Date:12/10/2008 URL: http://www.thehindu.com/2008/10/12/stories/2008101257660400.htm
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Delhi BJP lodges complaint with Lokayukta on ‘transport scandal’

Staff Reporter

Charges of embezzlement in purchase of buses from Tata Motors


Chief Minister, Transport Minister ‘have failed to act in accordance with the norms of integrity’

‘Despite the presence of other bidders, the order was issued in favour of Tata Motors’


NEW DELHI: At a time when the Bharatiya Janata Party-led government in Gujarat is celebrating the announcement of Tata Motors shifting its Nano car project to the State from West Bengal, party leaders in Delhi have lodged a complaint with the Lokayukta demanding “immediate and stern action” against ministers, officials, contractors and other persons who have caused a loss of over Rs1.53 crore to the Exchequer by purchasing low-floor buses from the company.

While Delhi BJP president Harsh Vardhan a few days ago had demanded a probe into the scandal, party MLA from Saket Vijay Jolly has lodged a complaint with the Lokayukta now over the “transport scandal”, charging that there had been embezzlement of public money amounting to Rs.153,36,00,625 in the purchase of buses from Tata Motors.

Mr. Jolly, who is also president of the non-government organisation Delhi Study Group, has in the complaint stated that public functionaries like the Chief Minister, the Transport Minister and the Chairman of DTC “have failed to act in accordance with the norms of integrity and conduct which ought to be followed by such public functionaries in the purchase of non-air-conditioned low-floor buses” which are being inducted into the DTC fleet.

Alleging “corruption” in the deal, Mr. Jolly in an affidavit stated that in pursuance of the decision of the Delhi Government, the DTC had placed orders for purchase of 625 non-AC low floor CNG buses.

Till date, he said, 426 such buses had been inducted into the DTC fleet. The remaining 199 buses are likely to be received by this month-end. Moreover, the Delhi Government had decided to purchase an additional 1,875 such buses.

Stating that the landed price per each bus was Rs.41,34,468 and that the total cost of 625 buses worked out to Rs.2,58,40,42,500, Mr. Jolly said despite the presence of other bidders like Ashok Leyland Ltd. and Xiamen King Long, United Automotive Industries Co. Ltd., China, the order to purchase these buses was issued in favour of Tata Motors Limited.

He said a comparison with the cost of such buses purchased by the Metropolitan Transport Corporation (Chennai) Limited, which is an undertaking of the Government of Tamil Nadu, has revealed that while a total of 490 such buses were purchased by it from Ashok Leyland Ltd at an average price of less than Rs.16.80 lakh, Delhi had paid nearly Rs.24 lakh more for each bus.

Charging that Rs.153 crore had thus been lost on purchase of 675 buses, he cautioned that the loss would mount further if 1,875 more buses were purchased as per current plans at rates varying from Rs.52 lakh to Rs.61 lakh per bus.

In view of these facts, Mr. Jolly has demanded that the Lokayukta act in the matter.

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