The Comptroller and Auditor General in a draft report has claimed financial irregularities in Airport Express Metro line’s construction. The report claims the construction company – Delhi Airport Express Private Limited (DAMEPL) — has benefited exorbitantly. DAMEPL is a Special Purpose Vehicle (SPV) to develop, operate and maintain the Delhi Airport Express Line (DAMEL). The Delhi Airport Express shareholders are Reliance Infrastructure Limited and Construccionesy Auxiliar de Ferrocarriles, S.A. (CAF) of Spain with 95 per cent and five per cent stake respectively.
DAMEPL had to invest 60 per cent in this project, but they only invested 46.17 per cent, says the draft report. The company was not eligible to get tax rebate, but on the recommendation of Delhi Metro Rail Corporation, DAMEPL got Rs 990 crore rebate. The report also expresses surprise at the project not being given completion certificate till date.
Airport Express Metro Line was constructed on the model of Public Private Parternership (PPP). The report points to the violation of many rules during the construction and operation. This draft has been sent to union urban development ministry.
The draft report raises questions on the decision of the Group of Ministers which had approved rebate on taxes. In principle, only Delhi Metro was exempted from the import of coaches and machinery. Delhi Metro recommended the exemption of income tax for DAMEPL, which amounted to a rebate of Rs 990.22 crores. In another case, custom duty to the tune of Rs 29.56 crore was also waived off for the said company.
The report also says that the company should have been penalised for the non completion of two of its proposed stations – Dhaula Kuan and Aero City. According to the agreement, the company had to finish the undertaken project within 90 days of the provisional completion certificate. For this also the company has not been asked to pay penalty which would amount to Rs 1.66 crore.
Delhi Metro has, on the other hand, incurred losses of Rs 2.25 crore due to the unfinished project. According to CAG report, in the current financial year the company had to pay Rs 53.55 cr as yearly concession fees on 23 Feb, 2012. In addition, one percent of the total revenue was also to be taken by Delhi Metro in April-May ’12. This laxity has cost the Delhi Metro Rs 2.22 cr.
DAMEPL had to invest 60 per cent in this project, but they only invested 46.17 per cent, says the draft report. The company was not eligible to get tax rebate, but on the recommendation of Delhi Metro Rail Corporation, DAMEPL got Rs 990 crore rebate. The report also expresses surprise at the project not being given completion certificate till date.
Airport Express Metro Line was constructed on the model of Public Private Parternership (PPP). The report points to the violation of many rules during the construction and operation. This draft has been sent to union urban development ministry.
The draft report raises questions on the decision of the Group of Ministers which had approved rebate on taxes. In principle, only Delhi Metro was exempted from the import of coaches and machinery. Delhi Metro recommended the exemption of income tax for DAMEPL, which amounted to a rebate of Rs 990.22 crores. In another case, custom duty to the tune of Rs 29.56 crore was also waived off for the said company.
The report also says that the company should have been penalised for the non completion of two of its proposed stations – Dhaula Kuan and Aero City. According to the agreement, the company had to finish the undertaken project within 90 days of the provisional completion certificate. For this also the company has not been asked to pay penalty which would amount to Rs 1.66 crore.
Delhi Metro has, on the other hand, incurred losses of Rs 2.25 crore due to the unfinished project. According to CAG report, in the current financial year the company had to pay Rs 53.55 cr as yearly concession fees on 23 Feb, 2012. In addition, one percent of the total revenue was also to be taken by Delhi Metro in April-May ’12. This laxity has cost the Delhi Metro Rs 2.22 cr.