Lucknow Metro built depot on 1.98 hectares of disputed land, CAG finds

Who it concerns: Uttar Pradesh Metro Rail Corporation Limited (UPMRCL), a joint venture of the Government of India and Government of Uttar Pradesh.

What the auditor found

• Exclusion of Mahanagar Metro station from the project without competent authority approval.
• Failure to obtain No Objection Certificate (NOC) for groundwater extraction from Central Ground Water Authority/Ground Water Department during 2013-23.
• Exclusion of M/s Gammon India Limited from financial bid despite technical recommendation; CAG found the State Government's justification unacceptable.
• Irregular payment of Plant & Machinery advance to a contractor for equipment already owned by them.
• Irregular excess advance payment for material at site to another contractor.
• Loss due to short recovery of license fee for advertisement rights on 12 train sets; licensee was relieved of payment instead of being charged as per agreement.
• Non-collection of royalty and price of minerals amounting to ₹3.16 crore from contractors; Form MM-11 not collected.
• Construction of depot on 1.98 hectares of disputed land under litigation; tripartite agreement found to be unregistered and not legally enforceable.
• Award of security contract to M/s G4S on nomination basis without open tender, violating CVC Guidelines and GFR.
• Rail hardness values found to be less than Indian Railway Standard (IRS) specifications by IIT Kanpur tests.
• Noise levels found higher than permissible limits; no benchmark determined for maintenance.
• Interim Speed Certificate (ISC) not renewed after expiry in March 2017.
• Electricity duty collected from commercial establishments not remitted to the State Government.
• Rent payment made without obtaining tax invoices, resulting in loss to exchequer.

Also in the document

• CAG found that the Company constructed a depot on 1.98 hectares of land that was disputed and under litigation, based on an unregistered and legally unenforceable agreement.
• CAG noted that the Company did not obtain a No Objection Certificate for groundwater extraction for the entire audit period (2013-2023).
• CAG reported that the Company relieved a licensee from paying license fees for 12 train sets instead of recovering the amount as per the agreement, citing the licensee's non-utilization of the sets.
• CAG found that the Company did not collect ₹3.16 crore in royalty and mineral prices from contractors and failed to obtain mining permits for soil extraction.