It also pointed out the inordinate delay in implementing the ambitious Ahmedabad-Vadodara expressway which had resulted in cost escalation by a whopping 225 per cent, with the project cost estimates having shot up from Rs 137.20 crore to Rs 445.37 crore.

It also draws attention to lapses like unauthorised financial aid to contractors, unjustified establishment expenditure on at least three divisions of the State Roads and Building Department and unproductive expenditure on surplus staff of the closed Rural Road Project (RRP) divisions.

The multi-crore expressway project was sanctioned by the Union Ministry ofSurface Transport in 1986 at an estimated cost of Rs 137.20 crore and was to be completed by March 1992. Due to the delay in execution of work, the estimates were revised to Rs 209.82 crore in February 1990 and further revised to Rs 374.19 crore and Rs 445.37 crore in May 1995 and February 1996 by the State Government. The CAG report points out that though the physical progress of the project is 61 per cent and Rs 184.29 crore spent on it, the intended benefits of smooth and speedy traffic under the project are yet to be accrued even after more than 11 years.

The contracts for bridge works under the project had been awarded to the New Delhi-based National Building Construction Corporation Ltd (NBCC) at their tendered cost of Rs 24.39 crore in 1987. As the progress on work was slow and could not be achieved within the stipulated period, the contracts were terminated in 1991. It was then decided to carry out the remaining works at the risk and cost of the defaulting contractor.

However, no action was takento recover outstanding dues of Rs 27.O1 crore (Rs 24.60 cr risk and cost dues and Rs 2.41 cr liquidated damages) from the defaulting contractor. A statement by the Executive Engineer concerned that filing of a civil suit was under process was not tenable for even after over five years after fixing another contractor, no action was taken to recover the amount from the defaulting contractor, says the CAG report.

Besides, the price variation and escalation amounting to Rs 2.50 crore had been paid to the defaulting contractor, though the extension of time limit was not approved by the government. This amounted to violation of contract agreement and unauthorised financial aid to the contractor.

The report further points out that over Rs 4 crore had been spent on the establishment expenditure, though the three divisions -- one each at Ahmedabad, Nadiad and Vadodara -- and one circle office at Ahmedabad had been closed down in February 1997.

These divisions had been opened for execution and supervision ofroadworks under the expressway project.

After the Rural Road Project (RRP) divisions were closed down by the Roads and Building Department in 1996-97, their 166 employees had been transferred to the various divisions of the R and B Department where there was no work for the employees and yet money had been spent on them.