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

This audit examined the planning, construction, contract management, operation, and revenue management of the Lucknow Metro Rail Project (Phase-1A, North-South corridor) for the period from November 2013 to March 2023.

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

• 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.

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