PAC Demands CAG Audit of NHAI in Kerala

18 Aug 2025 CW Team

PAC Chairman and Congress MP K.C. Venugopal confirmed that the decision followed a detailed review conducted by the committee. The PAC’s latest report, tabled in Parliament, highlights serious concerns ranging from design flaws to questionable subcontracting practices.

The report revealed that NHAI itself admitted to a design flaw at Kooriyad in Malappuram district. The committee recommended strict action against officials responsible for such lapses and urged that negligent companies be blacklisted from future contracts.

Particular criticism was directed at subcontracting practices. The Kadambattukonam–Kazhakootam stretch of the National Highway was awarded for Rs 368.4 billion but subcontracted for just Rs 79.5 billion. A wider review of Kerala’s projects showed subcontracting averaged only 54 per cent of the original tender value, raising fears of compromised quality and weak accountability.

The PAC further recommended that the Ministry of Road Transport and Highways evaluate subcontracting practices and strengthen internal mechanisms for project design and approval within NHAI. To ensure greater transparency in toll collection, the committee also proposed the creation of a dedicated regulatory authority to determine toll rates.

Kerala’s highway projects have faced repeated setbacks due to land acquisition challenges, poor designs, and quality concerns. The NH-66 project, in particular, came under scrutiny in May when sections of the under-construction highway collapsed in three districts, sparking political controversy.

Both state Public Works Minister P.A. Mohammed Riyas and Chief Minister Pinarayi Vijayan were criticised for their handling of the crisis. Venugopal accused Vijayan of taking credit for the project until its collapse, then avoiding a site inspection despite being in Malappuram at the time.

In June, Vijayan and Riyas sought support in Delhi, securing assurances from Union Minister Nitin Gadkari that the damaged stretches would be rebuilt and the project delivered as a “New Year gift” for Kerala.

With the PAC now demanding a CAG audit, the controversy is expected to intensify, drawing political rivals into renewed confrontation over Kerala’s highway projects.

The Parliament’s Public Accounts Committee (PAC) has issued a sharp critique of the National Highways Authority of India’s (NHAI) operations in Kerala, calling for an immediate audit by the Comptroller and Auditor General (CAG).PAC Chairman and Congress MP K.C. Venugopal confirmed that the decision followed a detailed review conducted by the committee. The PAC’s latest report, tabled in Parliament, highlights serious concerns ranging from design flaws to questionable subcontracting practices.The report revealed that NHAI itself admitted to a design flaw at Kooriyad in Malappuram district. The committee recommended strict action against officials responsible for such lapses and urged that negligent companies be blacklisted from future contracts.Particular criticism was directed at subcontracting practices. The Kadambattukonam–Kazhakootam stretch of the National Highway was awarded for Rs 368.4 billion but subcontracted for just Rs 79.5 billion. A wider review of Kerala’s projects showed subcontracting averaged only 54 per cent of the original tender value, raising fears of compromised quality and weak accountability.The PAC further recommended that the Ministry of Road Transport and Highways evaluate subcontracting practices and strengthen internal mechanisms for project design and approval within NHAI. To ensure greater transparency in toll collection, the committee also proposed the creation of a dedicated regulatory authority to determine toll rates.Kerala’s highway projects have faced repeated setbacks due to land acquisition challenges, poor designs, and quality concerns. The NH-66 project, in particular, came under scrutiny in May when sections of the under-construction highway collapsed in three districts, sparking political controversy.Both state Public Works Minister P.A. Mohammed Riyas and Chief Minister Pinarayi Vijayan were criticised for their handling of the crisis. Venugopal accused Vijayan of taking credit for the project until its collapse, then avoiding a site inspection despite being in Malappuram at the time.In June, Vijayan and Riyas sought support in Delhi, securing assurances from Union Minister Nitin Gadkari that the damaged stretches would be rebuilt and the project delivered as a “New Year gift” for Kerala.With the PAC now demanding a CAG audit, the controversy is expected to intensify, drawing political rivals into renewed confrontation over Kerala’s highway projects.

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