Alleged irregularities in Tsunami project : IVRCL under CBI scanner

Hyderabad-based infrastructure company  IVRCL, represented by its CMD Mr. Sudhir Reddy, is under the CBI's (Central Bureau of Investigation) scanner for alleged irregularities in a Tsunami housing project in Puducherry.

The CBI filed an FIR in a Puducherry court against  Mr.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 1.5-1.75 lakh each house.

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.

The FIR also said,  "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 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.
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