Madhya Pradesh: Congress Accuses BMC Of Favouring Contractor, Inflating Cost

Bhopal (Madhya Pradesh): Bhopal Municipal Corporation (BMC) is under fire for allegedly favouring a contractor in construction of its headquarters in Tulsi Nagar. Instead of penalising delays, BMC approved an additional Rs 6.47 crore payment while changing the GST rate from 12% to 18% midway through the project, sparking allegations of financial mismanagement.

M/s Sahita Construction was awarded the contract for Rs 22.57 crore with a 12% GST rate on February 3, 2022. In July 2022, after a MANIT technical team’s review, the cost was increased to Rs 33.27 crore.

Now, a fresh proposal seeks to further hike it to Rs 39.74 crore, citing a GST adjustment. Congress leaders opposed the move, arguing that GST should remain fixed as per the original tender.

Leader of Opposition Shabista Zaki said that BMC rules allow a maximum cost escalation of 20%, meaning the project should have been capped at Rs 27.5 crore. Instead, costs have surged by 76% in just two years.

“Instead of penalising the contractor, BMC is rewarding it. This is blatant financial mismanagement," said Zaki. MiC member Ashok Vani presented the proposal for additional payment in the BMC Parishad meeting.