The pet project of local Lok Sabha MP Navjot Singh Sidhu, the solid waste project was launched in 2008 amid fanfare, though in a hurried manner. Even then, questions were asked about the tendering for the project and its allotment to bidders whose technical eligibility was in doubt, and how the specifications were later changed to make them eligible. The CVO was consequently asked to investigate the lacunae by Minister for Local Government Manoranjan Kalia.

In its detailed probe report, submitted on October 3, 2009, the CVO stated that not only were the tenders called in a hush-hush manner but also the officials admitted that due to the limited time for review available with them, bids could not be evaluated properly. The inquiry report (copy with The Indian Express), was first buried and later dug up again in October, 2010 to carry out further investigations.

Departmental probes in the last three months have revealed that not only were the tenders allotted despite inflated rates quoted by the bidders but even the financial interests of the MC were not safeguarded. “The MC Commissioner of Amritsar... was responsible to safeguard the financial interests of the Corporation but he did not perform his duty as per expectations,” said the report. 

It further stated that the entire work was entrusted to a Mumbai-based company on the advice of SR Maley, a private consultant whose role in the whole process is not aboveboard. “To hand over the reins to a private person is not a wise step. Even getting the opinion of Maley by the Commissioner for opening of financial bids is mala fide,” said the report, adding that, throughout, the MC’s financial interests were ignored while works worth Rs 51.7 crore were given to a single company.

Ironically, most of the funds have come from Jawaharlal Nehru Urban Renewal Mission (JNURM), a Central government scheme for improvement of services in cities. The inquiry has indicted Kharbanda and Health Officer Dr Charanjit Singh for causing loss to the MC.

The report further mentions that although the initial probe found irregularities to the tune of Rs12.5 crore, more money might have been siphoned off. The CVO has recommended that the case be handed over to the State Vigilance Bureau for further investigation. The report further stated that the case is also fit to be handed over to the Central Vigilance Commissioner (CVC), as Central JNURM funds were involved.

Kharbanda, meanwhile, said they had not violated any law. He said they acted as per law and became the first MC to launch the project. He said they had already put up their point of view before the inquiry by the CVO.