Rs 100Cr GHMC double-billing scandal

The Greater Hyderabad Municipal Corporation, or GHMC, repatriated its financial adviser K. Sarath Chandra after a vigilance inquiry into duplicate and excess payments to contractors uncovered billing irregularities in civic works. The action was confirmed by Commissioner R.V. Karnan on September 1, with the officer directed to report to the State Audit Director for further orders. GHMC has publicly put the currently identified amount at Rs 6.92 crore, while other reports, citing sources and preliminary estimates, said the overall exposure could run above Rs 70 crore or even Rs 100 crore. The discrepancy matters because the two versions describe different stages of the same case. GHMC’s official position is that Rs 6.92 crore has so far been identified across 78 ERP invoices and that the figure is provisional. Reports in The New Indian Express and other local outlets said the broader allegations involve more than 200 contractors and may extend far beyond the amount GHMC has formally booked so far. (newindianexpress.com) ### Why are there two numbers — Rs 6.92 crore and Rs 100 crore? R.V. Karnan said GHMC’s verified figure at this stage is Rs 6.92 crore, tied to duplicate and excess payments detected in 78 ERP invoices. He said that number is provisional and that any additional amount found in a wider audit will also be recovered. GHMC also rejected the suggestion that the issue had been “exposed” from outside, saying the corporation itself detected the irregularities. (newindianexpress.com) The New Indian Express reported that sources said double payments worth more than Rs 100 crore were made and that more than 200 contractors allegedly benefited. The Hans India, citing preliminary findings and senior officials, reported that the amount could exceed Rs 70 crore, with the exact figure to be known only after a comprehensive audit. Those higher numbers have not yet been adopted in GHMC’s formal public accounting. (newindianexpress.com) ### What exactly is alleged to have happened in the billing process? The allegations concern duplicate billing for the same civic work and excess amounts released beyond what contractors were actually due. The Hans India said preliminary vigilance findings pointed to bills being processed and paid more than once for the same work. Telangana Today reported that the irregularities were detected in ERP invoices linked to contractor payments and that the transactions involved the Trade Receivables Discounting System, or TReDS. (newindianexpress.com) More than 200 contractors have been mentioned in reports about the wider allegations, though GHMC’s current verified count in public statements is tied to the 78 invoices under scrutiny. The available reporting does not yet establish, contractor by contractor, how many duplicate payments were made or over what period the billing pattern developed. ### Why was K. (thehansindia.com) Sarath Chandra sent back to his parent department? A showcause notice was issued to K. Sarath Chandra on August 29 based on findings from a vigilance inquiry conducted by the Additional Superintendent of Police, Vigilance. The vigilance report was submitted on August 28, according to reports on the case. After that process, GHMC repatriated him to his parent department and directed him to report to the State Audit Director. (newindianexpress.com) The reporting so far does not say that criminal charges have been filed against Sarath Chandra. The repatriation is an administrative step taken after the vigilance findings, and local reports said questions remain over whether further disciplinary or criminal proceedings will follow against any officials found responsible. ### How much money has GHMC recovered so far? (newindianexpress.com) GHMC said most of the identified amount has already been recovered from contractors. Telangana Today reported that Rs 6.83 crore had been recovered against the Rs 6.92 crore detected, while The New Indian Express said around Rs 7 crore was learned to have been recovered and that nearly 100 contractors had returned excess amounts through demand drafts drawn in favor of the GHMC commissioner. (newindianexpress.com) The Hans India separately reported that around Rs 7 crore had been recovered from nearly 11 contractors in one stage of the exercise, suggesting that recovery reporting may reflect different cutoffs or subsets of the same case. GHMC has said any further amount identified in the audit will also be recovered. ### Who else is under scrutiny now? Officials are examining records to identify other contractors who may have received duplicate payments and to trace any additional irregular transactions. (telanganatoday.com) Reports also said action is being examined against a computer operator who worked in the section handling the disputed bills, with a termination file under process. (thehansindia.com) The next formal checkpoint is the special audit recommended for TReDS, ERP and General Fund transactions. GHMC has said that audit will establish whether the provisional Rs 6.92 crore figure rises and will shape the next round of recoveries and administrative action. (newindianexpress.com)