GHMC double-billing scam sparks repatriation

The Greater Hyderabad Municipal Corporation, or GHMC, repatriated its financial adviser K Sarath Chandra to his parent department after a vigilance inquiry into duplicate and excess payments to contractors, according to the civic body and local media reports. GHMC Commissioner R.V. Karnan said the irregularities identified so far total Rs 6.92 crore, while separate reports citing sources said the wider exposure could run above Rs 70 crore or even Rs 100 crore. The case centers on contractor bills processed through the Trade Receivables Discounting System, or TReDS, and GHMC’s enterprise resource planning system. (newindianexpress.com) The repatriation has pushed a billing dispute inside one of India’s largest municipal bodies into a broader accountability test over who approved the payments and how much can be recovered. ### Why was K Sarath Chandra sent back to his parent department? GHMC Commissioner R.V. Karnan said on September 1 that Sarath Chandra had been directed to report to the State Audit Director for further orders. The move followed a show-cause notice issued on August 29 based on findings from a vigilance inquiry conducted by an Additional Superintendent of Police, Vigilance, according to reports citing GHMC proceedings. The vigilance report was submitted on August 28. The New Indian Express reported that the repatriation followed allegations of double billing and excess payments involving more than 200 contractors. (newindianexpress.com) Siasat and other local outlets also reported that the adviser’s removal came after the inquiry flagged irregular contractor payments. ### How much money is actually under dispute? GHMC said the amount established so far is Rs 6,92,11,434 across 78 ERP invoices. Karnan said reports of irregularities above Rs 100 crore were exaggerated and not supported by official records at this stage, according to accounts of his statement carried by Telangana Today and other outlets. (newindianexpress.com) The New Indian Express, citing sources, reported that duplicate bills worth more than Rs 6 crore and excess payments of around Rs 80 lakh had been identified so far, while allegations tied to more than 200 contractors put the total exposure above Rs 100 crore. (newindianexpress.com) The Hans India separately reported preliminary findings pointing to more than Rs 70 crore in suspect payments, underscoring that the larger figure remains an allegation rather than GHMC’s official tally. ### How were the payments made? (telanganatoday.com) TReDS was identified by GHMC-linked reporting as the payment channel involved in the disputed contractor bills. Telangana Today and Indtoday reported that the payments related to civil works, road repairs and other infrastructure projects, and that the discrepancies surfaced during internal checks and a preliminary vigilance review. GHMC’s own website describes the corporation as Hyderabad’s civic administrative body and lists engineering works and contractor-facing online systems among its services. (newindianexpress.com) That context matters because the disputed payments were not described by Karnan as an outside exposure; he said GHMC itself detected the issue through internal financial controls and review processes. ### How much has GHMC recovered from contractors so far? Karnan said Rs 6,83,75,773 tied to 74 invoices had already been recovered, with the remaining Rs 8,35,661 linked to four invoices received through demand drafts and awaiting credit to the GHMC General Fund, according to reports citing his statement. (telanganatoday.com) That puts recoveries close to the full Rs 6.92 crore that GHMC says it has identified so far. The New Indian Express reported that around Rs 7 crore had been recovered from contractors and that nearly 100 contractors had returned excess amounts through demand drafts drawn in favor of the GHMC commissioner. (ghmc.gov.in) The Hans India reported a smaller contractor count in early recoveries, saying around Rs 7 crore had been recovered from nearly 11 contractors, another sign that the contractor-level accounting is still being reconciled. ### What happens next in the inquiry? (indtoday.com) GHMC said the Rs 6.92 crore figure is provisional and that a special audit of TReDS, ERP and General Fund transactions has been recommended. Karnan said any additional amount found during that audit would also be recovered. The next concrete step is the special audit, which will test whether the official Rs 6.92 crore figure expands and whether further action follows against officials or contractors. The New Indian Express said the repatriation has raised questions about possible criminal cases or suspension proceedings, but no such action had been formally announced in the reports reviewed on September 2. (newindianexpress.com)