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    CBI probe sought into highways dept scam

    The Madras High Court has been moved seeking a CBI probe into a white collared scam involving officials of the State highways department worth Rs.1000 crore of public funds in the purchase of bitumen, used for road construction.

    CBI probe sought into highways dept scam
    X
    Madras High Court

    Chennai

    Based on information obtained through the Right to Information Act, activist G. Balaji had contended in his public interest litigation that the highways department gets a sanction of Rs 3000 crore every year for carrying out road and bridge works under comprehensive road infrastructure development programme (CRIDP). 

    Of the sanction made, a major portion of this amount is spent for procuring bitumen, steel and cement. But price of bitumen varies on monthly basis as fixed by oil companies based on market conditions. As per the scheme, when the price shoots above the sanctioned amount at the time of granting the contract to contractors, the department bears the additional cost. 

    Similarly, when the price falls, the difference must be returned to the department, and if not, has to be recovered by the department. Along these lines the fraud happens, where the officials collude with the contractors and divert the difference amount to their pockets, the petitioner claimed.

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