NH 544: CBI says contractor conspired to cheat NHAI of Rs 102 crore

In 2020, construction firm and director were booked for violation of NH work norms between Mannuthy & Angamaly
NH 544: CBI says contractor conspired to cheat NHAI of Rs 102 crore

KOCHI: While the potholes on the National Highway 544 (formerly NH-47) stretch in the state have become a topic of discussion following frequent accidents — one of which led to a motorist’s death last Friday — the CBI has filed the final probe report in connection with a case registered against a contractor.
In July 2020, the central agency had registered a case against the Hyderabad-based construction firm Guruvayoor Infrastructure Pvt Ltd (GIPL) and its director Vikram Reddy for violation of conditions for the NH work between Mannuthy and Angamaly. The firm made undue gains to the tune of `102.44 crores, the CBI found.

In 2002, the National Highways Authority of India (NHAI) invited a proposal from bidders for the construction and maintenance of the Mannuthy-Angamaly stretch. A consortium named KMC Constructions and the SREI Infrastructure Finance Ltd were awarded contracts. The consortium then entrusted the maintenance to form a special purpose vehicle (SPV) and awarded certain work to GIPL in November 2005.

“It is reliably learnt that Vikram Reddy, then director of GIPL, had entered into a criminal conspiracy with unknown officials of NHAI, Palakkad, in connection with the execution of work, namely design, construction, development, finance, operation and maintenance of two sections of national highway during the period 2006-2016. In violation of the conditions in the agreement, it obtained undue gain and thereby cheated NHAI to the tune of `102.44 crore,” the FIR stated.

The major irregularities probed by CBI were the construction of bus bays, bus shelters, advertisement in bus shelters, construction of a sub-standard service road and maintenance of the highway traffic management system.

“GIPL constructed sub-standard service roads of about 27km, with a total thickness of semi-dense bituminous concrete and macadam of only 7.5cm against the 10cm specified in the agreement at various locations in contravention to the concession agreement,” said the FIR. A CBI official said the central agency has filed the final report at a court in Kochi against seven persons and GIPL.

“The investigation found major irregularities in tarring work as well as development of various amenities. We have approached the ministry of transport and highways to give prosecution sanction to filing a chargesheet against two officials who were part of the conspiracy behind the irregularities,” the official said.

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