IVRCL under CBI scanner

City-based infrastructure major IVRCL, represented by its Chairman and Managing Director Sudhir Reddy, is under the Central Bureau of Investigation's (CBI) scanner for alleged irregularities in a Tsunami housing project in Puducherry.

The CBI filed an FIR in a Puducherry court against G Ragesh Chandra, Director of Project Implementation Agency (PIA), and others in connection with alleged irregularities in the implementation of the tsunami rehabilitation project.

The FIR said IVRCL was issued work order to construct houses in Tsunami-affected areas at the rate of Rs 4.9 lakh against the provisions of the government Order which stipulated Rs 1.5 lakh-Rs 1.75 lakh each house.

Sudhir Reddy was not available for comments and enquires sent to his mobile phone remained unanswered.

CBI alleged that there was a loss to the tune of Rs 35 crore to both the Puducherry government and the central government.

The government had issued orders to construct houses at Tsunami-affected Kalapet area and set up the PIA headed by Ragesh Chandra.

"Rakesh Chandra rejected the offers from various NGOs and voluntary agencies which came forward to reconstruct the houses free of cost and instead entered in to criminal conspiracy with IVRCL represented by its CMD Sudhir Reddy in August 2007, floated the EPC contract on turnkey tender against the World Bank conditions and against the provisions of the Government of Pondicherry," the FIR said.

The CBI said that there were 5,400 houses reconstructed in Puducherry and Karaikal area with unit cost of Rs 2.4 lakh on an average by other agencies.

The CBI in its FIR levelled charges of criminal conspiracy, cheating and indulging in corrupt practices against Rakesh Chandra, PWD Executive Engineer Mohan and IVRCL, represented by Sudhir Reddy, and other unknown public servants.

The quality of the construction was also inferior as compared to others, the CBI charged.

The design formulated by IVRCL in its technical bid was adjudged as not sound by the technical team of experts from IIT, Madras, which had pointed out nearly 20 flaws, CBI alleged.

But with ulterior motives and criminal intention, fraudulent justifications were incorporated in the minutes of put up before the general body meeting of the PIA and work was issued to IVRCL.