GHMC has done away with payment of Earnest Money Deposit (EMD) by contractors through demand drafts, in the wake of a scam which was unearthed during last week of February this year.
Instead, now the contractors will have to pay the EMD online through a link provided on GHMC website.
The scam unearthed in Kukatpally zone saw diversion of close to ₹40 lakh paid by way of EMDs by contractors. EMDs are paid as guarantee for the work being taken up by the contractors, which are to be refunded upon successful completion without any complaints.
In case of shortfalls or delays, the amount is confiscated, and not returned. In Moosapet circle, the demand drafts attached by the contractors by way of EMDs went missing, as found out by officials after a contractor demanded refund of his deposit.
Amount ‘diverted’
The deposits thus missing amounted close to ₹40 lakh, and upon inquiry, it transpired that the amounts were diverted for property tax payments. One assistant engineer, one superintendent and three bill collectors were suspended by the GHMC Commissioner in the incident.
Officials under the condition of anonymity revealed that it was not diversion, but nefarious deals between Engineering and Revenue staff which resulted in disappearance of DDs.
According to them, the drafts were “sold” by the Engineering department staff to the bill collectors, to be paid into property tax account in lieu of the tax collected by them in cash. Enquiry is still on in to the incident.
In order to curb such practices in future, a separate link was incorporated on the GHMC website for EMD payments by the IT department.
The contractors will now need to pay the amount online, and attach the receipt as proof along with the documents.
