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Kerala orders fresh probe into 2006 MC Road project linked to former PWD secretary Gyanesh Kumar

Reported by Imran Qureshi (Staff Writer) · The Hindu - National ·

Unconfirmed — Reported by one source so far

Reported by one source so far

Worth knowing
Kerala orders fresh probe into 2006 MC Road project linked to former PWD secretary Gyanesh KumarPhoto: Wikimedia Commons

A fresh preliminary inquiry has been ordered into alleged corruption in the 2006 MC Road project, when the current Chief Election Commissioner Gyanesh Kumar was the Public Works Department secretary. ## What Happened The Vigilance and Anti-Corruption Bureau previously investigated charges that PWD officials demanded ₹2 crore to clear contractor bills, but the files were closed without a complete probe. Discrepancies in that 2006 investigation prompted the new inquiry, which is still awaiting its report. ## Allegations The Kerala State Transport Project contracts were awarded far above estimates: road improvement work estimated at ₹787 crore was contracted for ₹1,209 crore; road construction estimated at ₹244 crore was contracted for ₹343 crore; land acquisition estimated at ₹187 crore cost ₹323 crore. The state is said to have lost around ₹700 crore due to these inflated contracts, with additional claims of irregularities in land acquisition. ## Earlier Findings A 2004 CAG report noted an ₹84 crore loss from inflated tenders and questioned the decision to hire a foreign consultancy that was paid ₹50 crore, bypassing state agencies such as NATPAC and CESS. ## Political Response Public Works Minister P.K. Basheer told the Assembly, answering BJP MLAs B.B. Gopakumar, V. Muraleedharan and Rajeev Chandrasekhar, that the government will review the earlier report and may order a detailed investigation into the suicide of the PATI‑BEL project manager, a joint venture between a Malaysian firm and Bhageeratha Engineering. ## Context The MC Road reconstruction was a World Bank‑funded effort worth ₹215 crore, and the project’s engineer, Lee See Been, had raised complaints before his death by suicide in Malaysia.

ExplainerWhy this matters

What Happened A 2006 road reconstruction on the MC Road, funded by the World Bank, was overseen by the Public Works Department when Gyanesh Kumar served as secretary. Allegations later emerged that contracts were awarded at prices far above the original estimates, and that officials asked for a bribe of ₹2 crore to approve contractor bills. ## Why It Matters The inflated contracts may have cost the state up to ₹700 crore, undermining public funds and eroding trust in government procurement. The involvement of a foreign consultancy paid ₹50 crore, instead of local agencies, raised questions about transparency and value for money. The suicide of a project engineer and a joint‑venture manager adds a human and possible legal dimension to the financial scandal. ## What Happens Next The newly ordered preliminary inquiry will examine the earlier VACB findings and the noted discrepancies. If the report confirms serious lapses, the state may launch a full investigation, possibly involving the judiciary, and may pursue legal action against any individuals found guilty of corruption or negligence.

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