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Kerala Orders Fresh VACB Inquiry Into 2006 MC Road Project Linked to CEC

Officials say the review follows identified flaws in the original probe, cites earlier CAG findings of inflated tenders, alleges up to ₹700 crore in losses, and could prompt a full investigation

Overview

  • On Thursday, PWD Minister P K Basheer told the state Assembly that a Vigilance and Anti-Corruption Bureau preliminary inquiry into the 2006 MC Road works is under way and its report has not yet been submitted.
  • The fresh review was ordered after officials found discrepancies in the VACB files from 2006 and will determine whether the matter should move from a preliminary inquiry to a full investigation.
  • A 2004 Comptroller and Auditor General report cited inflated tender awards that caused an estimated ₹84 crore loss and questioned a ₹50 crore payment to a foreign consultancy for the Kerala State Transport Project.
  • Basheer told legislators the government now alleges up to ₹700 crore in losses from contract overpricing, higher land acquisition costs, and early mobilisation payments awarded above estimates.
  • The government said it will consider a separate probe into the suicide of the Malaysian project engineer, who had raised complaints during the works, to examine whether financial exploitation or project irregularities played a role.