Valued at Rs 205-crore: Encroachments, LED lighting discrepancies in T Nagar smart city project

CHENNAI: The Comptroller and Auditor General (CAG) audit report has exposed functional failures in the Rs 204.82 crore mobility infrastructure project, including a Multi-Level Car Parking (MLCP) facility, redeveloped roads, and pedestrian plazas under the Smart Cities Mission in T Nagar, and design changes in the Rs 59.42 crore Mambalam Canal.

Despite substantial investments by Chennai Smart City Limited (CSCL) in an MLCP facility, redeveloped roads, and pedestrian plazas, a Joint Physical Verification (JPV) conducted in June 2024 revealed widespread misuse.

Auditors noted heavy encroachments along Venkatanarayana Road and unauthorised two-wheeler parking on the pedestrian pathways of Burkit Road, effectively defeating the project’s primary goal of improving pedestrian mobility. A sample check uncovered financial irregularities in street lighting installations along the redeveloped roads. Auditors found significant variations between the quantity of LED light fixtures estimated, those certified as installed, and the actual numbers physically present on the ground.

These resulted in unexplained additional expenditure. The government’s reply in May 2025, though detailed about the benefits of LED light fixtures, was silent about the variation in the quantity installed.

Further, the Mambalam Canal Smart City project warned of potential monsoon flood risks in the Area-Based Development (ABD) zone. Launched in February 2021 to build retaining walls, pathways, and green pockets, the project was redesigned in May 2022 following severe monsoonal flooding. To ensure uninterrupted water flow and desilting, officials dropped key amenities, including shared pathways, cycle tracks, and parks, before work resumed in August 2022.

Despite spending Rs 48.19 crore as of March 2024, JPV in June 2024 revealed the project remained incomplete past its extended March 2024 deadline. The CAG noted that state officials provided no reasons for the delay or proof of penalties levied on contractors. A proposed deadline extension to August 2024 remains unconfirmed.