Cost overruns as a rule

For the time being, leaving aside the recent high voltage press statements in the media with regard to the controversy or irregularities or scam involving the construction of the high court building for Nagaland at Meriema, near Kohima; what it only confirms is, that delays and cost overruns have become the rule rather than the exception of projects in Nagaland. There had been several media highlight over the issue but it gained prominence and credibility only after the Nagaland Tribes Council(NTC) filed an RTI about the project in 2017. The Registrar of the Gauhati High Court, Kohima Bench, has clarified on September 13,2017 that the foundation stone for the proposed building of a Nagaland State High Court was laid by Justice KG Balakrishnan, Chief Justice of India, on May 21, 2007 in the presence of chief minister Neiphiu Rio, Supreme Court judge, Justice H.K. Sema and Chief Justice of Gauhati High Court, Justice Jasti Chelameswar. Citing RTI reply, NTC revealed that Rs. 43 crore was the estimate for the High Court project at Meriema. During 2009-2014, i.e., in 5 years, the State Department of Law and Justice had drawn Rs. 41.62 crore and for the period from 2015 to 2017 an amount of Rs. 11.25 crores was drawn against the project. NTC revealed that there had been 18 drawals from 2009 to March 2017, and the amount totalled Rs. 52.63 crores as against the original estimate of Rs. 43 crores.The Gauhati High Court on May 2,2018 then registered PIL (Suo Moto) 5/2017 directing the CBI to inquire into the allegations of misappropriation of public money vis-à-vis the snail pace of construction work of the new High Court complex at Kohima, and submit a report within 3(Three) months to the Registrar general of this High Court. Subsequently five persons were named by the CBI. While directing CBI to probe the alleged misappropriation, the Court also cited the Audit conducted by the Comptroller and Auditor General (CAG) of India report for ending 2019 and Report 2 of 2020, where many anomalies had been exposed by the Comptroller and Auditor General (CAG) of India in the delay of the construction of Kohima High Court. Following the high court’s order, the CBI conducted a preliminary inquiry and filed a first information report (FIR) in 2019. It named ten officials of the Nagaland Public Works Department, four contractors, and “unknown others” as accused in the case. The CBI found instances of “substandard construction” in the main high court building, as well as allegedly unaccounted and misappropriated payments in three other areas — “construction of the retaining wall in the new high court complex”, “addition work for providing the retaining wall” and “construction of retaining wall and site levelling at new high court complex”. These type of additional works are the spice added to the original estimates which have become part and parcel of major projects in Nagaland and factors for huge cost escalations. Respondent Secretary to the Government of Nagaland, Department of Justice and Law, in the affidavit-in-opposition, said that as per the detailed project report, the total project cost was Rs 161,10,72,200 based on Nagaland Public Works Department Schedule of Rates, 2010. However, the department, in the affidavit said that due to escalation of price if the DPR is revised as per NPWD SoR 2016, the total project cost will become more than Rs 200 crore. This is how projects costs are escalated in Nagaland.