Finance Department Audits Greater Chennai Corporation Over 14,543 Tenders

The Tamil Nadu state finance department is carrying out a detailed audit of tenders floated by the Greater Chennai Corporation after the civic body issued an unusually high 14,543 tenders in the last financial year, Corporation Commissioner GS Sameeran said at the monthly council meeting on Friday.

The volume of tenders floated was more than three times the civic body's usual annual average of 4,000 to 4,500. Sameeran stated that the audit covers works undertaken without following the prescribed approval and tendering processes.

According to the commissioner, several projects executed during the previous financial year placed severe pressure on budgetary allocations without being recorded in the corporation’s Enterprise Resource Planning (ERP) system or receiving required administrative sanctions. Certain works had also been executed without floating tenders.

The issue of irregularities was raised during the meeting by DMK councillor R Sriramalu, who questioned why work orders had not been issued for several tendered works. Sameeran explained that civic works must follow a strict mandatory sequence: administrative sanction, financial approval, ERP system entry, the tendering process, selection of the bidder, issuance of the letter of award, and finally the work order.

Sameeran noted that when this process is bypassed, such discrepancies arise. He added that the tenders in question will be reviewed, an explanation will be presented by the next council meeting, and appropriate action will be taken based on the audit's findings.

During zero hour, councillors also expressed concern over delays in stormwater drain, desilting, and road works ahead of the northeast monsoon, linking the lag to unpaid contractor dues and financial constraints. As of August 19, the corporation had pending bills totaling Rs 2,090 crore, including Rs 1,280 crore in capital expenditure and Rs 809 crore in revenue expenditure.

To address immediate liquidity needs and clear dues, the council approved an overdraft facility of Rs 300 crore on Friday. Of this, Rs 150 crore will be drawn against a temporary fixed deposit created from balances in funds including the Nirbhaya Fund and State Disaster Mitigation Fund, with the remaining Rs 150 crore raised as a general overdraft.