Stalin cited as the main accused

By K. T. Sangameswaran

CHENNAI, JUNE 30. The Chennai Mayor, Mr. M. K. Stalin, has been cited as the main accused in the case registered by the CB CID in connection with the alleged violations and corrupt practices committed in the construction of mini-flyovers in the city.

While the Mayor's father and former Chief Minister, Mr. M. Karunanidhi, has been cited as the second accused, the other accused included the former Transport Minister, Mr. K. Ponmudi and former Local Administration Minister, Mr. Ko. Si. Mani.

The case has been filed for offences under Sections 120-B (criminal conspiracy), 167 (public servant framing an incorrect document with intent to cause injury), 420 (cheating and thereby dishonestly inducing delivery of property) and 409 (criminal breach of trust by public servant or by banker, merchant or agent, etc) IPC and Sections 13 (2) read with 13 (1) (d) of Prevention of Corruption Act.

The specialised unit acted on a complaint filed by the Corporation Commissioner yesterday.

Police sources told ``THE HINDU'' that in the complaint it had been stated that a Rs. 366.05 crore Traffic Action Plan (TAP) was prepared in April 1997 which included an outlay of Rs. 193 crores for constructing a dozen flyovers and widening of Napier Bridge on Kamarajar Salai.

Prepared by private individuals, it was adopted in toto by the CMDA and was to be implemented in three years. While seeking orders, though the Member-Secretary, CMDA, had recommended the appointment of a high-level steering committee (HLSC) to be headed by the Chief Secretary and a traffic improvement committee (TIC) led by the Member-Secretary, CMDA, the G.O. issued by the Housing and Urban Development Department in September 1997, while according administrative sanction for the plan implementation, appointed the TIC under the Chennai Mayor, which was a deviation from the recommendation. While issuing the order, there was no detailed examination of the cost estimates.

Among the 12 flyovers for which approval was given, the structures were constructed at only one approved place and the remaining locations were abandoned. Instead, eight new places were included at the instance of Mr. Stalin. Among the new locations, the CMDA did not recommend construction of flyovers at half-a-dozen places since they were not feasible. Still, the Mayor ensured that the six places were included.

Mr. Ko. Si. Mani and Mr. Karunanidhi approved the construction of flyovers at the nine locations. Even before the administrative sanction, the Corporation had taken action for engaging the consultant for preparing the detailed project report.

There was no council resolution nor government's approval for engaging a firm as consultant. It was not one among the three consultants approved by HLSC. The Mayor had directed the consultant to group the nine flyovers into packages in order to favour a few selected firms. This was done to ``eliminate others in bidding.'' The detailed project reports were not placed before the HLSC or TIC. The cost of each project was estimated at more than Rs. seven crores. The technical sanction for the projects was given by the Corporation's Superintending Engineer (bridges) who was competent to accord sanction only upto Rs. 25 lakhs. Tenders were called for even before the technical sanction was accorded. Contracts were awarded after placing the subjects before the council but not after referring to the government.

A scrutiny of the estimates revealed that in several items, rates were inflated much higher than the actual market rates except for those items which fell under the schedule of rates. Because of the inflated rates, the Corporation incurred a loss of more than Rs. 12 crores, the complaint said.

Besides the four, the others cited as accused were Mr. A. K. Jagadeesan and Mr. R. S. Sridhar, chairmen of standing committee on works and taxation and finance, Dr. N. S. Srinivasan and Mr. P. Rajashankar, Special Representatives of the Mayor, Mr. N. Raghavan, Chief Executive of L and T Ramboll Engineering Ltd. (consultancy firm), Mr. M. T. Sethuraman, retired corporation Superintending Engineer, Mr. K. A. Nambiar and Mr. A. P. Muthusamy, former Chief Secretaries, Mr. P. Kolappan, former Corporation Commissioner and Ms. S. Malathy, former Secretary, MA and WS Department.

While Mr. Stalin surrendered before the Principal Sessions Judge, Mr. S. Ashok Kumar, the others arrested were Mr. Karunanidhi, Mr. Ponmudi, Mr. Ko. Si. Mani, Mr. Jagadeesan, Mr. Sridhar, Mr. Sethuraman, Mr. Nambiar and Dr. Srinivasan.

After remanding to judicial custody, the arrested persons were lodged in central prisons at Chennai, Madurai, Coimbatore and Salem. While Mr. Karunanidhi was lodged here, Mr. Stalin was taken to Madurai prison.

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