After discoms, Arvind Kejriwal orders CAG audit of BRT operator

Written by PTI | New Delhi | Updated: Jan 29 2014, 02:35am hrs
Arvind KejriwalThis is the second such CAG audit ordered by the Arvind Kejriwal led Delhi government. Reuters
The Delhi government today ordered an audit into finances of Delhi Integrated Multi-Modal Transit System (DIMTS), which operates infrastructure projects including the controversial Bus Rapid Transit (BRT) corridor in the city.

"The government in its endeavour for transparent functioning has decided to seek an audit by the comptroller and auditor general (CAG).

"The Delhi cabinet gave its approval in a meeting today," a government spokesperson said, adding that the audit will be done from the time of DIMTS' inception in 2006.

This is the second such CAG audit ordered by the Arvind Kejriwal led Delhi government. Earlier, Arvind Kejriwal had ordered CAG audit of three private power distributors in the city.

Sources said the audit order has been given after a delegation of transporters had approached Kejriwal asking him to investigate the work done by DIMTS.

The delegation of transporters had met the Chief Minister earlier this month and was of the view that the new government should take a re-look at the projects awarded to DIMTS.

One of the transporter companies had alleged that DIMTS was not doing projects on their own, but "sub-letting" it to the contractors, giving work "without any proper price quotation".

Reacting to the allegations, a DIMTS spokesperson had told PTI, "Certain functions of some our projects have been outsourced like any other organisation or the government. We do it after all the due diligence and at the same time we are supervising all the aspects of the projects."

Demanding a critical examination of DIMTS projects, the transporters had stated that the Comptroller and Auditor General of India (CAG) last year had said a thorough scrutiny of all the records of the work done by DIMTS should be there.

The transporters included Confiscan India Pvt Ltd (Delhi), Navitech Data Solutions (Noida), Maple Imaging Solutions (Chennai), Datatec Methodex (Noida), Virgo Softech Ltd (Delhi).

Since DIMTS' incorporation in April 2006, the transporters alleged that the state's transportation department has extended undue favouritism towards the entity.

"The Department of Transportation (DOT) has favoured DIMTS as the default consultant in its future projects never exploring other opportunities and possibilities, nor did they go for open bidding to have better terms in favour of the public," the transporters had claimed.

The DIMTS, an equal equity joint venture of Delhi government and Infrastructure Development Finance Company (IDFC), has handled various projects including construction of ISBT, Kashmere Gate, construction of bus depots, maintenance of BRT corridor and other related projects.

The BRT corridor project in South Delhi has faced flak since its inception. In a report last year, the Central Road Research Institute favoured dismantling it.

DIMTS was incorporated in April 2006 as a fully owned Special Purpose Vehicle (SPV) of the Delhi government. Later in June 2007, DIMTS became a joint venture of Delhi government and IDFC with each holding 50 per cent of the shares.

Both entities had invested Rs 7.3 crore each leading to a total paid up capital of Rs 14.6 crore. Delhi government and IDFC each haVE an equal number of directors on the DIMTS Board, chaired by the chief secretary.

It had a turnover of Rs 79.54 crore during 2012-13 and a turnover of around Rs 70 crore is projected during the current financial year.