Thiruvananthapuram: According to the report from the Comptroller and Auditor General (CAG), the state government has suffered a financial loss of Rs 54.08 crore due to the Public Works Department (PWD) commencing three construction projects without obtaining the necessary land. These projects involve the construction of a Kalmandapam (stone structure) in Palakkad, as well as bypass work along the Nilambur and Kothamangalam-Thankalam routes.

According to the PWD manual, 100 per cent of land should be procured without objection ahead of floating tenders for construction works. If 60 per cent of the required land is acquired, then tenders can be invited after obtaining prior permission from the government. 

However, for bypass construction, only the length of the road was submitted and the works were initiated without evaluating the availability of funds, said the report. The CAG also proposed that the divisional authorities (land acquisition) should strictly adhere to government conditions before inviting tenders. 

Additional expenditure of Rs 42.78 crore 

According to the CAG findings, PWD divisions have ignored the directive suggesting that all institutions that take up construction activities should obtain GST registration. With this, the government incurred a loss of input tax worth Rs 42.78 crore and the department has to bear the GST burden on its own. 

The instructions by the state government and chief engineer regarding GST registration were not implemented in any of the 15 road divisions in the state during 2017-18. Later, 13 divisions were registered in 2018-19 and two others in 2019-20.

Furthermore, CAG criticised that the government was unable to demand input tax during the period owing to lack of timely registration. 

Other findings

  • The PWD building constructed at a cost of Rs 24.22 crore in Neriamangalam continues to remain unused.
  • Contractors were unduly paid Rs 4.98 crore due to the decision to pay the difference in bitumen price in violation of conditions.

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