PAU sells soil for peanuts,buys it at highly inflated rates a month later

As per official documents from the university,copies of which are with The Indian Express,a memo,dated March 26,2012,from the executive engineer (PAU) to the contract company,Arun Constructions,confirms the tender for the STP but PAU authorities delegated the work of selling excess earth filling,at the rate of Rs 20 per cubic metre,to the contractor.

As a result of this,PAU deducted around Rs 4.32 lakh from the contractor’s bills for disposing off 21,603.92 cubic metres of earth. On top of it,the STP was to be completed on January 4,2013,as per the contract but it is still incomplete.

The action is completely against the norms,specified by the University,for contractors. “Surplus earth as a result of excavation of foundations or basement shall be placed at places approved by the engineer-in charge. No earth so excavated shall be sold by contractors to private parties nor removed for sale,” PAU’s rules read.

To make matters worse,a month after selling earth from the STP site at nominal rates,PAU issued orders for buying earth at Rs 305 per cubic metre — some 15 times higher than what it sold the commodity for.

A copy of the letter (with The Indian Express) — detailing proceedings of a sub-committee meeting,for the construction of the auditorium,held at the office of executive engineer on April 12,2012 — mentions: “Earth filling under floors with earth shall be bought from outside at the rate of Rs 8.65 per square foot.”

With one cubic metre equal to 35.31 cubic foot,PAU bought the earth for approximately Rs 305 per cubic metre and incurred a minimum loss of Rs 61.56 lakh. (loss of Rs 285 per cubic meter while selling the earth).

While executive engineer,Jaspal Singh,was not available for comments,PAU Vice-Chancellor Dr B S Dhillon,told The Indian Express: “I am not aware of the matter yet and if an enquiry confirms discrepancies,action will be taken as per rules.”