CHENNAI: Alleging that the several crores of rupees recovered from contractors still do not cover the losses to the exchequer due to a massive scam in the highway department, an anti-corruption organisation urged a special audit by the Auditor General to calculate the actual loss and then ensure the recovery of the whole amount.

In his petition to Chief Secretary Shiv Das Meena and other senior officials, Jayaram Venkatesan, convenor of Arappor Iyakkam, said that the Directorate of Vigilance and Anti-Corruption (DVAC) had submitted its inquiry report with a recommendation to take departmental action against Highways Department for violating the agreement conditions and the Government Orders and also for failing to apply ‘pass through basis’ of price variation method for bitumen price payments.

These violations, the organisation said, is estimated to have caused a loss of Rs 750 crore to the exchequer.

After the matter reached the High Court, the department initiated action and recovered Rs 610 crore from contractors as of November 16, 2017. But the action should not end with recovery, and should instead lead to action against the officials responsible, Venkatesan said.

“It is argued that the lost quantum has been recovered. However, it is important to understand that the entire process of recovery has happened only after these violations came to light after the suspension of Sathyamurthy, then Divisional Engineer, Tiruchy. Therefore, recovery of the money can in no way nullify the violations and illegalities committed by the officials in-charge. It must also be understood that the DVAC has recommended departmental action after taking into account the recovery done,” he added.

He expressed suspicion that the estimation and recovery of losses was underestimated. The recovery

After the matter reached the courts, the department initiated action and recovered Rs 610 crore from contractors

of Rs 610 crore can only be part of the total loss due to non-application of price variation clause. “Therefore, a special AG audit to calculate the actual loss and check for the entire recovery of the losses must be carried out immediately as well,” he urged.

In an earlier complaint, Arappor Iyakkam had alleged that 1,131 officials have connived to commit a scam to the tune of Rs 750 crore related to the bitumen works in the Rs 6,000 crore Comprehensive Road Infrastructure Development Programme (CRIDP) in 2014-15 and 2015-16.