CAG Report Highlights Irregular Payment During Pandemic

A recent report by the Comptroller and Auditor General of India (CAG) has criticized the Maharashtra government for an irregular revenue waiver of Rs 71.07 crore granted to the Mumbai Pune Expressway toll operator during the COVID-19 lockdown. This payment, deemed unjustified, has sparked controversy and calls for accountability.

Details of the Agreement and Violations

The Mumbai Pune Expressway Limited (MPEL), under the Maharashtra State Road Development Corporation (MSRDC), had a sub-concession agreement with IRB MP Expressway Private Limited (IRB) for tolling, operation, maintenance, and transfer until 2030. The agreement explicitly stated that IRB was to bear the costs of 'force majeure' events, including epidemics like COVID-19, without government compensation.

Government's Controversial Decision

Despite the agreement's clauses, the MPEL's Board of Directors decided to compensate IRB with Rs 71.07 crore for revenue loss during the lockdown, a move the CAG report asserts was in direct violation of the contract and an undue favor to IRB.

Ongoing Repercussions and Recovery Efforts

Following a mediation report in October 2023, the government has initiated steps to recover the unjustified payment from IRB, with a three-month deadline set for the recovery of Rs 71.06 crore.