc raLes of 8s. 4200/ M1
(cemenL), 8s. 30,000/M1 (Lor sLeel) and
8s. 31,000/M1 (sLrucLural sLeel).
Powever, Lhese paymenLs were wlLhouL
verlfylng Lhe baslc raLes, [usLlflcaLlon for
Lhese baslc raLes raLes was noL provlded
Lo us by uS?S.
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os|t|on of |andscaped areas |n front of the Sw|mm|ng oo| Comp|ex |n December 2010
27.4.S Landscap|ng
Landscaplng work was parLly awarded Lo

Lhe maln conLracLor for 8s 0.83 crore and
Lhe ma[or porLlon of Lhe landscaplng work
was awarded ln March 2008 aL a cosL of 8s
7.30 crore Lo lndage uevelopmenL
1
ConsLrucLlon vL. LLd. Mumbal . We found
lrregularlLles and deflclencles ln award and
execuLlon of Lhe conLracL:
1he Lender noLlce was lssued only ln
Sakal, a local une newspaper, glvlng a
noLlce of only a llLLle over Lwo weeks,
1he conLracL was Lendered Lwlce. LC
lrregularly clubbed blds recelved aL boLh
sLages. 1he conLracL was flnally awarded
Lo lndage uevelopmenL ConsulLanL vL.
LLd., a bldder for Lhe flrsL Lender,
alLhough lL had noL submlLLed a bld ln
Lhe second round.
1here was no clear demarcaLlon of

landscaplng work/area beLween Lhe
maln conLracLor and Lhe landscaplng
conLracLor,
A deLalled compleLlon cerLlflcaLe from
Lhe landscaplng consulLanL could noL be
produced Lo us,
1he sLlpulaLed defecL llablllLy perlod
(uL) of flve years was lrregularly
reduced Lo one year. AL Lhe Llme of
handlng over of Lhe pro[ecL, uS?S
observed LhaL Lhe grass had drled and
planLs wlLhered away aL many slLes.
We found the |andscape |n a state of
neg|ect and the benef|ts of the effort
|arge|y |ost ([ust two years after CG-
2008), as no agency had been engaged to
ma|nta|n the |andscaped s|te.
1
wbo wos olso owotJeJ oJJltloool looJscoploq ooJ otbet mlscellooeoos wotks of ks. 0.61 ctote oo oomlootloo bosls.
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27.4.6 Anc|||ary works
We found LhaL Lwo anclllary works for
consLrucLlng a smoke and gunshoL arresLor
ln Lhe Lrap and skeeL sLadlum, and deslgnlng
and provlslon of slgnages and wasLe blns for
8s. 1.09 crore were lrregularly awarded Lo
WhlLe Crow, une (who was ln Lhe buslness
of caLerlng, evenL managemenL, and
hosplLallLy servlces). 8oLh works were
awarded on Lhe basls of Lender noLlces
publlshed only ln Sakal wlLh shorL noLlce
perlods of 10 days.
2
3
4
lo tbe lotetootloool potlooce, lt lmplles tbot oll otbletes sboolJ stoy ot tbe some complex. lt olso focllltotes secotlty
ottooqemeots.
lottlclpoots ot 1st pte-blJ meetloq. 8.C. 5bltke & Assoclotes, 5.u.uoboJe , ull ltJ. looe, Asbok Motkote, Coopot Mboto
8olwoJkot, kooee Ctoop of notels, looe, wblte ctow focllltles, notl Om stotes lvt. ltJ., loocbsbeel notel looe,
nltooooJool Ctoop, MobloJto nollJoys, Nllesb kokoJe Ctoop, ltlJe Ctoop looe, Nllesb Ctoop looe ooJ notel 5owoo
CotJeo loJqloq ooJ 8ootJloq.
lottlclpoots ot 2oJ pte-blJ meetloq. 8.C. 5bltke & Assoclotes, 5.u. uoboJe, kooee Ctoop of notels, nltooooJool Ctoop,
Nllesb Ctoop
27.S.1 Cverv|ew
As per CC's requlremenL, accommodaLlon
was Lo be arranged for 1700
aLhleLes/offlclals for 13 days ln a Cames
2
vlllage for C?C-2008. Slnce Lhe exlsLlng
Lhree hosLels ln Lhe sporLs complex could
accommodaLe only 300 parLlclpanLs, LC
declded, ln !uly 2006, Lo bulld a 600 room
hosLel (1200 beds), laLer Lo be converLed
lnLo a Lhree sLar hoLel for commerclal use,
on 8C1 basls. LvenLually, a Lhree sLar hoLel
wlLh 400 rooms was bullL by unlLy lnfra
pro[ecL LLd. Mumbal. 1he chronology of
evenLs ls glven below:
27.S Construct|on of a three
star hote| on 8C1 bas|s for
accommodat|ng CG
part|c|pants
1oble 27.J - cbtoooloqy of veots fot owotJ of botel coottoct oo 8O1 bosls
Date Lvent
LC declded Lo go ln for Lhe consLrucLlon of hosLel Lo be converLed lnLo a
Lhree sLar hoLel afLer C?C-2008 on 8C1 basls.
nl1 lssued lnvlLlng blds for a Lhree sLar hoLel on 8C1 basls, Lender
documenLs Lo be sold from 26 CcLober 2006, LasL daLe of submlsslon of bld
28 november 2006.
3 4
2 pre-bld meeLlngs held on 1 november , 11 november 2006 ,
CondlLlons ln Lender documenLs relaxed progresslvely by LC based on
dlscusslons ln pre-bld meeLlngs and LC dlscusslons, and
LasL daLe of submlsslon of bld documenLs exLended repeaLedly due Lo non-
recelpL of blds. LasL exLenslon glven Llll 22 uecember 2006.
lour blds recelved, Lechnlcal blds opened.
17 Iu|y 2006
14 Cctober 2006
November -
December 2006
22 December 2006
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locteoseJ to slx octes post-blJ, oo tbe pleo tbot tbe
oombet of tooms boJ beeo locteoseJ to 400.
6
lobllsbeJ Jtoft Jevelopmeot coottol toles of exteoJeJ
ploo of lMc llmlts
27.S.2 Change of Land Use and
re|axat|on of bu||d|ng norm
1he land on whlch Lhe 3 sLar PoLel was
proposed Lo be bullL was locaLed ln publlc-
seml publlc (S) zone, as per Lhe publlshed
drafL exLended plan of MC llmlLs. Cn such
land, aparL from sporLlng faclllLles, only
schools, colleges and unlverslLles and oLher
publlc purposes llke markeLs, soclal welfare/
culLural organlsaLlons, clnema halls, and
publlc enLerLalnmenL bulldlngs could be
bullL. 1he land could noL be used Lo
consLrucL a commerclal hoLel.
LC, ln LoLal dlsregard of Lhe usage
llmlLaLlons aLLached Lo Lhe ploL, declded Lo
permlL consLrucLlon of a 3 sLar hoLel on a
S
flve acre ploL wlLh lSl (lloor Space lndex)
of 2, along wlLh permlsslon Lo consLrucL
shopplng malls, l1 Lower, offlce space eLc on
Lhe bullL up area lefL afLer bulldlng 300
rooms. 1he lssue of change of land use and
vlolaLlon of Lhe appllcable bulldlng laws
came up only ln Aprll 2007 (afLer Lhe
conLracL had been awarded and work
commenced on Lhe slLe) when Lhe
Munlclpal Lnglneer, MC re[ecLed Lhe
proposed bulldlng plan, slnce a hoLel could
noL be consLrucLed ln a publlc-seml publlc
zone and also because Lhe helghL of Lhe
proposed sLrucLure (shown as 39.3 meLres
ln Lhe proposed bulldlng plan) was more
Lhan Lhe 30 meLres allowed under Lhe MC
6
uevelopmenL ConLrol 8ules . Moreover, Lhe
proposed/adverLlsed lSl of 2 also exceeded
Lhe permlsslble lSl of 1. 1hereafLer, Lhe
lssue was referred Lo Lhe ueparLmenL of
urban uevelopmenL, CoM (May 2007), by
Lhe uS?S and desplLe acknowledglng LhaL
commerclal explolLaLlon on Lhe ploL was noL
permlsslble under Lhe exlsLlng zonal
resLrlcLlons, a case for change was made on
Lhe grounds LhaL
work had already commenced on Lhe
ground,
lack of any alLernaLlve, and
Date Lvent
Cn Lhe recommendaLlon of Lhe Lechnlcal bld evaluaLlon commlLLee, only one
flnanclal bld opened, Lhe oLher Lhree bldders found non-responslve" and
flnanclal blds were noL opened.
ConLracL awarded, and work commenced.
ClLy Lnglneer, MC refused permlsslon for pro[ecL.
MaLLer was referred Lo CCM.
Change of land use allowed by CoM under clause 38 of MaharashLra
8eglonal 1own lannlng AcL, 1966 (M81 AcL).
arL compleLlon cerLlflcaLe glven by MC.
12 Apr|| 2007
7 May 2007
1S Cctober 2007]
1 November 2007
29 September 2008
26 December
2006
8 Iebruary 2007
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480
as per Lhe orlglnal CovernmenL

8esoluLlon, one Lhlrd of Lhe enLlre ploL
of 132 acres alloLLed for developlng Lhe
sporLs complex could be used for
commerclal purposes.
1he change ln land use for 6.1 acres was
approved by Lhe Lhen Chlef MlnlsLer,
MaharashLra ln CcLober 2007 under clause
38 of Lhe MaharashLra 8eglonal and 1own
lannlng AcL, 1966
We noLed LhaL Lhere was negllgence and
overslghL aL all sLages and levels, whlch
permlLLed a prlme plece of CovernmenL
land deslgnaLed for publlc purposes Lo be
handed over Lo prlvaLe agencles for
commerclal explolLaLlon of 60 years and
LhaL Loo wlLhouL commensuraLe
compensaLlon accrulng Lo Lhe publlc
exchequer. 1hls ls evldenced by Lhe
followlng serles of evenLs:
1he 8evlew CommlLLee (headed by Lhe
CS and wlLh AddlLlonal CS Pome and
llnance, rlnclpal SecreLarles lannlng,
8evenue and urban uevelopmenL, and
ubllc PealLh and Chlef ArchlLecL,
Mumbal as members and SecreLary
School LducaLlon and SporLs as Member
SecreLary), were apprlsed of Lhe
lnLended 8C1 pro[ecL (a model) ln
SepLember 2006, buL chose noL Lo
quesLlon Lhe aLLendanL land use lssues.
1hey also dld noL suggesL referrlng Lhe
maLLer Lo Lhe exlsLlng lnfrasLrucLure
CommlLLee (Lo whlch all MaharashLra
Wu proposals Lo bulld lnfrasLrucLure
were Lo be mandaLorlly referred) or Lhe
llnance ueparLmenL, buL lefL lL Lo Lhe LC
and Lhe uC, une Lo pursue Lhe pro[ecL,
sub[ecL Lo Lhe condlLlon LhaL Lhe
ownershlp of Lhe land remalns wlLh Lhe
CoM. Pence, Lhe proposed model
remalned unexamlned, and was
lnLroduced wlLhouL approprlaLe veLLlng.
1he Commlssloner, MC, a member of

Lhe LC, whlch frequenLly dlscussed Lhe
proposal ln hls presence, falled Lo brlng
Lo Lhe noLlce of Lhe members Lhe
resLrlcLlons on Lhe land use of Lhe
ldenLlfled ploL and Lhe llmlLaLlons on lSl
and helghL of consLrucLlon as per Lhe
appllcable bulldlng laws.
1he ueparLmenL of urban uevelopmenL,
desplLe acknowledglng LhaL Lhe
re[ecLlon was valld as per Lhe MC rules
and permlsslon for explolLlng one-Lhlrd
of Lhe LoLal area of Lhe sporLs complex
for commerclal purpose could be
allowed only lf Lhe uevelopmenL ConLrol
8ules permlLLed (whlch, ln Lhe lnsLanL
case, dld noL) recommended change of
land use on Lhe grounds of no
alLernaLlve, laLe sLage, urgency and
commlLmenLs Lo lCA/CCl.
C|ear|y, the kev|ew Comm|ttee chose to
abd|cate |ts respons|b|||ty w|th regard to
th|s pro[ect.
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lL ls perLlnenL Lo menLlon here LhaL Lhe Shlv
ChaLrapaLl SporLs Complex falls largely
under Mhalunge vlllage, wlLh a porLlon
wlLhln MC llmlLs (refer map). 1he ploL
proposed for Lhe hoLel was a prlme plece of
land (corner ploL), locaLed on Lhe Mumbal -
une - 8angalore Plghway falllng wlLhln
MC llmlLs. ermlLLlng lLs commerclal
explolLaLlon by a prlvaLe agency, wlLhouL
adequaLe compensaLlon Lo publlc
exchequer begs explanaLlons aL all levels.
lor Lhe Aslan Cames 1982 and also CWC-
2010, Col had opLed for consLrucLlng
resldenLlal unlLs (elLher dlrecLly- Aslan
Cames 1982 or Lhrough model - CWC-
27.S.3 Cho|ce of construct|ng a 3 star
hote| over res|dent|a|
accommodat|on to be d|sposed
off |ater
2010) Lo accommodaLe parLlclpanLs for Lhe
duraLlon of Lhe evenL and Lo be
subsequenLly sold Lo recover cosLs.
ConLrarlly, LC chose Lo consLrucL a 3 sLar
hoLel on 8C1 basls, wlLhouL Lhe maLLer
belng referred Lo Lhe cell for lLs oplnlon
or lnpuL on Lhe sulLablllLy of Lhe model, Lhe
alLernaLlves, and sLrucLurlng of Lhe
arrangemenL Lo safeguard publlc lnLeresL.
In our op|n|on, construct|on of dwe|||ng
un|ts and the|r subsequent sa|e |n a
deve|op|ng c|ty ||ke une, w|th CG-
2008 ||nked |nfrastructure |mprovement
|n the v|c|n|ty, on 9.6 acres of pub||c
|and (6.1 acres for hote| p|us 3.S acres
for park|ng), wou|d have been for the
|arger pub||c good.
llqote 27.1 - Mop of 5blv cbbottopotl 5potts complex sbowloq
tbe locotloo of tbe ptoposeJ 8O1 botel
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1he nl1 was adverLlsed on 14 CcLober 2006,
wlLh Lhe Lender documenL Lo be made
avallable from 26 CcLober 2006. AL Lhls
sLage, Lhe Lender condlLlons had noL been
frozen, and Lhe exacL locaLlon of Lhe ploL on
whlch Lhe hoLel was planned was noL
declded. 1he Lender condlLlons were
progresslvely relaxed aL varlous sLages, as
summarlsed below:
27.S.4 Gradua| re|axat|on of tender
cond|t|ons
LC based lLs proposal on a leaslblllLy 8eporL
prepared by Lhe consulLanL (Shashl rabhu
and AssoclaLes). 1he proposal and Lhe
Lender documenLs were noL veLLed by
llnance ueparLmenL of CoM or Lhe
speclallsed lnfrasLrucLure CommlLLee of Lhe
CoM. 1he LC followed a very ad hoc
approach ln Lenderlng and award of Lhls
conLracL.
1oble 27.4 - 5ommoty of ptoqtesslve teloxotloo of teoJet cooJltloos
1he proposed slLe for hoLel was noL lndlcaLed ln Lhe nl1 publlshed on 14
CcLober 2006. 1he process of ploL ldenLlflcaLlon and measuremenL of land
area sLarLed on 1 november 2006.
lncreased from Lhe lnlLlal 3 Acres Lo 6 Acres ln LC's meeLlng daLed 4
uecember 2006, however, ln Lhe addlLlonal common seL of devlaLlons daLed
11 uecember 2006, lL was reLalned aL 3 acres.), llnally, 6.1 acres were
allocaLed.
2 acres - lnLroduced ln LC meeLlng of 4 uecember 2006. llnally, 3.3 acres
was alloLLed for parklng and gardenlng aL a nomlnal renL of 8s 1/- per square
meLre per year.
8educed Lo one sLar norm ln Lhe LC meeLlng of 4 uecember 2006
nl1 of 14 CcLober 2006 lndlcaLed annual paymenLs, upfronL fee lnLroduced
ln 6 november 2006 LC meeLlng, buL only reLalned as annual paymenL ln Lhe
seL of devlaLlons Lo Lender documenLs lssued afLer Lhe Lwo pre-bld meeLlngs.
1he requlremenL of 600 rooms was reduced Lo 300 rooms (600 beds) ln Lhe
LC meeLlng held on 4 uecember 2006.
lnlLlally, Lhe perlod of concesslon was Lo be Lhe blddlng crlLerlon wlLh flxed
annual paymenLs, lL was subsequenLly changed Lo a flxed concesslon perlod
of 30 years, flnally lncreased Lo 60 years ln Lhe LC meeLlng of 4 uecember
2006 from 30 years menLloned ln Lhe lnlLlal Lender documenL. 1he annual
premlum for leaslng became Lhe blddable crlLerlon.
1hls C crlLerlon was removed, based on Lhe pre-bld meeLlng of 11
november 2006.
Ident|f|cat|on
of p|ot
Area
ark|ng
1hree Star norm for
rooms changed to
one star norm
Upfront fee to
annua| |ease
600 rooms to
300 rooms
er|od as per
the b|d cr|ter|a to
a 60 years
concess|on
exper|ence of
construct|on of a
three star hote|
In our op|n|on, open|ng of a s|ng|e
f|nanc|a| b|d essent|a||y means that the
pr|nc|p|e of compet|t|ve pr|c|ng |s
comprom|sed. 1h|s |s conf|rmed by the
fact that the I|nance Department, GoM
(to wh|ch the case was referred by the
CM's off|ce, after the contract had been
conc|uded) a|so noted that wh||e the
NV of the or|g|na| offer was ks. 21.S6
crore, the NV of the rev|sed offer was
on|y ks. 14.97 crore. It assessed the
va|ue of 6 acres of |and w|th 2 ISI at ks.
48 crore (cons|der|ng the conservat|ve
2
res|dent|a| rate of ks. 10,000 per m )
2
and the va|ue of 8,000 m of |and for
park|ng at ks. 3 crore. It recommended
that a fa|r NV for the sa|d p|ece of |and
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Such frequenL and slgnlflcanL varlaLlons ln
Lhe Lender condlLlons, Lhough [usLlfled by
Lhe LC on grounds of lack of response Lo Lhe
nl1, are lndlcaLlve of amblgulLy LhaL marked
Lhe blddlng process, and would naLurally acL
as deLerrenL Lo bldders. 1he dwlndllng
lnLeresL of Lhe bldders ls evldenL from Lhe
facL LhaL
ln Lhe flrsL pre-bld meeLlng, 13 agencles
(lncludlng several promlnenL players ln
Lhe consLrucLlon/hosplLallLy lndusLry)
parLlclpaLed, and
ln Lhe second pre-bld meeLlng, only 3 of
Lhe orlglnal 13 were presenL.
lL ls lnLeresLlng Lo noLe LhaL of Lhe four LhaL
flnally bld, only uLl LLd had aLLended Lhe
pre-bld meeLlngs, and Lhe remalnlng Lhree
(lncludlng unlLy lnfra ro[ecLs vL. LLd.),
whose flnanclal bld was Lhe only bld Lo be
opened and conLracL awarded, never
parLlclpaLed ln any of Lhe pre-bld meeLlng.
lurLher, lL ls sLrange LhaL such experlenced
agencles ln Lhe consLrucLlon secLor never
ralsed Lhe crlLlcal lssue of change of land
7
use , slnce lL would be a crlLlcal parameLer
Lo declde wheLher Lo bld or noL. lL ls
posslble LhaL lack of clarlLy on Lhls
lmporLanL lssue deLerred poLenLlal bldders,
and only bldders who were confldenL of
geLLlng posL facLo clearance from Lhe CoM,
would have gone ahead wlLh Lhe blddlng
process.
AfLer numerous exLenslons, flnally four
8
responses were recelved Lo Lhe nl1 on 22
27.S.S ost b|d negot|at|ons and award

of contract
uecember 2006. 1he Lechnlcal evaluaLlon
commlLLee (comprlslng of slx members of
whom only Lwo slgned Lhe reporL)
9
dlsquallfled Lhree blds on 26 uecember
2006 clLlng LhaL Lhese were non-responslve.
1he flnanclal bld of Lhe only quallfled
bldder, unlLy lnfra ro[ecLs vL. LLd, was
opened on 26 uecember 2006.
1he bldder quoLed a flxed annual premlum
of 8s. 2.16 crore per annum for 60 years
from 2008-09. negoLlaLlons were held on 30
uecember 2006, whlch resulLed ln
alloLmenL of 6.1 acres of land agalnsL Lhe
orlglnally envlsaged 3 acres (Lo
accommodaLe Lhe lncreased demand for
400 rooms Lo accommodaLe Lhree beds l.e.
1200 beds aL one locaLlon) and Lhe annual
concesslon fee revlsed Lo 8s. 1.37 crore per
annum wlLh a 3 per cenL lncrease every 3
years.
7
8
ot so lt woolJ oppeot ftom Jocomeots pettololoq to c
meetloqs
Apptoocb looJ uevelopets-8vC Iolot veotote, ull ltJ,
ltooov lofto ltlvote ltJ ooJ uolty lofto ltojects ltJ
9
Apptoocb looJ uevelopets-8vC Iolot veotote, ull ltJ
ooJ ltooov lofto ltlvote ltJ,
wou|d be ks. 40 crore. Subsequent|y, LC
renegot|ated w|th the concess|ona|re
and secured an enhanced f|xed
prem|um of ks 2.60 crore per annum for
60 years |n August 2007 (NV ks. 2S.87
crore) and reported to the GoM that |t
was not
poss|b|e to go any further. 1here was no
further commun|cat|on from GoM |n
th|s regard. 1h|s de|ayed |ntervent|on of
I|nance Department, on|y conf|rms our
op|n|on that at the |n|t|a| stage |tse|f,
when |t was brought to not|ce of the
kev|ew Comm|ttee, the matter shou|d
have been |ooked |nto by the concerned
department of the GoM.
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27.S.6 Defau|ts |n payment of prem|um
We also noLed defaulLs and delays ln
paymenL of annual premlum by Lhe
concesslonalre, rlghL from Lhe flrsL premlum
due on 1 november 2008, as glven below
hoLographs of Lhe hoLel lndlcaLe LhaL Lhe
faclllLy consLrucLed ls prlmarlly orlenLed as a
superlor class hoLel, raLher Lhan merely a
funcLlonal hosLel of lnLernaLlonal sLandard
for accommodaLlng aLhleLes. Whlle lL ls well
appreclaLed LhaL sulLable accommodaLlon
had Lo be provlded Lo Lhe parLlclpanLs of
C?C 2008, evldenLly, under Lhe gulse of
hosLlng Lhe aLhleLes and offlclals of C?C
no penal acLlon was, however, Laken by
uS?S ln Lhls regard.
lcLures of vlLs hoLel consLrucLed on 8C1 aL Lhe SporLs Complex 8alewadl, une
Due date Actua|
23 May 2009
(delay of 203 days)
Cnly 8s. 30 lakh pald on
19 !anuary 2011
noL pald
1 November 2008
1 November 2009
1 November 2010
1oble 27.5 - losltloo of
ptemom poymeot
2008, a hoLel was allowed Lo be consLrucLed
Lhrough change of land use wlLh a mlnlmal
premlum accrulng Lo CovernmenL. lf lndeed
Lhe lnLenL was Lo converL publlc/ seml-
publlc land for commerclal use, CoM chose
Lo lgnore an opporLunlLy for unlocklng Lhe
full markeL value of such land ln a prlme
locaLlon.
C?C-2008, une was expecLed Lo be a
learnlng experlence for sLaglng of Cames
for Lhe conducL of CWC 2010. CC's
consulLanL, LkS -L&?, ln Lhelr osL Cames
8eporL for C?C une noLed several
27.6 Lessons from CG-2008,
une for CWG-2010
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deflclencles and gave several
recommendaLlons so LhaL Lhese were noL
repeaLed ln CWC-2010. We, however,
noLlced LhaL CC losL Lhls opporLunlLy Lo
learn and LesL lLs preparedness for uelhl
2010, and consequenLly repeaLed lLs
mlsLakes ln key funcLlonal areas durlng
CWC2010, as summarlsed below:
1oble 27.6 - xpetleoce of Jlffeteot fooctloool oteos ot c-2008,
looe ooJ cwC-2010
Area of
funct|on|ng]
act|v|ty
Lxper|ence |n
CG une 2008
Lxper|ence |n
CWG De|h| 2010
1he osL Cames 8eporL of C?C une
noLed LhaL Lhe Lechnology under
dellvered ln many areas as Lhe
requlred lnfrasLrucLure and
equlpmenL were noL operaLlonal ln
Llme and were noL rellable.
CommunlcaLlons were poor, and
Lhere was lack of lnLegraLlon beLween
varlous aspecLs of 1lmlng, Scorlng
and 8esulLs sysLems.
lnLerneL avallablllLy ln Lhe Cames
CperaLlon CenLre was poor lnlLlally.
lnLerneL around Lhe cenLre was
regularly unavallable.
1here was lack of vlslblllLy of LlckeLlng
sLraLegy ln Lerms of ob[ecLlves,
process, dlsLrlbuLlon and prlclng.
1here was lack of avallablllLy of
lnformaLlon for conflrmed venue
capaclLles Lo be used for LlckeLlng.
1he process for sale and dlsLrlbuLlon
of LlckeLs was confuslng, as Lhe LlckeL
offlce aL 8alewadl was noL
operaLlonal and acLlve Llll Lhe
beglnnlng of Lhe games.
ConsequenLly, Lhere were very few
specLaLors on Lhe flrsL few days.
uurlng C?C-2008, CC recelved
uurlng CWC-2010, we found delays
and lack of plannlng for Lechnology
soluLlons.
1he plannlng for acqulrlng 1S8
lnfrasLrucLure was delayed resulLlng
ln lower compeLlLlon, addlLlonal cosLs
and lnLegraLlon lssues. !usL 10 days
before Lhe sLarL of Lhe games, Lhe
graphlcs were noL publlshed by Lhe
1S8 vendor.
1he CommenLary lnformaLlon SysLem
and Cames lnformaLlon sysLem
malfuncLloned durlng CWC. (8efer
ChapLer 12)
1he recommendaLlon for CWC-2010,
based on Lhe performance durlng
C?C-2008, une, was Lo deLermlne
Lhe LlckeLlng sLraLegy Lo ensure
maxlmum sales and capaclLy crowds
and Lo provlde easy sysLems for
purchase and collecLlon of LlckeLs.
uurlng CWC uelhl CC agaln falled Lo
achleve Lhe ob[ecLlves of LlckeLlng
due Lo delay ln preparlng LlckeLlng
sLraLegy, appolnLmenL of LlckeLlng
agency and flnallzaLlon of acLual seaL
lnvenLory (8efer ara 8.9).
1echno|ogy
1|cket|ng
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486
Area of
funct|on|ng]
act|v|ty
Lxper|ence |n
CG une 2008
Lxper|ence |n
CWG De|h| 2010
8s. 97.40 lakh Lhrough sale of LlckeLs,
alLhough lL had prlnLed LlckeLs of sale
value 8s. 3.10 crore.
1here was lack of clarlLy on levels of
servlce for varlous consLlLuenL groups
and Lhls affecLed Lhe quallLy of food.
1hls was allevlaLed by provldlng
packed meals, whlch was found Lo be
a good opLlon for provldlng food
servlce Lo workforce and volunLeers.
CC had slgned an agreemenL wlLh
SMAM for C?C-2008, une. ln Lhls
conLracL, Lhe LargeLed sponsorshlp
was noL deflned. llnally CC collecLed
abouL 8s. 20 crore only, mosL of
whlch came from Sus and CC made
commlsslon paymenLs of 8s. 3.37
crore Lo SMAM (8efer ara 8.4.3.1)
1here was no sLraLegy Lo generaLe
revenue from merchandlzlng for C?C-
2008, une. CC had noL flxed any
revenue LargeL from merchandlslng
for CW?C, une. CC lncurred
expendlLure of 8s. 2.29 crore for
expenses on merchandlzlng acLlvlLles,
agalnsL whlch lL could generaLe
revenue of [usL 8s. 2.03 crore from
sale of merchandlzlng lLems.
uurlng C?C-2008, une, Lhe faclllLles
provlded Lo Lhe medla persons such
as medla Lrlbunes were noL found
proper. LkS-L&? recommended
greaLer lnLeracLlon beLween l8 and
CC Lo ensure smooLh press
operaLlons durlng games.
uurlng CWC-2010 also, Lhere was
agaln lack of clarlLy on Lhe level of
servlce for varlous consLlLuenL groups.
CC revlsed Lhe 8l and wasLed one
whole year, before once agaln opLlng
for packed food for Lhe workforce,
volunLeers eLc. (8efer ara 11.3.3)
SMAM was also Lhe sponsorshlp
consulLanL for CWC-2010. Powever,
desplLe Lhe poor performance of
SMAM aL une, CC falled Lo
acknowledge Lhls danger slgnal.
Cnce agaln, very meager sponsorshlp
was generaLed, Lwo-Lhlrds of whlch
was from CovernmenL/ Sus.
(8efer para 8.4)
ln CWC 2010, Lhe LargeL for revenue
generaLlon Lhrough llcenslng and
merchandlslng was 8s 30 crore.
Powever, no revenue has been
recelved. (8efer ara 8.2.2 & 8.3)
uurlng CWC-2010, lnLernaLlonal and
naLlonal medla people were noL able
Lo access Lhe Cames news ConLenL for
Lhe lnlLlal few days. llnally, a
makeshlfL arrangemenL was made Lo
glve elecLronlc access Lo Cames news
Lo Lhe medla. 1he press operaLlons
remalned an area of flreflghLlng ln
CWC2010 as much as lL was ln C?C-
2008, une. (8efer ara 14.2)
Cater|ng
Sponsorsh|p
Merchand|s|ng
ress
Cperat|ons
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Area of
funct|on|ng]
act|v|ty
Lxper|ence |n
CG une 2008
Lxper|ence |n
CWG De|h| 2010
ConLracLs wlLh varlous caLegorles of
hoLels sLlpulaLed LhaL CC would pay
reLenLlon charges for unused hoLel
accommodaLlon. As Lhere was no
mechanlsm Lo Lrack Lhe arrlvals,
deparLures and oLher guesL
movemenLs, release of unuLlllzed
hoLel accommodaLlon could noL Lake
place and CC lncurred expendlLure of
8s. 0.62 crore Lowards reLenLlon
charges for unused hoLel
accommodaLlon.
1he same shorLcomlng was repeaLed
durlng CWC 2010. Cn any glven day,
CC had more Lhan 130 rooms vacanL
ln lLs flagshlp hoLels, and yeL CC had
booked rooms ln oLher hoLels
resulLlng ln excess expendlLure of aL
leasL 8s 1.13 crore. (8efer ara 13.2.3)
Accommodat|on
27.7.1 Genera|
We examlned 63 ma[or conLracLs for 8s.

81.33 crore for procuremenL of elecLronlc
and oLher requlremenL and observed Lhe
followlng general deflclencles ln Lhe
Lenderlng and award procedures
Crders were placed dlrecLly ln 16 cases
on a slngle source wlLhouL Lenderlng, ln
vlolaLlon of Lhe codal provlslons,
ln 12 cases, less Lhan Lhe prescrlbed
Llme was glven for submlLLlng Lenders
and adverLlsemenLs were placed only ln
local MaraLhl newspapers,
ln 3 cases, conLracLs for equlpmenL were
concluded wlLh flrms wlLh no prlor
experlence ln Lhe fleld,
CLher lnsLances of lack of Lransparency
ln Lhe Lenderlng process were noLlced ln
3cases,
27.7 urchase of L|ectron|c,
Sports and other
Lqu|pment
AddlLlonal lLems were ordered from Lhe

same conLracLor wlLhouL Lenderlng ln 4
cases,
Plre charges for faclllLles were pald for
perlods for whlch Lhe faclllLles were noL
avallable ln Lhree cases,
enalLy for delayed supply of equlpmenL
was noL deducLed ln Lhree cases,
ArrangemenLs for Lechnlcal lnspecLlon of
equlpmenL by Lhlrd parLles were noL
made or lLems were found defecLlve on
recelpL ln 6 cases, and
8equlremenLs of equlpmenL were noL
assessed reallsLlcally and Lhe quanLlLy
procured was ln excess of Lhe
requlremenL ln 8 cases.
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488
Cur flndlngs from Lhe scruLlny of 39 ma[or
conLracLs are summarlsed below:
1he CC furnlshed Lhe requlremenLs for
varlous elecLronlc equlpmenLs Lo uS?S
27.7.2 urchase of L|ectron|c v|deo
screens]scoreboards and
equ|pment
beLween november 2007 and March 2008,
wlLh lnsLrucLlons for purchase from
speclfled manufacLurers. Accordlngly, uS?S
placed seven supply orders for 8s 31.90
crore on lndlan and forelgn flrms from
lebruary Lo SepLember 2008 on slngle
Lender basls, as lndlcaLed ln Lhe followlng
Lable:
1oble 27.7 - 5opply otJets ploceJ oo sloqle teoJet bosls
Amount Venue
Nomenc|ature
of the equ|pment
Name of
the agency
8rand
Shoot|ng
1rap and Skeet
Ath|et|cs &
Sw|mm|ng
1ab|e 1enn|s, 1enn|s,
We|ght||ft|ng,
8adm|nton, Wrest||ng
Ath|et|cs &
box|ng
1ab|e 1enn|s, 1enn|s,
We|ght||ft|ng
Ath|et|cs & 8ox|ng
LlecLronlc scorlng
LargeL sysLems
1rap & skeeL ranges
SLarLlng block,
elecLronlc score board,
sLarLlng plaLforms
vldeo maLrlx colour
scoreboard eLc
LlecLronlc score
boards (CpLo
Lech brand)
LlecLronlc score
boards
LlecLronlc score
boards (opLoLech
brand)
LlecLronlc score
boards and
LachomeLer eLc
Slus AC,
SwlLzerland
LaporLe, lrance
Swlss 1lmlng
Cmega,
SwlLzerland
Shlv-naresh,
uelhl
Cem
lnLernaLlonal,
larldabad
(lndlan agenL
of Swlss 1lmlng
Cmega)
Shlv-naresh,
uelhl
Cem
lnLernaLlonal,
larldabad
Slus Ascor
LaporLe
Cmega
CpLo-Lech
Cmega
CpLo-Lech
Cmega
16.23
1.73

7.93

4.10
0.83

0.37
0.63
(lo ks. ctote)
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AfLer placlng flve supply orders aggregaLlng
8s 30.88 crore on nomlnaLlon basls as per
CCs dlrecLlon, Lhe maLLer was referred Lo
Lhe MS?A, Col Lhrough Lhe sLaLe
governmenL ln !une 2008 for guldance. ln
AugusL 2008, Col clarlfled LhaL Lhe
procuremenL was Lo be made as per Cl8s
and Lhe concerned manufacLurers (on Lhe
approved llsL of offlclal suppllers of Lhe
concerned lnLernaLlonal federaLlons for
speclfled equlpmenL) should be lnvlLed Lo
bld. Powever, even afLer recelvlng Lhe Col
clarlflcaLlons, LC placed anoLher order for
elecLronlc score boards eLc for 8s. 0.63
crore ln 2008 on Cem lnLernaLlonal,
larldabad.
We also observed oLher deflclencles ln
procuremenL of equlpmenL:
Ath|et|cs Start|ng 8|ocks (portab|e): 30
SLarLlng 8locks were procured from
Swlss 1lmlngs LLd. agalnsL Lhe
requlremenL of 17, resulLlng ln
avoldable expendlLure of 8s. 0.20 crore.
kotatory e|ectron|c-scoreboard: lour
scoreboards (porLable) were acLually
procured for Lhe maln sLadlum baslcally
for dlsplay purpose. A maxlmum of Lwo
fleld evenLs were posslble aL a Llme ln
Lhe maln sLadlum owlng Lo lLs slze. 1he
expendlLure of 8s 0.38 crore on
procuremenL of Lwo addlLlonal
scoreboards was avoldable.
Sw|mm|ng oo| Start|ng |atforms:
SlxLeen sLarLlng plaLforms procured for
8s 0.13 crore for Lhe warm-up pool were
lylng ldle due Lo leakages ln Lhe warm
up pool.
Shoot|ng target system |n S0 M ma|n
range: Slx scoreboards (cosLlng 8s 0.43
crore), whlch were an lnLegral parL of
Lhe shooLlng LargeL sysLem, were noL

worklng.
8ox|ng Scor|ng system: ln March 2008,
CC demanded one scorlng sysLem, buL
uS?S hlred Lwo sysLems, lnvolvlng
addlLlonal expendlLure of 8s 0.12 crore
L|ectron|c score boards supp||ed by
Sh|v-Naresh, De|h|: 1he CC reporLed on
24 SepLember 2008 LhaL Lhe LlecLronlc
Score boards supplled by M/s Shlv-
naresh uelhl (for 8s 4.97 crore) were
very rudlmenLary screens, slmllar Lo an
elecLronlc counLer, wlLhouL Lhe lnbullL
Clymplc 8esulL lnformaLlon SysLem
(C8lS) compllanL Llmlng and scorlng
sysLem and Lhe cosL of provldlng and
handllng such sysLem should be borne
by Lhe suppller. Powever, uS?S dld noL
effecL any deducLlon from Lhe suppller's
bllls for non-supply of Lhe C8lS
sofLware.
De|ay |n supp|y and |nsta||at|on of
equ|pments by Gem Internat|ona|,
Iar|dabad and Sh|v-naresh, De|h|:
uesplLe a provlslon of penalLy of one per
cenL per week of delay, uS?S allowed
exLenslon of Llme Lo Lhese suppllers
wlLhouL levy of penalLy of 8s 23.26 lakh
kenta|s pa|d for e|ectron|c scoreboard
h|red from M]s Gem Internat|ona|,
Iar|dabad for per|od |t was not
ava||ab|e: 1he agency clalmed hlre from
01 SepLember Lo 13 november 2008 for
equlpmenL LhaL were dlspaLched from
larldabad only on 04 CcLober 2008.
uS?S pald Lhe full hlre charges clalmed
by Lhe flrm, wlLhouL maklng deducLlon
of 8s. 0.38 crore for Lhe perlod LhaL Lhe
equlpmenL was noL avallable.
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Cost esca|at|on due to currency
f|uctuat|on: uS?S bore cosL escalaLlon of
8s. 0.32 crore due Lo forelgn exchange
varlaLlon durlng Lhe perlod of delay of
supplles by forelgn suppllers, whlch
should have conLracLually been borne by
Lhe suppllers. ln addlLlon Lhere was no
conLracLual penalLy levlable for Lhe delay
ln supplles.
27.7.3 Cther def|c|enc|es not|ced |n
procurements
1able below glves Lhe llsL of oLher
deflclencles noLlced ln procuremenL and
execuLlon of works:
1oble 27.8 - llst of otbet Jeflcleocles lo ptocotemeot ooJ execotloo of wotks
Lqu|pment
Contract Va|ue Aud|t Cbservat|on
A|r coo||ng system
rep|aced by A|r
cond|t|on|ng system
at the d|rect|on of CC
Supp|y, |nsta||at|on
and test|ng of
Weapons storage
cab|net and kIID
based |ocker access
contro| system
CC1V

Id|e equ|pment at
Sports Sc|ence Centre
ermanent Iurn|ture
at the venue
1he alr coollng sysLem lnlLlally lnsLalled aL a cosL of
8s. 0.81 crore was removed and alr condlLlonlng
sysLem purchased aL an addlLlonal cosL of 8s. 0.67
crore and lnsLalled aL a cosL of 8s 0.17 crore.
Work was awarded Lo a company engaged ordlnarlly
ln Lhe buslness of pharmaceuLlcals and medlcal
producLs, whlch could noL compleLe lL ln Llme for
C?C-2008.
Cf Lhe 4 movlng cameras, 37 Speed dome cameras,
33 flxed cameras, 34 lndoor dome cameras and 4 LCu
1v, equlpmenL worLh 8s. 0.34 crore were lylng
unlnsLalled ln sLore rooms,
Splro meLer worLh 8s. 0.33 lakh noL uLlllsed as
long dlsLance runnlng evenLs noL held,
orLable vC Max for 8s. 0.22 crore became
useless afLer C?C-2008 slnce requlred oxygen
sensors were provlded only durlng C?C-2008.
AlLlLude SlmulaLlon 1ralnlng equlpmenL of 8s.
0.91 crore remalns unLlllsed as Lhe sLaff Lralned
Lo use lL ls no longer assoclaLed wlLh Lhe cenLre.
no documenLary proof LhaL Lhese were recelved
before C?C-2008
0.81
0.64
1.63
4.09
1.10
(lo ks. ctote)
|ctures of CC1V camera| |y|ng |n stores
|ctures of CC1V camera| |y|ng |n stores
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8oad lmprovemenL pro[ecLs of 8s 434.22
crore and 8s. 312.14 crore were approved
under Lhe !awaharlal nehru naLlonal urban
8enewal Mlsslon (!nnu8M) for works
falllng under MC and CMC respecLlvely.
10
As per Lhe approved u8, 23 road
consLrucLlon/ lmprovemenL/ wldenlng/
elecLrlcal works pro[ecLs (lncludlng creaLlon
of 881S corrldor on 13 roads), 12 bus
27.8 C|ty Infrastructure Lermlnal faclllLles, 4 pedesLrlan subways
and area Lrafflc conLrol sysLems were Lo be
consLrucLed prlor Lo C?C-2008 as parL of
clLy lnfrasLrucLure developmenL. ln
addlLlon, MC and CMC spenL 8s 13 crore
and 132.06 crore respecLlvely from Lhelr
own funds on vehlcular underpass, roads
and grade separaLors. We found LhaL
several pro[ecLs could noL be compleLed ln
Llme for C?C-2008 as lndlcaLed ln Lhe
1able 27.9.:
10
2J fot lMc ooJ 2 fot lcMc.
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492
1oble 27.9 - llst of loftosttoctote ptojects oot completeJ lo tlme fot cC-2008
Nature of work
koad works
Work for 8k1 systems
1erm|na| works
edestr|an subways
Area traff|c contro| system
23
12
4
20
11
3
3
-
-
-
1
1
12
3
1
4
1
2
W8M treatment
W|den|ng and |mprovement
Grade separator
Veh|cu|ar Underpass
1
1
2
1
-
1
2
1
1
-
-
-
-
-
-
-
-
-
-
-
1
1
2
1
koad Works 2 2 - - - -
Number Awarded
before
CG-2008
MC - INNUkM funded
CMC - Cwn Iunds
CMC - INNUkM funded
Work on 881S componenL of 8s 32.67 crore was sLlll aL Lenderlng sLage
no work sLarLed so far
Awarded
after
CG-2008
Not
Awarded
Comp|eted
before
CG-2008
Comp|eted
after
CG-2008
Whlle uS?S forwarded a proposal for 8s
67.70 crore Lo Col for securlLy
arrangemenLs for C?C-2008, une, Lhe C
submlLLed lndenLs for equlpmenL, vehlcles
eLc for only 8s 23.39 crore Lo Lhe ulrecLor
Ceneral of ollce, Mumbal on 01 CcLober
2007, speclfylng Lhe lLems were requlred
before !une 2008. ln response, CoM
accorded approval for 8s 17.64 crore ln
plecemeal durlng May - SepLember 2008
and released funds durlng AugusL -
SepLember 2008 only.
Whlle we accepL Lhe need for, and legacy
value of such clLy lnfrasLrucLure posL C?C-
2008, such delays ln compleLlon vlolaLe Lhe
premlse under whlch Lhese pro[ecLs were
sancLloned. Slnce many of Lhese pro[ecLs
are sLlll lncompleLe, lL lndlcaLes lack of
responslblllLy and accounLablllLy.
27.9 urchase of Secur|ty
Lqu|pment and Veh|c|es
We found LhaL:
CuL of 8s 17.64 crore sancLloned,
equlpmenL for only 8s 9.40 crore was
procured, and 8s 3.18 crore were
surrendered.
CuL of Lhe procuremenL of 8s. 9.40 crore
of equlpmenL, supply orders for 8s 1.33
crore were placed afLer Lhe C?C evenLs
were over, whlle equlpmenL worLh 8s
3.23 crore were recelved only afLer Lhe
C?C evenLs were over.
lLems whlch were noL recelved ln Llme
lncluded nlghL vlslon goggles wlLh
blnoculars, porLable x-rays, operaLlonal and
Lrafflc propaganda vehlcles, ambulances,
hearse vans, dog squad Lempos, mlnlbuses,
worklng Lrucks, personnel carrlers, llghL
vans, moblle repalr vans, and cranes.
C
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A
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Med|a and 8roadcast|ng Serv|ces
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Z8
4/thouqh uoordorshon wos indicoted os the nost 8roodcoster in the Moy 200l bid, it wos
formo//y notified by the Oc on/y in Morch 2007, ond the nost 8roodcoster oqreement
between the Oc ond Prosor 8horoti {P8) wos siqned in Moy 2009.
1he oword of the broodcostinq services controct by P8 to 5l5 Live wos f/owed on severo/
counts:
On/y one bidder, 5l5 Live, wos quo/ified on technico/ qrounds, ond the controct wos
oworded on o sinq/e finoncio/ bid, without ony competition. undue de/oys on the port
of P8 ond the Ministry of lnformotion & 8roodcostinq {Ml8) /ed to o situotion where
re-tenderinq wos not considered feosib/e, ond, thus, foci/itoted the oword of the
controct on o sinq/e finoncio/ bid.
Lock of competition wos foci/itoted by o riqid stond token by P8 ot the stoqe of biddinq
{especio//y on the poyment schedu/e), which restricted potentio/ competitors from
biddinq. nowever, P8 oqreed ot the pre-bid meetinq to fino/ise the controct terms
"mutuo//y" with the se/ected entity, ond subsequent/y omended numerous c/ouses of
the droft controct to moke it one-sided in fovour of 5l5 Live.
controry to the intent of the controct with P8, 5l5 Live outsourced o/most the entire
controct on the some doy to 2oom communicotions, which wou/d hove been ine/iqib/e
for biddinq. we found thot 5l5 Live ond 2oom were in o//ionce much before the siqninq
of the controct with P8, ond even ot the controct droftinq stoqe, the intention of 5l5
Live to outsource the controct wos c/eor/y evident.
whi/e P8's controct with 5l5 Live wos for ks. 24 crore, the sub-controct between 5l5
Live ond 2oom wos for on/y ks. 177.l0 crore {which wou/d o/so foctor in 2oom's profit
morqin). c/eor/y, there wos o substontio/ /oss to P8 ond 6overnment, o/thouqh we ore
unob/e to quontify this /oss {bosed on ovoi/ob/e ond verifiob/e records).
4s per the controcted schedu/e of poyment, 5l5 Live wos to receive on/y l0 per cent
poyment before 14 October 2010, with the bo/once on/y on verificotion of
performonce. 1his wos irrequ/or/y omended to o//ow 0 per cent poyment in odvonce
of the 6omes {subject to successfu/ insto//otion ond testinq of equipment). nod this
re/oxed poyment schedu/e been incorporoted ot the biddinq stoqe, there wou/d hove
been much qreoter finoncio/ competition, reducinq the u/timote cost to the pub/ic
exchequer.
P8 foi/ed to enforce comp/ionce by 5l5 Live with even the conditions ossocioted with
the re/oxed poyment schedu/e vit. short supp/y of equipment, irrequ/or chonqes in
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494
ChapLer 28 - Medla and 8roadcasLlng Servlces
lannlng and dellvery of medla and
broadcasLlng servlces for coverage of CWC-
2010 lnvolved mulLlple agencles - rasar
28.1 |ann|ng and 8udget|ng for
Med|a and 8roadcast|ng
Serv|ces
8haraLl (8)/ uoordarshan (uu) and ress
lnformaLlon 8ureau (l8) under Lhe MlnlsLry
of lnformaLlon and 8roadcasLlng (Ml8), and
Lhe lndla 1rade romoLlon CrganlsaLlon
(l1C). 1helr roles and funcLlons were as ln
1able 28.1.
moke/ mode/ of equipment invo/vinq finoncio/ imp/icotion of ks. 17.l9 crore ond non-
co-operotion by 5l5 Live with P8's technico/ inspection teom.
1here were o/so severo/ deficiencies in the execution of the controct. 1he entire poyment
for coveroqe of the 8k wos re/eosed to 5l5 Live, despite non-receipt of topes re/otinq to 5
out of 21 countries ond de/oyed receipt vis-o-vis the stipu/oted time schedu/e {which wos
necessory for time/y coveroqe). 5l5 technico/ personne/, who were opproved by P8 ond
were required to be present durinq the 6omes, were rep/oced by other personne/ of 5l5.
we found thot the nost 8roodcost Monoqement committee {n8Mc) set up by the P8 did
not ochieve the desired resu/ts. 1here wos o /ock of consensus omonq members of the
n8Mc, with duo/ minutes in respect of three meetinqs, on importont meetinq invo/vinq
mojor decisions siqned by on/y 4 out of 7 members, ond /eqo/ opinion beinq souqht on key
issues, this u/timote/y resu/ted in debotob/e decisions, which fovoured the interests of 5l5
Live. 1he Ministry of lnformotion ond 8roodcostinq, os we// os on Oversiqht committee
{choired by the Minister, l&8 ond co-choired by the Minister of Low ond lustice) which wos
constituted to monitor the proqress of octivities ond expedite decisions, chose to /orqe/y
occept the proposo/s put forword by P8.
1he /eqocy vo/ue of nu1v coveroqe of cw6-2010 to P8, both in terms of improvement of
infrostructure ond deve/opment of in-house ski//s, wos insiqnificont despite incurrinq of
such huqe expenditure out of 6ol funds. P8 porticipoted in production of on/y three
events os oqoinst the initio/ p/on of coveroqe of 10 out of 17 events in-house. 1roininq wos
imported to P8 stoff on/y in non-6omes venues, ond there wos no evidence of such
troininq beinq imported on the hiqh/y specio/ised O8 vons used for 6omes production.
lurther, P8 foi/ed to toke odvontoqe of the cobinet opproved scheme for upqrodotion of
uoordorshon to nu1v. consequent/y, the troininq received by P8 personne/ from 5l5 Live
wou/d o/so become /orqe/y redundont, in the obsence of nu1v equipment in P8.
1he oword of the controct for construction of the lnternotiono/ 8roodcost centre {l8c) by
P8 wos f/owed. 1wo entities {5hof 8roodcost ond 4nytime Pictures Ltd.), which hod been
found ine/iqib/e on occount of /ock of experience ot the Ol stoqe by the vo/uotion
committee, were irrequ/or/y inc/uded in the short/ist, ond the fino/ controct wos oworded
to 5hof 8roodcost ot o cost hiqher thon thot wos opproved by cc4.
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1he flnallsaLlon and approval of Lhe budgeL
esLlmaLe for medla and broadcasLlng
28.2 Cost|ng and Lst|mat|on for
Med|a and 8roadcast|ng
Serv|ces
servlces was unduly delayed (Laklng 13
monLhs from !uly 2007 Lo CcLober 2008)
wlLh no sense of urgency apparenL amongsL
Lhe varlous approval agencles.
1oble 28.1 - koles of Jlffeteot oqeocles fot meJlo ooJ btooJcostloq setvlces
Agency ko|e and Iunct|ons
PosL 8roadcasLer (P8):
1elevlslon and radlo producLlon,
8roadcasL venue operaLlons and servlces, and
SeLLlng up Lhe lnLernaLlonal 8roadcasLlng CenLre (l8C).
rovldlng and managlng Lhe Maln ress CenLre (MC) and Mlnl ress
CenLres aL each venue.
rovldlng lnLernaLlonal sLandard lnfrasLrucLure faclllLles aL ragaLl
Maldan for Lhe l8C and MC
Doordarshan (DD) ]
rasar 8harat| (8)
ress Informat|on
8ureau (I8)
Ind|a 1rade
romot|on
Crgan|sat|on (I1C)
llqote 28.1 - uoJoe Jeloys lo opptovol of boJqet
fot meJlo ooJ btooJcostloq setvlces
LsLlmaLes senL by 8 Lo
Ml8, reLurned for re-
submlsslon ln LlC formaL
Iu|y 2007
ConsulLaLlon wlLh
lannlng Commlsslon,
M?AS, MCl, MCCl
Iu|y-Aug 2008
LsLlmaLes re-
submlLLed (ln LlC
formaL) by 8 Lo Ml8
November 2007
CCLA noLe
and Approval
Cctober 2008
Ml8 roposal Lo
lannlng Commlsslon
December 2007
lannlng Commlsslon
approval
Ianuary 2008
CCLA noLe
and Approval
Cctober 2008
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496
1he CablneL flnally approved an overall
amounL of 8s. 463 crore for medla and
broadcasLlng servlces for CWC-2010
(lncludlng C?C-2008), as follows:
1he CablneL noLe envlsaged LhaL slnce
revenue generaLlon from Lhe Cames by 8
1
was uncerLaln , 30 per cenL of Lhe fundlng
Lo 8 would be as granL-ln-ald, wlLh Lhe
remalnlng 30 per cenL as an lnLeresL-free
loan (wlLh converslon lnLo granL-ln-ald Lo be
consldered, lf requlred, aL a laLer sLage).
SubsequenLly, ln !anuary 2010, revlsed cosL
esLlmaLes of 8s. 482.37 crore were
approved by Lhe LlC (wlLhln Lhe approved
llmlL of varlaLlon of 20 per cenL). A proflle of
Lhe revlsed esLlmaLes and Lhe acLual
expendlLure lncurred (as of uecember
2010) ls glven below:
1he splrlL of Lhe varlaLlon llmlL of 20 per
cenL for LlC (raLher Lhan CCLA) approval
was noL observed. 1he upward revlslons for
Lhe l8 and l1C were 69 per cenL and 171
per cenL, whlch were hldden wlLhln Lhe
overall upward revlslon of 8s.19.37 crore,
by parLly ad[usLlng Lhe savlngs of 8s.41.13
crore on accounL of C?C-2008, une.
lncldenLally, Lhe savlngs on C?C 2008, une,
were achleved due Lo Lhe declslon of Ml8
for ln-house producLlon and coverage by 8
ln Su formaL, as agalnsL ouLsourclng Lo SlS
Llve (whlch was Lhe chosen bldder).
28.3.1 Cverv|ew
We have already hlghllghLed ln ChapLer-8
on 8evenue CeneraLlon, Lhe abnormal
delays by Lhe CC ln flnallslng Lhe conLracL
wlLh Lhe PosL 8roadcasLer, rasar 8haraLl
(8). uesplLe havlng declared 8 as Lhe PosL
8roadcasLer ln Lhe orlglnal bld of May 2003,
CC formally communlcaLed Lhls
appolnLmenL Lo rasar 8haraLl only ln
March 2007.
under Lhe PosL 8roadcasLer Servlce
AgreemenL, whlch was slgned beLween Lhe
CC and 8 ln May 2009, 8 agreed Lo
underLake, aL lLs own cosL and expense, all
28.3 8roadcast|ng Serv|ces by
rasar 8harat|
1oble 28.2 - Otlqlool boJqet fot
meJlo ooJ btooJcostloq setvlces
Category
CG-2008,
une
CWG-2010 1ota|
nost
8roadcast|ng
Serv|ces (8)
I8
I1C
1ota|
49.00
1.20
--
S0.20
366.00
18.80
28.00
412.80
413.00
20.00
28.00
463.00
(ks. |n Crore)
1oble 28.J - kevlseJ boJqet ooJ expeoJltote
fot meJlo ooJ btooJcostloq setvlces
(ks. |n Crore)
1
loclJeotolly, oo socb oocettoloty wos exptesseJ ot tbls
tlme teqotJloq Oc's qeoetotloo of teveooes (locloJloq
btooJcostloq teveooes).
Agency
Cr|g|na|
8udget
kev|sed
8udget
(ks. |n Crore)
Lxpend|ture
(December
2010)
CG-2008,
une
8
I8
I1C
1ota|
30.20
366.00
18.80
28.00
463.00
9.03
366.00
31.73
73.77
482.S7
9.03
223.89
20.72
37.70
293.36
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28.3.3 Award of Contract for roduct|on
and Coverage
1he process for Lenderlng and award of Lhe
conLracL for producLlon and coverage Lo SlS
Llve Look lnexpllcably long.
28.3.3.1 undue uelays
obllgaLlons sLlpulaLed ln Lhe CWC
8roadcasLlng Culdellnes. 1hls essenLlally
covered producLlon and dlsLrlbuLlon of
baslc feed" for all Lhe sporLs and Lhe
openlng and closlng ceremonles ln Pu (Plgh
ueflnlLlon) formaL. As a concesslon Lo
Lhose lnLernaLlonal broadcasLers who dld
noL supporL Pu formaL, 8 was requlred Lo
offer Lhe baslc feed slgnal Lo broadcasLers aL
Lhe venue ln Su (SLandard ueflnlLlon)
formaL also.
8's lnlLlal budgeL esLlmaLe of !uly 2007 of
8s. 337 crore for broadcasLlng servlces was
noL found Lo be reallsLlc by Lhe MlnlsLry of
lnformaLlon and 8roadcasLlng (Ml8).
lurLher, CC's Advlsor - 8roadcasLlng, Shrl
aLrlck lurlong advlsed 8 Lo prepare a
reallsLlc budgeL esLlmaLe afLer lssulng a
8equesL for lnformaLlon (8ll).
ln CcLober 2007, 8 lssued an 8ll, Lo whlch
2
only one compleLe response from
lnLernaLlonal Cames 8roadcasLlng Servlces
3
(lC8S) was recelved. AfLer recelpL of Lhls
response, 8 prepared a revlsed budgeL of
8s. 443 crore for broadcasLlng servlces ln
november 2007. 1hls was flnally reduced Lo
8s. 366 crore ln Lhe approved CablneL
esLlmaLe of CcLober 2008.
28.3.2 Cost Lst|mat|on
2
3
1be otbet tespoose by 88c-O8's to tbe kll coveteJ ooly
12 eveots.
A jolot veotote betweeo n85 ooJ lMC MeJlo
We cou|d not der|ve assurance as to the
reasonab|eness and re||ab|||ty of the
approved budget est|mate of ks. 366
crore for broadcast|ng serv|ces. 1he
award of the contract for 'product|on and
coverage' to SIS L|ve for ks. 246 crore on
a s|ng|e f|nanc|a| b|d bas|s and |ts back to
back sub-contract|ng to 2oom
Commun|cat|ons Ltd. for ks. 177.30 crore
conf|rm the unre||ab|||ty of the est|mates.
llqote 28.2 - 1eoJetloq ooJ
owotJ of coottoct fot ptoJoctloo
ooJ covetoqe
LCI proposa| by 8
CcLober 2008
LCI |ssue (after MI8 approva|)
uecember 2008
kece|pt of LCI responses
!anuary 2009
Issue of kI
!uly 2009
re-b|d meet|ng
!uly 2009
kece|pt of kI responses
AugusL 2009
Letter of Award
CcLober 2009
S|gn|ng of Contract
March 2010
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498
28.3.3.2 LCl and 1echnlcal LllglblllLy
8 Look Lhree monLhs Lo flnallse Lhe LCl ln
uecember 2008. 8 submlLLed Lhe LCl Lo
Ml8 Lwlce ln CcLober 2008 and uecember
2008. Ml8 lnslsLed LhaL 8 send Lhe
proposal and revlslons Lhrough CLC, 8.
Powever, 8 dld noL comply and senL Lhe
revlslons Lhrough uC, uu.
ln response Lo Lhe LCl of uecember 2008,
10 responses were recelved ln !anuary
2009, of whlch Lhe followlng flve were
found Lo be Lechnlcally ellglble:
8lg roducLlons (8ellance) wlLh
lnLerpubllc MarkeLlng Servlces,
Shanghal,
nlmbus CommunlcaLlons LLd wlLh
Canadlan 8roadcasLlng CorporaLlon,
nlmbus SporLs lnLernaLlonal vL. LLd,
Slngapore wlLh lnLernaLlonal SporLs
8roadcasLlng ,
SaLelllLe lnformaLlon Servlce Llve uk
wlLh SlS CuLslde 8roadcasL LLd, and
lnLernaLlonal Cames 8roadcasL Servlces,
SwlLzerland (P8S and lMC Medla).
Powever, 8 lssued Lhe 8l only ln !uly
2009 (nearly slx monLhs afLer Lhe LCl). 8
submlLLed Lhe drafL 8l Lo Ml8 Lhrlce ln
May, !une and !uly 2009. ln our vlew, Ml8's
observaLlons, whlch necesslLaLed mulLlple
revlslons of Lhe 8l, were on relaLlvely
Lrlvlal aspecLs, whlch dld noL cover Lhe rlgld
condlLlons and oLher core lssues ln Lhe 8l.
lurLher, Lhe delay ln approval of LlC and
flnallsaLlon of LCl and 8l resulLed ln
pauclLy of Llme due Lo whlch re-Lenderlng ln
Lhe conLexL of a slngle flnanclal bld was noL
feaslble.

4
lC85 wos tbe offlclol nost 8tooJcostet of uobo Asloo
Comes 2006 ooJ ossocloteJ wltb 8tooJcostloq of
Melbootoe cwC 2006
28.3.3.3 re-8ld MeeLlng
8 held a pre-bld meeLlng wlLh Lhe flve
Lechnlcally ellglble bldders on 24 !uly 2009.
1he shorLllsLed respondenLs expressed
serlous concerns abouL Lhe Lerms and
condlLlons of Lhe conLracL, flnanclal
condlLlons/ paymenL schedule, vague
clarlflcaLlons, and dlfflculL deadllnes. uurlng
Lhe pre-bld meeLlng, 8 Look a very rlgld
sLand agalnsL maklng any changes ln Lhe
paymenL schedule. ConLrarlly, 8 also
commlLLed LhaL Lhe drafL conLracL would
be flnallzed wlLh Lhe zeroed-ln enLlLy
muLually".
SubsequenLly, all Lhe shorLllsLed
respondenLs, oLher Lhan SlS Llve, expressed
Lhelr lnablllLy Lo submlL a bld under Lhe
glven Lerms and condlLlons.
4
ln parLlcular, lC8S (whose response Lo Lhe
8ll was Lhe basls for cosL esLlmaLlon)
lndlcaLed Lhelr unwllllngness Lo submlL a bld
on accounL of Lough flnanclal condlLlons,
unfalr and one-slded drafL conLracL,
unreasonable and unreallsLlc 8l condlLlons
(regardlng scope of servlces and provlslon
of Lechnlcal and personnel speclflcaLlons)
and lnadequaLe clarlflcaLlons. As a resulL,
lC8S wlLhdrew from blddlng for CWC-2010.
Powever, many slgnlflcanL condlLlons/
provlslons of Lhe conLracL were laLer
changed by P8 aL Lhe drafL conLracL sLage or
subsequenLly as lndlcaLed ln 1able 28.4.
C|ear|y, on|y those b|dders, who were
conf|dent of gett|ng post-b|d contractua|
changes |n the|r favour, were encouraged
to b|d, thus creat|ng a s|tuat|on w|th h|gh
scope for arb|trar|ness and patronage.
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1oble 28.4 - compotlsoo of cooJltloos ot pte-blJ ooJ coottoct stoqes
Area re-bad query by b|dders
kesponse
of 8
Actua| Imp|ementat|on
by 8
ayment
schedu|e
Lqu|pment
Conslderlng 10 percenL
performance guaranLee, 80 per
cenL of paymenL ls noL due unLll
compleLlon of Lhe games. 1hls ls aL
varlance wlLh Lhe paymenL
schedule for slmllar evenLs
anywhere ln Lhe world. Conslderlng
LhaL Lhe mosL slgnlflcanL parL of
budgeL ls spenL prlor Lo Lhe evenL,
we would requesL uu for
negoLlaLlon on Lhls.
Could you conflrm LhaL Lhe
paymenL schedule can be dlscussed
and negoLlaLed as parL of Lhe
conLracL negoLlaLlon wlLh Lhe
successful bldder?
lease advlse on daLe and Llme
frame for releaslng paymenLs once
Lhe dellverables are submlLLed
Would P8 conslder lowerlng Lhe
Llmeframe of paymenL from 30
days Lo 7 days afLer submlsslon of
dellverables?
Would P8 conslder a laLer daLe for
equlpmenL Lo arrlve, lf dellvery
guaranLees were offered?
As per lorm 1ech 7, deLalls of
equlpmenLs as accuraLely as would
be acLually deployed for Lhe games
wlLh makes and models of every
plece of equlpmenL for every C8.
AfLer Lhe flrsL Lwo lnsLalmenLs,
Lhe paymenL schedule was
changed ln SepLember 2010 from
30 percenL before Lhe Cames Lo
60 percenL before Lhe Cames.
1hls was changed whlle flnallslng
Lhe conLracL Lo 10 worklng days
of submlsslon of lnvolce along
wlLh lnspecLlon cerLlflcaLe.
1lmellne for lnsLallaLlon of
equlpmenL and core Leams aL slLe
of 31 AugusL 2010 was converLed
Lo proof of despaLch of
equlpmenL whlle changlng Lhe
schedule of paymenL ln SepL
2010.
LvenLually, SlS Llve was allowed
Lo delay Lhe Llmellne for
successful lnsLallaLlon of
equlpmenL Lo 27Lh SepLember
2010.
ln AugusL 2010, SlS Llve
approached P8 for change ln
make/model of cerLaln
equlpmenL from Lhose approved
ln Lhe producLlon plan, whlch
was, however, noL accepLed by
no
no
As per drafL
conLracL
Accordance
Lo clause
6.3(b) of
drafL
conLracL.
no
1he enLlLy
has Lo
provlde Lhe
llsL of
equlpmenL
and ln rare
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Consort|um
Coverage of
8k
lease clarlfy lf Lhe Llmellne ln
Appendlx vl musL be used Lo
consLrucL Lhe flnanclal bld or can
alLernaLlve daLes be proposed for
equlpmenL personnel arrlval
normally assoclaLed wlLh
lnLernaLlonal games.
Wlll Lhe conLracL be awarded well
ln advance Lo enable Lhe bldder Lo
plan and prepare Lo cover Lhe C88?
P8. uurlng lnspecLlon carrled ouL
by Lhe Leam of Lechnlcal experLs
ln SepLember 2010, subsLanLlal
devlaLlons ln Lhe
manufacLurer/speclflcaLlons of
equlpmenL were noLlced buL no
acLlon was Laken.
lncldenLally, Lhe uC uu sLaLed
LhaL, as per oplnlon of Lhe
AddlLlonal SC, Lhe deLalls of
make and model of equlpmenL
glven by enLlLy (ln Lhe producLlon
plan) was only lllusLraLlve Lo
meeL Lechnlcal speclflcaLlons.
1lmellne for lnsLallaLlon of
equlpmenL and core Leams aL slLe
by 31 AugusL 2010 was converLed
Lo proof of despaLch of
equlpmenL whlle changlng Lhe
schedule of paymenL ln SepL
2010.
A subsLanLlal parL of conLracL was
ouLsourced Lo Zoom
CommunlcaLlons and
responslblllLles and proflLs were
shared equally by boLh, whlch
essenLlally makes lL a
parLnershlp.
LeLLer of award was lssued Lo SlS
Llve on 22 CcL 2009, [usL slx days
before C88.
cases can
subsLlLuLe
equlpmenL
wlLh slmllar
or beLLer
speclflca-
Llon wlLh
proper
[usLlflcaLlon
and
approval of
P8.
lL has Lo be
ln
accordance
wlLh
Appendlx
vl
lf Lhe enLlLy
happens Lo
be a
consorLlum
no addlLlon
can be
made and
composl-
Llon of
consorLlum
shall
remaln Lhe
same as on
submlsslon
of LCl
responses.
ConLracL
would be
awarded
well ln
advance of
Lhe C88
Area re-bad query by b|dders
kesponse
of 8
Actua| Imp|ementat|on
by 8
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P
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) S01
LvldenLly, Lhe rlgld sLand Laken by 8 aL Lhe
pre-bld sLage was a pre-deLermlned
sLraLegy Lo deLer oLher poLenLlal bldders
and favour SlS Llve, for whom speclal
concesslons were accorded subsequenLly.
uue Lo rasar 8haraLl's fallure Lo amend Lhe
drafL conLracL ln a falr and LransparenL
manner ln advance of bld submlsslon
(raLher Lhan allowlng lL Lo be lnsldlously
amended posL facLo aL mulLlple sLages),
only Lwo blds were recelved. Cne bld was
effecLlvely wlLhdrawn, as Lhe lead parLner -
Canadlan 8roadcasL CorporaLlon -
wlLhdrew from Lhe consorLlum. 1hls lefL
only one flnanclal bld - LhaL of SlS Llve - ln
conLenLlon.
lL may be noLed LhaL Ml8 was lnvolved by
8 aL each sLage of Lhe Lenderlng/ award
process. 1he CverslghL CommlLLee
(dlscussed subsequenLly ln para 28.6.3) also
felL LhaL Lhe process followed was falr and
LransparenL, alLhough lL noLed ln a
subsequenL meeLlng (lebruary 2010) LhaL
some parLles had opLed ouL of Lhe blddlng
due Lo Lhe resLrlcLlve paymenL schedule.
lurLher, Lhe accepLed flnanclal bld lncluded
8s.10 crore for ConsulLancy (wherever
requlred), whlch SlS Llve had sLaLed Lo be lLs
pro[ecL proflL. ln addlLlon 8s.10 crore was
provlded for lncldenLal/ conLlngency
expenses whlch SlS Llve sLaLed Lo be pre-
operaLlve expenses and unspeclfled
conLlngencles. AlLhough Lhe PosL 8roadcasL
S
ManagemenL CommlLLee (P8MC)
negoLlaLed wlLh SlS Llve, lL could noL effecL
any deducLlon under Lhese heads. 1hus, Lhe
conLracL was ab lnlLlo overprlced by 8s 20
crore.
S
n8Mc wos cbolteJ by cO, l8 ooJ comptlseJ Membet
(lloooce), Membet (letsoooel), uC uu, oqloeet-lo-
cblef uu, uC Alk ooJ oqloeet-lo-cblef Alk
28.3.3.4 llnallsaLlon of ConLracL wlLh
SlS Llve
1he flnallsaLlon of Lhe conLracL beLween 8
and SlS Llve lnexpllcably Look flve monLhs -
from 22 CcLober 2009 (when Lhe LoA was
lssued) Lo 3 March 2010. 1he flnal conLracL
aL a cosL of 8s. 246 crore dlffered
subsLanLlally from Lhe drafL conLracL
clrculaLed aL Lhe 8l sLage, wlLh all Lhe
changes favourlng SlS Llve and Lo Lhe
deLrlmenL of 8/ Col.
A summary of Lhe ma[or changes Lo Lhe
conLracL ls glven ln 1able 28.3.
We c|ear|y d|scern 8's |ntent to
d|scourage other part|es from b|dd|ng,
|eav|ng on|y one "chosen" b|dder (SIS
L|ve). 1he Letter of Award was |ssued on
22 Cctober 2009, [ust s|x days before the
8k Launch ceremony on 28 Cctober
2009.
M|racu|ous|y, SIS L|ve, a|ong w|th |ts
future sub-contractor - 2oom
Commun|cat|ons Ltd., was a|ready |n
pos|t|on (after mob|||sat|on of necessary
equ|pment and resources), to cover the
8k.
1hese changes were f|na||zed as a resu|t
of "negot|at|ons" between 8 and SIS
L|ve and d|rect consu|tat|ons w|th the
So||c|tor Genera| w|thout rout|ng through
MI8. 1he So||c|tor Genera| vetted the
contract and sett|ed the changes, am|dst
the conf||ct|ng v|ews of n8MC members.
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1oble 28.5 - cbooqes lo coottoct cooJltloos
Area Cr|g|na| prov|s|on |n br|ef ara No. rov|s|on |n f|na| contract
1erm|nat|on
of Contract
1erms of
payments
L|qu|dated
Damages
lf Lhe conLracL ls LermlnaLed
pursuanL Lo clause 2.8.1 Lhe enLlLy
shall noL be enLlLled Lo recelve any
paymenL.. however P8 may
conslder maklng paymenL for Lhe
parL saLlsfacLorlly performed., P8
may also lmpose llquldaLed
damages as per Lhe provlslons .
upon such LermlnaLlon P8 shall be
free Lo engage any oLher servlce
provlder as lL may deem flL aL Lhe
rlsk and cosL of enLlLy
1he enLlLy shall submlL lnvolce
along wlLh lnspecLlon
cerLlflcaLe..Lhe paymenL wlll be
released as per work relaLed
mllesLones achleved.
Cnce a mllesLone ls compleLed Lhe
enLlLy shall submlL Lhe requlslLe
dellverables...P8 wlll release
paymenL upon accepLance of Lhe
dellverables...lf P8 falls Lo lnLlmaLe
Lhe ob[ecLlons wlLhln 30 days lL
shall release paymenL wlLhouL
furLher delay.
lf Lhe dellverables are noL
submlLLed as per schedule, Lhe
enLlLy shall be llable Lo pay 1
percenL of Lhe LoLal cosL of servlces
for delay of each week or parL
Lhereof
lf Lhe conLracL ls LermlnaLed
pursuanL Lo clause 2.8.1 Lhe
enLlLy shall noL be enLlLled Lo
recelve any paymenL. however
P8 shall make paymenL for Lhe
parL performed Lo Lhe
reasonable saLlsfacLlon of Lhe P8
upon LermlnaLlon under clause
2.8.1, P8 shall be free Lo engage
any oLher servlce provlder as lL
may deem flL. ...ln whlch evenL
Lhe enLlLy shall be llable only for
Lhe cosLs of such replacemenL
servlces LhaL are reasonable.
1he enLlLy shall submlL lnvolce
along wlLh lnspecLlon
cerLlflcaLe..Lhe paymenL wlll be
released as per work relaLed
mllesLones/speclfled daLes wlLhln
10 worklng days of submlsslon of
lnvolce.
Where compleLlon of a mllesLone
requlres Lhe submlsslon of a
dellverable .enLlLy shall submlL
Lhe dellverable..wlLhln flve
worklng days P8 shall conflrm lLs
accepLance or any deflclencles.
..aymenL shall be released as
per work relaLed
mllesLones/speclfled daLes wlLhln
10 worklng days of submlsslon of
lnvolce. ln case of any undue
delay ln paymenL P8 shall be
llable Lo pay Lu.
Where a mllesLone requlres
submlsslon of a dellverable and lL
ls noL submlLLed and delay ls noL
due Lo fallure of P8 ..Lhe enLlLy
shall be llable Lo pay 1 percenL of
value of Lhe paymenL whlch
would have been due
2.8.3 (a)
2.8.3(c)
6.3(a)
6.3 (b)
9.3(a)
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Area Cr|g|na| prov|s|on |n br|ef ara No. rov|s|on |n f|na| contract
L|qu|dated
Damages
ayab|e
by 8
Contract r|ce
Sub-Contract
lf Lhe submlLLed dellverable ls noL
accepLable Lo P8... enLlLy shall be
llable Lo pay 1 percenL of Lhe LoLal
cosL of servlces for delay of each
week or parL Lhereof
8oLh Lhe parLles agree Lo pay such
llquldaLed damages, as deflned
under Lhe provlslons of Lhe
conLracL.
ConLracL prlce shall remaln flrm for
Lhe enLlre conLracL perlod excepL
changes ln Lhe Lax law.
LnLlLy shall noL asslgn or Lransfer
Lhe conLracL or any parL Lhereof.
lf Lhe submlLLed dellverable ls
noL accepLed by P8... Lhe
enLlLy shall be llable Lo pay 1
percenL of value of Lhe paymenL
whlch would have been due
P8 shall be llable Lo pay Lo Lhe
enLlLy Lu for any delay ln
paymenL on parL of P8..for an
amounL equal Lo 1 percenL of
value of Lhe paymenL due.for
each week sub[ecL Lo a maxlmum
of 10 percenL of conLracL prlce.
Any Lu due from Lhe enLlLy Lo P8
may be seL off agalnsL Lhe
paymenL due from P8 Lo Lhe
enLlLy.
ueleLed
LnLlLy shall noL asslgn or Lransfer
Lhe conLracL or any parL Lhereof,
buL P8 acknowledges LhaL Lhe
enLlLy wlll uLlllse sub-
conLracLors/producLlon
assoclaLes for Lhe performance
of Lhe servlces.
9.3(b)
9.4
9.3
14
13
In part|cu|ar, the new prov|s|on a||ow|ng
SIS L|ve to ut|||se sub-contractors]
product|on assoc|ates changed the
fundamenta| nature of the contract and
paved the way for SIS L|ve to outsource
a|most the ent|re work to 2oom
Commun|cat|ons Ltd. on the same day as
the ma|n contract - S March 2010.
28.3.3.3 Sub-ConLracLlng by SlS Llve Lo
Zoom CommunlcaLlons LLd.
8 enLered lnLo a conLracL on 3 March 2010
wlLh SlS Llve for producLlon and coverage of
CWC-2010 aL a cosL of 8s. 246 crore. Cn Lhe
same day (3 March 2010), SlS Llve enLered
lnLo a sub-conLracL wlLh Zoom
CommunlcaLlons LLd. aL a cosL of 8s. 177.30
crore, coverlng almosL Lhe enLlre scope of
work, vlz.:
CeneraLlon of baslc feed,
8roadcasL venue operaLlons servlces,
and
1ralnlng
We found LhaL SlS Llve and Zoom
CommunlcaLlons LLd. were ln alllance much
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before Lhe slgnlng of Lhe maln conLracL and
sub-conLracL on 3 March 2010:
SlS Llve uLlllzed Lhe servlces of Zoom
CommunlcaLlon LLd. for coverage of Lhe
C88, whlch was launched on 28 CcLober
2009,
Cn 3 March 2010, Shrl uehlvl slgned as a
wlLness Lo Lhe maln conLracL beLween
8 and SlS Llve and also as Lhe
auLhorlzed represenLaLlve of Zoom
CommunlcaLlons ln Lhe sub-conLracL
beLween SlS Llve and Zoom
CommunlcaLlons on Lhe same day.
SubsequenLly, Shrl uehlvl corresponded
wlLh 8 as Lhe 8esldenL ro[ecL ulrecLor
of SlS Llve.
1he Lerms of Lhe sub-conLracL dld noL
envlsage a prlnclpal-agenL relaLlonshlp
beLween SlS Llve and Zoom
CommunlcaLlons, and made Zoom
CommunlcaLlons responslble for
performance of key servlces:
Managlng Lhe broadcasL producLlon and
coverage faclllLles and servlces,
rovldlng a Lurnkey soluLlons for
scheduled servlces and dellverables,
rovldlng advlce and Laklng declslons Lo
ensure servlces of generaLlon of baslc
feed, broadcasL, venue operaLlons,
Lralnlng eLc.,
rovlslon of 83 per cenL of equlpmenL
for Cames coverage and Lralnlng,
rovldlng 800 ouL of Lhe 1200 esLlmaLed
Cames Llme sLaff,
8esponslblllLy for all lndlan sLaff for
plannlng and managemenL, Lechnlcal
and producLlon cosLs for pre-Cames
programmlng, C88 cosLs, Lechnlcal
equlpmenL for Lralnlng, lnsurance eLc.

6
loymeot tbtooqb lettets of cteJlt wos, bowevet, oot
ptocesseJ.
28.3.4 Irregu|ar|t|es |n Contract

Management
As per clause 3 of CperaLlng uocumenL
aLLached wlLh Lhe sub-conLracL, proflL
provlslon was Lo be shared equally
beLween SlS Llve and ZooM.
Clearly, pracLlcally Lhe enLlre seL of
conLracLual servlces was belng execuLed by
Zoom CommunlcaLlons LLd Lhrough a back-
Lo-back conLracL, wlLh SlS Llve acLlng
essenLlally as a condulL. 1he amended
clauses of Lhe maln 8 conLracL, Lhus,
enabled Lhe back door enLry of Zoom
CommunlcaLlons LLd, who was lnellglble for
blddlng for Lhls conLracL.
As per Lhe conLracLed schedule of paymenL,
SlS Llve was Lo recelve only 30 per cenL
paymenL before 14 CcLober 2010, wlLh Lhe
balance only on verlflcaLlon of
performance. 8 lrregularly amended Lhls
provlslon ln SepLember 2010 on Lhe basls of
SlS Llve's requesL ln AugusL 2010 for 100
percenL advance before Lhe Cames, as well
as a sLaLemenL by uC, uu, LhaL Lhe enLlLy
was conslderlng LermlnaLlon of Lhe conLracL
as Lhe delayed fund flow was maklng Lhe
pro[ecL unLenable. 1he amended provlslon,
whlch was approved by Lhe PosL 8roadcasL
ManagemenL CommlLLee (P8MC) ln AugusL
2010 and Lhe Ml8 ln SepLember 2010,
provlded for 60 percenL ln advance of Lhe
Cames by 27 SepLember 2010 (sub[ecL Lo
successful lnsLallaLlon and LesLlng of
equlpmenL) and Lhe remalnlng 40 per cenL
6
Lhrough LeLLers of CredlL .
28.3.4.1 Change ln schedule for paymenL ln
favour of SlS Llve
nad th|s re|axed payment schedu|e been
|ncorporated at the b|dd|ng stage, there
wou|d have been much greater f|nanc|a|
compet|t|on, reduc|ng the u|t|mate cost
to the pub||c exchequer.
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P
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) S0S
uesplLe Lhe adverse lnspecLlon reporL, Lhe
paymenL of 8s.73.80 crore for Lhe fourLh
Lranche was released ln SepLember 2010,
afLer approval of Lhe P8MC. A commlLLee
Lo evaluaLe Lhe flnanclal lmpllcaLlons of Lhls
devlaLlon and shorLfall ln equlpmenL was
subsequenLly consLlLuLed by uC, uu ln
CcLober 2010, whlch esLlmaLed Lhe
flnanclal lmpllcaLlon aL 8s.17.39 crore.
AgalnsL Lhe 61 key Lechnlcal personnel for
producLlon and coverage of CWC 2010
sLlpulaLed ln Lhe conLracL, we found LhaL
Lhe llsL of CC accredlLed personnel of SlS
Llve lncluded only 22 persons ouL of Lhe 61
ldenLlfled personnel. Clearly, 8 dld noL
make any efforLs Lo verlfy and ensure LhaL
Lhe key personnel approved by lL acLually
execuLed Lhe asslgned Lask.

CLher favours lrregularly granLed by 8 Lo
SlS Llve lnvolved exLra expendlLure of 8s.
3.22 crore on Lhe followlng Lasks:
n|r|ng of ||ght|ng consu|tant - uesplLe
Lhe facL LhaL SlS Llve had charged 8s 10
crore for consulLancy over and above
Lhe consulLanLs already hlred under Lhe
conLracL, 8 hlred a llghLlng consulLanL
aL a cosL of 8s. 21.93 lakhs. Legal
oplnlon ln Lhls regard recelved on 16
AugusL 2010 sLaLed LhaL ln Lhe absence
of a relevanL conLracLual clause, lL was
8's responslblllLy Lo hlre a llghLlng
experL.
Supp|y of ower Cab|es - ConLracLually,
SlS Llve was Lo provlde for laylng of
28.3.4.3 non-deploymenL of approved key
Lechnlcal personnel by SlS Llve ln
CWC
29.3.4.4 undue favours Lo SlS Llve resulLlng
ln exLra expendlLure by P8
28.3.4.2 lrregularlLles ln paymenLs made

Lo SlS Llve
8 falled Lo enforce compllance by SlS Llve
wlLh even Lhe condlLlons assoclaLed wlLh
Lhe relaxed paymenL schedule:
aymenL of Lhe fourLh Lranche of
8s.73.80 crore was llnked wlLh
successful lnsLallaLlon and LesLlng of Lhe
requlred equlpmenL conformlng Lo Lhe
quallLy, make and models lndlcaLed ln
Lhe producLlon plan.
ln AugusL 2010, SlS Llve approached 8
for changes ln make/model of cerLaln
equlpmenL, whlch was noL approved.
Powever, SlS Llve, on 11 SepLember
2010, refused Lo accepL Lhe approved
deLermlnanLs for paymenL of Lhe fourLh
Lranche, and lnslsLed on lLs own llsL of
deLermlnanLs, whlch speclfled only
lnsLallaLlon of equlpmenL. 1hls was
however, noL accepLed by 8.
ln Lhe lnspecLlon carrled ouL by Lhe
Leam of Lechnlcal experLs ln SepLember
2010, several devlaLlons from Lhe
approved speclflcaLlons were noLed.
lkegaml/Snell & Wllcox make
equlpmenL ln place of Sony, 22
Zoom lens ln place of 72 Zoom, SSM
camera ln place of 8oboLlc camera,
Mlranda ln place of LelLch.
PuCAM v18s/uu8s were noL
provlded ln any of Lhe venues, 23
cameras and four LvS SMS were noL
provlded.
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power cables Lo lnLerconnecL varlous
funcLlonal areas aL all venues, Lhls was
also clarlfled aL Lhe pre-bld meeLlng.
Powever, ln !uly 2010, SlS Llve sLaLed
LhaL Lhls was noL ln lLs scope of work
and refused Lo underLake Lhls Lask.
ConsequenLly, ln AugusL 2010, 8 hlred
8LClL Lo execuLe Lhls work aL Lhe cosL of
8s. 0.96 crore, envlsaged aL SlS Llve's
rlsk and cosL (as per legal advlce). 1he
ulLlmaLe cosL lncurred by 8LClL
amounLed Lo 8s.1.30 crore. 1hls
approach was reversed by P8MC ln
AugusL 2010, whlch declded Lo lmpose
Lhe responslblllLy on Lhe CC.
lnexpllcably, CC agreed Lo bear Lhese
cosLs. Clearly 8 showed undue favour
Lo SlS Llve on Lhls accounL.
Spec|a| camera mount|ng - 8 lncurred
an addlLlonal llablllLy of 8s 1.70 crore on
speclal camera mounLlngs, on accounL
of amblgulLles ln Lhe conLracL clauses
and dlvlded legal oplnlon.
1he enLlre paymenL for coverage of Lhe C88
was released Lo SlS Llve, desplLe non-
recelpL of Lapes relaLlng Lo 3 ouL of 21
counLrles and delayed recelpL of Lhe oLher
Lapes relaLlng Lo 16 counLrles vls-a-vls Lhe
sLlpulaLed Llme schedule whlch ranged from
Lwo days Lo Lwo monLhs. no Lape was
recelved ln Llme and Lhe evenL was
Lherefore LelecasL laLe.
28.3.S Def|c|enc|es |n 8k de||verab|es

developmenL of ln-house skllls was
lnslgnlflcanL.
Non-upgradat|on to nD1V - 8 falled Lo
upgrade lLself Lo Pu1v, even parLlally lf
noL fully, by CWC-2010. AgalnsL funds of
8s.163 crore (ouL of whlch 8s. 114.61
crore was Lo be spenL upLo 2010-11)
sancLloned by Col Lo uu for producLlon
faclllLles for Pu1v conLenL and
LerresLrlal and saLelllLe Lransmlsslon, uu
could spend only 8s. 6.84 crore for Lhe
upllnklng faclllLy.
ln !uly 2007, 8 proposed LhaL seven
sporLlng evenLs, besldes Lhe openlng
and closlng ceremonles would be
ouLsourced, and Lhe remalnlng Len
evenLs would be covered ln-house. 1hls
was reduced ln november 2007 Lo cover
only Lhree evenLs ln-house ouL of Lhe 17
evenLs. llnally, 8 parLlclpaLed ln
producLlon of only Lhree evenLs ln CWC
2010, and coverage of all 17 evenLs was
ouLsourced.
lurLher, 8 spenL 8s. 7.83 crore for
Lralnlng of lLs sLaff by SlS Llve
(ouLsourced agency) on Pu1v
equlpmenL. 1ralnlng was lmparLed Lo
sLaff on non-games venues as Lhe
venues were noL ready. no records were
avallable Lo esLabllsh LhaL Lhe Lralnlng
was lmparLed on Lhe same hlghly
speclallzed C8 vans LhaL were used by
SlS Llve for producLlon and coverage of
games. ConsequenLly, Lhe Lralnlng
recelved by 8 personnel from SlS Llve
would also become largely redundanL, ln
Lhe absence of Pu1v equlpmenL ln 8.
uesplLe lncurrlng of such huge expendlLure

from Col funds, Lhe legacy value of Pu1v
coverage of CWC-2010 Lo 8, boLh ln Lerms
of lmprovemenL of lnfrasLrucLure and
28.4 Legacy of the Games
At the stage of LIC approva|, 8 had
stated that the "/eqocy which Prosor
8horoti wou/d corry ofter the 6omes is
innumerob/e deve/opment of ski//s of its
stoff, who wou/d qet to work with /otest
ond super-specio/ised equipment on the
most odvonced nu1v techno/oqy. 1his
wou/d p/oce P8 prominent/y on the
sports broodcostinq fie/d on the wor/d
mop."
In rea||ty, the product|on and
d|str|but|on of CWG-2010 |n nD1V
format was an ephemera| exerc|se, w|th
no |egacy capab|||t|es for DD] 8.
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28.S.1 Inord|nate de|ay |n upgradat|on
of hoste| fac|||t|es
SancLlon of 8s. 3.49 crore, ln !une 2010 for
lmprovemenL/upgradaLlon of hosLel
faclllLles aL Lhe SLaff 1ralnlng lnsLlLuLe (S1l),
klngsway Camp new uelhl ln vlew of CWC-
2010 Lurned ouL Lo be redundanL desplLe
expendlLure of 8s.1.72 crore Llll uecember
2010. 1he upgraded hosLel faclllLles were
noL ready even as of March 2011 and sLaff
broughL from ouLslde uelhl was ulLlmaLely
accommodaLed ln prlvaLe hoLels durlng
Cames Llme aL an exLra cosL of 8s.0.19
crore.
28.S Cther re|ated |nfrastructure
State of hoste| fac|||t|es at S1I, De|h|
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28.S.2 8roadcast fac|||ty at venues
28.S.3 Irregu|ar|t|es |n award of I8C
contract
8 awarded a lump sum conLracL Lo 8LClL
for 'provlslon and cusLomlzaLlon of
broadcasL faclllLles aL venues' aL 8s. 19.81
crore. 1hls lncluded hlre of lLems worLh 8s.
1.77 crore. Powever, ln !uly 2010, 8 asked
8LClL Lo go ahead wlLh ouLrlghL purchase of
furnlLure (wlLhouL concurrence of Lhe
P8MC), and a work order for 8s. 1.94 crore
was lssued ln AugusL 2010. 1he ulLlmaLe
cosL however, was 8s. 2.20 crore.
Powever, ouL of Lhls procuremenL, furnlLure
amounLlng Lo 8s. 0.92 crore were sLlll lylng
ln 8's godowns. (uecember 2010)
8 lssued an LCl ln May 2009 for Lhe
consLrucLlon and operaLlon of l8C faclllLles
and servlces, nlne responses were recelved
ln !une 2009.
We found LhaL Lwo enLlLles (Shaf 8roadcasL
and AnyLlme lcLures LLd.), whlch had been
found lnellglble on accounL of lack of
experlence aL Lhe LCl sLage by Lhe
LvaluaLlon CommlLLee, were lrregularly
lncluded ln Lhe shorLllsL.
1he conLracL was flnally awarded Lo Shaf
8roadcasL aL a cosL of 8s. 63.91 crore whlch
was much hlgher Lhan Lhe CCLA esLlmaLes
of 8s 43.67 crore. lurLher, 8 falled Lo
adequaLely negoLlaLe reducLlons on accounL
of reduced requlremenLs from 8P8s
(esLlmaLed aL 8s. 7-8 crore) as well as
dupllcaLlon ln alr condlLlonlng and flre
flghLlng sysLems (sancLloned by l1C aL 8s.
9.87 crore) and obLalned a negoLlaLed
reducLlon of only 8s. 4.61 crore.
Iurn|ture |y|ng |n 8's godowns
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28.S.4 Ind|a 1rade romot|on
Crgan|sat|on
l1C was awarded a budgeL of 8s. 28 crore

for upgradaLlon of l1C Lhrough CablneL
noLe ln CcLober 2008. 1he Ml8 approved
Lhe revlsed esLlmaLes from 8s. 28 crore Lo
8s. 73.77 crore (lncludlng 8s. 16.77 crore
avallable for renL, elecLrlclLy and waLer
charges and fuel expenses) for
augmenLaLlon and replacemenL of AC planL,
developmenL of food plaza for Lhe use of
press, renovaLlon of LolleLs, hlrlng of uC
seLs, flreflghLlng works, and oLher
mlscellaneous works.
We found LhaL l1C and CWu (Lhe
lmplemenLlng agency) had unspenL
balances of 8s. 21.30 crore:
l1C had reLalned 8s. 3.93 crore, whlle
lssulng sancLlons of 8s. 33.03 crore for
clvll and elecLrlcal works Lo CWu
As of uecember 2010, CWu had
awarded works/lncurred acLual
expendlLure of 8s. 37.70 crore, wlLh an
unspenL balance of 17.33 crore.
28.6.1 ko|e of n8MC
1he rasar 8haraLl 8oard (8oard) formally
appolnLed a PosL 8roadcasL ManagemenL
7 8
CommlLLee (P8MC) ln May 2009 . 1he
P8MC was granLed Lhe auLhorlLy Lo accord
Lhe requlslLe approvals and Lake all sLeps for
successful compleLlon of 8's role as P8 ln
Lhe CWC, 2010.
28.6 Cvers|ght and Mon|tor|ng
arrangements
S|nce th|s amount of ks. 21.30 crore
cou|d not be ut|||sed by I1C] CWD
for CWG 2010, |t shou|d be forthw|th
refunded to MI8.
7
8
cbolteJ by cO, l8 ooJ comptlsloq Membet (lloooce),
Membet (letsoooel), uC uu, oqloeet-lo-cblef uu, uC
Alk ooJ oqloeet-lo-cblef Alk.
oltbooqb lt boJ beeo fooctlooloq sloce lebtooty 2009.
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28.6.1.1 Lack of consensus wlLhln P8MC
Cf Lhe 33 meeLlngs beLween lebruary 2009
and CcLober 2010, records of only 40 were
made avallable Lo us, we found LhaL:
1here was no consensus among Lhe
P8MC Members for flnallslng Lhe drafL
conLracL. vlgorous ob[ecLlons by Lhe
Member (llnance) and Member
(ersonnel) were lgnored,
MlnuLes of only Lwo ouL of 40 meeLlngs
were slgned by all Lhe members of
P8MC,
ln Lhe meeLlng held on 26 AugusL 2010,
9
several ma[or declslons were Laken, buL
Lhe mlnuLes were slgned by only four of
seven members,
ln Lhree meeLlngs, Lwo seLs of mlnuLes
wlLh dlfferenL sLreams of oplnlons were
lssued - one by Lhe 8 SecreLarlaL and
anoLher by Lhe Member (llnance), along
wlLh Lhe Member (ersonnel).
uue Lo confllcLs of oplnlon, legal oplnlon
had Lo be soughL on several key lssues
relaLlng Lo drafLlng of Lhe conLracL, hlrlng of
llghLlng consulLanL, supply of power cables,
and speclal camera mounLlng.
1he Lenderlng/ award and managemenL of
Lhe producLlon and coverage conLracL was
submlLLed for Ml8's approval aL varlous
sLages - LCl, 8l, approval of Lhe slngle
flnanclal bld, as well as relaxaLlon of Lhe
28.6.2 MI8's ko|e

paymenL schedule ln SepLember 2010 ln
favour of SlS Llve. Ml8 dld noL show
adequaLe urgency ln flnallsaLlon of budgeL
esLlmaLes, nor ln qulck flnallsaLlon of Lhe
LCl and 8l. 1hese delays lefL no Llme for
re-Lenderlng ln Lhe conLexL of Lhe slngle
flnanclal bld.
8egardlng ma[or declslons relaLlng Lo SlS
Llve, Ml8 chose Lo go along wlLh Lhe
recommendaLlons of 8. ln parLlcular, whlle
approvlng Lhe conLracL award Lo SlS Llve on
a slngle flnanclal bld, SecreLary, Ml8 noLed
LhaL qlveo tbe cltcomstooces ooJ tbe foct
tbot tbete ls oo tlme to loltlote o ftesb
ptocess ooJ oo cettoloty os to o bettet ooJ
mote occeptoble ootcome, tbe Mlolstty Joes
oot bove tbe optloo of tevlsltloq tbe lssoe ot
tbls stoqe. Moteovet, we coooot tole tbot
mokloq ooy sobstootlve cbooqes lo tbe kll
Jocomeots followloq tbe pte-blJ meetloq
coolJ bove leJ to objectloos ooJ
complolots."
lurLher, approval Lo Lhe revlsed paymenL
schedule was accorded by Ml8, prlmarlly on
Lhe ground LhaL Lhey were lefL wlLh no
alLernaLlve buL Lo accede Lo Lhe demands
(of SlS Llve), slnce non-LelecasL would be a
maLLer of lnLernaLlonal embarrassmenL.
lurLher, SecreLary, Ml8 noLed LhaL Lhe
CablneL SecreLary had also spoken Lo hlm
on more Lhan one occaslon LhaL keeplng ln
vlew Lhe presLlglous naLure of Lhe evenL for
lndla, Lhe LelecasL musL be ensured.
9
keqotJloq eoqoqemeot of llqbtloq coosoltoot,
syocbtoolzeJ cometo tlsets, qomes tlme cotetloq, Jeloys
lo Jeclsloo oo coosttoctloo of btooJcost compoooJs,
loyloq of powet cobles ftom btooJcost compoooJs to
commeototy ttlbooes, ptoposeJ cbooqe lo sopply of
epolpmeot otbet tboo meotlooeJ lo tbe kll, ooJ
poymeot lo tespect of O8k.
MI8 chose to |arge|y go a|ong w|th the
recommendat|ons of 8, on grounds of
urgency and |ack of a|ternat|ves.
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28.6.3 Cvers|ght Comm|ttee
10
1he CverslghL CommlLLee chalred by
MlnlsLer of lnformaLlon and 8roadcasLlng
and co-chalred by MlnlsLer of Law and
!usLlce was consLlLuLed on 2 SepL 2009 by
Ml8 Lo monlLor Lhe progress of acLlvlLles
relaLlng Lo producLlon and coverage of
games, expedlLe declslon maklng aL varlous
levels, and resolve lnLer-mlnlsLerlal lssues.
lLs consLlLuLlon was essenLlally aL Lhe same
Llme as Lhe recelpL of Lhe slngle flnanclal
bld from SlS Llve. 1he CommlLLee meL slx
Llmes beLween SepLember 2009 and !uly
2010. We found LhaL lL chose Lo largely
accepL Lhe proposals puL forward by 8, ln
parLlcular, on Lhe declslons Lo award
conLracLs Lo SlS Llve and Shaf 8roadcasL, as
well as Lhe changes ln Lhe drafL conLracL
(whlch were largely ln favour of SlS Llve).
A meeLlng of Lhe CverslghL CommlLLee ln
lebruary 2010 ls of parLlcular lnLeresL. AL
Lhls meeLlng:
1he MlnlsLer for Law and !usLlce
menLloned LhaL he had gone Lhrough
Lhe oplnlon of Lhe SollclLor Ceneral (SC)
on Lhe conLracL documenL (parLlcularly
wlLh reference Lo changes ln Lhe
paymenL schedule from 30:70 Lo 40:60
and walver of bank guaranLee for Lhe
lnlLlal Lwo paymenLs). Pe felL LhaL Lhe SC
had Lrled more Lo arrlve aL a
compromlse beLween 8 and SlS-Llve
and had noL speclflcally glven a flndlng
on Lhe legallLy of Lhe same. rlma facle,
Lhe changes ln Lhe paymenL schedule
could noL be consldered aL Lhls sLage,
and lf lnslsLed, re-Lenderlng may have Lo
be consldered.
1he MlnlsLer for lnformaLlon and
8roadcasLlng also noLed LhaL some
parLles chose Lo opL ouL of Lhe blddlng
process because of Lhe Lerms and
condlLlons of Lhe paymenL schedule. lL
was all along malnLalned LhaL Lhe
schedule could noL be changed,
changlng lL now may leave Lhe fleld
open for legal lnLervenLlon by oLher
parLles. She also noLed LhaL Lhe SC had
lefL Lhls Lo Lhe compeLenL auLhorlLy Lo
Lake a flnal declslon. ln her oplnlon, such
maLLers could noL be lefL Lo Lhe
dlscreLlon of Lhe compeLenL auLhorlLy,
and Lhe legal lmpllcaLlons should be
clearly lndlcaLed, before any declslon
could be Laken.
1he conLracL slgned wlLh SlS-Llve lefL Lhe
paymenL schedule aL 30 per cenL before Lhe
Cames. Powever, Lhls was amended ln
SepLember 2010 Lo 60 per cenL before Lhe
Cames.
10
Otbet membets wete 5ectetoty l&8, 5ectetoty leqol
Affolts, AJJltloool 5ectetoty l&8, AJJltloool 5ectetoty
ooJ lloooclol AJvlsot l&8, ooJ o low offlcet to be
oomlooteJ by tbe Mlolstty of low ooJ Iostlce.
U|t|mate|y, the Cvers|ght Comm|ttee's
|ntervent|on on the payment schedu|e
d|d not have any |ast|ng effect.
C
n
A
1
L
k
1e|ecommun|cat|ons Serv|ces
for CWG-2010
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Z9
M1NL wos oppointed on "nominotion bosis" in October 2009 for providinq
te/ecommunicotions services for cw6-2010, on the premise thot it wou/d fo//ow o// norms
ond procedures for pub/ic finoncio/ occountobi/ity. nowever, we found thot the process of
owordinq the te/ecommunicotions services controct wos f/owed.
M1NL, with Oc's oqreement, pushed throuqh o vost/y more expensive technico/ so/ution
{lP/ MPL5) for the 8roodcost video Network ond 8roodcost 4udio Network, which hod
not been tested in previous 6omes ond wos not occeptob/e to the kiqhts no/der
8roodcosters {kn8s) from different commonweo/th countries. ventuo//y, in oddition to
lP/ MPL5, the tested ond existinq technico/ so/ution {"point-to-point dork fibre") wos
provided to meet the requirements of kn8s. ven uoordorshon mode use of on/y the dork
fibre so/ution for its video broodcost requirements. 1his so/ution wou/d hove been vost/y
cheoper, with /ess cost to the pub/ic exchequer.
1he premise of the P5u fo//owinq pub/ic finoncio/ occountobi/ity norms {which wos the
bosis for obtoininq 6ol opprovo/ for oppointment of M1NL) wos jettisoned, os the
technico/ requirements were o/tered without odequote justificotion by M1NL to /eove
on/y one technico//y quo/ified bidder, the ncL/cisco teom, there wos, thus, no finoncio/
competition. ssentio//y, M1NL octed os o conduit for p/ocement of o controct, on o bock-
to-bock bosis, in o non-tronsporent monner.
ln 4uqust 2009, 4irte/ mode on offer to the Oc for providinq te/ecommunicotion services
for cw6-2010. 5hri 5uresh ko/modi ond his ossociotes in the Oc continued to neqotiote ti//
lonuory 2010 with 4irte/, whose /ost offer wos to provide such services ot o cost of ks. 10
crore {exc/udinq toxes), offset by sponsorship of ks 100 crore. lor unexp/oined reosons,
4irte/'s offer, which wos considerob/y better thon thot of M1NL, wos not brouqht to the
notice of the 6ol.
1he estimotes for te/ecommunicotions services provided by M1NL ot different points of
time were unre/iob/e ond /ocked odequote support, with the fino/ infrostructure cost of
ks. 270.70 crore {exc/udinq toxes) opproved by the 6ol beinq more thon eiqht times the
estimotes of opproximote/y ks. ll crore for Me/bourne cw6-200. lurther, the controct
oworded by M1NL to the ncL/ cisco teom wos for ks. l87.19 crore {exc/udinq toxes),
which wos 12 times the estimoted cost for simi/or services in Me/bourne cw6-200.
c/eor/y, there wos o substontio/ /oss to the 6ol on occount of this decision. nowever, we
ore unob/e to quontify this /oss on the bosis of ovoi/ob/e records.
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S14
ChapLer 29 - 1elecommunlcaLlons Servlces for CWC-2010
lor Lhe successful conducL and dellvery of
Lhe Cames, lL was necessary Lo puL ln place
robusL, effecLlve and fall proof
LelecommunlcaLlons servlces caLerlng Lo Lhe
requlremenLs for bulk Lransmlsslon of
games daLa, securlLy daLa, Plgh ueflnlLlon
29.1 Introduct|on
1v (Pu1v) broadcasL vldeo slgnals, and
broadcasL audlo slgnals beLween dlfferenL
locaLlons - compeLlLlon and oLher venues,
Lhe lnLernaLlonal 8roadcasLlng CenLre (l8C),
Lhe Maln ress CenLre (MC) (locaLed aL
l1C), and masLer conLrol faclllLles. 1he
scope of LelecommunlcaLlons servlces for
CWC-2010 ls summarlsed below:
M1NL did not provide reo/istic ond detoi/ed business p/ons or stroteqies reqordinq the
post-cw6 morket potentio/ for the hiqh speed lP/ MPL5 so/ution obtoined ot considerob/e
cost to the 6ol {except for o reference in the tender documents to the requirement of
network copocity to hond/e 1,00,000 customers eoch in ue/hi ond Mumboi). 1his, further,
confirms the redundont noture of this expensive technico/ so/ution.
llqote 29.1 - 1elecommoolcotloos 5etvlces fot cwC-2010
1e|ecommun|cat|ons
Serv|ces
Games Data Network:
1ransmlsslon of Cames
relaLed daLa,
Games
V|||age
Secur|ty Data Network:
1ransmlsslon of accredlLaLlon/
securlLy daLa, and
8roadcast V|deo ]Aud|o
Network
Games
V|||age
o||ce
neadquarters
and assoc|ated
|ocat|ons
Internat|ona|
8roadcast
Centre (I8C)
Ma|n
ress
Centre
(MC)
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M1nL was formally appolnLed ln CcLober
2009 by M?AS as Lhe 1elecommunlcaLlons
Servlce rovlder for CWC-2010.
We found LhaL Lhe formal appolnLmenL of
M1nL as Lhe Lelecom parLner by M?AS ln
29.2 Se|ect|on of M1NL
CcLober 2009 was Lhe culmlnaLlon of
an exLended engagemenL process
beLween Lhe CC and M1nL aL Lhe hlghesL
levels, beglnnlng March 2009 as ls
evldenced by Lhe chronology of evenLs
glven below:
1oble 29.1 - cbtoooloqy of eveots leoJloq to oomlootloo of M1Nl
Comprehenslve presenLaLlon made by Lhe M1nL 1echnology Leam Lo Lhe CC,
whlch lndlcaLed Lhe cosL of laylng Lhe LelecommunlcaLlon soluLlon as 8s 430
crore (based malnly on raLes of Clsco and PCL equlpmenL).
MeeLlng held beLween Lhe M1nL Leam headed by Shrl 8S Slnha, Lhen CMu
M1nL and a senlor managemenL Leam of Lhe CC headed by Shrl A k MaLLoo,
1reasurer, Shrl vk CauLam, CCC and oLher members of Lhe CC 1echnology
luncLlonal Area
LeLLer of lnLenL lssued by CCC, CC engaglng M1nL as Lhe
1elecommunlcaLlons Servlce rovlder for CWC-2010, sub[ecL Lo oLher Lerms
and condlLlons Lo be flnallsed Lhrough deLalled negoLlaLlons.
1
ulscusslons held beLween Lhe CC and M1nL's Lechnology experL commlLLee
Lo flnallse Lhe Scope of Work (SCW).
SCW flnallsed by Lhe CC for LelecommunlcaLlons lnfrasLrucLure.
3
Croup of Cfflcers (CCC) consLlLuLed by CablneL SecreLarlaL Lo evaluaLe and
flnallze Lhe SCW wlLh respecL Lo flnanclal and Lechnlcal proposals mooLed by
M1nL.
CCC approved proposal aL an esLlmaLed cosL of 8s. 270.70 crore (agalnsL Lhe
proposed esLlmaLe of 8s. 343.11 crore) for LelecommunlcaLlons
4
lnfrasLrucLure Lo be funded on a weL-lease basls , wlLh Col flnanclal supporL
of 8s. 163 crore plus duLles and Laxes of 8s. 17 crore Lo be provlded Lo
M1nL.
M1nL nomlnaLed as 1elecommunlcaLlons Servlce rovlder for CWC-2010 by
Col
roposal of CCC endorsed by Lhe LlC and approved by Lhe Col.
2
14 March 2009
26 May 2009
6 Iune 2009
Iune 2009
30 Iu|y 2009
4 August 2009
9 August 2009
Cctober 2009
November 2009
1
2
3
4
5btl v.k. Cootom, cOO ooJ otbet membets of tbe 1ecbooloqy looctloool Ateo.
CM(cl5l), Moooqet(cl5l), ooJ uCM(88).
5ectetoty, 5potts, AJJl. 5ectetoty, Ml&8, Iolot 5ectetoty, Mol, ooJ uuC, uO1
1be foclllty woolJ be ovolloble fot ose Jotloq cwC-2010 ooJ woolJ tbeo be booJeJ ovet to M1Nl fot fotote ose. 60 pet ceot
of tbe copltol cost woolJ be botoe by tbe Col ooJ telmbotseJ to M1Nl.
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S16
We found LhaL on 28 AugusL 2009 (when
Lhe CablneL SecreLarlaL had already
appolnLed a CCC ln connecLlon wlLh
M1nL's proposals), AlrLel approached Lhe
CC wlLh a proposal Lo provlde
LelecommunlcaLlons servlces for CWC-2010
worLh 8s. 100 crore as Lhe Lead Sponsor,
Lhls proposal was valldaLed by Lhe
Lechnology Leam of Lhe CC. Shrl Suresh
kalmadl, Shrl A k MaLLoo and Shrl 1 S
uarbarl of Lhe CC conLlnued Lo engage wlLh
AlrLel on Lhe proposal Llll early !anuary
2010, durlng whlch perlod AlrLel's offer
changed from provlslon of
LelecommunlcaLlons servlces durlng CWC-
2010 worLh 8s. 100 crore as Lhe Lead
Sponsor Lo an offer of LelecommunlcaLlons
We found LhaL Lhe selecLlon of M1nL on
nomlnaLlon basls was [usLlfled Lo Lhe Col on
Lhe grounds of lL belng a ubllc SecLor
underLaklng (Su) whlch would follow all
norms and procedures for publlc
accounLablllLy. Clven Lhe llmlLed Llme
avallable, Lhe selecLlon of a Su for servlce
dellvery would have been undersLandable,
lf lL was dellverlng servlces dlrecLly.
Powever, Lhe LelecommunlcaLlons servlces
were acLually dellvered by Lhe PCL/ Clsco
Leam.
29.3 A|rte|'s cons|derab|y better
offer not brought to the
not|ce of GoI
M1nL suggesLed a Lechnlcal soluLlon based
on l/MLS Lechnology for all neLworked
servlces vlz. SecurlLy uaLa neLwork (Sun),
Cames uaLa neLwork (Cun), 8roadcasL
vldeo neLwork (8vn) and 8roadcasL Audlo
neLwork (8An). Whlle for daLa Lransmlsslon
l/MLS was a robusL soluLlon, lL was a
more expenslve Lechnlcal soluLlon for
broadcasL vldeo and audlo servlces and had
noL been Lrled and LesLed ln pasL Cames. ln
conLrasL, ln Lhe earller Cames, broadcasL
vldeo/ audlo Lelecom servlces had been
dellvered Lhrough polnL Lo polnL dark
flbre", whlch was a Lrled and LesLed soluLlon
and was also far less expenslve. lL may be
noLed LhaL Lhe scope of work prepared by
Lhe CC for Lhe CCC's conslderaLlon
lndlcaLed Lhe l/MLS soluLlon only for daLa
neLworklng and noL for broadcasLlng,
whereas M1nL, ln lLs presenLaLlons, offered
an l/MLS based soluLlon for all neLworks.
ln lLs reporL, Lhe CCC noLed LhaL lL had
29.4 Cho|ce of techno|ogy
servlces aL a cosL of 8s. 160 crore (excludlng
Laxes) offseL by 8s. 100 crore as
sponsorshlp.
Lssent|a||y, M1NL acted as a condu|t for
p|acement of a contract on a back-to-
back bas|s, |n a non-transparent manner
on the nCL] C|sco team, as descr|bed
subsequent|y, and the under|y|ng
prem|se of a SU fo||ow|ng pub||c
f|nanc|a| accountab|||ty norms was
[ett|soned.
We not|ced that the CC chose not to
br|ng th|s cons|derab|y better offer of
A|rte| to the not|ce of the GoI or GCC
anyt|me between August and Cctober
2009 (when M1NL was appo|nted as the
1e|ecommun|cat|ons Serv|ces rov|der for
CWG-2010). It |s a|so not understood why
Shr| ka|mad| and h|s assoc|ates cont|nued
to |nteract w|th A|rte|, even after GoI had
taken the dec|s|on to engage M1NL on
CC's recommendat|on and thereafter,
M1NL was para||e|y engaged |n se|ect|ng
a contractor to prov|de these serv|ces.
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LvenLually, ln addlLlon Lo l/ MLS, Lhe
LesLed and exlsLlng Lechnlcal soluLlon
(polnL-Lo-polnL dark flbre") was provlded
Lo meeL Lhe requlremenLs of 8P8s. Lven
uoordarshan made use of dark flbre as lLs
prlmary soluLlon for lLs audlo/vldeo
broadcasL requlremenLs, wlLh Lhe l/ MLS
soluLlon used only for Lhe broadcasL
dlsasLer recovery slLe. 1hls soluLlon would
have been vasLly cheaper, wlLh ulLlmaLely
less cosL Lo Lhe publlc exchequer.
ln response, M1nL lndlcaLed LhaL Lhe
seLLlng up of an l/ MLS based neLwork
was a unanlmous comblned declslon of all
relled on Lhe Lechnlcal knowledge, experLlse
and [udgemenL of experLs from rasar
8haraLl (Lhe hosL broadcasLer), M1nL and
Lhe CC, and accepLed Lhe pro[ecLed
lnfrasLrucLure requlremenLs (lncludlng
l/MLS for broadcasL vldeo and audlo
servlces).
ln CcLober 2009, durlng Lhe flrsL World
S
8roadcasLers MeeL (W8M) , some of Lhe
8lghLs Polder 8roadcasLers (8P8s) ralsed
concerns on Lhe adopLlon of Lhe l/MLS
Lechnology for vldeo broadcasLlng ln place
of Lhe polnL-Lo-polnL dark flbre" broadcasL
Lechnology. ln a revlew meeLlng held on 6
!anuary 2010, Lo dlscuss Lhls lssue, Mr.
aLrlck lurlong (Advlsor, 8roadcasLlng Lo
Lhe CC) observed LhaL l/MLS Lechnology
had noL been proven or LesLed yeL on such a
large scale ln mulLl sporLs envlronmenL.
LvenLually, on Lhe lnslsLence of 8P8s, ln
lebruary 2010, M1nL agreed, ln lebruary
2010, Lo provlde polnL Lo polnL dark flbre"
as Lhe prlmary soluLlon, along wlLh Lhe
l/MLS based soluLlon.
8everLlng Lo Lhe exlsLlng polnL Lo polnL
dark flbre" Lechnology soluLlon for
broadcasLlng vldeo and audlo compleLely
changed Lhe cosL dynamlcs:
ln !uly 2009 lLself, Mr. 8rlan nourse, Lhe
1echnology ConsulLanL for Lhe CC, had
lndlcaLed LhaL Lhe esLlmaLed cosL for
provldlng slmllar servlces ln Melbourne
CWC-2006 had been only 8s. 33 crore
(as agalnsL 8s. 270.70 crores esLlmaLed
by Lhe CCC) and flagged Lhe need Lo
engage Lhe PosL 8roadcasLer (rasar
8harLl) and 8P8s.
1he cosL of daLa Lransmlsson was a

fracLlon of Lhe cosL of audlo/vldeo
Lransmlsslon, as noLed by AuC
(1echnology), CC ln !anuary 2010.
M1nL was asked by Lhe CC (!anuary
2010) Lo provlde deLalls Lo rework Lhe
cosLs based on provlslon of broadcasL
vldeo/ audlo servlces on polnL-Lo-polnL
dark flbre soluLlon", however, M1nL dld
noL do so, and merely agreed Lo provlde
polnL-Lo-polnL dark flbre" soluLlon Lo
8P8s aL no addlLlonal cosL.
Clearly, M1nL, a Su, chose noL Lo adopL a
more [udlclous and cosL effecLlve approach
ln selecLlng Lhe Lechnology soluLlon, and
Lhe CC dld noL persuade M1nL Lo do so ln
Lhe larger lnLeresL of opLlmal uLlllsaLlon of
Col funds.
In our v|ew, M1NL, w|th CC's agreement,
pushed through a cost||er techn|ca|
so|ut|on (I] MLS) for the 8roadcast
V|deo] Aud|o Network, wh|ch had not
been tested |n the prev|ous Games and
was not acceptab|e to the k|ghts no|der
8roadcasters (kn8s).
S
ltosot 8bottl, tbe nost 8tooJcostet ooJ tbe Oc
otqoolzeJ two w8Ms to lotetoct wltb exlstloq ooJ
poteotlol klqbt nolJets 8tooJcostets to keep tbem
opJoteJ oo tbe opetotloool ptepoteJoess of tbe cwC-
2010. 1be fltst w8M wos belJ ftom 26-28 Octobet,
2009.
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S18
Lhe concerned sLakeholders Lo address Lhe
composlLe requlremenLs of all appllcaLlons.
olnL-Lo-polnL dark flbre based soluLlon was
addlLlonally provlded by M1nL Lo glve
comforL level Lo Lhe 8P8s. We do noL agree
wlLh M1nL's vlews, ln Lhe llghL of Lhe lssues
hlghllghLed above.
We found LhaL Lhe enLlre Lender and award
process was Lallored by M1nL Lo ensure Lhe
success of PCL/Clsco Leam, as deLalled
subsequenLly.
1he lnlLlal 8l prepared by M1nL, based on
Lhe scope of work, speclfled ".....minimum
experience of imp/ementotion of ot /eost
15 nodes {MPL5 core ond MPL5 dqe
routers) in o sinq/e network" as Lhe
requlslLe Lechnlcal quallflcaLlon requlred
from Lhe bldder. Powever, ln SepLember
6
2009, Lhrough a commlLLee , M1nL changed
29.S.1 Arb|trary |nc|us|on of exper|ence
requ|rement of |mp|ementat|on
of 60 nodes |n a s|ng|e network
1he chronology of Lender and award of Lhe
LelecommunlcaLlon servlces conLracL by
M1nL ls glven below:
Lhe Lechnlcal quallflcaLlons for Lhe 8l Lo
"......................minimum experience of
imp/ementotion of 0 nodes in o sinq/e
network". 1his requirement wos justified,
stotinq thot "the cw6 uoto Network sho//
contoin between 120-1l0 MPL5 routers,
therefore it wos decided thot the
prospective bidders shou/d hove ot /eost 50
per cent of the numbers of node experience
of imp/ementotion".
We found no evldence of M1nL/PCL/Clsco
acLually lmplemenLlng 60 nodes ln a slngle
neLwork ln CWC-2010.
29.S Award of back to back
contract by M1NL to
nCL]C|sco
In our v|ew, the exper|ence st|pu|at|on of
60 nodes |n a s|ng|e network was
de||berate|y conce|ved to ||m|t
compet|t|on to nCL]C|sco team.
6
comptlsloq of cCM (5wltcbloq & lloooloq), CM (cl5l),
CM(MM), CM (88&lA) ooJ uCM (88-u)
1oble 29.2 - cbtoooloqy of eveots leoJloq to selectloo of ncl/ clsco
Clobal Lender floaLed by M1nL, wlLh lasL daLe of bld submlsslon as 27
CcLober 2009
re-bld meeLlng held (ln whlch 18 agencles parLlclpaLed) and daLe of bld
exLended Lo 10 november 2009
LasL seL of pre bld clarlflcaLlons lssued by M1nL
Slngle bld recelved from PCL wlLh Clsco as Leamlng parLner, Lechnlcal and
commerclal blds opened, Lhe prlce quoLed by PCL/Clsco Leam was 8s.
333.14 crore (excludlng Laxes)
Advance purchase order lssued by M1nL Lo PCL/Clsco Leam
ConLracL awarded by M1nL Lo PCL/Clsco Leam for 8s. 387.19 crore
(excludlng Laxes)
24 September 2009
13 Cctober 2009
10 November 2009
14 Iebruary 2010
12 March 2010
3 November 2009
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lurLher, desplLe requesLs from Lhe
prospecLlve bldders (and Lhe lasL pre bld
clarlflcaLlon belng lssued as laLe as 3
november 2010), Lhe lasL daLe of
submlsslon was noL exLended beyond 10
november 2010. 1hls rlgldlLy ln adherlng Lo
Lhe sLlpulaLed daLe ls belled by Lhe
subsequenL delay of Lhree monLhs ln acLual
award of Lhe conLracL.
ConsequenLly, among Lhe 18 agencles LhaL
had evlnced lnLeresL aL Lhe 8l sLage, of
whlch four had Lhe requlslLe experlence ln
Clymplcs/CommonwealLh/lllA Cames, only
one, Clsco, Leamlng wlLh PCL, submlLLed a
flnanclal bld.
Cn recelpL of a slngle flnanclal bld, ulrecLor
(llnance), M1nL had advlsed (uecember
2009) shorL-Lenderlng (agalnsL Lhe opLlon of
negoLlaLlon) Lo ensure LhaL besL raLes were
secured, as Lhe esLlmaLes were unrellable.
She, furLher, recommended LhaL lf
negoLlaLlons were Lo be conducLed wlLh a
slngle bldder, Lhe rlce negoLlaLlon
CommlLLee should have CovernmenL
represenLaLlves from Lhe uo1 and Lhe Mol.
Powever, M1nL conducLed prlce
negoLlaLlons Lhrough an lnLernally
consLlLuLed commlLLee, Lhus maklng Lhe
process even more non-LransparenL.
llnanclal compeLlLlon was lmperaLlve Lo
ensure reasonablllLy of Lhe raLes secured. lL
29.S.2 keasonab|||ty of costs for
prov|d|ng te|ecommun|cat|on
|nfrastructure
was parLlcularly lmporLanL ln Lhe lnsLanL
case as Lhe esLlmaLes were unrellable l.e 8s.
430 crore aL Lhe sLage of Lhe flrsL
presenLaLlon Lo Lhe CC, reduced Lo 8s.
343.11 crore ln M1nL's proposal Lo Lhe
CCC. 1he CCC anLlclpaLlng a furLher
reducLlon of 21 per cenL Lhrough
compeLlLlve blddlng, reduced Lhe esLlmaLes
Lo 8s. 270.70 crore. AfLer posL-bld
negoLlaLlons and lncludlng addlLlonal
equlpmenL worLh 8s. 40.30 crore, M1nL
flnally placed an order of 8s. 387.19 crore
on PCL/Clsco wlLh Lhe suppller
conLracLually enLlLled Lo Lake back
equlpmenL worLh 8s. 33 crore.
ln our oplnlon, Lhe cosL of provldlng
LelecommunlcaLlon servlces aL 8s. 387.17
crore ln CWC-2010 was unreasonably hlgh
for Lhe followlng reasons:
1he CCC, CC aL Lhe Llme of recelvlng Lhe
flrsL esLlmaLe aL Lhe M1nL presenLaLlon
ln March 2009 had observed LhaL Lhe
esLlmaLe of 8s. 430 crore was 17-18
Llmes LhaL of Lhe expendlLure aL
Melbourne CWC-2006,
As noLed by Lhe ConsulLanL
(1echnology), CC, ln !uly 2009, Lhe
esLlmaLed comparaLlve cosL of provldlng
LelecommunlcaLlon servlces ln
Melbourne CWC-2006 was 8s. 33 crore,
AlrLel had offered a Lechnologlcally
accepLable soluLlon for 8s. 160 crore
(excludlng Laxes) offseL by 8s. 100 crore
sponsorshlp,
1he lnapproprlaLe cholce of l/MLS
Lechnology for broadcasL vldeo/ audlo
servlces aL a vasLly hlgher cosL has
already been dlscussed ln Lhls secLlon,
and

In our op|n|on, the b|dd|ng process was
ta||ored to ensure that on|y the
nCL]C|sco team's f|nanc|a| b|d was
ava||ab|e, thus e||m|nat|ng f|nanc|a|
compet|t|on.
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S20
1he conLracL awarded by M1nL Lo
PCL/Clsco Leam for 8s. 387.19 crore
(excludlng Laxes) far exceeded Lhe CCC
esLlmaLes and, ln Lhe absence of
flnanclal compeLlLlon, Lhere was no
comparaLlve check.
ln response, M1nL lndlcaLed LhaL Pu1v
Lechnology requlred huge bandwldLh of Lhe
order of 1.6 C8 per channel compared Lo
0.27 C8 per channel ln Su (SLandard
ueflnlLlon). Whlle lL ls Lrue LhaL Pu1v
Lechnology was used for Lhe flrsL Llme ln
CWC, Lhls does noL affecL our audlL
concluslon as Lhe requlremenL for Pu1v-
compaLlble bandwldLh had been known aL
all sLages and approprlaLely consldered by
all parLles.
29.S.3 Legacy p|an
We had enqulred from M1nL as Lo Lhelr
long Lerm buslness plans/ sLraLegles for hlgh
speed (10 Cbps) l/MLS soluLlons for
ldenLlflcaLlon of Lhe markeL slze and
poLenLlal cllenLs, for re-deploymenL of Lhe
equlpmenL purchased for CWC-2010 Lo
ensure LhaL lL ls opLlmally uLlllsed posL-
Cames.
ln response, M1nL provlded a one-page
llsLlng of Langlble and lnLanglble beneflLs/
advanLages, and lndlcaLed LhaL Lhls neLwork
would faclllLaLe provlslon of wholesale
bandwldLh Lo oLher operaLors, banks,
corporaLe houses and varlous oLher
CovernmenL agencles on lease or renLal
basls (wlLhouL deLalls). 1hey also sLaLed Lhe
equlpmenL purchased for CWC-2010 was
belng redeployed" Lo augmenL Lhe
capaclLy and expand Lhe l/ MLS neLwork,
wlLhouL, however, lndlcaLlng any speclflc
deLalls or esLabllshlng how Lhe equlpmenL
procured for a hlgh speed 10 Cbps l/ MLS
soluLlon would be opLlmally used on Lhe
exlsLlng lower speed l/ MLS neLwork.
M1nL also drew reference Lo a paragraph ln
Lhe Lender documenLs, whlch lndlcaLed
neLwork capaclLy Lo handle 1,00,000
cusLomers each ln uelhl and Mumbal.
lncldenLally, we also observed LhaL M1nL
had noL malnLalned sLock reglsLers for Lhe
asseLs procured under Lhe sald conLracL
from Lhe PCL/Clsco Leam, due Lo whlch we
are unable Lo seek assurance regardlng
compleLe execuLlon of Lhe conLracL and
safeguardlng of asseLs procured aL such
hlgh cosLs.
C|ear|y, there was a substant|a| |oss to
the GoI on account of th|s dec|s|on.
nowever, we are unab|e to quant|fy th|s
|oss on the bas|s of ava||ab|e records.
It wou|d thus appear that th|s h|gh cost
techno|ogy was procured by M1NL,
|arge|y at GoI cost, so|e|y for the short
term purpose of CWG -2010 w|thout any
rea||st|c and deta||ed |ong term |egacy
p|an, wh|ch casts further doubts on the
cho|ce of th|s so|ut|on.
C
n
A
1
L
k
nea|th Serv|ces for
CWG-2010
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J0
1he uirectorote of neo/th 5ervices {un5) in the ueportment of neo/th ond lomi/y we/fore
{uonlw), 6Nc1u formu/oted o neo/th 4ction P/on {n4P) for cw6-2010 in October 2009.
1he oim of the n4P wos to provide free medico/ services to oth/etes, officio/s, spectotors
ond others ot the 6omes vi//oqe, venues ond other /ocotions. 1hree definitive core
hospito/s were identified for emerqency core, in oddition to 21 /ink hospito/s for primory
ond supp/ementory core, ond o 5ports lnjury centre in 5ofdorjunq nospito/. lurther,
emerqency core services were to be provided throuqh 150 ombu/onces on PPP mode.
whi/e heo/thcore for the oth/etes ond the 6omes lomi/y wos ensured, we found thot the
de/oyed fino/itotion of the n4P, compounded by further de/oys durinq tenderinq/ oword,
wos used to foci/itote deviotions from stipu/oted procurement procedures for ensurinq
tronsporency ond competition {open tenderinq, odequote time for biddinq etc.) on
purported qrounds of urqency.
1he procurement of medico/ equipment wos morked by serious irrequ/orities. un5
fo//owed mu/tip/e procurement processes in on orbitrory monner, despite cw6-2010
requirements hovinq been identified we// in odvonce in the n4P:
lnsteod of qoinq in for direct tenderinq, un5 inexp/icob/y chose to fino/ise one yeor
kote controcts {kcs) for l4 items in lune 2010. 4fter non-ovoi/obi/ity of 15 items {due
to foi/ure of supp/y), un5 ordered 8 items by operotinq kcs of other hospito/s ond
2 items by co//ectinq "spot quototions" from the open morket, the remoininq 5 items
{estimoted ot ks. 5.89 crore) were not ordered ot o//.
un5 chose to procure 14 others items {/isted in the n4P, but not inc/uded in the kc
process) direct/y ot o cost of ks. 2.l2 crore on l0 4uqust 2010 throuqh "spot
quototions" from the open morket. 1his inc/uded purchose of 8 ice mokinq mochines
from o sinq/e deo/er ot rotes, which were, in mony coses, hiqher thon the MkPs.
un5 purchosed on odditiono/ 5 items {which were not inc/uded in the n4P) for ks. 1.10
crore throuqh spot quototions or by operotinq kcs of other hospito/s, these items
were received between l1 4uqust ond 8 October 2010.
we found thot the rotes for mony of these items were exorbitont {cousinq finoncio/ /oss to
the 6Nc1u), by inter se comporison of rotes for the some items between mu/tip/e modes
of tenderinq.
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S22
ChapLer 30 - PealLh Servlces for CWC-2010
we o/so found the procurement of furniture items ond medicines to be irrequ/or.
we found thot the merqency 8/ock ot 68 Pont nospito/ {one of the desiqnoted definitive
core hospito/s) wos not fu//y functiono/ ond commissioned, o/thouqh it wos uti/ised for the
6omes. lurther, o/thouqh the 5ports lnjury centre {5lc) ot 5ofdorjunq nospito/ wos
inouquroted in 5eptember 2010, it wos not fu//y commissioned even in November 2010.
Mony items of equipment were yet to be procured ond/or insto//ed, ond troininq on use of
equipment wos yet to be fu//y imported. 1here wos o/so o severe shortoqe of quo/ified
monpower for providinq necessory services. we o/so noticed siqnificont deficiencies in
the oword ond execution of o controct for o modu/or operotion theotre ond medico/ qos
monifo/d system required for the 5lc.
1he ottempt to strenqthen ombu/once services in time for cw6-2010 throuqh
dep/oyment of 150 ombu/onces in PPP mode wos o foi/ure, since the controct with the
se/ected concessionoire {lortis neo/thcore) wos terminoted for foi/ure to de/iver the
ombu/onces in time. ln our opinion, this eventuo/ity orose becouse of the uonlw's foi/ure
to specify the exoct noture of the ombu/once vehic/e we// in odvonce.
6overnment then ocquired just l1 ombu/onces in lune/ 4uqust 2010 on direct
procurement for the 6omes ot o much hiqher price. 1his difference in prices wos /orqe/y
due to hiqher specificotions for the medico/ equipment thon thot envisoqed in the klP
prepored by lulc {the 1ronsoction 4dviser), it is inexp/icob/e why this wos not considered
eor/ier. lurther, 21 of these ombu/onces were 4dvonced Life 5upport {4L5) ombu/onces,
which require the services of troined doctors ond ore qenero//y ottoched to hospito/s.
On/y 9 ombu/onces were 8osic Life 5upport {8L5) ombu/onces, which primori/y oddress
the need of ue/hi ond its cititens for o qenero/ ombu/once service {under the oeqis of c415
ond not ony specific hospito/) for immediote pre-hospito/ emerqency response services.
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1he healLh lnfrasLrucLure for CWC-2010 ls summarlsed below:
30.1 Cverv|ew
llqote J0.1
nea|th
Infrastructure
for
CWG-2010
o|yc||n|c
at
Games
V|||age
Ambu|ance
arrangements
and eventua||ty
management
21 ||nk
hosp|ta|s
for pr|mary and
supp|ementary
care
Sport In[ury
Centre
Med|a
Centres at
venue
CLher locaLlons
Def|n|t|ve
care for |ndoor
pat|ent treatment
and d|agnos|s
8ML AllMS
C8 anL
Safdar[ung
PosplLal
30.2.1 |ann|ng
1here was amblgulLy ln ldenLlflcaLlon of Lhe
nodal agency responslble for overseelng
healLh servlces for Lhe Cames. 1hls was
clarlfled only ln november 2008, when lL
was lndlcaLed LhaL Lhe ulrecLoraLe of PealLh
Servlces (uPS), CnC1u would be Lhe nodal
agency for healLh servlces.
30.2 reparatory Act|v|t|es
lannlng for healLh servlces was proLracLed
for over four years, crysLalllslng only ln
CcLober 2009 wlLh Lhe formulaLlon of Lhe
PealLh AcLlon lan (PA) by Lhe
ueparLmenL of PealLh and lamlly Welfare,
CnC1u (uoPlW). 1here were subsequenL
amendmenLs on accounL of changes ln Lhe
venues for maraLhon, cycllng, and archery
flnals as well as changes ln manpower aL
varlous venues ln 2010.
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S24
30.2.2 8udget|ng
AlLhough llne lLems for CWC healLh servlces
were provlded ln Lhe budgeL of Lhe uPS,
CnC1u from 2006-07 onwards, Lhe
expendlLure lncurred Llll 2008-09 was
lnslgnlflcanL, prlmarlly due Lo delayed
plannlng and preparaLory acLlvlLles, mosL of
Lhe expendlLure was lncurred ln 2010-11.
AgalnsL Lhe revlsed budgeL of 8s. 41.33
crore from 2006-07 Lo 2010-11, a LoLal
expendlLure of 8s. 13.43 crore has been
lncurred as of november 2010. 1hls does
noL lnclude expendlLure lncurred dlrecLly by
hosplLals, whlch was meL ouL of Lhelr own
budgeLs.
30.3.1 rocurement rocess Io||owed
SLrangely, uPS dld noL go ln for Lenderlng
for dlrecL procuremenL of medlcal
equlpmenL, as per Lhe requlremenLs
assessed ln Lhe PA. lnsLead, Lhey floaLed
Lenders for concludlng one year 8aLe
ConLracLs (8Cs), whlch could be operaLed by
uPS and Lhe hosplLals. Also, Lhe hosplLals
reLalned an opLlon Lo make purchases from
Lhelr own exlsLlng 8Cs or from Lhe 8Cs of
oLher hosplLals.
30.3 rocurement Act|v|t|es
1he de|ayed f|na||zat|on of the nA,
compounded by further de|ays dur|ng
tender|ng] award, was used to fac|||tate
dev|at|ons from st|pu|ated procurement
procedures to ensure transparency and
compet|t|on (open tender|ng, adequate
t|me for b|dd|ng etc.) on purported
grounds of urgency. 1h|s |ed to ser|ous
|rregu|ar|t|es |n procurement, as
descr|bed be|ow.
Norma||y, kCs are conc|uded for use over
an extended per|od of t|me (typ|ca||y by
mu|t|p|e agenc|es) when requ|rements
are ||ke|y to ar|se at d|fferent po|nts of
t|me. When the procurement
requ|rements for CWG-2010 were known
we|| |n advance, |t |s |nexp||cab|e why
DnS chose to go |n for one year kCs
rather than d|rect procurement through
appropr|ate tender|ng procedures.
Iurther, aga|nst the nA t|me||ne of
|n|t|at|ng procurement by November
2009 and comp|et|ng procurement]
|nsta||at|on by Iune 2010, the
procurement cont|nued even upto
Cctober 2010 dur|ng the Games.
nea|th Act|on |an
1he nA prepared by DnS was qu|te
comprehens|ve and |n ||ne w|th the
d|fferent |eve|s of hea|th care
respons|b|||ty |nd|cated by the CC
(comp|ete hea|th care respons|b|||ty for
ath|etes, team off|c|a|s, Games Iam||y
etc. and appropr|ate |eve| of hea|th care
for other categor|es of persons). It
|nd|cated the Games t|me
organ|sat|ona| structure for the med|ca|
arrangements for the Games, the
deta||ed requ|rements of manpower,
med|ca| equ|pment, furn|ture,
consumab|es and med|c|nes at d|fferent
|ocat|ons, and the correspond|ng
de||very t|me||nes.
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lor flnallslng 8Cs for 34 lLems of ma[or
medlcal equlpmenL, uPS followed a
convoluLed process wlLh several
lrregularlLles:
8C Lenders (on lLem raLe basls) were
floaLed on 26 lebruary 2010, buL
cancelled ln Aprll- May 2010 on Lhe
orders of Lhe SecreLary, uoPlW on
accounL of a complalnL regardlng non-
compllance wlLh procedures ln respecL
of Small Scale lndusLry (SSl) vendors.
Powever, desplLe Lhe SecreLary's
lnsLrucLlons for noL openlng Lhe
flnanclal blds, uPS wenL ahead and
opened Lhe flnanclal blds, whlch was
hlghly lrregular.
8C Lenders were refloaLed on 17 May
2010 (wlLh less Llme of only 16 days for
responses). CuL of responses from 16
vendors, 7 vendors were quallfled. uPS
concluded 1-year 8Cs ln !une 2010 wlLh
1
all seven bldders (for lLems where Lhey
were L-1).
uPS placed supply orders ln respecL of
all 34 lLems of equlpmenL. Powever, Lwo
conLracLed flrms - Lord krlshna
Company and Mangalam MedlcamenLs
- falled Lo supply 13 lLems of
equlpmenL, and were consequenLly
blackllsLed by Lhe uPS.
We found that Lord kr|shna Company

had subm|tted fa|se |nformat|on |n the
b|d document. When we ver|f|ed the
address g|ven for |ts reg|stered off|ce as
we|| as |ts correspondence address, we
found them to be somebody e|se's
2
res|dences .
1
Oot of J4 ltems, kcs wete coocloJeJ oo sloqle blJs lo
tespect of J ltems (folJoble wbeel cbolt, Au, ooJ
mllltoty ootl-sbock ttoosets).
2
lo o commoolcotloo to os, lotJ ktlsboo compooy
loJlcoteJ tbot tbey wete beloq botosseJ by meJlo
petsoos ooJ some Joctots sloce tbe tlme of tbe cwC.
lottbet, tbey boJ olteoJy sotteoJeteJ" tbelt vA1 ooJ
soles tox oombets, oftet tbelt blockllstloq fot ooo-sopply.
1S]34, Geeta Co|ony
(stated correspondence address of
Lord kr|shna Company)
1S]99, Geeta Co|ony
(stated reg|stered address of
Lord kr|shna Company)
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S26
1he slx lCu beds were lssued for CWC
only on 11 CcLober.
CuL of Lhe 13 lLems (for whlch Lord

krlshna Company and Mangalam
MedlcamenLs had been conLracLed),
uPS ordered 8 lLems by operaLlng 8Cs of
oLher hosplLals and 2 lLems by collecLlng
spoL quoLaLlons" from Lhe open markeL
by a nomlnaLed commlLLee. 1he
remalnlng 3 lLems (wlLh an esLlmaLed
cosL of 8s. 3.89 crore) were noL ordered
aL all, casLlng doubLs on elLher Lhe
assessmenL of requlremenLs or Lhe
acLual arrangemenLs for healLh servlces.
lurLher, uPS chose Lo keep 14 lLems of
medlcal equlpmenL (llsLed ln Lhe PA) ouL
of Lhe 8C process for 34 lLems of equlpmenL
(on Lhe ground LhaL only ma[or common
lLems" were lncluded under Lhe 8Cs). lor
Lhese lLems, lnsLead of followlng a
Lenderlng procedure, uPS purchased 8s.
2.32 crore of equlpmenL from 10 suppllers
on 30 AugusL 2010, by collecLlng spoL"
quoLaLlons from Lhe open markeL" Lhrough
a commlLLee.
ln addlLlon, uPS purchased flve lLems of
medlcal equlpmenL cosLlng 8s. 1.10 crore,
alLhough Lhese lLems were noL lncluded ln
Lhe PA. 1hese were elLher procured from
Lhe open markeL" Lhrough spoL
quoLaLlons, or on Lhe basls of 8Cs of oLher
hosplLals, and were recelved beLween 31
AugusL 2010 and 8 CcLober 2010. ln facL,
one LCC Machlne (cosLlng 8s. 0.68 lakh) and
6 lCu 8eds (cosLlng 8s. 11.12 lakh) were
recelved only on 8 CcLober 2010. Cur
scruLlny of Lhe sLock reglsLers revealed
slgnlflcanL non-uLlllsaLlon of Lhese lasL
mlnuLe" purchases:
CuL of 90 AAA Lype hlgh pressure
alumlnlum oxygen cyllnders of 2.2 llLres
purchased, only 36 were lssued durlng
Lhe Cames.
1hus, DnS fo||owed mu|t|p|e
procurement processes |n an arb|trary
manner for three sets of purchases,
desp|te requ|rements hav|ng been
|dent|f|ed we|| |n advance |n the nA.
ln addlLlon Lo Lhese equlpmenL purchases
by uPS, lndlvldual hosplLals procured
equlpmenL for Lhe Cames ouL of Lhelr own
budgeL.
We found Lhe procuremenL of medlclnes
and furnlLure lLems also Lo be lrregular:
uPS procured medlclnes worLh 8s. 0.93
crore from AugusL Lo CcLober 2010
wlLhouL open Lender, Lhese were
purchased elLher Lhrough quoLaLlons
collecLed by a commlLLee consLlLuLed for
Lhe purpose or on Lhe basls of 8Cs of
hosplLals.
uPS also purchased furnlLure lLems
worLh 8s. 1.23 crore, Lhese were
procured Lhrough open Lender (e-
Lender) wlLh [usL one day's noLlce perlod
afLer publlshlng Lhe nl1 ln Lhe
newspaper.
We found LhaL Lhe raLes for many of Lhe
lLems purchased Lhrough conLracLs by uPS/
lndlvldual CnC1u hosplLals were exorblLanL,
causlng flnanclal loss Lo Lhe CnC1u. We
have Lrled Lo come up wlLh lndlcaLors of Lhe
exorblLanL raLes ln several ways:
8y comparlng Lhe raLes obLalned ln Lhe
flrsL 8C Lender (for 34 lLems) wlLh Lhe
flnal conLracL prlces as per Lhe second 8C
Lender (whlch were subsLanLlally hlgher
ln many cases),
30.3.2 Lxorb|tant rates charged
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8y comparlng Lhe conLracL raLes for
equlpmenL ordered from Lwo raLe-
conLracLed flrms - Lord krlshna
Company and Mangalam MedlcamenLs -
(who falled Lo supply Lhe equlpmenL)
wlLh Lhe subsLanLlally lower raLes
acLually pald by uPS for orders on
alLernaLlve suppllers, and
hosplLals was done based upon
nomenclaLure, wlLhouL golng lnLo Lhe
Lechnlcal deLalls of Lhe equlpmenL. We do
noL agree wlLh Lhe response for Lhe
followlng reasons:
1he equlpmenL were purchased by
varlous hosplLals (afLer due approval by
We esLlmaLe Lhe exLra expendlLure lncurred

due Lo purchase of lLems aL exorblLanL raLes
(based on Lhe above comparlsons) aL 8s.
1.94 crore, deLalls are lndlcaLed ln Annexe-
30.2.
ln response, CnC1u sLaLed LhaL audlL's
comparlson of raLes of equlpmenL across
8y lnLer se comparlson of raLes -
beLween Lhose acLually pald and Lhe
lowesL raLes pald by uPS/ lndlvldual
hosplLals.
A few lnsLances of wldely varylng raLes for
Lhe same lLem are glven below, a deLalled
llsLlng ls glven ln Annexe 30.1.
1oble J0.1 - wlJely votyloq totes fot tbe some ltem
Lqu|pment
M|n|mum rate
(per un|t |n ks.)
Max|mum rate
(per un|t |n ks.)
Scoop Stretcher
Sp|ne 8oard
Super|or Massage 1ab|e w|th Mattress w|th p|||ow
U|trasound 1herapy (1& 3Mnz)
Ikk Lamp
hys|otherapy Laser
k-ray V|ew 8ox
Automat|c Lxterna| Def|br|||ator (ALD)
u|se Cxymeter
Card|ac Arrest resusc|tat|on drug and equ|pment
tro||ey crash cart
Cphtha|mo-otoscope
8-type Cxygen Cy||nder w|th f|owmeter
Suct|on Mach|ne Ioot Cperated
Ambu 8ag (8ag Va|ue Mask) Adu|t
Ambu 8ag (8ag Va|ue Mask) aed|atr|c
8.. Apparatus
13630
6300
21323
30923
68230
194230
11393
140173
21323
19792
23723
6403
2887
2048
2048
2623
86100
20473
37749
367499
141730
409300
33700
319731
131200
81900
30400
110230
13440
3143
3143
6823
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S28
addlLlonal AMC for flve years was aL exLra
cosL (noL lncluded ln Lhe above cosL). Also,
Lhe lnsLallaLlon of Lhe lce-maklng machlnes
aL Lhe venues was a sLruggle, and we are
noL sure of operaLlonallsaLlon of machlnes
aL leasL elghL locaLlons on accounL of space
consLralnLs, lack of uLlllLles, and lack of
need.
We found numerous lnsLances of procured
lLems noL belng used or avallable for Lhe
Cames:
Medlcal equlpmenL worLh 8s. 0.43 crore
and furnlLure worLh 8s. 0.46 crore was
noL lssued for Lhe Cames, reporLedly
because of curLallmenL of medlcal
venues by Lhe CC.
8s. 1.49 crore of equlpmenL procured
for Lhe Cames dlrecLly by Lhe hosplLals
could noL be uLlllsed for Lhe Cames. 64
elecLrlcal nurslng beds worLh 0.86 crore
recelved by C8 anL ln AugusL 2010
could noL be lnsLalled before Lhe
compleLlon of consLrucLlon of Lhe
Lmergency 8lock. lurLher, lLems
amounLlng Lo 8s. 0.60 crore were
recelved by 8ML PosplLal and Lok nayak
PosplLals only afLer Lhe Cames durlng
CcLober- uecember 2010.
30.3.3 Items not used for the Games
purchase commlLLees of docLors) for Lhe

same purpose vlz. CWC-2010,
SecreLary, P&lW had lssued dlrecLlons
sLaLlng LhaL Lhe hosplLals were free Lo
use Lhelr own 8Cs or Lhe 8Cs of uPS,
clearly evldenclng lnLerchangeablllLy.
ln response, CnC1u sLaLed LhaL Lwo e-

Lenders were floaLed on 27 !uly and 10
AugusL 2010, buL were unsuccessful on
accounL of Lechnlcal re[ecLlons and lack of
response respecLlvely. lurLher,
manufacLurers/ dlsLrlbuLors expressed Lhelr
lnablllLy Lo provlde machlnes of Lhe same
capaclLy wlLhln Lhe avallable shorL span of
Llme. ConsequenLly, negoLlaLlons were
conducLed wlLh vendors for all avallable
slzes and makes, whlch lncluded Lhe volLage
sLablllser, slLe lnspecLlon and lnsLallaLlon
pre and posL Cames, besldes 6-year
addlLlonal warranLy and servlce.
We do noL agree wlLh CnC1u's response.
uesplLe lncluslon of lce-maklng machlnes ln
Lhe PA, CnC1u floaLed Lenders for Lhem
very laLe. Lack of response was used Lo
faclllLaLe adopLlon of Lhe open markeL"
rouLe Lhrough spoL quoLaLlons. lurLher, Lhe
urchase of Ice-mak|ng
Mach|nes
DnS purchased 68 |ce-mak|ng mach|nes
at a cost of ks. 0.78 crore as part of the
"open market" purchases of 30 August
2010. A|| these |ce-mak|ng mach|nes
were purchased from Do|che Ind|a (who
was on|y a dea|er and not a
manufacturer). We found that these
rates were, |n many cases, even h|gher
than the Max|mum keta|| r|ces (where
ascerta|nab|e).
30.4 Contract Management
Issues
We found several deflclencles ln conLracL
managemenL, boLh by uPS and lndlvldual
hosplLals:
3
AC bllls for 8s. 8.34 crore ln respecL of
C8 anL PosplLal and uPS were
3
Ac 8llls ote Absttoct cootloqeot bllls otlllzeJ fot Jtowloq
oJvooces, occooots of oJvooces sboolJ be teoJeteJ
wltblo ooe mootb.
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ouLsLandlng for perlods of Lwo Lo slx
monLhs upLo end of uecember 2010.
C8 anL PosplLal lrregularly drew an
exLra 8s. 1.11 crore from CovernmenL
4
accounL and reLalned lL ln a bank
accounL.
uPS and hosplLals falled Lo levy/ recover
llquldaLed damages amounLlng Lo
8s.0.32 crore from vendors on accounL
of delayed supplles.
We could noL derlve assurance as Lo Lhe
recelpL by C8 anL PosplLal of addlLlonal
equlpmenL worLh 8s. 0.30 crore Lo be
supplled free by a vendor.
C8 anL falled Lo recover 1uS of 8s. 0.11
crore from a conLracLor.
funcLlonal durlng Lhe perlod of Lhe

Cames.
ln november 2008, CnC1u whlle
deslgnaLlng C.8.anL as hosplLal for
deflnlLlve care sald LhaL all necessary
procuremenL and lnsLallaLlon should be
done by May 2010 and funcLlonallLy
ensured by !une 2010. Powever, C8 anL
PosplLal awarded Lhe Lurnkey conLracL
(coverlng boLh consLrucLlon and supply of
equlpmenL) for esLabllshlng an emergency
block ln Lhe Lu bulldlng aL 8s. 3 crore only
ln May 2010 Lo Adlson LqulpmenL Company
for compleLlon wlLhln 90 days (by 23 AugusL
2010). We found a compleLlon cerLlflcaLe
daLed 19 november 2010, showlng Lhe
pro[ecL as compleLed on 6 SepLember 2010.
1he cerLlflcaLe recorded was premaLure, as
7 lLems of lndlan-make equlpmenL were
recorded as lssued only on 11
november 2010, whlle Lhe lnsLallaLlon
cerLlflcaLe of all equlpmenL was lssued
on 1 november 2010,
6 lLems of lmporLed equlpmenL were
noL recorded ln Lhe sLock reglsLer, as per
cusLoms duLy paymenL records, some of
Lhese lLems were recelved only afLer 27
CcLober 2010.
ln response, C8 anL PosplLal malnLalned
LhaL Lhe pro[ecL was compleLed as
recorded, and was uLlllsed fully for CWC-
2010. Whlle we do noL quesLlon Lhe
uLlllsaLlon of Lhe block for Lhe Cames, ln our
oplnlon, Lhe block was noL fully funcLlonal
and commlssloned before Lhe Cames.
lor provldlng deflnlLlve care for CWC-2010,
AllMS developed a new dedlcaLed faclllLy aL
a cosL of 8s. 9.8 crore wlLhln Lhe !nA
30.S.2 Iac|||t|es at AIIMS

30.S Iac|||t|es Deve|opment for
nosp|ta|s
30.S.1 1urnkey ro[ect for estab||shment
of Lmergency 8|ock |n LD
8u||d|ng of G8 ant nosp|ta|
C8 anL PosplLal (along wlLh AllMS and 8ML

PosplLal) was deslgnaLed for deflnlLlve care
of accredlLed personnel durlng Lhe Cames.
lor Lhls purpose,
a separaLe casualLy area (wlLh 6
observaLlonal beds) was Lo be
deslgnaLed for Lhe Cames on Lhe ground
floor of Lhe newly consLrucLed Lu
8lock, wlLh provlslon of all rouLlne
radlologlcal and paLhologlcal servlces,
and
a dedlcaLed lCu wlLh mlnlmum of 10
beds wlLh all sLaLe of Lhe arL faclllLles
and nurslng care was Lo be made
4
loteoJeJ fot poyloq tbe epolpmeot soppllet tbe bolooce
20 pet ceot (oftet tbe 80 pet ceot oJvooce).
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1rauma CenLre, whlch was compleLed ln
Llme for Lhe Cames. 1hls lncluded 20
general beds, 10 lCu beds, 1 lnLegraLed
operaLlon LheaLre, area for walLlng lounge
and oLher anclllary faclllLles such as docLors'
room, nurses room, sLores eLc.
8ML PosplLal earmarked a parL of lLs
exlsLlng nurslng home for Lhe Cames, slnce
lL was felL LhaL a new Lmergency 8lock (Lhe
conLracL for whlch was awarded ln Aprll
2010) would noL be compleLed by
SepLember 2010. lL also procured mosL of
Lhe essenLlal lLems of medlcal equlpmenL Lo
Lhe exLenL noL supplled by uPS.
30.S.3 Iac|||t|es at kML nosp|ta|
30.6 Sports In[ury Centre at
Safdar[ung nosp|ta|
for CWC-2010, by upgradlng Lhe exlsLlng
anLhroscopy and sporLs ln[ury unlL. 1he
pro[ecL was Lo be compleLed by May 2010.
A budgeL of 8s. 70.72 crore was allocaLed
for Lhe SlC from ouL of a xl lan provlslon
for developmenL of sporLs medlclne ln Lhe
counLry on a plloL basls. As of november
2010, Lhe expendlLure lncurred on Lhe SlC
was 8s. 61.11 crore. CuL of Lhls, 8s. 46.84
crore was glven as advance Lo PosplLal
Servlces ConsulLancy CorporaLlon (PSCC), a
Su whlch was appolnLed on nomlnaLlon
basls as Lhe lmplemenLlng agency ln !une
2008, and expendlLure of 8s. 14.27 crore
was lncurred by Lhe S! PosplLal for
procuremenL of equlpmenL.
AgalnsL Lhe sLlpulaLed deadllne of May
2010, Lhe SlC was offlclally lnauguraLed by
Lhe rlme MlnlsLer of lndla on 26
SepLember 2010. Powever, lL was noL fully
commlssloned, as revealed by Lhe sLaLus of
dlfferenL acLlvlLles as on 30 november 2010
summarlsed below:
30.6.2 art|a| Comm|ss|on|ng of SIC
before CWG 2010
30.6.1 Cverv|ew
ln !une 2008, Lhe MlnlsLry of PealLh and
lamlly Welfare (MCPlW) declded Lo
esLabllsh a SporLs ln[ury CenLre (SlC) aL
Safdar[ang (S!) PosplLal, new uelhl ln Llme
1oble J0.2 - 5totos of commlsslooloq of 5lc
Act|v|ty Status as on 30 November 2010
SubsLanLlally compleLe - mlnor works lefL, compleLlon cerLlflcaLe noL yeL
recelved
arLlally compleLe - 13 equlpmenL yeL Lo be purchased, flnal lnsLallaLlon of
and Lralnlng on some equlpmenL sLlll due
47 posLs vacanL as agalnsL sancLloned sLrengLh of 138.
lnsLallaLlon of machlne for M8l and C1 scan yeL Lo be done.
1ender for ouLsourclng CSSu yeL Lo be flnallsed.
Construct|on of
bu||d|ng
Insta||at|on of
equ|pment
Appo|ntment of staff
Wet |eas|ng of h|gh
end equ|pment
Centra| Ster||e
Supp|y Department
(CSSD)
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more Lhan 8s. one crore) was sLlll ln
progress.
1ralnlng of docLors and sLaff by Lhe
equlpmenL suppllers had noL
commenced as of 30 november 2010.
CuL of 138 sancLloned posLs, 47 posLs
remalned vacanL as of 14 uecember 2010.
1he vacancy was noLeworLhy ln respecL of
speclallsL docLors of sporLs medlclne and
6
rehablllLaLlon, and Lhe sporLs psychologlsL
and Lhe dleLlclan, whereln all Lhe
sancLloned posL remalned vacanL.
ln addlLlon Lo Lhe bulldlng and equlpmenL, a
key componenL of Lhe SlC was a Modular
CperaLlon 1heaLre (MC1) and Medlcal Cas
Manlfold SysLem (MCMS). 1he budgeL of
8s. 2.33 crore for MC1 and MCMS aL Lhe
Llme of pro[ecL lncepLlon was lncreased
subsequenLly Lo 8s. 10 crore by Lhe S!
PosplLal. Powever, Lhls lncrease was noL
based on any deLalled esLlmaLe for Lhe
compleLe work and was prepared only on
Lhe basls of rough esLlmaLes.
1hls work was awarded by MoPlW ln
uecember 2009 Lo Muu Medlcal SysLem
(lndla) vL. LLd aL a cosL of 8s. 3,41,30,828+
Luro 3,39,926+ C8 ound 6,00,690.83. We
found several lrregularlLles ln Lhe award:
CuL of Len bldders who purchased Lhe
bld documenL, only Lhree blds were
30.6.S De|ay |n appo|ntment of

staff for SIC
30.6.6 Irregu|ar|t|es |n award of work for
Modu|ar Cperat|on 1heatre
(MC1) and Med|ca| Gas Man|fo|d
System (MGMS)
30.6.3 De|ay |n construct|on of SIC

bu||d|ng
30.6.4 De|ay |n |nsta||at|on of equ|pment
1he award and execuLlon of Lhe work for

Lhe SlC (ln parLlcular Lhe SlC bulldlng) was
beseL by delays. AlLhough MClPW
approved Lhe seLLlng up of Lhe SlC ln !uly
2008, Lenderlng for consLrucLlon of Lhe SlC
bulldlng sLarLed only ln uecember 2008 and
Lhe work awarded by PSCC Lo Lhe successful
conLracLor (8hayana 8ullders) only ln May
2009, leavlng only Lwelve monLhs for Lhe
consLrucLlon of Lhe pro[ecL whlch was
evldenLly lnadequaLe. As of 30 november
2010, Lhe consLrucLlon of Lhe bulldlng had
noL been compleLed and Lhe conLracLor had
clalmed for furLher exLenslon of Llme for
compleLlon Llll 29 uecember 2010.
lurLher, as parL of Lhls work, PSCC had
lrregularly charged 8s. 46.03 lakh on
consulLancy servlces for cerLaln lLems for
S
whlch lL dld noL provlde any such servlces .
As agalnsL Lhe sLlpulaLed daLe of May 2010
for procuremenL and lnsLallaLlon of medlcal
equlpmenL, we found LhaL:
CuL of 72 equlpmenL procured for Lhe
SlC, 33 equlpmenL valulng 8s. 6.83 crore
were yeL Lo be formally lnsLalled by
november 2010.
nlne equlpmenLs ordered cosLlng 8s.
2.62 crore were yeL Lo be supplled Lo
Lhe SlC
urchase of Lhree equlpmenL wlLh
approxlmaLe cosL 8s. 1.30 crore and
Lhree hlgh value equlpmenL (cosLlng
S
ltepototloo of cooceptool otcbltectotol ploos fot
bollJloq ooJ setvlces, sobmlssloo Jtowloqs fot locol
boJles, ooJ JetolleJ eoqloeetloq Jtowloqs fot lotetool
ooJ extetool electtlflcotloo
6
1be 5potts lsycboloqlst bos joloeJ tbe 5lc oo 15
Novembet 2010.
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S32
recelved, of whlch only Lwo blds were
Lechnlcally responslve. 1he reason for
Lhe low response of bldders could be
aLLrlbuLed Lo Lhe declslon Lo comblne
Lwo lLems, vlz. MC1 and MCMS, ln a
slngle work. 1hls resulLed ln sLrlngenL
prequallflcaLlon norms, whlch
dlscouraged Lhe prospecLlve bldders.
ln vlew of Lhe low response Lo Lhe bld
and lowesL bld prlce remalnlng 38 per
cenL hlgher Lhan Lhe budgeL, Lhe
MCPlW examlned reasonablllLy of raLes
of Lhe L-1 bldder by comparlng Lhe
dlfferenL lLems of supply wlLh slmllar
supplles Lo oLher CovernmenL and
prlvaLe hosplLals. Powever, Lhe prlces of
dlfferenL supply orders quoLed ln llke-Lo-
llke comparlson were provlded by Lhe
suppller lLself and were noL verlfled
from any lndependenL source.
1he MlnlsLry had noL examlned Lhe blds
ln respecL of posslble carLellsaLlon. lL ls
perLlnenL LhaL for Lwo lLems cosLlng 8s.
1.33 crore Lhe suppller had made Lhe
supplles Lo Lhe SlC by purchaslng Lhe
same from Lhe second responslve
bldder.
We also found serlous deflclencles ln
scruLlny by MoPlW of Lhe suppllers'
lnvolces:
!usL afLer 10 days of Lhe conLracL,
MoPlW revlsed Lhe Lerms of
agreemenL, allowlng paymenL for goods
lmporLed from Lwo forelgn prlnclpals ln
lndlan 8upees (as agalnsL Lhe forelgn
currency sLlpulaLed earller). 1hey used
Lhe exchange raLes prevalllng on Lhe
daLe of noLlflcaLlon of award (22
uecember 2009) Lo calculaLe lLem-wlse
raLes. Powever, Lhe exchange raLe of
lndlan 8upee vls--vls CreaL 8rlLaln
ound and Luro had appreclaLed

conslderably beLween Lhe daLe of
noLlflcaLlon of award and Lhe
subsequenL daLes of shlpmenL of
equlpmenL by Lhe forelgn suppller
(whlch was Lhe conLracLual daLe for
7
forelgn currency paymenLs) , Lhls
resulLed ln overpaymenL of 8s. 0.34
crore.
MoPlW allowed cusLoms duLy Lo be
pald dlrecLly Lo Lhe forelgn suppller
(wlLhouL ensurlng Lhe acLual paymenL of
Lhe same Lo Lhe cusLom auLhorlLles) and
also falled Lo deducL lndlan AgenL
commlsslon from Lhe CosL lnsurance
and lrelghL (Cll) prlce quoLed by Lhe
suppller whlle calculaLlng Lhe cusLoms
duLy. lurLher, Lhe suppller had shown
8s. 40.17 lakh pald as vA1 ln Lhelr
lnvolces clalmlng paymenL for lmporLed
goods whlch rendered Lhe lnvolces
doubLful, as vA1 ls noL requlred Lo be
pald for lmporLed goods.
30.7 Ambu|ance Serv|ces

30.7.1 8ackground
uoPlW had been plannlng Lo upgrade lLs
102" ambulance servlces under Lhe
CenLrallsed AccldenLal and 1rauma Servlces
(CA1S) slnce 2006. 1he PA Look lnLo
conslderaLlon uoPlW's plan for
deploymenL of 130 ambulances ln
mode Lhrough Lhe selecLed vendor (lorLls
PealLhcare) by !uly 2010 for CWC-2010.
1hese ambulances would be of Lwo Lypes:
7
1be excbooqe totes cbooqeJ ftom ks. 75.177 pet C8l
ooJ ks. 66.88 pet oo tbe Jote of ootlflcotloo of owotJ
to ks. 68.028 - 72.601 pet C8l ooJ ks. 62.22 pet oo
tbe Jotes of sblpmeot.
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9 Advance Llfe SupporL (ALS)

ambulances for coverlng hlgh rlsk sporLs
wlLh poLenLlal for serlous llfe-
LhreaLenlng ln[ury, and
141 8aslc Llfe SupporL (8LS) ambulances
for oLher cases.
Slnce Lhe overall requlremenL of ALS
ambulances durlng Lhe Cames would be
around 20, Lhese 9 ALS ambulances would
be supplemenLed from ALS ambulances
from varlous governmenL hosplLals and, lf
requlred, prlvaLe hosplLals.
1he delay of nearly 3 Z monLhs beLween
Lhe openlng of Lhe flnanclal blds and Lhe
lssue of Lhe LCl ls parLlcularly lnexpllcable.
1he scope of work lnvolved:
rocuremenL of ambulance vehlcles and
fabrlcaLlon, and procuremenL and
lnsLallaLlon of equlpmenL,
30.7.2 1ender|ng and award of

concess|on for 1S0 ambu|ances
A 13-monLh long process was underLaken
for Lenderlng and award of Lhe concesslon
for 130 ambulances ln mode, as
summarlsed below. 1he conLracL was flnally
awarded Lo lorLls PealLhcare LLd. aL a one-
Llme caplLal cosL of 8s. 23 crore and
monLhly annulLy paymenLs of 8s. 1.23 crore
(whlch made lorLls Lhe L-1 bldder on nv
basls).
rocuremenL of hardware/ sofLware and

seLLlng up of a conLrol room (Lmergency
8esponse CenLre), and recrulLmenL and
Lralnlng of manpower,
CperaLlon of Lhe ambulance fleeL over a
slx year perlod.
llqote J0.2 - 1eoJetloq ooJ owotJ of coocessloo fot ombolooces
Appo|ntment of
transact|on Adv|ser
(IDIC)
May 2008
1echn|ca| Lva|uat|on
!anuary 2009
Cpen|ng of
3 f|nanc|a| b|ds
3 lebruary 2009
of S out of
8 responses
AugusL 2008
Issue of kI to S
b|dders
CcLober 2008
of S out of
8 responses
AugusL 2008
Issue of kI
!uly 2008
kece|pt of 4 b|ds
2 !anuary 2009
Issue of kI
!uly 2008
Lo| to Iort|s
nea|thcare
20 May 2009
Agreement w|th
Iort|s nea|tcare
13 !uly 2009
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S34
lnLeresLlngly, Lhe 8l dld noL speclfy a
requlremenL for facLory-bullL" ambulances,
allowlng Lhe concesslonalre Lo fabrlcaLe
ambulances from any vehlcle chassls,
however, deLalls of Lhe medlcal equlpmenL
were fully speclfled. 1he successful
concesslonalre was requlred Lo submlL a
reglsLered proLoLype ambulance for
lnspecLlon by uoPlW. lurLher, each
ambulance was Lo be lnspecLed by uoPlW
before deploymenL.
1he flnanclal model for Lhe lnvolved
paymenL of one-Llme caplLal cosL and
monLhly annulLy paymenLs Lo cover cosL of
caLegorles of persons (accldenL vlcLlms,
Lconomlcally Weaker SecLlons, obsLeLrlc
emergencles eLc.) exempLed from paymenL
of user fees. 1he concesslonalre could
collecL user charges from oLher users.
30.7.3 Ia||ed Lxecut|on of Contract
uoPlW LermlnaLed Lhe conLracL wlLh lorLls
PealLhcare ln lebruary 2010, due Lo lLs
fallure Lo procure and reglsLer 30 per cenL
of Lhe ambulances by Lhe sLlpulaLed
8
deadllne of 8 !anuary 2010 . SubsequenLly,
uoPlW had Lo procure 31 facLory-bullL
lorce 1raveller ambulances (10 8LS and 21
ALS ambulances) ln !uly- 2010 aL a cosL of
8s. 2.24 crore for vehlcles aL uCSu raLes
from lorce 1raveller LLd., and awarded Lhe
work of fabrlcaLlon and equlpmenL aL 8s.
6.88 crore ln AugusL 2010 Lo MCM
AssoclaLes.
1he chronology of evenLs relaLed Lo Lhe
LermlnaLlon of Lhe lorLls conLracL ls glven
below:
1oble J0.J - cbtoooloqy of eveots leoJloq to tetmlootloo of lottls coottoct
1|me||ne Lvent
9
lorLls produced a bus chassls-based ambulance as Lhe proLoLype
ambulance. uesplLe mulLlple meeLlngs/ lnspecLlons, Lhe speclal commlLLee
consLlLuLed by uoPlW dld noL flnd Lhe vehlcles saLlsfacLory on several
parameLers - workmanshlp, aerodynamlcs/ ergonomlcs, flLLlngs, and
cerLlflcaLlon of acLual performance on suspenslon damplng
Powever, uoPlW agreed on 22 CcLober 2009 Lo lorLls' requesL Lo go ahead
wlLh placlng Lhe order for ambulances on Lhe manufacLurer, sub[ecL Lo
vehlcles complylng wlLh Lhe sLlpulaLed speclflcaLlons. lncldenLally, we found
LhaL even before Lhls approval, lorLls had already placed orders on 21
SepLember 2009 for 74 bus chasslses.
lorLls submlLLed anoLher proLoLype ambulance for lnspecLlon and
ambulance reglsLraLlon, Lhls was approved by Lhe CommlLLee for
8eglsLraLlon of Ambulances (C8A) for reglsLraLlon by Lhe 1ransporL
ueparLmenL
1ransporL ueparLmenL agreed Lo uoPW's proposal for reglsLraLlon of 130
ambulance vehlcles, sub[ecL Lo cerLlflcaLlon (ln lorm 22 (A) arL ll) by
uoPlW LhaL each fabrlcaLed vehlcle complled wlLh Lhe MoLor vehlcle AcL
and 8ules.
Cctober 2009
December 2009
Ianuary 2010
8
9
1be temololoq 50 pet ceot wete to be opetotlooollseJ by Ioly 2010.
MobloJto k1u 85 lll (bos-cbossls wltboot wloJsblelJ)
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Clearly, Lhe facLory bullL ambulances (wlLh
fabrlcaLlon and equlpmenL) were far
cosLller Lhan lorLls' quoLed cosL, alLhough
Lhe lnner wldLh of Lhe paLlenL comparLmenL
of Lhese facLory-bullL ambulances was
only 1630 mm, as agalnsL Lhe conLracLed
11
speclflcaLlon of 2000 mm +/- 10 per cenL .
lurLher, Lhere was a marked dlfference ln raLes beLween Lhe quoLes of lorLls PealLhcare (for
chassls-bullL ambulances) and Lhe facLory bullL ambulances purchased laLer ls lndlcaLed below:
1|me||ne Lvent
Cne ambulance was reglsLered on 16 !anuary 2010, even wlLhouL uoPlW
cerLlflcaLlon.
A new core group" consLlLuLed by uoPlW found Lhe ambulances Lo be
deflclenL and non-compllanL, especlally on Lhe quallLy of rlde, nolse
polluLlon, poor quallLy sLreLcher and general workmanshlp.
uoPlW LermlnaLed Lhe conLracL wlLh lorLls
MedlaLlon efforLs beLween uoPlW and lorLls falled.
Iebruary 2010
Apr||]May 2010
10
11
loclJeotolly, tbe lovolce Jocomeots soppottloq tbe teqlsteteJ ptototype 8l5 ombolooce sopplleJ by lottls teveoleJ o cost of
jost ks. 9.50 lokb.
loclJeotolly, lo Iooe 2009, lottls neoltbcote tepoesteJ fot o teJoctloo lo tbe looet wlJtb of tbe potleot compottmeot ftom
2000 mm -/- 10 pet ceot to 1650 mm (wblcb ls o mote commoo speclflcotloo), tbls wos oot occepteJ by uonlw ooJ tbe
coottoct tetoloeJ tbe otlqlool speclflcotloos.
In our op|n|on, th|s eventua||ty arose because of the DonIW's fa||ure to spec|fy the exact
nature of the ambu|ance veh|c|e we|| |n advance. DonIW d|d not spec|fy "factory-bu||t
ambu|ances" and the range of acceptab|e makes] mode|s thereof, |n fact, the Comm|ttee
of Doctors assoc|ated w|th the second round of procurement expressed the|r c|ear
preference for factory-bu||t over chass|s-bu||t veh|c|es. Lven |f chass|s-bu||t veh|c|es were
found to be a cheaper opt|on, DonIW d|d not even cons|der spec|fy|ng the range of
acceptab|e chass|s makes] mode|s.
1oble J0.4 - compotlsoo of pootes fot lottls ooJ teoJy-bollt ombolooces
Supp||er
Veh|c|e
Cost
Iabr|cat|on and
Lqu|pment Cost
8LS ALS
1ota| Cost
of 8LS
Ambu|ance
1ota| Cost
of ALS
Ambu|ance
Iactory bu||t
Ambu|ances (Iorce
1rave||er] MGM
Assoc|ates)
Iort|s (as per
10
bus|ness p|an)
7.23
8.00
13.43
6.30
26.36
11.30
20.66
14.30
33.39
19.30
(ks. lo ctote)
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S36
We found LhaL Lhe prlce dlfference was
malnly on accounL of dlfferlng speclflcaLlons
of equlpmenL. 1he equlpmenL speclflcaLlons
for Lhe facLory-bullL ambulances (drawn up
by a CommlLLee of docLors appolnLed ln
March 2010 by Lhe MlnlsLer of PealLh and
lamlly Welfare) were subsLanLlally hlgher
Lhan LhaL lndlcaLed ln Lhe 8l prepared by
lulC, Lhe 1ransacLlon Advlsor. 1hese
speclflcaLlons clearly drew references Lo Lhe
Medlcal uevlce ulrecLlves speclfled by Lhe
Luropean unlon and also sLlpulaLed
manufacLure of Lhe devlces ln an lSC-
12
cerLlfled faclllLy . 1hls ls lllusLraLed Lhrough
Lhe dlfferlng speclflcaLlons ln respecL of Lwo
lLems - splne board and head lmmoblllser:
Lqu|pment
Spec|f|cat|ons for
Iactory-bu||t ambu|ances
kI Spec|f|cat|ons (ear||er)
1oble J0.5 - compotlsoo of epolpmeot speclflcotloos fot ombolooces
1he splne board should be exLremely

rugged ln consLrucLlon and should
be bullL from hlgh quallLy maLerlal
Lhereby avoldlng spllnLerlng and
cracklng.
1he surface should be lmpervlous Lo
body flulds and secreLlons and
should be compleLely seamless Lo
ellmlnaLe lngress of fluld. lL should
have a flrm surface for C8 &
lmmoblllzaLlon.
lL should have compacL dlmenslons
for easy manoeuvrlng and should
have provlslon for cervlcal collars or
head lmmoblllsers. lL should have
easy underslde allowlng easy llfLlng
access. lL should be x-ray
LranslucenL.
1he devlce musL comply wlLh
Medlcal uevlce ulrecLlves
(93/42/LLC) havlng Lhe CL mark
along wlLh Lhe four dlglL code from
Lhe cerLlfylng agency.
1he devlce musL be manufacLured ln
an lSC 13483 cerLlfled faclllLy.
5boolJ be lo plostlc motetlol

ot blqb stteoqtb ooJ
wotetptoof.
lt sboolJ be foot boles fot
tbe polck ooJ totol flxloq of
tbe beoJ lmmoblllset ooJ
two covltles wbeo tbe bootJ
loys oo tbe floot, wbeo tbe
bose ls blockeJ lo tbe
ttoJltloool woy, tbot ollow
to ovolJ Jomoqes to tlp-off
sttops Jotloq tbe osoqe ot
occommoJotloo lo tbe
ombolooce.
lt sboolJ be 20 booJles fot
tbe ttoospott, sopplleJ wltb
J belts wltb toplJ oobookloq
bockle.
5boolJ bove moxlmom toJlo
ttoospoteocy to moke exoms
wltboot comptomlse potleot
cooJltloo.
Sp|ne 8oard
12
1bey JlJ oot, bowevet, speclfy epolpmeot btooJs.
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1he hlgher speclflcaLlons (and hlgher cosL)
of Lhe subsequenL purchase of facLory-bullL
ambulances were also acknowledged by
uoPlW (ln lLs response Lo audlL), sLaLlng
LhaL Lhe deLalled speclflcaLlons for
fabrlcaLlon and equlpmenL were suggesLed
by experLs, furLher, almosL all Lhe
equlpmenL was lmporLed, of repuLed
brands, and meL all lnLernaLlonal sLandards
for safeLy and quallLy.
Lqu|pment
Spec|f|cat|ons for
Iactory-bu||t ambu|ances
kI Spec|f|cat|ons (ear||er)
1he lmmoblllser musL have

lnLegraLed unlversal belLs for flxaLlon
wlLh splne boards.
1he unlL should comprlse of Lwo
mono block shells made of a sofL
plasLlc and a base. 1he mono block
shells should be lmpermeable and
should avold absorpLlon of any
organlc llquld (blood, vomlL,
mucous) and should be free from
any seams and should have
opLlmum Lhlck proLecLlve fllm and
should noL geL damaged by rouLlnely
used chemlcal sub sLances or
solvenLs ln Lhe ambulance.
1he mono block shells should be
poslLloned on Lhe base uslng wlde
and sLable velcro sysLem sewn Lo Lhe
base. 8oLh Lhe mono block shells
musL have Lhrough holes allowlng
lnspecLlon of Lhe aural pavlllon also
permlLLlng verlflcaLlon of any loss of
blood or llqulds.
1he devlce musL comply wlLh
Medlcal uevlce ulrecLlves
(93/42/LLC) havlng Lhe CL mark
along wlLh Lhe four-dlglL code from
Lhe cerLlfylng agency.
1he devlce musL be manufacLured ln
an lSC 13483 cerLlfled faclllLy.
neoJ lmmoblllset sboolJ be

moooteJ ooJ sepototeJ oo
tbe scoop sttetcbet.
5boolJ be stooJotJ slJe
tlqlJ blocks losteoJ of tbe
oJjostoble ooes.
5boolJ be wltb poJJeJ belts
fot tbe flxloq.
lt sboolJ be coveteJ by o
llpolJ ptoof ooJ boctetlol
ptoof motetlol.
Un|versa|
nead
Immob|||ser
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perLlnenL Lo noLe LhaL Lhe ALS ambulances
requlre servlces of Lralned docLors and are,
Lherefore, noL sulLable for deploymenL
Lhrough CA1S. ConsequenLly, Lhese ALS
ambulances have been alloLLed Lo varlous
hosplLals/ lnsLlLuLes.
1he real, unmeL need of uelhl and lLs
clLlzens ls for a genera| ambu|ance serv|ce
under Lhe aegls of CA1S (102 ambulance
servlce) for lmmedlaLe pre-hosplLal
emergency response, whlch ls meL prlmarlly
Lhrough 8LS ambulances. Such ambulances
are cheaper Lhan ALS ambulances (whlch
are llnked Lo lndlvldual hosplLals) and, ln
our oplnlon, could (and should) have been
procured ln far large numbers Lhan ALS
ambulances.
Wh||e we acknow|edge the h|gher
spec|f|cat|ons adopted for the
ambu|ances, |t |s |nexp||cab|e why these
spec|f|cat|ons were not adopted |n the
f|rst |nstance at the kI stage.
Lv|dent|y, the work of IDIC, h|red as
1ransact|on Adv|ser at a huge cost of ks.
0.S1 crore, |n draft|ng and f|na||z|ng the
kI and other contract documents was
not of the des|red qua||ty.
Consequent|y, De|h| and |ts c|t|zens are
st||| depr|ved of adequate genera|
ambu|ance coverage for pre-hosp|ta|
emergency response serv|ces.
30.7.4 Non-fu|f||ment of requ|rement of
8LS ambu|ances
Crlglnally, uoPlW envlsaged purchase of
141 8LS ambulances and only 9 ALS
ambulances. 1hls was Lo be supplemenLed
Lhrough exLra ALS ambulances from
CovernmenL and prlvaLe hosplLals Lo meeL
Lhe (shorL Lerm) requlremenL of around 20
ALS ambulances for Lhe Cames.
Powever, uoPlW acLually ended up buylng
21 ALS and only 10 8LS ambulances. lL ls
C
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A
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k
Integrated Secur|ty System (ISS)
for CWG-2010
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/ectronics corporotion of lndio Ltd. {clL), o P5u, wos oppointed by the 6ol in Moy 2009
on "nominotion bosis" to provide on lnteqroted 5ecurity 5ystem {l55) for cw6-2010. we
found thot clL prepored o hiqh/y inf/oted cost estimote {opproved ot ks. l4 crore) which
o//owed it to moke on exorbitont profit of ks. 12 crore on just the procured items. uetoi/s
of the sovinqs on items monufoctured in-house were not mode ovoi/ob/e to us. 5uch
exorbitont profits by o P5u oppointed on nominotion bosis by the 6ol omounts to o
breoch of trust.
considerinq the unre/iobi/ity of the estimotes ond voriotion between the estimoted ond
octuo/ costs, we recommend thot fino/ poyments moy be re/eosed to clL on/y ofter
detoi/ed exominotion of octuo/ costs ond on oppropriote certificotion by clL's stotutory
ouditors ofter o//owinq o profit morqin of upto 20 per cent.
we found thot 17 Portob/e xp/osive uetectors {Pus) worth ks. l9 crore were wronq/y
procured by clL, ond remoined unuti/ised, simi/or/y, 15,090 out of 18,700 kllu toqs for
occredited vehic/es o/so remoined unuti/ised.
Mn4 did not hove on opproved /eqocy p/on for the uti/isotion/redep/oyment of the
security equipment, without on "o priori" identificotion of items os /eqocy, non-/eqocy
ond consumob/es. 5ubsequent to cw6-2010, clL identified /eqocy ond non-/eqocy
equipment worth ks. 272.5 crore, which hod sti// not been redep/oyed or uti/ised.
An lnLegraLed SecurlLy SysLem (lSS) was
requlred Lo ensure effecLlve survelllance for
CWC-2010 Lo cover evenLs, open areas,
lanes/lmporLanL Lrafflc [uncLlons, and hlghly
senslLlve and crowded areas ln uelhl. 1he
ma[or componenLs of Lhe lSS were:
perlmeLer securlLy,
vehlcle access conLrol,
pedesLrlan access conLrol for accredlLed
card holders and specLaLors, and
31.1 Introduct|on
venue securlLy command cenLre.
1he securlLy arrangemenLs for CWC-2010
were coordlnaLed by Lhe MlnlsLry of Pome
Affalrs (MPA) Lhrough Lhe Lmpowered
SecurlLy CommlLLee (LSC). 1he declslon Lo
provlde lSS for all compeLlLlon and non-
compeLlLlon/Lralnlng venues for CWC-2010
Lhrough LlecLronlcs CorporaLlon of lndla
LLd. (LClL), a Su, on nomlnaLlon basls"
was Laken by Lhe CablneL ln lLs meeLlng held
on 8 May 2009. 1hereafLer,
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ChapLer 31 - lnLegraLed SecurlLy SysLem (lSS) for CWC-2010
on Lhe dlrecLlon of LSC, Lhe exlsLlng

1
!olnL CommlLLee consldered Lhe
Lechnlcal soluLlon proposed by LClL for
each venue ln Lerms of lLs 'spread',
Lhe !olnL CommlLLee's recommendaLlons
were Lhen examlned by Lhe SLeerlng
CommlLLee (headed by Shrl 8.
narayanswaml) for Lhe essenLlallLy and
reasonableness of Lhe 8lll of CuanLlLles
(8CCs),
Lhe reasonableness of LClL's commerclal
offer prepared on Lhe basls of Lhe
1hese cosLs were apporLloned among four
3
agencles . 1he scheme was flnally
lmplemenLed only ln 31 venues, slnce
Shlva[l SLadlum and Shrl 8am College of
Commerce were subsequenLly removed
from Lhe llsL. Powever, slnce Lhe venue
owners had already slgned a conLracL wlLh
LClL, equlpmenL for Lhese venues, Lhough
procured, was noL lnsLalled. 1he value of
Lhls equlpmenL aL Lhe raLes lndlcaLed ln Lhe
LlC memo was 8s. 2.62 crore.
1
2
3
cooslstloq of tepteseototlves of tbe lotelllqeoce 8oteoo,
tbe uelbl lollce, veooe-owoets ooJ cll
lloooclol AJvlsots of MnA, MA5 ooJ Mouu,
lA/ultectot (lloooce) of uuA, 5Al ooJ otbet ossocloteJ
boJles, tepteseototlve of Oc (meetloqs otteoJeJ by
AuC-1ecb), tepteseototlves of veooe owoets, ooJ
ultectot (ltov), MnA.
MA5(ks. 225.89 ctote fot 20 veooes), Mouu (ks. 7J.41
ctote fot 4 veooes), NuMc (ks. 18.68 ctote fot J veooes)
ooJ CNc1u (ks. 27.72 ctote fot 6 veooes)
approved 8CC was Lhen examlned by an
lnLer-MlnlsLerlal llnanclal Advlsers
2
CommlLLee consLlLuLed by MPA, and
approved by Lhe LlC ln SepLember 2009
for 23 venues and March 2010 for 10
venues,
1hereafLer, each venue owner enLered
lnLo a separaLe agreemenL wlLh LClL for
supply and lnsLallaLlon of equlpmenL.
1he approved cosL of provldlng lSS aL 33
compeLlLlon and Lralnlng venues was 8s.
343.70 crore, as deLalled below:
Lqu|pment Lqu|pment
lmporLed lLems
lndlgenous/ln-house lLems
1ota|
196.18
103.80
301.98
lnsLallaLlon charges
1esLlng
Commlsslonlng
lnLegraLlon
ue commlsslonlng
1ota|
12.62
10.16
7.72
7.37
3.63
43.72
1oble J1.1 - 8teok-op of cost of ltovlJloq l55
31.2 Inf|ated est|mates of LCIL
resu|ted |n exorb|tant
prof|t of ks. 126.38 crore
AlLhough Lhe lnLer-MlnlsLerlal lA's
CommlLLee was noL convlnced of Lhe
reasonableness of Lhe esLlmaLes proposed
by LClL, lL recommended lLs approval wlLh
an across-Lhe-board cuL of 10 per cenL on
Lhe esLlmaLes, sub[ecL Lo Lhe followlng:
Lhe producLlon cosLs of lLems produced
ln-house by LClL were Lo be assessed by
Lhe CosL AccounLs 8ranch of Mol and
savlngs ln excess of 2 per cenL were Lo
be passed on Lo Lhe Col.
volume dlscounLs, lf any, would be Lo
Lhe beneflL of Lhe Col.
LCIL prov|ded equ|pment aga|nst S0

approved 8Cs - 43 for equ|pment to
be procured by LCIL and 7 for |n-house
|tems. We compared the purchase pr|ce
of |tems procured under the 43 8Cs
w|th the|r LIC-approved rates and
found that |n 41 of these 8Cs, the
actua| purchase pr|ce of the |tems was
|ower than the LIC approved rates .
4
Cvera||, LCIL procured |tems |n the 43
8Cs for [ust ks 100.6S crore (aga|nst
the LIC approved est|mate of ks. 227.04
crore), thus secur|ng a prof|t of ks.
126.38 crore (126 per cent) on these
|tems. Deta||s are g|ven |n Annexe-31.1.
C|ear|y, the |nf|ated est|mates prepared
by LCIL (approved at ks. 346 crore) d|d
not ref|ect true market rates, and
a||owed LCIL to make exorb|tant prof|ts
of at |east ks. 126 crore. Such conduct
by a SU appo|nted on nom|nat|on
bas|s by the GoI amounts to a breach of
trust.
Cons|der|ng the unre||ab|||ty of the
est|mates and var|at|on between the
est|mated and actua| costs, we
recommend that f|na| payments may be
re|eased to LCIL on|y after deta||ed
exam|nat|on of actua| costs and an
appropr|ate cert|f|cat|on by LCIL's
statutory aud|tors after a||ow|ng a
S
prof|t marg|n of upto 20 per cent .
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1he esLlmaLes approved were Lhe
absoluLe cap.
4
lo tbe temololoq 2 8OOs, tbe lc tote wos lowet tboo
tbe octool ptocotemeot tote by 6 pet ceot ooJ 16 pet
ceot.
S
6
1bls ptoflt motqlo of 20 pet ceot bos beeo loJlcoteJ lo
cll's estlmotes.
cll. cost losotooce ooJ ltelqbt
31.3 Lxcess Cash Advance to
LCIL of ks. 37 crore
We found LhaL LClL recelved excess cash
advance of 8s. 37.08 crore (ouL of Lhe LoLal
cash advance clalm of 8s. 137.32 crore) for
lmporLed lLems. 1hls was on accounL of mls-
classlflcaLlon of lLems lmporLed / procured
lndlgenously. LClL was ellglble for advance
6
of 70 per cenL of Lhe Cll value of lmporLed
equlpmenL and 40 per cenL on lndlgenously
procured equlpmenL. Powever, ouL of Lhe
equlpmenL Lo be lmporLed, equlpmenL
worLh 8s. 123.60 crore (aL LlC raLes) was
acLually procured lndlgenously, resulLlng ln
lnflaLed cash advances Lo LClL.
ln respecL of Lhe seven 8CCs for lLems
manufacLured ln-house, LClL dld noL
provlde us wlLh Lhelr cosL analysls. lurLher,
we found LhaL Lhls analysls had noL been
senL Lo Lhe CosL AccounLs 8ranch of Lhe
Mol, as of March 2011. ConsequenLly, we
could noL ascerLaln wheLher Lhere were
savlngs ln excess of 2 per cenL, whlch
should have been passed on Lo Lhe Col.
lurLher, LClL was requlred Lo LesL lndlvldual
lSS equlpmenL and lssue a [ob compleLlon
cerLlflcaLe, for whlch lL charged 8s. 10 crore.
Powever, lL dld noL produce Lhe relevanL
records Lo us.
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7
8
ooJ teltetoteJ lo Aoqost ooJ 5eptembet 2010
koJlo ltepoeocy lu - o tecbooloqy tbot oses toJlo
ftepoeocy commoolcotloo betweeo oo electtoolc toq
(ottocbeJ to oo object) ooJ o teoJet fot lJeotlflcotloo
ooJ ttockloq.
31.4 rocurement of equ|pment
|n excess of requ|rement
31.S kIID tags not ut|||sed
8
8llu Lags, conLalnlng deLalls of Lhe
accredlLed vehlcles, were Lo be flxed on Lhe
fronL wlnd shleld of Lhe vehlcle for easy
readlng by Lhe 8llu reader flxed aL Lhe
venue enLry gaLes Lo conLrol access. CC was
Lo glve Lhe llsL of accredlLed vehlcles wlLh
Lhe requlred deLalls and LClL was Lo prepare
8llu Lags.
LClL procured 18,700 8llu Lags, buL only
3,610 Lags were used durlng Lhe Cames and
Lhe remalnlng 13,090 Lags (worLh 8s. 4.41
crore) were lylng unuLlllsed wlLh LClL. 1hls
lndlcaLes LhaL Lhe 8CC was noL reallsLlcally
prepared by Lhe LClL and approved by Lhe
SLeerlng CommlLLee.
31.4.1 ortab|e Lxp|os|ve Detectors
worth ks. 38.SS crore wrong|y
procured and not ut|||se
uesplLe belng lnformed by Lhe uelhl ollce
7
ln !uly 2009 LhaL orLable Lxploslve
ueLecLors (Lus) should be removed from
Lhe 8CCs as Lhese were belng procured
separaLely, LClL dld noL deleLe Lhls lLem
from Lhe 8CCs nor dld lL seek any
clarlflcaLlons from Lhe MPA. 1hls lssue was
also noL dlscussed ln any subsequenL
meeLlng of Lhe SLeerlng CommlLLee.
ln March 2010, LClL procured 176 Lus aL a
LoLal cosL of 8s. 38.33 crore for supply Lo
Lhe venues. uurlng our [olnL physlcal
verlflcaLlon of !Ln SLadlum, we found 42
Lus sLlll ln packed condlLlon. LClL lnformed
us LhaL Lhe uelhl ollce dld noL use Lhese
Lus aL any of Lhe venues. 1he shelf llfe of
Lhe Lu equlpmenL ls 7 years and LhaL of lLs
consumables slx monLhs.
LDs |y|ng unut|||sed |n the stores at ILN Stad|um
MnA d|d not have an approved |egacy
p|an for the ut|||sat|on]redep|oyment of
the secur|ty equ|pment. Iurther, there
was no "a pr|or|" |dent|f|cat|on of ISS
|tems as |egacy |tems, non-|egacy |tems
and consumab|es.
nowever, we found that the |egacy and
non-|egacy equ|pment amount|ng to
ks. 272.6S crore was |y|ng unut|||zed. LCIL
had d|smant|ed a|| the equ|pment (|egacy
and non-|egacy) |n a|| stad|ums, except
1hyagara[a Stad|um. 1hese were reta|ned
|n packed cond|t|on |n the venues under
LCIL's custody.
1he |egacy |tems had not been
reconf|gured, as var|ous network sw|tches
and cab|es requ|red to operate them had
been prov|ded by the CC as a part of
over|ays, and had s|nce been removed.
A|though the CC had undertaken to
prov|de these aga|n after CWG-2010, th|s
was yet to be done. A|so, no ut|||sat|on
p|ans for the non-|egacy |tems had been
prepared by MnA.
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31.6 oor Legacy |ann|ng and
Non-ut|||sat|on
31.7 Secur|ty arrangements
dur|ng CWG-2010 at
kadarpur Shoot|ng
kangece
kadarpur ShooLlng 8ange ln Curgaon,
Paryana was one of Lhe compeLlLlon venues
for CWC 2010. MPA released (lebruary
2010) a speclal granL of 8s. 23.23 crore,
under Lhe ModernlsaLlon of ollce lorces
Scheme, Lo Lhe Paryana CovernmenL for
maklng securlLy arrangemenLs for CWC-
2010.
We found LhaL alLhough 8s. 21.96 crore had
been drawn from Lhe Lreasury durlng
!uly-CcLober 2010 and deposlLed wlLh Lhe
execuLlng/ procuremenL agencles, no
equlpmenL had been recelved as of
november 2010, even afLer CWC-2010 was
over. ln addlLlon, 39 fabrlcaLed pollce
asslsLance booLhs worLh 8s. 0.74 crore were
procured by Lhe Paryana ollce
ueparLmenL, buL Lhese were noL handed
over Lo Lhe Curgaon and larldabad Lrafflc
pollce ln Llme for CWC-2010.
LClL's agreemenLs wlLh Lhe venue owners
merely sLlpulaLed LhaL legacy and non-
legacy lLems were Lo be declded wlLhln 30
days of compleLlon of Lhe evenLs. LClL
would reconflgure all legacy equlpmenL and
make Lhem workable ln Lhe venue, whlle
non-legacy equlpmenL was Lo be handed
over Lo Lhe venue owners for subsequenL
usage and reLenLlon. ln lLs reporL Lo MPA
of november 2010, LClL ldenLlfled legacy
equlpmenL of 8s. 86.47 crore and non-
legacy equlpmenL of 8s. 186.18 crore aL Lhe
31 venues.
GoI shou|d ad[ust the amount of
ks. 22 crore, drawn but not ut|||sed
for CWG-2010, aga|nst the re|ease of
the next tranche of ass|stance under
the Modern|sat|on of o||ce Iorces
Scheme to the Government of
naryana.
C
n
A
1
L
k
reparat|on of Ind|an 1eams
for CWG - 2010
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ln lune 2008, MY45 initioted o scheme for "Preporotion of lndion 1eoms for cw6-2010"
for importinq stote of the ort troininq, with we//-equipped infrostructure ond other
supportinq foci/ities, throuqh the 5ports 4uthority of lndio {54l) ond its reqiono/ centres
to o core qroup of 128 e/ite oth/etes, who wou/d be the medo/ probob/es for cw6-2010.
we found thot 54l uti/ised on/y l0 per cent of the budqet of ks.78 crore o//ocoted for the
period 2008-11.
1here were substontio/ de/oys in se/ection of core probob/es ronqinq from four to 17
months, with probob/es in cyc/inq discip/ine beinq se/ected in lu/y 2009.
1here were o/so substontio/ de/oys in oppointment of cooches {in five out of 17 discip/ines)
ond other supportinq stoff, inc/udinq supportinq stoff to 54l reqiono/ centres. 1he
performonce porometers for judqinq improvement in the performonce of the core
probob/es were decided os /ote os 15 to 20 months ofter commencement of
imp/ementotion of the scheme. 4/so, o web-bosed l1 system for continuous monitorinq
ond ossessment of oth/etes' troininq cou/d not be operotiono/ised.
4 toto/ number of 284 troininq comps were he/d for 18 {17 normo/ discip/ines ond one poro
sports). nowever, mony discip/ines ond sub discip/ines hod not hod troininq comps durinq
the yeor.
lor supportinq troininq of core probob/es, 54l oworded 28 controcts/ orders for
procurement of imported sports items ond equipment ot o cost of ks. 40.12 crore durinq
2008-11. we found serious deficiencies in the procurement process. 4// 28 orders were
oworded on sinq/e tender bosis os "preferred items" without odequote justificotion -
brond requirements were not specified by the notiono/ federotions, purchoses were
mode from different vendors ot different rotes etc. ln the obsence of competitive
tenderinq, we ore unob/e to derive ossuronce reqordinq considerotions of economy ond
tronsporency. 1his is supported by our comporison of rotes for the some items supp/ied by
different vendors quoted.
lurther, the expenditure of ks. 40.12 crore on procurement of sports equipment wos
/orqe/y unfruitfu/ os,
ltems worth ks.4.88 crore were received just 10 doys before the 6omes ofter the
troininq comps, ond items worth ks.0.84 crore were received durinq ond ofter the
6omes. Notob/e instonces of de/oyed procurement/ receipt inc/ude cyc/es, shootinq
ommunition ond shootinq equipment.
5ports items for oquotics, orchery, squosh, tennis, tob/e tennis ond boxinq {estimoted
to cost ks. 5.55 crore) cou/d not be purchosed ot o//.
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ChapLer 32 - reparaLlon of lndlan 1eams for CWC - 2010
oth/etic ond weiqht/iftinq items worth ks 0.28 crore were de/ivered to 54l centres thot
did not require such equipment. 5tock of ks. 1.25 crore remoined unuti/ited in the
centres of Potio/o ond 8hopo/.
Oversiqht ond monitorinq by the Ministry wos inodequote due to the mechonism not
beinq procticob/e. 1he stoffinq of the cw6 ce// for monitorinq wos poor.
Other deficiencies in provision of foci/ities for troininq of core probob/es inc/uded the
fo//owinq:
1roininq workshops for dope testinq were inodequote ond ineffective in some centres.
1here were de/oys in provision of medico/ insuronce coveroqe for the core probob/es,
ond /orqe number of medico/ insuronce cords were received /ote.
On the infrostructure front, 54l foi/ed to construct hoste/s in five reqiono/ centres, whi/e
hoste/s constructed in three reqiono/ centres cou/d not be uti/ised due to non-ovoi/obi/ity
of furniture, kitchen ond other supportinq foci/ities. 5even out of eiqht sports science
centres, o// eiqht stondord modern fitness centres ond renovoted/ upqroded ho//s ot
vorious centres cou/d not be uti/ised before the 6omes. 1hus, out of funds of ks. 78.l
crore re/eosed for infrostructure up-qrodotion, expenditure of ks. 74.l5 crore wos not
fruitfu/ in time for the 6omes. lurther, out of the envisoqed ks. 9.20 crore of sports science
equipment, on/y o neq/iqib/e omount of equipment wos in position before the 6omes.
4ttempts initioted from Morch 2007 to introduce PPP for monoqement of five stodio in
ue/hi were not successfu/, due to proceduro/ de/oys os we// os po/icy decisions on this issue
by MY45.
1here were deficiencies in finoncio/ monoqement inc/udinq
Non refund of the unuti/ised omount of ks. 45.50 crore by 54l ond diversion of ks.
19.00 crore for construction of the odministrotive b/ock of 54l nqrs bui/dinq, ond
Non-sett/ement of odvonces ond non-receipt of ucs/ oudited 5Os.
6ymnostic equipment procured ot o cost of ks. 1.l9 crore cou/d not be insto//ed, ond
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ln !une 2008, M?AS lnlLlaLed a scheme for
reparaLlon of lndlan 1eams for CWC-
2010" for lmparLlng sLaLe-of-arL Lralnlng
wlLh well equlpped lnfrasLrucLure and oLher
supporLlng faclllLles for a core group of
32.1 Introduct|on
1286 ellLe aLhleLes, who would be medal
probables for CWC 2010. 1hls scheme was
lmplemenLed by Lhe SporLs AuLhorlLy of
lndla (SAl) and lLs reglonal cenLres/sub
1
cenLres . 1he budgeL allocaLlon and acLual
expendlLure for Lhe scheme was as follows:
1he schedule of Lralnlng, exposure and
compeLlLlon was Lo cover a perlod of 303
days (210 days' Lralnlng camp, 73 days'
forelgn Lralnlng and compeLlLlon and 20
days' domesLlc LournamenL) ln a year. 1he
scheme also provlded for engagemenL of
Lhe besL avallable lndlan coaches as well as
Lop level forelgn coaches. A SLeerlng
CommlLLee was Lo be formed for each of
Lhe 18 (17 normal + 1 ara sporLs dlsclpllne)
dlsclpllnes Lo approve Lhe selecLlon of Lhe
core group of probables and coaches, and
Lo monlLor Lhe performance of Lhe
probables.
We observed LhaL Lhere were delays ln
selecLlon of probables, coaches and
supporLlng sLaff as glven below:
32.2 De|ay |n se|ect|on of
probab|es]staff
32.2.1 De|ay |n se|ect|on of core
probab|es
32.2.2 erformance Mon|tor|ng
1he flrsL meeLlngs of Lhe SLeerlng

CommlLLees were held ln !uly 2008.
Powever, Lhere were subsLanLlal delays ln
flnallslng Lhe llsL of core probables who
were Lo be conLlnuously Lralned upLo CWC
2010. 1he delays ranged from four monLhs
(archery, boxlng, aLhleLlcs neLball) Lo 17
monLhs (cycllng) whlch slgnlflcanLly reduced
Lhe perlod avallable for Lhelr Lralnlng.
1here were delays ln flnallsaLlon of
performance parameLers for [udglng Lhe
lmprovemenL ln Lhe performance of Lhe
core probables by Lhe SLeerlng CommlLLee.
1he performance parameLers for flve
dlsclpllnes (aLhleLlcs, cycllng,
gymnasLlcs, neL ball and shooLlng) were
flnallsed only beLween SepLember 2009
and lebruary 2010, when Lhe
lmplemenLaLlon of Lhe scheme was ln
Lhe flnal sLages.
Component 8udget a||ocat|on
Actua| expend|ture
(up to 1.12.2010)
1oble J2.1 - 8oJqet ollocotloo ooJ octool expeoJltote oo tbe 5cbeme
1ra|n|ng
Infrastructure
Sports sc|ence back up etc.
1ota|
373.00
83.00
218.00
678.00
108.03
74.33
20.93
203.3S
(ks. lo ctote)
1
8bopol, lotlolo, 5ooepot, 8eoqoloto, Cowobotl, lmpbol,
1bltovootbopotom, CooJblooqot, kolkoto, 8olewoJl
(looe), lockoow
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S48
32.2.3 De|ay |n appo|ntment of

coaches]support|ng staff
lL was noL clear wheLher performance

parameLers were flnallsed aL all for
boxlng and rugby.
1he scheme envlsaged appolnLmenL of Lop
level forelgn coaches ln addlLlon Lo Lhe besL
lndlan coaches. lL was noLlced LhaL ln flve
(aLhleLlcs, gymnasLlcs, welghLllfLlng, hockey
and cycllng) ouL of 17 dlsclpllnes, forelgn
coaches were selecLed only durlng March Lo
uecember 2009. Also, agalnsL a
requlremenL of a forelgn coach and four
lndlan coaches for lawn bowls, only one
forelgn coach was engaged durlng Lhe
whole perlod of Lhe Lralnlng camps.
Slmllarly, Lhere were delays ln appolnLmenL
of supporLlng personnel ln Lhe SAl reglonal
cenLres of 8engaluru and SonepaL as
deLalled below:
AL SonepaL cenLre, no physlologlsL,
psychologlsL, blo- mechanlsL and
nuLrlLlonlsL/dleLlclan were engaged for
Lhe enLlre perlod of Lralnlng.
AgalnsL Lhe requlremenL of 9 Masseurs
and Masseuses aL 8engaluru cenLre,
only one masseur was provlded and no
masseurs was provlded Lo core
probables durlng Lhe Lralnlng camp aL
CoLy for exposure Lo hlgh alLlLude.
lurLher, physloLheraplsLs were engaged
only ln uecember 2009, alLhough Lhe
camps were belng held aL Lhls cenLre
from March 2008.
lood supplemenLs provlded Lo Lhe core
probables were wlLhouL supervlslon by
an experlenced nuLrlLlonlsL durlng Lhe
camps conduced ouLslde Lhe 8engaluru
cenLre for perlods ranglng beLween 28-
329 days ln respecL of badmlnLon,
shooLlng, aLhleLlcs, boxlng, squash and
cycllng.
A LoLal 284 Lralnlng camps were held for
17+1 dlsclpllnes durlng 2008-11, as
summarlsed below:
32.2.4 Conduct of 1ra|n|ng Camps

1oble J2.2 - cooJoct of ttololoq comps fot Jlffeteot spotts/ Jlsclplloes
Archery
Sw|mm|ng
Synchron|sed
D|v|ng
Ath|et|cs
8adm|nton
8ox|ng
Cyc||ng
Aquat|cs
133

32
38
0
170
174
30
0

133

32
0
0
170
174
nA
0

361

188
42
130
289
317
336
212
361

188
108
98
289
317
nA
212

103

110
0
141
0
162
173
132

103

110
47
141
0
162
nA
132

1.
2.

3.
4.
S.
6.
No. Sport]D|sc|p||ne
roporLlonaLe 1argeL ln days
2008 - 09
138 138
Men Women Men Women Men Women
210 210 103 103
2009-10 2010-11
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No. Sport]D|sc|p||ne
roporLlonaLe 1argeL ln days
Gymnast|cs
Shoot|ng
Wrest||ng
khythem|c
Art|st|c
nockey
Lawn 8ow|s
Net 8a||
kugby 7s
k|f|e
Shortgun
|sto|
8|gbore
Iu||bore
Squash
1ab|e 1enn|s
1enn|s
We|ght||ft|ng
Greeco
Ireesty|e
44
80
40
nA
0
126
83
32
0

0
87
0
33

39
63
nA
22
124
40
77
nA
126
83
32
0
0
nA
87
0
33

39
nA
22 nA
331
187
332
nA
137
173
114
78
0
0
0
164
131
310

344
186
331
227
332
206
nA
173
114
78
0
0
0
164
131
287

363
nA
196
173
82
111
nA
170
91
32
73
26
13
32
43
20
186

0
0
nA
140
83
111
137
nA
91
32
73
26
13
21
43
20
169

0
nA
107

7.

8.
9.
10.
11.
12.
13.
14.
1S.
16.
17.
2008 - 09
138 138
Men Women Men Women Men Women
210 210 103 103
2009-10 2010-11
N4 : uoto not mode ovoi/ob/e to oudit
lncldenLally, no medals were won by lndla ln
cycllng, squash, shooLlng (blg bore),
shooLlng (full bore), swlmmlng (dlvlng) and
swlmmlng (synchronlsed), where Lhere
were subsLanLlal shorLfalls ln conducL of
Lralnlng camps.
A web-based l1 sysLem, 'erformance
8evlew lndlcaLors MonlLorlng and
32.2.S Non operat|ona||sat|on of web-
based System for mon|tor|ng
ath|etes' performance
LvaluaLlon of SporLspersons' (8lSM) for
conLlnuous monlLorlng and assessmenL of
aLhleLes' Lralnlng, whlch was developed/
malnLalned by nlC aL a cosL of 8s. 1.08 crore
could noL be operaLlonallsed durlng Lhe
enLlre perlod of Lralnlng. 1hls defeaLed lLs
purpose of conLlnuous assessmenL of
aLhleLes' Lralnlng aL regular lnLervals.
1esL evenLs ln all dlsclpllnes were requlred
Lo be conducLed durlng 2008, 2009 and
2010 ln order Lo LesL Lhe performance of
Lhe core probable, ldenLlfy shorLcomlngs
and also famlllarlze Lhem wlLh Lhe newly
creaLed venues. Powever, we found LhaL no
LesL evenLs were conducLed durlng 2008
and 2009.
32.3 1est events
32.4.1 rocurement on s|ng|e tender
lor supporLlng Lralnlng of core probables,

SAl awarded 28 conLracLs/orders for
procuremenL of lmporLed sporLs lLems and
equlpmenL aL a cosL of 8s. 40.12 crore
durlng 2008-11.
1he procedure followed by SAl for
procuremenL of sporLs equlpmenL was as
glven below:
8equlremenLs were pro[ecLed by 17
naLlonal SporLs lederaLlons
1echnlcal LxperLs CommlLLee assessed
Lhe requlremenL, brand (preferred lLem)
and made recommendaLlons Lo Lhe
SLeerlng CommlLLees
SLeerlng CommlLLees assessed Lhe
requlremenL and made
recommendaLlons Lo Lhe llnance
CommlLLees
llnance CommlLLee assessed
requlremenLs and made
recommendaLlons Lo SAl Covernlng
8ody for approval
SAl Covernlng 8ody approved
procuremenLs
32.4 rocurement of sports
equ|pment
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SS0
rocuremenLs were Lo be lnlLlaLed by

LqulpmenL SporLs ulvlslon of SAl
We found LhaL Lhere were deflclencles ln
Lhe procuremenL process as:
All 28 orders were awarded on
nomlnaLlon basls as preferred lLems"
wlLhouL adequaLe [usLlflcaLlon
no speclflc brand requlremenL was
ldenLlfled by Lhe concerned federaLlons
of boxlng, neLball, gymnasLlc and lawn
bowl dlsclpllnes.
ln Lwelve cases of procuremenL of
[avellns and ammunlLlon, SAl placed
orders on dlfferenL manufacLurers,
LreaLlng Lhem as preferred lLems. ln
parLlcular, [avellns were purchased from
Lhree vendors (nemeLh, nordlc SporLs,
Clll ALhleLlc) separaLely on a slngle
Lender basls aL dlfferenL raLes on Lhe
[usLlflcaLlon LhaL Lhese lLems were of
proven lnLernaLlonal sLandard.
LqulpmenL llke 8ar 8ell and LlecLronlc
Score 8oard cosLlng 8s 0.92 crore were
procured from Llelko wlLhouL calllng for
Lenders, Lhough Lhese were noL dlrecLly
llnked Lo aLhleLes' performance or
Lralnlng.
ln Lhe absence of compeLlLlve Lenderlng, we
are unable Lo derlve assurance regardlng
conslderaLlons of economy and
Lransparency. 1hls ls supporLed by our
comparlson of raLes for Lhe same lLems
supplled by dlfferenL vendors quoLed. Whlle
we were unable Lo quanLlfy Lhe loss, we
have Lrled however, Lo come up wlLh
lndlcaLors by comparlng raLes for cerLaln
lLems (lndlgenous and lmporLed) supplled
by dlfferenL vendors.
32.4.1.2 lmporLed lLems
1he raLe comparlson of supply order placed on Lwo flrms revealed LhaL Lhere were varlaLlons
ln prlce of purchase of [avellns wlLh same speclflcaLlons shown as under:
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erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) SS1
1oble J2.J - compotlsoo of totes fot loJlqeooos ltems
Descr|pt|on
nammer w|re men and women
nammer hand|e
D|scus Go|d men 2 kg
D|scus men 2.2S kg
D|scus Go|d 1 kg
D|scus 1.1 kg
D|scus 1.2S kg
D|scus 900 gms
D|scus 1.7S kg
D|scus 1.9 kg
D|scus Super Sp|n 2 kg
D|scus Super Sp|n 1 kg
nammer Women S kg
nammer Men 6.S
nammer Women 3.S kg
nammer men 7.26 kg
nammer Women 4 kg
73
300
3400
973
3900
383
608
373
730
833
3636
3000
1110
1200
883
1363
923
232
348
4600
6190
3230
4932
7390
3293
3280
3293
3332
3420
3220
3420
4310
3610
3600
230
343
7320
3290
6230
4890
4330
3230
3330
3390
3490
3390
3143
3343
4273
3643
3610
SAI at|a|a SAI De|h|
Supp|y order p|aced
to Vats Sports on
22 December 2009
"8rand : V|nex"
Supp|y order p|aced to
V|nex Lnterpr|ses through
Am|tco khe| Centre
on 23rd Iebruary 2010
"8rand : V|nex"
Supp|y order p|aced to
Anand 1rack and I|e|d
Lqu|pment vt. Ltd.
Meerut on 10th Iune 2010:
"8rand : A1L"
kate (In ks.)
1oble J2.4 - compotlsoo of potcbose ptlces fot jovellos
Name of Items
Iave||n 600 gms carbon
Iave||n 800 gm carbon
Iave||n 800 gm 70 M range
68121
91149
34243
83241
83241
40804
kate as per supp|y order |ssued to
G||| Ath|et|c Inc Nord|c Sports
32.4.1.1 lndlgenous lLems
1he comparlson of raLes ln respecL of supply order placed on Lwo flrms by SAl PeadquarLers
and one flrm by SAl, aLlala for aLhleLlc sporLs equlpmenL of vlnex and A1L brand ls as follows:
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SS2
ln response, SAl sLaLed LhaL Lhey had
followed Lhe sLlpulaLed process ln leLLer and
splrlL for procuremenL of preferred lLems"
(l.e. speclflc brands of equlpmenL), whlch
were communlcaLed Lo Lhem by Lhe SAl
2
Lechnlcal commlLLee . 1he need for lLems
covered under slngle Lender arose due Lo
very speclal reasons on accounL of Lhelr
quallLy, performance and Lhe preference of
sporLs persons.
Whlle we noLe LhaL preferred lLems may be
ldenLlfled from ouL of Lhe llsL of brands
approved by Lhe concerned lnLernaLlonal
sporLlng federaLlons, we are unable Lo
derlve assurance LhaL Lhe prlces pald for
Lhese brands are reasonable, ln Lhe absence
of compeLlLlve Lenslon. 1hls ls compounded
by slLuaLlons where mulLlple brands of
equlpmenL are all selecLed as prlce lLems,
wlLh wlde varlaLlons ln prlces.
SAl lnlLlally blackllsLed an agenL and
laLer ln !anuary 2007 declared lL as an
agenL wlLh ob[ecLlonable conducL
conLravenlng buslness eLhlcs. Powever,
ln Aprll 2010 boLh Lhe orders were
wlLhdrawn Lo accommodaLe Lhe sald
agenL lnsLead of asklng Lhe orlglnal
manufacLurer Lo change lLs agenL.
lurLher, SAl dld noL levy penalLy of 8s. 2.20
crore ln 12 cases of procuremenL of sporLs
equlpmenL/maLerlal, on accounL of delay ln
supply. ln one parLlcular case, SAl could noL
levy penalLy of 8s. 1.44 crore on Lhe
3
suppller due Lo amblgulLy ln Lhe
conLracLual clauses.
AlLhough Lhe scheme was lnLroduced ln
!une 2008, Lhe sporLs equlpmenL Lo be
procured were approved by Lhe llnance
CommlLLee only ln !une 2009 and Lhe
process of procuremenL was lnlLlaLed ln
AugusL 2009. 1hus, Lhe elaboraLe
mechanlsm for procuremenL merely
resulLed ln delays wlLhouL ensurlng
economy ln procuremenL.
lurLher, Lhe sporL equlpmenL whlch was
cruclal for lmparLlng sLaLe of Lhe arL Lralnlng
Lo Lhe core probables were recelved aL Lhe
fag end of Lhe Lralnlng perlod/afLer
compleLlon of CWC 2010 aL varlous SAl
cenLres.
32.4.3 Unfru|tfu| expend|ture of ks 40.12
crore due to de|ayed procurement
of sports equ|pment
32.4.2 Contract Management
uue Lo procuremenL on nomlnaLlon basls,

SAl was bound by Lhe Lerms and condlLlons
offered by Lhe vendor whlch resulLed ln Lhe
followlng:
Walver of earnesL money, bank
guaranLee and warranLy perlods eLc ln
17 cases
ln purchase of full bore rlfle agalnsL Lhe
orlglnal condlLlon of 83 percenL
paymenL on shlpmenL and balance 13
per cenL afLer Lhe accepLance of goods,
SAl changed lLs mode of paymenL as 100
per cenL advance paymenL.
ln case of procuremenL of aLhleLlc
equlpmenL from nordlc SporLs, Sweden,
2
locloJloq tepteseototlves of 5Al, tbe spottloq feJetotloo,
ootloool obsetvet, ooJ coocb
3
1be cloose 10 of tbe teoJet Jocomeot ptovlJe tbot
Jellvety sboolJ be completeJ wltblo 15 Joys oftet tbe
plocemeot of coottoct ooJ tecelpt ooJ coofltmotloo of
lettet of cteJlt, wbeteos, tbe cloose 16(vll) ptovlJes tbot
lt moy be eosoteJ tbot Jellvety, lostollotloo ooJ
commlssloo etc. of tbe system ls completeJ wltblo 90
Joys ftom tbe Jote of lssoe of lettet of cteJlt.
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All Lhe equlpmenL was dellvered only ln
2010 as shown below:
LqulpmenL for 8s.4.88 crore was
recelved [usL Len days ahead of Lhe
Cames
LqulpmenL for 8s. 0.84 crore was
recelved afLer Lhe Cames
recelved only one monLh ahead of Lhe
Cames

recelved 2-3 monLhs ahead of Lhe
games
recelved 6-9 monLhs ahead of Lhe
games
A dlsclpllne -wlse analysls ls summarlsed
below:
Some exLreme cases of delayed recelpL of
equlpmenL cosLlng 8s. 3.90 crore are
dlscussed below:
32.4.3.1 unfrulLful expendlLure of 8s. 1.11
crore on procuremenL of cycles for
core probables:
As SAl could noL procure cycles ln Llme, Lhe
SLeerlng CommlLLee (!une 2010) declded Lo
1oble J2.5 - ueloyeJ tecelpt of spotts epolpmeot
No. D|sc|p||ne
Shoot|ng
Shoot|ng
Shoot|ng
nockey
nockey
Lawn 8ow|s
Ath|et|cs
Ath|et|cs
Ath|et|cs
Ath|et|cs
Ath|et|cs
Wrest||ng
Gymnast|cs
We|ght L|ft|ng
8ox|ng
Cyc||ng
AmmunlLlon
ShooLlng AmmunlLlon and consumable
LqulpmenL
llLness LqulpmenL
body maLrlx equlpmenL
SporLs equlpmenL
ALhleLlc sporLs maLerlal
-uo-
-uo-
-uo-
-uo-
wresLllng maLs
CymnasLlc equlpmenL
welghL llfLlng equlpmenL
unchlng bags LeaLher (8oxlng)
Cycles
Grand 1ota|
0.12
4.03
27.62
0.83
0.01
0.49
0.83
0.71
0.13
0.72
0.18
0.39
1.39
1.39
0.13
1.11
40.12
07.10.10
19-09-2010 Lo 29.09.10
06.01.10
22.09.10
Mar-10
17.09.10
23.07.10
06.07.10
03.08.10
12.10.10
27.04.10
07.07.10
30.08.10
23.07.10
06.07.10 Lo 08.07.10
17.09.10
1
2
3
4
S
6
7
8
9
10
11
12
13
14
1S
16
Lqu|pment kece|ved on Cost
(8s. ln crore)
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SS4
enLrusL Lhe [ob Lo lndlan Clymplc
AssoclaLlon (lCA). We noLed LhaL lCA
obLalned Lhe slgnaLures of varlous players
and coaches on prlnLed formaL ln supporL of
a parLlcular brand and placed Lhe supply
order worLh 8s.1.11 crore on uolan 8lkes
LLd. on Lhe basls of a slngle quoLaLlon, wlLh
Lhe requesL Lo supply Lhe blkes laLesL by 4
SepLember 2010. Powever, Lhe cycles were
handed over Lo Lhe cycllsLs only on 18
SepLember 2010, when only four days were
remalnlng for Lhe closure of Lhe Lralnlng
camp.
1he proposal for procuremenL of
ammunlLlon for 8lfle/lsLol and ShoLgun
evenL from llocchl Munlzlonl SA, lLaly was
lnlLlaLed ln March 2010 and Lhe revlsed
order of 8s. 0.83 crore was placed on Lhe
suppller ln SepLember 2010. 1he maLerlal
was however, recelved flnally on 28
SepLember 2010 afLer Lhe close of Lhe
shooLlng camp even afLer alrllfLlng aL an
addlLlonal cosL of 8s. 0.19 crore.
SAl lnlLlaLed Lhe proposal for procuremenL
of ammunlLlon for blg bore 8lfles evenL
from WlnchesLer AusLralla LLd., ln March
2010 aL a cosL of 8s. 0.12 crore and placed
Lhe supply order ln AugusL 2010. Powever,
Lhe maLerlal was recelved only on 7
CcLober 2010 aL karnl Slngh ShooLlng 8ange
(kSS8) durlng Lhe Cames.
SAl declded Lo procure addlLlonal
4
equlpmenL from Slus AC, SwlLzerland ln
32.4.3.2 AmmunlLlon for 8lfle/lsLol and
ShoLgun evenL:
32.4.3.3 AmmunlLlon for blg bore
rlfles evenL:
32.4.3.4 non uLlllsaLlon of addlLlonal
equlpmenL for shooLlng:
!anuary 2010 buL placed Lhe supply order
for 8s. 1.83 crore only ln AugusL 2010. 1he
equlpmenL was dellvered ln SepLember
2010 buL could however, noL be lnsLalled aL
Lhe shooLlng range Llll 30 SepLember 2010.
As lnsLallaLlon and commlsslonlng requlred
anoLher Lwo weeks afLer supply of
equlpmenL, lL could noL be uLlllsed ln Llme
for Lralnlng.
ln response, SAl sLaLed LhaL a Llme
consumlng, Lhough essenLlal, process had
Lo be followed for procuremenL. When lL
came Lo a cholce beLween hasLy declslons
and flnanclal prudence, SAl chose Lhe laLLer.
lurLher, procuremenL of lmporLed lLems
had a Llme cycle of 6-8 monLhs, and one
could noL plan lmporLs wlLh Lhe preclslon of
a gold welghlng machlne. Also, all
equlpmenL lmporLed were used by aLhleLes
for CWC, LhereafLer for Lhe Aslad, and Lhen
for Clymplc Lralnlng.
Whlle we noLe Lhe Llme consumlng process
for procuremenL, Lhls should have been
facLored ln Lhrough Llmely and beLLer
plannlng, keeplng ln vlew such operaLlonal
conLlngencles and lead Llmes. lurLher,
alLhough Lhe equlpmenL procured would
have conslderable legacy value, lL was
procured ln Lhe flrsL lnsLance for use for
Lralnlng of core probables for CWC-2010,
whlch was noL fully achleved.
rocuremenL of sporLs equlpmenL cosLlng
8s. 3.33 crore relaLed Lo aquaLlcs, archery,
squash, Lennls, Lable Lennls and boxlng
could noL be flnallsed due Lo varlous
reasons llke non recelpL of Lenders, noL as
per speclflcaLlon, re[ecLlon on Lechnlcal
Lerms eLc and re-Lenderlng was noL done
due Lo pauclLy of Llme.
32.4.4 Non-procurement of sports
mater|a|s worth ks. S.SS crore
4
fot 6tb boy of 25 mtt wltb electtoolc scotloq bootJ
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32.4.S Improper p|ann|ng and
assessment of requ|rement of
sports mater|a|
ScruLlny of Lhe sLock reglsLer for shooLlng
dlsclpllne aL kSS8 revealed LhaL SAl had
made fresh purchases even when Lhere was
enough sLock avallable ln respecL of varlous
lLems. As a resulL, shooLlng
ammunlLlon/equlpmenL cosLlng 8s.1.21
crore remalned unuLlllsed even afLer Lhe
end of Lhe Cames.
SAl lnlLlaLed a proposal for procuremenL of
gymnasLlc equlpmenL for Lwo cenLres aL
32.4.3.1 Lxcess procuremenL for shooLlng
crore on procuremenL of
gymnasLlc equlpmenL
aLlala and kolkaLa from Cymnova, lrance
aL a cosL of 8s. 2.10 crore ln CcLober 2009
and placed Lhe supply order ln March 2010.
upon Lhe requesL of forelgn coaches (une
cenLre) for lmmedlaLe supply of Lhree lLems
(one floor exerclse compleLe seL, Lwo
vaulLlng Lables wlLh compleLe seL wlLh
runway and four sprlng board for vaulLlng
Lable), parL of Lhe supply was dlverLed Lo
une ln !uly 2010. As a resulL, Lhe
equlpmenL aL aLlala and kolkaLa became
lnoperaLlve and could noL be uLlllsed and
remalned ln sLock unlssued. 1hus, Lhe
equlpmenL cosLlng 8s. 1.39 crore could noL
be used aL any one of Lhe Lhree cenLres.
CuL of Lhls equlpmenL, 63 gymnasLlcs
equlpmenL and accessorles cosLlng 8s.0.38
crore were dellvered ln !une 2010 aL SAl,
kolkaLa afLer Lhe camp for women core
probables was shlfLed from kolkaLa Lo une.
erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) SSS
Unpacked gymnast|cs equ|pments for CWG 2010 |y|ng at SAI ko|kata
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crore on Lhe procuremenL of
welghL llfLlng equlpmenL and
aLhleLlc sporLs maLerlal for aLlala
CenLre
32.4.3.4 lnfrucLuous expendlLure of
8s. 0.31 crore on aLhleLlc
equlpmenL - ole vaulL plLs
S
SAl procured Lhe welghLllfLlng lLems from
Llelko A8, Sweden cosLlng 8s. 1.39 crore for
aLlala CenLre ln !anuary 2010. We found
LhaL ouL of 24 Llelko pracLlce plaLforms
procured for Lhe aLlala cenLre recelved ln
!uly 2010, Len plaLforms cosLlng 8s. 0.13
crore were Lransferred Lo 8engaluru ln
SepLember 2010, where no welghLllfLlng
Lralnlng camp was ln exlsLence aL LhaL polnL
of Llme.
Slmllarly, a supply order was placed on
Anand 1rack and lleld equlpmenL vL. LLd.,
MeeruL ln !une 2010 for aLhleLlcs aL a cosL
of 8s. 0.13 crore for aLlala wlLhouL any
requlslLlon. 1he equlpmenL was dlverLed Lo
SAl, 8engaluru ln AugusL 2010. ln
SepLember 2010 aL 8engaluru, lL was
noLlced LhaL one dlscus 2 kg gold was shorL
and four pole vaulLlng boxes were noL as
per lAAl speclflcaLlons. 1he suppller was
asked afLer compleLlon of CWC 2010, Lo
recLlfy Lhe supply ln respecL of pole vaulL
boxes, whlch was noL recLlfled as of
november 2010.
SAl procured Lwo lmporLed pole vaulL plLs
for SAl aLlala and kolkaLa cenLres for
aLhleLlcs and LransporLed Lhem Lo Lhe
respecLlve cenLres ln CcLober 2009. Cne
compleLe unlL of pole vaulL plL conslsLs of
four separaLe segmenLs Lo be [olned
LogeLher. SAl aLlala recelved double seLs
of segmenLs 3 and 4, whlle kolkaLa recelved
double seLs of segmenLs of 1 and 2. As a
resulL, boLh Lhe pole vaulL unlLs cosLlng 8s.
0.31 crore could noL be uLlllsed aL elLher
kolkaLa or aLlala. Powever, SAl sLaLed LhaL
Lhese procuremenLs were noL made ouL of
CWC funds.
SAl, 8engaluru placed order on Pa-ko
LnLerprlses, 8ombay for a hockey Lhrowlng
machlne cosLlng 8s. 2.21 lakh. 1he machlne
was recelved aL 8engaluru ln !uly 2009 afLer
Lhe camp was abrupLly shlfLed Lo SAl,
8hopal ln May 2009 due Lo lnsufflclenL
lnfrasLrucLural faclllLles.
A scruLlny of sLock reglsLer of equlpmenL of
SAl aLlala and 8hopal revealed LhaL mosL
of Lhe lmporLed equlpmenL procured under
Lhe scheme was recelved aL Lhe fag end of
Lhe Lralnlng camps and remalned unlssued
Lo Lhe campers. 1he deLalls are ln
1able 32.6.
32.4.3.3 urchase of hockey ball Lhrowlng
machlne cosLlng 8s 2.21 lakh
afLer shlfLlng of hockey camp
32.4.6 Stock of ks. 1.2S crore rema|ned
unut|||zed
S
lecttoolc 5cote 8ootJ, kefeteoce Jeclsloo llqbt system,
8otbell sets, lelko ltoctlce llotfotm (J.06m x 2.58m)
ooJ competltloo llotfotm (4m x 4m)
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1hus, sporLs equlpmenL worLh 8s. 1.23
crore perLalnlng Lo aLhleLlc, hockey, boxlng
and Lable Lennls remalned unlssued aL
aLlala and 8hopal cenLres as of november
2010 whlch lndlcaLes LhaL assessmenL of Lhe
requlremenL for procuremenL of equlpmenL
was noL properly done. Clearly, Lhe
assessmenL of requlremenL aL dlfferenL
cenLres was handled ln an abysmal manner
by SAl, resulLlng ln chaoLlc movemenL and
recelpL of equlpmenL aL cenLres.
No. D|sc|p||ne
Ath|et|cs
Ath|et|cs
Ath|et|cs
8ox|ng
nockey
nockey
nockey
nockey
1ab|e 1enn|s
and Iootba||
at|a|a Centre
8hopa| Centre
1ota| 124.77
Clll ALhleLlc lnc., uSA
uCS, uSA
nemeLh, Pungary
8udoland SporLarLlkel
verLrleb Cmbh
aLlala SporLs lndusLrles
08.07.2010
22.04.2010
08.07.2010
09.06.2010
08.08.2010
76
37
21
296
104
233
69
3
313
39.98
30.19
10.86
9.43
1.14
11.19
0.66
0.86
0.46
8.k. lnLernaLlonal, 8k SporLs
AmlLco khel CenLre, MeeruL
8eaL all SporLs
AmlLco khel CenLre,
MeeruL
11.02.2009
--
21.01.2010
06.01.2010
1
2
3
4
S
6
7
8
9
I|rm from wh|ch mater|a|
procured
Cost of
un|ssued
|tems
Date of rece|pt
of mater|a|
at centre
8a|ance (as
on November
2010
(8s. ln Lakh)
1oble J2.6 - uootlllseJ epolpmeot lo stock
Unused box|ng g|oves, head guard and [ave||ns at at|a|a centre
32.S.1 Inadequate programmes and
sem|nars for dop|ng
naLlonal AnLl uoplng Agency (nAuA) was
asslgned Lhe Lask of conducLlng dope LesLs,
semlnars, workshop and Lralnlng sesslons
for aLhleLes/coaches/supporLlng
personnel/offlclals, for enhanclng Lhelr
knowledge levels, professlonal skllls, code
of conducL and awareness of anLl doplng
pollcy and programmes, elLher dlrecLly or
Lhrough SAl/lCA/nSls eLc. lurLher, samples
of aLhleLes were Lo be Laken and checked
32.S Cther Def|c|enc|es
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on a regular basls ln Lhese Lralnlng cenLres
Lo famlllarlze Lhem wlLh Lhe rules and
regulaLlons and Lo educaLe Lhem abouL Lhe
harmful effecLs of doplng, banned
subsLances, eLc.
We observed LhaL nAuA dellvered 26
lecLures (durlng 2009 and 2010) and
conducLed 697 dope LesLs (durlng 2010) aL
varlous venues/SAl cenLres. Powever,
deflclencles were observed ln Lhe followlng
cenLres:
SAI Gandh|nagar: A semlnar was
conducLed on 13 and 16 of !uly 2010 buL
no core probable/sporLs persons
parLlclpaLed ln Lhe above semlnar. Cnly
coaches and supporLlng sLaff Look parL
ln Lhe semlnar. lurLher, no samples of
Lhe aLhleLes were Laken/ collecLed for
checklng Lhe sLaLus of banned
subsLances.
SAI Guwahat|: Lawn bowl camps were
conducLed durlng March 2009 Lo Aprll
2010 (288 days) aL SAl CuwahaLl.
Powever, only one semlnar/workshop
was conducLed for awareness of Lhe
doplng and only nlne samples (random)
were Laken.
SAI Sonepat: Cnly one lecLure was
dellvered ln March 2010 aL SonepaL
reglonal cenLre, where lncldenLally Lwo
probables were weeded ouL durlng
random collecLlon of sample ln
november 2009 as Lhe blood sample
had lurosemlde (dlureLlc).
lurLher, fourLeen core probables (slx
welghLllfLers, four wresLlers, Lhree
swlmmers and one aLhleLe) LesLed poslLlve.
A penalLy of 8s. 2.28 crore was lmposed by
Lhe lnLernaLlonal body on 'lndlan
WelghLllfLlng lederaLlon' and 8s. 0.14 crore
on Lhe lndlvldual players.
32.S.2 De|ay |n prov|d|ng med|ca|

|nsurance coverage to core
probab|es
Medlcal lnsurance was Lo be provlded Lo

each core probable for safeguardlng agalnsL
any ln[ury, medlcal supporL, eLc, whlch
could occur durlng Lralnlng/camps/forelgn
exposure. Accordlngly, SAl lnlLlaLed a
proposal for lnsurance cover
(medlcal/personal accldenL) ln november
2008 for 1673 core probables. We observed
LhaL:
unlLed lndla lnsurance Company offered
a Lallor made lnsurance pollcy for Lhe
core probables as per Lhe speclflc
requlremenL of SAl. Powever, SAl opLed
for Lhe sLandard lnsurance pollcy of new
lndla Assurance Company, whlch dld noL
lnclude Cu faclllLles or
medlcal/personal lnsurance durlng
forelgn exposure.
SAl flnallsed Lhe lnsurance pollcy for Lhe
perlod november 2009 Lo CcLober 2010
aL a cosL of 8s 0.23 crore for 1600 core
probables ln CcLober 2009. Powever,
we noLed LhaL documenLaLlon work was
noL compleLed even Llll !uly/Sep 2010.
lurLher, a large number of 'Medlcal ldenLlLy
Cards' were noL recelved by SAl Llll AugusL
2010. All Lhe ldenLlLy cards perLalnlng Lo
probables of neLball, boxlng dlsclpllnes
were noL recelved Llll !uly/AugusL 2010,
alLhough SAl, ln response, sLaLed LhaL Lhe
cerLlfled llsL of core probables was senL Lo
Lhe lnsurance company. 216 medlcal cards
ouL of 324 core probables were noL
recelved Llll AugusL 2010 aL SAl une
(8alewadl).
32.6.1 Lstab||shment of Infrastructure
SAl ldenLlfled Len reglonal cenLres/ sub-

cenLres for creaLlon and up-gradaLlon of
lnfrasLrucLure aL an esLlmaLed cosL of 8s. 83
crore. 1hls lncluded:
ConsLrucLlon of hosLels, modern flLness
6
cenLres and sporLs sclence cenLres aL
elghL reglonal cenLres, and
32.6 De|ay |n estab||shment of
|nfrastructure and
procurement of re|ated
equ|pment
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8enovaLlon/up-gradaLlon of exlsLlng
faclllLles aL flve reglonal cenLres.
SAl enLrusLed execuLlon of Lhese works Lo
CWu. 1he works were sLarLed from
CcLober 2008 Lo AugusL 2009 by CWu
alLhough Lhe Lralnlng camps for core
probables for CWC 2010 were lnlLlaLed
from AugusL 2008. upLo !anuary 2011, SAl
had lncurred an expendlLure of 8s. 74.33
crore on lnfrasLrucLure for CWC 2010.
Powever, we found LhaL Lhe sLaLus of Lhe
consLrucLlon/renovaLlon/up-gradaLlon of
exlsLlng faclllLles of varlous reglonal cenLres
was as glven below:
6
wltb focllltles socb os soooo botb, steom botb, two mossoqe tooms, wbltlpool oolt, oetoblcs boll, yoqo boll ooJ cbooqe
toom wltb sbowet foclllty etc.
1oble J2.7 - 5totos of teoovotloo/ coosttoctloo/ opqtoJotloo of
focllltles ot 5Al teqloool ceottes
Lucknow
8enga|uru
8hopa|
Sonepat
Aurangabad
ko|kata
1h|ruvananthapuram
Gandh|nagar
1ota|
Sports Sc|ence Centre
0.49
0.46
0.98
0.99
1.11
2.00
0.97
1.00
8.00
lebruary 2010
May 2010
Aprll 2010
AugusL 2010
SepLember 2010
ln progress
ln progress
ln progress
noL uLlllsed
uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
1
2
3
4
S
6
7
8
No. Locat|on of SAI Centre
Lucknow
Gandh|nagar
8enga|uru
ko|kata
8hopa|
Impha|
1h|ruvananthapuram
Aurangabad
1ota|
note|s
7.30
7.03
7.23
8.73
2.74
4.34
8.33
3.14
49.32
May 2010
!uly 2010
AugusL 2010
ln progress
ln progress
ln progress
ln progress
ln progress
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
1
2
3
4
S
6
7
8
Status of
ut|||sat|on
Actua| date of
comp|et|on
Actua|
Lxpend|ture
(8s. ln crore)
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S60
lurLher, consLrucLlon of hosLels, sporLs
sclence cenLres and modern flLness cenLres
aL 1hlruvananLhapuram, Aurangabad and
Lucknow was Laken up aL a cosL of 8s. 23.86
crore, alLhough no Lralnlng camp for any
dlsclpllne for core probables of CWC 2010
was scheduled aL any of Lhese cenLres.
1hus, SAl falled Lo flll Lhe gap of lnsufflclenL
lnfrasLrucLure aL lLs cenLres, as none of Lhe
hosLels, flLness cenLres, sporLs sclence
cenLres could be uLlllsed for CWC 2010
desplLe an expendlLure of 8s. 74.33 crore.
1he scheme envlsaged a compleLe sclenLlflc
backup wlLh Lhe help of docLors,
psychologlsLs, physlologlsLs and recovery
experLs on full Llme basls Lo be lnLroduced
32.6.2 rocurement of Sports sc|ence
equ|pment
for each sporL dlsclpllne. SporLs sclence
equlpmenL was envlsaged for conducL of
LesLs lncludlng anLhropomeLrlc,
psychologlcal, physlologlcal, blochemlcal,
blomechanlcal, nuLrlLlonal and oLher
medlcal LesLs Lo monlLor Lhe progress of
each aLhleLe on a regular basls durlng Lhe
Lralnlng.
SporLs Sclence CenLres aL four reglonal
cenLres of Candhlnagar, kolkaLa,
1hlruvananLhapuram and Aurangabad
could noL be compleLed. CenLres aL
Lucknow and 8hopal, Lhough compleLed,
could noL be Laken over by SAl.
8egardlng procuremenL of equlpmenL
relaLed Lo SporLs Sclence CenLres, we found
LhaL negllglble procuremenL was acLually
made alLhough procuremenL was lnlLlaLed
for 8s. 9.20 crore. lurLher, we found LhaL:
No. Locat|on of SAI Centre Status of
ut|||sat|on
Actua| date of
comp|et|on
Actua|
Lxpend|ture
8hopa|
Sonepat
Lucknow
Aurangabad
Impha|
Gandh|nagar
ko|kata
1h|ruvananthapuram
1ota|
at|a|a
Sonepat
8enga|uru
7
8
9
1ota|
Grand tota|
Modern I|tness Centre
kenovat|on]up-gradat|on of ex|st|ng fac|||t|es
1.37
1.33
1.33
1.43
2.11
1.27
1.37
1.30
11.9S
3.49
3.17
0.70
9.36
78.63*
AugusL 2010
AugusL 2010
March. 2010
SepLember 2010
ln progress
ln progress
ln progress
ln progress
AugusL 2010
ln progress
March, 2010
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
noL uLlllsed
1
2
3
4
S
6
7
8
*8s. 78.63 - 8s.4.28 crore Lo be refunded by reglonal cenLre =74.33 crore)
7
8
9
kepolt/teoovotloo of 4 bolls l.e. welqbtllftloq, wtestlloq, 11 ooJ 8oxloq wltb ptovlsloo of olt cooJltlooets.
Alt cooJltlooets fot bostel tooms ooJ Jloloq boll locloJloq clvll ooJ electtlcol wotk, folse cellloq ooJ Alt cooJltlooloq of
Moltl lotpose noll
llootloq, llqbtloq ooJ keplocemeot of toof (Colvoolzloq Alomlolom)
ln SepLember 2006, Lhe LxpendlLure
llnanclal CommlLLee (LlC) suggesLed
explorlng Lhe ubllc-rlvaLe arLnershlp
() model whlle recommendlng Lhe
32.8 Legacy p|an for SAI Stad|a
persons, coaches eLc. was formed ln
respecL of only flve dlsclpllnes and meL
only once/Lwlce durlng Lhe enLlre perlod
of lmplemenLaLlon of Lhe scheme.
M?AS sLaLed LhaL lL was noL pracLlcable Lo
hold monLhly meeLlngs of Lhe SLeerlng
CommlLLee as Lhere would have been 18
meeLlngs ln a monLh, and also LhaL one
monLh's perlod was Loo shorL for Lhe nSls
Lo evaluaLe performance of Lhe aLhleLes. lL
also conflrmed LhaL revlew commlLLee
meeLlngs could noL be held regularly. lL may
be noLed LhaL M?AS lLself puL ln place a
monlLorlng mechanlsm whlch lL now flnds
lmpracLlcal.
SAl was Lo seL up a cell, Lo be known as
'CommonwealLh Cames Cell' (Cell) whlch
would have a rogramme Cfflcer (C) and a
rogramme AsslsLanL (A) for each of Lhe
17+1 dlsclpllnes of Lhe Cames havlng
speclallsed knowledge and experLlse of
Lhelr respecLlve dlsclpllnes. Powever, we
found LhaL SAl had appolnLed only elghL
Cs and one A as agalnsL Lhe sancLloned
posLs of 18 each. CuL of Lhe elghL Cs, one
C was appolnLed for audlL, Lwo for
lnfrasLrucLure and Lwo for equlpmenL sporLs
dlvlslon. 1hus, effecLlvely only Lhree Cs
for sporLs dlsclpllnes were appolnLed and
Lhe CWC cell could noL be approprlaLely
operaLlonallsed.
32.7.2 Non-appo|ntment of personne|
|n the CWG ce||
32.7.1 Inadequate mon|tor|ng
1he SLeerlng CommlLLees and 8evlew

CommlLLees for each dlsclpllne aL Lhe level of
M?AS were Lo be consLlLuLed for each
dlsclpllne Lo monlLor Lhe preparaLlon and
progress of Lhe core group of ellLe sporLs
persons, coaches and supporLlng personnel.
1he SLeerlng CommlLLees (for each
dlsclpllne) were Lo meeL once every monLh.
ln Lhls regard, we found LhaL:
1he sLeerlng commlLLees for dlfferenL
dlsclpllnes meL [usL seven Lo eleven Llmes
durlng !une 2008 and SepLember 2010.
1he 8evlew CommlLLees consLlLuLed Lo
revlew Lhe progress ln performance
levels of Lhe core group of sporLs
32.7 Mon|tor|ng by MAS]SAI
SAI fa||ed to prov|de wor|d c|ass state of
art sports sc|ence backup to ath|etes as
none of the e|ght Sports Sc|ence centres
cou|d be ut|||sed for tra|n|ng. Iurther,
most of the sc|ent|f|c equ|pment
procured cou|d not be used for the
tra|n|ng of core probab|es as e|ther
these were rece|ved after the c|ose of
the CWG 2010 or the|r supp|y was st|||
awa|ted as of Ianuary 2011.
SAl had Lo abandon Lhe procuremenL of

8s. 6.33 crore on varlous sclence
equlpmenL due Lo pauclLy of Llme.
CuL of LoLal procuremenL of 8s. 2.87
crore, equlpmenL worLh 8s. 1.93 crore
were noL dellvered Lo reglonal cenLres
Llll !anuary 2011, equlpmenL worLh 8s.
0. 38 crore were recelved afLer Lhe CWC
2010 ln CcLober 2010, and equlpmenL
worLh 8s. 0.06 crore were recelved aL
reglonal cenLres durlng Lhe Cames.
0
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1hls was approved by Lhe CablneL ln

March 2007 and SAl was auLhorlsed Lo
manage Lhe enLlre process of plannlng
and lmplemenLaLlon of Lhe model
for managemenL and operaLlon of Lhese
sLadla posL CWC.
lnLer-mlnlsLerlal correspondence was
made beLween March 2007 and
november 2008 beLween M?AS, Mol
and SAl.
SAl Lhough selecLed leedback venLures
as Lhe LransacLlon advlsor ln CcLober
2009, Lhe agreemenL aL a cosL of 8s.0.84
crore was slgned ln lebruary 2010.
Powever, no effecLlve acLlon had Laken
place.
lurLher, M?AS was yeL Lo brlng ouL a legacy
plan for uLlllsaLlon and malnLenance of Lhe
SAl sLadla as of March 2011. As a resulL, Lhe
sLadla were noL belng uLlllsed by elLher
sporLspersons or oLhers whlch ls evldenL
from Lhe noLlce of M?AS (daLed 1 March
2011) LhaL 'regular coachlng/pay and play
scheme has noL yeL sLarLed ln Lhe sLadlum'.
ln Lhls regard, we observed LhaL:
SAl was yeL Lo refund Lhe unuLlllsed 8s
43.40 crore under Lhe varlous sub heads
of Lhe CWC scheme, whlch was requlred
Lo be refunded wlLhln one monLh of Lhe
concluslon of Lhe Cames.
unad[usLed advances of 8s. 1.14 crore
1he Paryana CovernmenL lncurred a LoLal

expendlLure of 8s. 1.87 crore (lncludlng cosL
of land of 8s. 0.83 crore), ouL of 8s. 3.27
crore released by M?AS ln uecember 2009
for wldenlng and sLrengLhenlng of exlsLlng
road from 8adshahpur Lo kadarpur Lo
Croup CenLre, C8l, Curgaon for CWC
2010. Powever, Lhe work remalned
lncompleLe as of november 2010. 1he
enLlre advance of 8s 3.27 crore should be
recovered from Lhe CovernmenL of Paryana
as lL was noL uLlllsed for Lhe Cames.
32.9 I|nanc|a| management 32.10 Cther po|nt of |nterest
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S62
were pendlng wlLh Lhe Lwo agencles l.e.
lCA and 8owllng lederaLlon of lndla.
uLlllsaLlon cerLlflcaLe for 8s. 34.73 crore
glven for procuremenL of 1lme Scorlng
and 8esulLs equlpmenL was sLlll awalLed
from Lhe CC.
uLlllsaLlon CerLlflcaLes for 8s. 1.08 crore
were yeL Lo be recelved from seven
sporLs federaLlons.
Advances of 8s. 0.94 crore for 12 Lralnlng
camps aL SAl une cenLre were yeL Lo be
seLLled even afLer lapse of Lhree Lo slx
monLhs from Lhe daLe of compleLlon of
Lhe camp. Also, Lhe accounLs of Lhe 8ugby
camp held durlng SepLember 2010 were
noL even submlLLed by Lhe ulrecLor of
SporLs, une.
lunds of 8s. 19.00 crore under Lhls scheme
were lrregularly dlverLed for consLrucLlon of
Lhe admlnlsLraLlve 8lock of SAl
PeadquarLers aL !awahar Lal nehru SLadlum
Complex, new uelhl.
32.9.1 D|vers|on of funds for

construct|on of SAI neadquarter
bu||d|ng
10
Iowobotlol Nebto 5toJlom complex (IN5), loJlto CooJbl
5potts complex (lC5), ut. 5byomo ltosoJ Mokbetjee
5wlmmloq lool (5lM), Mojot ubyoo cbooJ Notloool
5toJlom complex (Muc5) ooJ ut. kotol 5loqb 5bootloq
kooqes (k55k).
proposal for sancLlon of budgeL for
10
redevelopmenL of flve sLadla.
C
n
A
1
L
k
Conc|us|on
JJ
lt ls ockoowleJqeJ tbot loJlo bosteJ tbe
lotqest ooJ omooq ooe of tbe most soccessfol
commooweoltb Comes lo uelbl lo Octobet,
2010. loJlo olso ocpoltteJ ltself temotkobly
by secotloq mote tboo 100 meJols lo o btooJ
specttom of spottloq eveots lo wblcb lt
pottlclpoteJ. lt ls loJeeJ o temotkoble
commeototy oo tbe ootloo's moooqetlol ooJ
spottloq copobllltles tbot Jesplte o moltltoJe
of oJvetsltles leoJloq to tbe octool cooJoct of
tbe qomes, loJlo emetqeJ soccessfol botb os
bosts ooJ os competltots.
lt moy be tecolleJ tbot wblle sobmlttloq o
stoJy Jooe by tbls uepottmeot lo Ioly, 2009,
we boJ commeoteJ tbot estobllsbmeot of
boslc loftosttoctote ooJ pottloq lo ploce
soppott setvlces fot focllltotloq tbe qomes wos
loqqloq fot bebloJ. coosepoeotly, we boJ
sttooqly tecommeoJeJ tbot Covetomeot
sboolJ tevlslt tbe moJel of qovetoooce fot o
smootb ooJ soccessfol Jellvety of tbe qomes.
1bls tepott wos ptepoteJ 15 mootbs lo
oJvooce os oo olJ to tbe oJmlolsttotloo" os
oo objectlve commeototy oo tbe stoqe of
ptepoteJoess. 1be qovetoooce moJel wos
tweokeJ, bot wltboot Joe ootbotlty. AoJlt
cootlooes to feel tbot setloos coqolzooce wos
oot tokeo of tbe lssoes poloteJ oot lo tbot
tepott, os tlmely temeJlol octloo moy bove
mltlqoteJ some of tbe oJvetse otteotloo tbot
tbe cooJoct of tbe Comes otttocteJ.
1be commooweoltb Comes 2010 wete oot
tbe fltst eveot of tbls moqoltoJe beloq belJ lo
loJlo. 1be ootloo boJ tbe beoeflt of
otqoolzloq tbe Asloo Comes lo 1982. lottbet,
o sofflcleotly lotqe cootloqeot of
oJmlolsttotots, spotts moooqets ooJ otbet
expetts wete JepoteJ to Melbootoe cwC-
2006 to closely obsetve ooJ stoJy tbe
qovetoooce moJel, loftosttoctote
tepoltemeots os olso otbet soppott setvlces,
wblcb ptovlJeJ o petloJ of foot yeots to toke
ooy temeJlol octloo oecessoty.
1bls tepott bos commeoteJ opoo tbe moJel
of qovetoooce oJopteJ fot cwC-2010, lo
wblcb ootbotlty wos JlsslpoteJ, occoootoblllty
wos JefoseJ ooJ oolty of commooJ wos oot
ptovlJeJ fot ot followeJ. lt wos olso
mlsploceJ cooflJeoce to bove ploceJ socb
boqe pobllc fooJs ot tbe Jlsposol of ooo-
qovetomeot offlclols, wbo wete oot wlllloq to
beeJ to ooy oJvlce ftom lofotmeJ qovetomeot
offlclols.
1be moJos opetooJl obsetveJ ovet tbe eotlte
qomot of octlvltles leoJloq to tbe cooJoct of
tbe Comes wos. loexpllcoble Jeloys lo Jeclsloo
mokloq, wblcb pot ptessote oo tlmelloes ooJ
tbeteby leJ to tbe cteotloo of oo ottlflclol ot
cooscloosly cteoteJ seose of otqeocy. 5loce
tbe totqet Jote wos lmmovoble, socb Jeloys
coolJ ooly be ovetcome by seekloq, ooJ
llbetolly qtootloq, wolvets to lolJ Jowo
qovetomeotol ptoceJotes. lo Joloq so,
coottoctloq ptoceJotes become o vety obvloos
cosoolty. Mooy coottocts wete tbeo
eotettoloeJ boseJ oo sloqle blJs, ooJ lo foct,
some of tbem wete eveo owotJeJ oo
oomlootloo bosls. 1okloq llbettles wltb
qovetomeotol ptoceJotes of tbe
ofotemeotlooeJ kloJ leJ to ellmlootloo of
competltloo. 1be cooclosloo lo foct ls
loescopoble tbot tbls coolJ loJeeJ bove eveo
beeo oo loteoJeJ objectlve. llmlootloq
competltloo leJ to o boqe ovolJoble botJeo
oo tbe excbepoet. lt coo most cooflJeotly be
coocloJeJ tbot Joe to tbe petcelveJ seose of
otqeocy ooJ tesoltoot lock of competltloo, tbe
coootty boJ to poy o blqbet ptlce fot tbe some
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S64
ChapLer 33 - Concluslon
octlvltles, epolpmeot ooJ loftosttoctote.
lottbet, lt ls yet to be coocloslvely estobllsbeJ
tbot tbe eoJ ptoJoct wos of tbe JeslteJ
poollty.
wblle tbe qovetoooce moJel cettololy soffeteJ
ftom looJepoocles, wltb o key tole fot tbe
Otqoolsloq commlttee, AoJlt obsetveJ tbot
tbe petsoooel selecteJ fot sboolJetloq ctltlcol
tespooslbllltles lo tbe Oc JlJ oot possess tbe
tepolslte poollflcotloos ooJ expetleoce to
Jlscbotqe tespooslbllltles of tbls moqoltoJe.
5tooJotJ tectoltmeot ptoceJotes socb os
oJvettlsloq of posts, selectloo commlttees,
secotlty cleotooce/ tefeteoce cbecks etc. wete
qlveo tbe qo-by lo most oppolotmeots moJe lo
tbe Otqoolzloq commlttee.
As pet estobllsbeJ ptoceJote lo Covetomeot,
wbeoevet oo ootslJe eotlty mokes o ptoposol
to tbe Covetomeot lovolvloq boJqetoty
commltmeots, tbe coocetoeJ Jepottmeots ote
tepolteJ to cooJoct oo lo Jeptb ooJ Je oovo
exomlootloo of socb ptoposols. nowevet, socb
loJepeoJeot exomlootloo of ptoposols,
especlolly teqotJloq teveooe qeoetotloo by
tbe Oc ooJ tbe expeoJltotes llkely to be
locotteJ os olso tbe totol floooclol llobllltles to
be botoe by tbe Covetomeot, wete
coosplcooos lo tbelt obseoce. 1bete ls
evlJeoce to loJlcote tbot tbe teveooe
qeoetotloo flqotes wete eobooceJ to temolo
lo tooJem wltb tbe toplJly botqeooloq
expeoJltote of tbe Oc. Apptoptlote Joe
Jlllqeoce wos coosplcooosly obseot ot oll
levels, wblle sctotlolsloq ooJ occotJloq
opptovols to expeoJltote ptoposols.
A boslc coooo of floooclol ptoptlety ls tbot tbe
expeoJltote sboolJ oot ptlmo focle be mote
tboo wbot tbe occosloo JemooJs, ooJ offlclols
cbotqeJ wltb stewotJsblp of Covetomeot
fooJs most exetclse tbe some vlqllooce lo
tespect of expeoJltote locotteJ ftom pobllc
mooeys os o petsoo of otJlooty ptoJeoce
woolJ exetclse lo tespect of expeoJltote of bls
owo mooey. lottbet, oot ooly sboolJ
ttoospoteocy ooJ folt ploy be exetclseJ, tbe
pobllc ot lotqe sboolJ petcelve tbot
Covetomeot mooles bove beeo expeoJeJ lo o
folt ooJ ttoospoteot moooet ooJ offlclols wlll
be belJ occoootoble fot lopses. Covetomeot
oeeJs to toke opptoptlote meosotes to llve op
to tbe blqb expectotloos lo tbls teqotJ.
(k.k. SkIkAM)
rlnclpal ulrecLor of AudlL
Lconomlc and Servlce MlnlsLrles
CounLerslgned
uaLed : 31 May, 2011
lace : new uelhl
uaLed : 20 !une, 2011
lace : new uelhl
(VINCD kAI)
CompLroller and AudlLor Ceneral of lndla

CWG English - Part-2

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CWG English - Part-2

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C

lor hosLlng CWC-2010, 14 CompeLlLlon

16.3 1h|rd arty Inspect|on]

perlodlcally, lnspecL ongolng as well as

lL ls avallable aL all sLages of

16.4 Award of Contracts

Lhe lump sum conLracL. (refer paragraph

erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 241

ln mosL of Lhe works, Lhere were numerous

LxLra lLems - for lLems of work whlch

16.10 Def|c|enc|es |n Deta||ed

commenLs on Lhe approprlaLeness of

erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 2S7

1he conLracLs for deslgn consulLancy were

CLS (l) vL LLd - 26.62

CLS d|d not d|rect|y possess spec|f|c

erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 260

delays ln obLalnlng approval from local

CuC ls malnly responslble for sLrucLural

1he performance of CLS |n a|most a||

uLlllse a core mulLl-dlsclpllnary pool of

SLandardlsaLlon of deslgns and Lhelr

of any such provlslon ln Lhe venue brlef or

17.6 Iawahar|a| Nehru Stad|um Comp|ex

A PosLel/ Medla AccommodaLlon block,

AfLer erecLlon of x column ln

erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 276

17.6.4 Consu|tancy serv|ces for WADA |ab

ConsulLancy work for consLrucLlon of WAuA

1hls work was awarded Lo nkC

AddlLlonal paymenL of 8s.2.16 crore had

As per Lhe agreemenL, Lhe beam

Clearly, an oLherwlse lnellglble agency

Account|ng ear 2007-08 2006-07 200S-06

change ln Lhe agency mld-course would

was also deflclenL Lo Lhe exLenL LhaL

llqote 17.2 - cbtoooloqy of eveots lo owotJ of coottoct to to lofto oqloeetloq ltJ.

capaclLy of 8s. 1038 crore was

1he CymnasLlcs sLadlum ls a cenLrally alr

whlch, ln Lhe lnsLanL case, were

1he flgures of Lurnover submlLLed by lL

17.8.6 Lxtra |tems of ks. 2.48 crore

17.9.2 D||ut|on of b|d cr|ter|a

ln our oplnlon, LransparenL, falr and

crore was prepared by Lhe ueparLmenL

1he raLes obLalned for elecLrlcal works

1he bld for Sl1C of ubllc AnnouncemenL

17.9.6 Non |evy of compensat|on

Lhe quanLlLy of varlous Lypes of cables

kadarpur Shoot|ng kange

17.10.2 Lxecut|on of works

1he work was dlvlded lnLo Lhe followlng

Sub-sLandard Cranular sub base (CS8) broughL by

uesplLe non-achlevemenL of mllesLones and delay

8ange for holdlng

Several deflclencles ln quallLy of works

erformance AudlL 8eporL on kIk Commonwea|th Games (CWG-2010) 317

ln Lhe followlng cases of procuremenL of

18.4.2 Insta||at|on of map|e wood

uelhl unlverslLy (uu) and lLs afflllaLed

ln Aprll 2006, Lwo separaLe nl1s were lssued

lurLher, Lhe scope of work was lncreased

ln lebruary 2008, nl1 for Lhe composlLe

C8SCC dld noL produce requlslLe