Govt orders CAG audit of DIMTS
30 Jan 2014 5:26 AM IST
The Delhi cabinet in its meeting on Tuesday decided to seek a Comptroller and Auditor General (CAG) audit of the Delhi Integrated Multi-Modal Transit System Limited (DIMTS) since it was incorporated in April 2006 under the Companies Act, 1956. DIMTS, operates infrastructure projects, including the controversial Bus Rapid Transit (BRT) corridor in the city.
In June 2007, DIMTS became a joint venture of Delhi government and Infrastructure Development Finance Company (IDFC), with each holding exactly 50 per cent of the shares. Consequently, both entities have invested Rs 7,30,45,000 each leading to a total paid up capital of Rs 14, 60, 90,000.
This is the second such CAG audit ordered by chief minister Arvind Kejriwal-led Delhi government. Earlier, Kejriwal had ordered CAG audit of three private power distributors in the city.
A few days ago, a section of transporters operating in Delhi had asked Kejriwal to investigate the work done by DIMTS.
‘DIMTS is not doing projects on its own, they are “sub-letting” it to the contractors, giving work without any proper price quotation,’ an official of one the transport companies said.
After the conversion of the DIMTS into a joint venture between Delhi government and IDFC, it was assigned various works by the transport department from time to time, which included construction, supervision, project management, bid process management, operations and management of government-owned public transport infrastructure, intelligent signalling and GPS tracking.
A CAG audit has revealed that the transport department released Rs 42.89 crore to private operators for operating four clusters bus services against a revenue collection of Rs 27.41 crore during 2011-2012.
Reacting to the allegations, a DIMTS spokesperson said, ‘Certain functions of some of our projects have been outsourced like any other organisation or the government. We do it after due diligence and at the same time we are supervising all aspects of the projects.’
In June 2007, DIMTS became a joint venture of Delhi government and Infrastructure Development Finance Company (IDFC), with each holding exactly 50 per cent of the shares. Consequently, both entities have invested Rs 7,30,45,000 each leading to a total paid up capital of Rs 14, 60, 90,000.
This is the second such CAG audit ordered by chief minister Arvind Kejriwal-led Delhi government. Earlier, Kejriwal had ordered CAG audit of three private power distributors in the city.
A few days ago, a section of transporters operating in Delhi had asked Kejriwal to investigate the work done by DIMTS.
‘DIMTS is not doing projects on its own, they are “sub-letting” it to the contractors, giving work without any proper price quotation,’ an official of one the transport companies said.
After the conversion of the DIMTS into a joint venture between Delhi government and IDFC, it was assigned various works by the transport department from time to time, which included construction, supervision, project management, bid process management, operations and management of government-owned public transport infrastructure, intelligent signalling and GPS tracking.
A CAG audit has revealed that the transport department released Rs 42.89 crore to private operators for operating four clusters bus services against a revenue collection of Rs 27.41 crore during 2011-2012.
Reacting to the allegations, a DIMTS spokesperson said, ‘Certain functions of some of our projects have been outsourced like any other organisation or the government. We do it after due diligence and at the same time we are supervising all aspects of the projects.’
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