CAG finds irregularities in Delhi airport Metro project

Reliance Infrastructure (R-Infra) and Construccionesy Auxiliar de Ferrocarriles, SA (CAF) of Spain were given undue benefits in the Airport Metro Express Line (DAMPEL) project, the Comptroller and Auditor General (CAG) said. The apex auditor found serious irregularities, flouting of government norms and undue financial benefits to the private player in the Delhi airport Metro link. R-Infra and CAF are joint venture partners in DAMPEL, which is the country's first Metro rail project under the public-private partnership (PPP) model. Financially, the two most serious charges raised in the CAG report pertain to alleged undue benefits on waived customs duty and investment of funds from an escrow account for the project to various Reliance ADAG group mutual funds without proper disclosure. The CAG revealed that DAMEPL got customs duty concessions on imports of capital goods worth Rs 990 crore on the basis of a recommendation letter from DMRC. According to CAG, this waiver should not have been extended to DAMEPL and was applicable only if the items were imported for DMRC itself and would ultimately be owned by it. This undue benefit, CAG estimates, amounted to Rs 29.56 crore.