• Govt Favouring controversial MEIL Company
• Allegations of Overpriced Contracts
Unmesh Gujarathi
Sprouts News Exclusive
Senior Congress leaders have accused the BJP-led Mahayuti government in Maharashtra of approving the Pune Ring Road project at an inflated cost to benefit Megha Engineering and Infrastructure Ltd (MEIL) and Navayuga Engineering. The Ring Road project, which aims to ease traffic congestion in Pune and Pimpri-Chinchwad, is managed by the Maharashtra State Road Development Corporation (MSRDC).
The Sprouts Investigation Team has been closely monitoring the developments and raising concerns about the escalating costs. In September 2021, the cost of the project was estimated at Rs 12,176 crore. However, in October 2024, the Maharashtra cabinet approved an escalated price of Rs 20,375.21 crore, pushing the total cost to Rs 42,711.03 crore. This dramatic increase occurred within just three years, raising concerns about transparency and potential corruption.
MSRDC Vice-President and Managing Director Anilkumar Gaikwad defended the cost escalation, stating that it was due to the inclusion of state-of-the-art technology and revised specifications.
“The project estimates were based on 2017-18 rates… the tenders were filed with ongoing rates, and there was an increase in the prices of materials. The said tender follows an engineering, procurement, and construction model, with possible changes in the base level and length. Additional costs related to land for minor minerals and temporary approach roads are the contractor’s responsibility,” the note submitted by Gaikwad stated.
To ensure transparency, MSRDC engaged the Veermata Jijabai Technological Institute (VJTI), Mumbai, as a third-party reviewer and also hired Knight Frank to compare the bids with ongoing projects by MSRDC, CIDCO, and the National Highways Authority of India (NHAI).
The VJTI report confirmed that the bids exceeded estimates, while Knight Frank suggested a 5-10% increase based on a study of similar large-scale projects. Despite these findings, the Congress claims that the government approved a budget of Rs 20,900 crore, more than double the original cost estimate of Rs 10,087 crore.
“This is a massive scam. The Mahayuti government has blatantly violated financial regulations to favour select companies. The Congress and MVA will conduct a thorough investigation and take legal action against those involved once in power,” a senior Congress leader asserted.
The Sprouts Investigation Team has also highlighted that Congress leaders allege the cost of the Pune Ring Road is significantly higher than similar projects undertaken by NHAI or other state governments, raising questions about financial mismanagement and corruption.
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*Megha Engineering Controversy*
Megha Engineering and Infrastructure Ltd (MEIL), one of the key companies awarded the Pune Ring Road project, has previously been embroiled in controversies regarding inflated project costs and alleged favoritism. The company has faced scrutiny in multiple states for receiving contracts under questionable circumstances. Critics argue that MEIL has been the beneficiary of politically motivated contract allocations, leading to inflated project costs and compromised transparency. This latest approval in Maharashtra further fuels concerns about undue government favoritism and potential financial misconduct.
The Sprouts Investigation Team continues to investigate and report on the irregularities surrounding the Pune Ring Road project, bringing crucial insights to light.
• MEIL and TV9: Directors and Media Liaison
Megha Engineering & Infrastructures Limited (MEIL) is a leading and controversial infrastructure company headquartered in Hyderabad, India, with operations across various sectors, including irrigation, power, transportation, and general infrastructure. The company’s leadership comprises several key individuals:
– P.P. Reddy: Founder and Executive Chairman of MEIL, P.P. Reddy established the company in 1989. Under his leadership, MEIL has expanded its operations both within India and internationally.
– Sudha Reddy: Director of MEIL and Chairperson of the Sudha Reddy Foundation, Sudha Reddy is involved in the company’s corporate social outreach, community collaboration, wellness programs, and ventures in the hospitality sector.
– Rama Reddy Pamireddy: Wife of P.P. Reddy, Rama Reddy Pamireddy is one of the directors of MEIL.
While specific details about the directors’ interactions with media outlets like TV9 for pressuring or liaising purposes are not publicly available, such communications are typically managed by the company’s public relations or communications department. This department coordinates with media organizations to disseminate information and manage public relations.
The controversial MEIL company has been involved in giving significant sums of money as party funds to all leading political parties. The motive behind these donations is believed to be a strategy to cover up corruption within their projects and to gain favor from both government and opposition parties.