CHENNAI: PMK president Anbumani Ramadoss has welcomed reports that the State government is considering cancelling the contract awarded to KNR Constructions for the proposed Rs 2,100 crore elevated corridor between Thiruvanmiyur and Uthandi on Chennai's East Coast Road.

Alleging that the project involved a Rs 700 crore financial irregularity, he urged the TVK government to immediately cancel the contract and order a CBI investigation into the alleged corruption and procedural violations.

In a statement, Ramadoss said he had been consistently demanding the cancellation of the contract since it was awarded to Hyderabad-based KNR Constructions in December 2024. He alleged that despite a competing bidder, Madhya Pradesh-based Dilip Buildcon, offering to execute the project for around Rs 1,400 crore (Rs 700 crore less than the approved project cost), the previous government rejected the bid without providing any valid reason and awarded the contract to KNR Constructions.

According to Anbumani the decision raised serious questions about transparency and possible corruption in the tendering process. He claimed that the contract effectively allowed an additional Rs 700 crore burden on the public exchequer and amounted to a betrayal of taxpayers.

He argued that the estimated cost of the Thiruvanmiyur Uthandi elevated corridor appeared disproportionately high. He maintained that the project could be completed at a significantly lower cost and questioned the rationale behind awarding the contract at the higher value.

Welcoming reports that the government is reviewing the contract, Anbumani said the move indicated that the truth behind the alleged irregularities was beginning to emerge. He urged the Vijay government to immediately terminate the contract with KNR Constructions and order a CBI probe into the alleged corruption, irregularities.