‘CAG should audit MMOPL expenses’

The Comptroller and Auditor General of India (CAG) may have started the auditing of the Mumbai Metro-1 Versova-Andheri-Ghatkopar (VAG) corridor, but the Mumbai Metropolitan Region Development Authority (MMRDA) wants it to also audit the Mumbai Metro One Private Limited (MMOPL)’s contribution to the project, as the current exercise would only cover auditing the government’s contribution.

“MMRDA has no problem with the CAG carrying out the auditing of the government’s contribution, but to understand the escalation of the project the CAG should also audit the expenses contributed by the MMOPL. Without knowing the expenses of the MMOPL, it is of no use for the CAG to carry out the exercise of auditing,” said a senior MMRDA official.

The MMRDA and the MMOPL are involved in a legal battle over the increased project cost due to which the MMOPL had proposed higher fares from the current Rs 10, Rs 20, Rs 30 and Rs 40. The MMOPL has in the past claimed that because the MMRDA did not give the Right of Way on time, it escalated the cost of the project. Following this the MMOPL had proposed to raise the fare slab based on the FFC recommendations made in July 2015. The state had, in a letter on August 3, 2015, requested that the CAG conduct a full audit of the project maintained by the MMOPL in the larger public interest. The MMOPL in the past also agreed that the CAG be allowed to carry out the audit of the expenses incurred by the MMOPL.

The state government’s contribution to the project is Rs 783 crore and the rest was incurred by the MMOPL. The cost of the project is said to be Rs 2,356 crore. However, the issue of the MMOPL proposing higher fares and the MMRDA opposing the same is pending with the Bombay high court for which the hearing is fixed to start from June 20 where final arguments on petitions challenging decision of the Metro fare hike will be heard.