The inquiry report, which was submitted to the Administration a few months ago, has severely indicted Jerath and other senior officials of the department. The report was sent to the Central Vigilance Commission, which recommended major penalty proceedings against Jerath and that he should be chargesheeted.

The Administration is also examining the advisability of launching criminal prosecution against Jerath and A S Dhingra, former executive engineer, who has been repatriated to Punjab. While Jerath has since been chargesheeted, he is still elusive.

The inquiry began on a complaint made by a contractor. Later, large-scale irregularities came to light once the relevant records were probed. The inquiry has specifically looked at cases pertaining to construction of Block C, Block D Phase I to IV.

The inquiry also probed the change of the pre-qualification criterion in respect of aluminium glazing in Block B. These, with the exception of Block D and Phase II, were allotted to "allegedly the favourite firm of Jerath". Following the investigation, a number of allegations were proved.

This particular company, registered as an electrical agency with the Administration since 1983, was enlisted as "A" Class civil contractor just before certain major works of GMC were to be allotted. The company was given civil works valuing more than Rs 11 crore which it did not have the capacity or the resources to handle. Jerath cleverly phased out allotment of various works to this company.

The enlistment was done without any verification of the documents submitted by the agency, which were found to be false. S C Katyal, the then superintending engineer, who did this enlistment, stated that it was done by him at the behest of Jerath, as per the inquiry.

It was also proved that after the pre-qualification bids had been invited for Block C, Jerath "arbitrarily at his own level changed the standard pre-qualification conditions and got the applications reinvited" just to enable the company to participate in the tender. "The record has clearly been tampered with and overwritten and the agency was wrongly pre-qualified," since it was ineligible.

The inquiry report also brings out that contrary to the recommendations of senior officers, Jerath was repetitively doing pre-qualification for various works of GMC, thus harassing the genuine contractors and eliminating healthy competition. Many reputed contractors were eliminated at the pre-qualification stage itself on untenable grounds whereas some others, particularly this electrical contractor, were blatantly favoured.

The inquiry also points out that the original design of Block C envisaged one basement. Later, another basement was added on account of low load-bearing capacity of the soil. However, the Notice Inviting Tender (NIT) for this work left out the additional basement. The scope of work, therefore, was deliberately understated and was concealed from the other agencies.

According to the report, the company was allotted this work being the lowest tenderer. That there was prior understanding between Jerath and the company is proved from the fact that the agency started the work of the additional basement which was not allotted to it. "Processing of the case of enhancement was therefore a farce."

To justify enhancement, wrong certificates about this work were given by Dhingra, given current duty charge of superintending engineer. Contrary to what was projected all along by Jerath and Dhingra, the enhancement included not only the additional basement but the slab at level "O". "This was done rather cleverly and this component of the enhancement was underplayed."

In respect of Block D, Level O Phase I, II, III and IV work also, the allegations of favouritism and irregularity have been proved. Two agencies were arbitrarily eliminated at the pre-qualification stage on flimsy grounds.

It is not customary in the department to allow price escalation. However, this was allowed to the same company though the period of completion of work was only one year.