Bihar Government Revokes Rs 826 Crore Contracts Issued Under Previous 'Mahagathbandhan' Administration

The Public Health Engineering Department's (PHED) investigation revealed "irregularities in the contractor selection process," leading to this decision, the minister noted.

The NDA government in Bihar has annulled 350 contracts worth Rs 826 crore, previously awarded under the RJD-led 'Mahagathbandhan' administration for rural drinking water projects, according to a minister’s statement on Tuesday.

The Public Health Engineering Department's (PHED) investigation revealed "irregularities in the contractor selection process," leading to this decision, the minister noted.

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“During the previous RJD-led grand alliance regime in the state, many contracts were awarded by the department. An inquiry by the department revealed that due process was not followed in awarding 350 contracts worth Rs 826 crore. These were related to the rural water supply, including the installation of hand pumps and mini water supply systems," PHED Minister Niraj Kumar Singh explained to PTI.

The department has forwarded the preliminary inquiry findings to the state government's competent authority for a detailed investigation, he added.

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"I recently called a meeting of senior officials of the department after getting the report, and later the cancellation order was issued," Singh stated, promising strict action against those found culpable.

RJD leader Lalit Yadav served as the PHED minister during the previous grand alliance administration.

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A total of 1,160 contracts worth Rs 4,600 crore were awarded by the previous government over 17 months, Singh reported.

"We have so far cancelled 350 contracts, the remaining are being examined," he said, withholding specifics of the detected irregularities due to the ongoing investigation.

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Documents indicate that Banka district leads with 106 canceled contracts related to rural water supply systems, followed by Jamui (73), Lakhisarai (20), Aurangabad (18), and Ara (11).

Commenting on the cancellations, RJD's state unit spokesperson Mrityunjay Tiwary claimed, “Chief Minister and JD(U) supremo Nitish Kumar and BJP leaders are scared of our leader Tejashwi Yadav. The previous 'Mahagathbandhan' government in the state had executed several people-friendly projects and taken major decisions like employment to 7-8 lakh youths and providing social security to the economically and socially weaker sections of the society."

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He further alleged that the NDA partners are "afraid" of the positive impact of the welfare initiatives taken by the previous government, which benefited many in the state.

"RJD is not scared of any probe…let them (the NDA government) do whatever they want to," he asserted.

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The PHED is responsible for the installation of hand pumps and mini water supply systems in smaller habitats and wards.

It should be noted that Nitish Kumar severed ties with the RJD and rejoined the NDA in January this year.

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Following the formation of the Nitish Kumar-led NDA government, an order was issued to review all decisions made by departments previously headed by former deputy chief minister Tejashwi Yadav and RJD ministers Lalit Yadav and Ramanand Yadav.

In a February letter from the Cabinet Secretariat, officials from the health, road construction, urban development, and rural works departments were instructed to review decisions made during the former grand alliance administration.

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