In a letter to the Kochi Corporation Secretary, the Local Self Government Department (LSGD) has said that the security deposit returned to the contractor before the completion of the work on the first Rajiv Awas Yojana (RAY) housing tower at Thuruthy in West Kochi will have to be recovered from the contractor. If the amount is not returned, the deposit will have to be recovered from the Mayor, then Additional Secretary of the corporation, and the Superintending Engineer.
The letter comes on the heels of a report from the State performance audit officer on violation of rules in returning the deposit.
The Mayor, the then Additional Secretary of the corporation, and the Superintending Engineer were responsible for the violation of rules in returning the security deposit of ₹91.22 lakh to the contractor before the completion of the work, said the letter signed by the LSGD Deputy Secretary on behalf of the Principal Secretary. Till the amount was returned, the amount would be the liability of the three. If they are unable to get the amount returned, the deposit will have to be retrieved in equal amounts from the three of them, and a report on the action taken must be presented to the government within two weeks, said the letter dated September 18.
“I have not seen the letter yet. There has been no violation of rules. This matter is purely political, and hides many facts. Anticipatory sanction is given by the Mayor in several instances. This issue of returning the deposit was later approved by the corporation council through a vote. If the contractor must return the deposit, a decision will have to be taken on that,” said Mayor Soumini Jain.
Corporation Secretary in-charge, K.P. Vinayan, who also holds charge as Regional Joint Director, said with the additional duties he discharges, he had not yet seen the letter and would examine the matter. Additional Secretary Satheesan U.S. said the letter was received at the office only earlier this week and that a decision on it would be taken by the Secretary.
The construction of the 12-storey housing tower for the landless in Thuruthy, West Kochi, has not seen much progress despite the contractor’s agreement period having ended last year. The deposit was returned to the contractor in June last year.
After a section of Opposition councillors had written to the Minister for Local Self Governments about the return of the security deposit, the performance audit officer had in October last year examined the matter and prepared a report.
The report noted that the return of the deposit to the contractor before the completion of work and in lieu of pending bills, was a violation of rules.
Even after returning the deposit to clear the contractor’s dues, no progress was made on the work, the report said.