Chennai: Red soil kept by the Water Resources Department (WRD) for sale has allegedly been stolen, creating a hurdle for the government in realising around Rs 12 crore in revenue.
The red soil was generated during the formation of a canal meant to divert water coming from Kandaleru dam to Poondi lake towards the Kannankottai–Thervoy Kandigai reservoir, which was created in 2020. The soil was removed using earthmovers while the canal was built.
Officials began preparations in January to sell about 3.53 lakh cubic metres of the excavated red soil. A committee headed by an IAS officer assessed the quantity and fixed the price, and tenders were called in March through the Kosasthalaiyar basin division’s executive engineer.
Work was taken up through a contractor named Rajappa and assigned to a firm, RM Constructions of West Mambalam. As per the terms, the firm was to pay Rs 11.51 crore to the government, along with Rs 33.4 lakh as GST and Rs 57.5 lakh as a security deposit; the security deposit was paid.
However, even five months after the new TVK government took charge following the election, the firm has not paid the full amount to remove the soil. Allegations have surfaced that large quantities of the stockpiled soil were stolen and sold with the backing of some politicians, and there are also complaints of demands for commission. The WRD has warned that if the full payment is not made by the end of this month, the contract will be cancelled and the security deposit will be forfeited.
