Archive · 25 May 2025
Audit Finds Irregularities in MCG Road Contracts, Raises Concerns
An audit found that the Municipal Corporation of Gurgaon (MCG) gave a construction company unfair advantages, wasting public money.
The company got extra time and had penalties waived for road projects in Sushant Lok.
They also used materials from unapproved sources and were paid even when deadlines weren't met.
The audit revealed concerns about following rules and spending money properly, leading to calls for investigation and action.
A Haryana government audit found irregularities in MCG road contracts worth Rs 9.4 crore.
The audit revealed unjustified project extensions and waived penalties worth Rs 94 lakh for a construction firm.
Irregular payments of Rs 2.1 crore were made, and materials were procured from unauthorized sources.
The contractor repeatedly requested and received extensions, failing to meet deadlines.
Residents complained about poor construction quality, alleging wasteful expenditure of public funds.
- Who
- A Haryana govt audit examined the Municipal Corporation of Gurgaon (MCG) and a construction firm M/s Chirag Construction Company.
- What
- A government audit revealed irregularities and undue benefits in MCG road contracts.
- When
- The audit examined works from 2023-24 and was conducted between January 30 and February 4 this year.
- Where
- Sushant Lok-2 and 3 in Gurgaon, India
- Why
- Due to violations including unjustified project extensions, waived penalties, irregular payments, and procurement of materials from unauthorized sources.
MCG & Contractor
Auditors & Residents
Project Extensions and Penalties
MCG & Contractor
Contractor: Delays were due to late payments from MCG; Projects were completed and payments were received.
Auditors & Residents
Audit: MCG officials overstepped their authority by granting extensions and waiving penalties without proper justification.
Construction Quality
MCG & Contractor
Contractor: Construction was completed as per agreement.
Auditors & Residents
Audit: The construction did not adhere to quality standards.
- Project Value
- Rs 9.4 crore
- Contractor
- M/s Chirag Construction Company
- Road Projects Locations
- Sushant Lok-2 and 3
- Penalty Waived
- Rs 94 lakh
- Irregular Payment
- Rs 2.1 crore
- Audit Period
- 2023-2024
