CMWSSB has annulled the work orders it issued to Hyderabad-based Ramakrishna Contractors Private Limited that implements underground drainage and drinking water projects in a couple of urban local bodies adjoining Chennai.

Highly-placed CMWSSB sources confirmed to DC under condition of anonymity that the work orders have been kept in abeyance after a recent scrutiny of documents revealed that the mandatory eligibility certificates furnished by the Hyderabad company while participating in the bid were bogus.

Sources also revealed that the top brass at CMWSSB headquarters had issued a circular to field-level staff on May 17, asking them to stop the works executed by the company. Interestingly, the firm has already completed work for Rs 20 lakh in the Rs 28 crore UGD and drinking water projects in Ullagaram-Puzhuthivakkam and Porur municipalities.

Ironically, it was the same board that had earlier disbursed nearly Rs 50 lakh as mobilisation fund to the company for project execution, the sources pointed out. Though the board woke up and red flagged the company, it is a little too late, for the company should have been barred even at the tender stage, CMWSSB officials opined, wondering why the scrutiny was done so late. Some officials even raised questions about the kind of scrutiny being done while finalising such multi-crore project tenders.

As usual, taxpayers in the local bodies bear the brunt of the CMWSSB’s lethargy and duty dereliction as UGD and drinking water works there have hit a roadblock. Even officials remain clueless about the fate of the works. As on date, the official communiqué only advises them to stop the works of the company and not a word has been uttered about work resumption, the sources said.

Regarding loss of revenue, CMWSSB experts said the revenue loss could be recovered from the 10 per cent caution deposit or bank guarantee the contractors pay to CMWSSB for taking up any of its projects.