HYDERABAD: The Vigilance and Enforcement Department has begun a suo motu inquiry into the utilisation of mobilisation advances paid to contractors for execution of irrigation projects.

The Government had awarded 170 packages, costing Rs. 25,000 crores, for various projects. "We are examining whether the advances are being used for the purpose for which they are released. It is to ensure that the investments in irrigation sector are used productively", official sources told The Hindu .

The department had sought details of all the projects from the Engineer-in-chief, Irrigation, even as some irregularities were found in a case requiring further probe. All major packages would be looked into.

Contractors are given about 10 per cent of the project cost as mobilisation advance -- five per cent towards procuring men and material and the remaining for mobilising equipment. The Vigilance officials had already begun checking the genuineness of the bank guarantees given by contractors.

Stringent action

The sources warned that tampering with records would entail blacklisting. Similarly, stringent action would be taken against officials colluding with contractors. The officials were also examining whether the contractors had mentioned sub-letting at the time of bidding.

Meanwhile, the Vigilance Department has begun putting pressure on various departments to expedite action on about 2,000 investigative reports submitted by it.

Tax evasion

The stepped up investigations had led to substantial increase in the detection of tax evasion and realisation of revenues.

While the average of tax evasion detected during the last six years was Rs. 318 crores, the figure touched Rs. 460 crores till July.

Similarly, the average revenue realised for the past six years was Rs. 125 crores and it is more than Rs. 118 crores till now.

The department, which also probes the misuse or wastage of Government funds, found that wasteful expenditure of Rs. 12 crores was incurred on construction of shopping complexes and community halls in several places under the Integrated Development of Small and Medium Townships.

At many places, the buildings were lying vacant because they were taken up without making a demand survey.

Similar was the fate of numerous godowns, several shaadi khanas and 11 of the 20 social welfare hostels in Krishna district.

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