Bombay Company Canada

Canadian graft claims shine light on Chhattisgarh's roads to nowhere

An article about political corruption in India, published in Canada's most widely read newspaper, has triggered a political storm in faraway Chhattisgarh and unwittingly unmasked the impediments to building infrastructure in India's insurgency affected districts.

On August 3, the Toronto Star published the article, which alleged that the ruling BJP's Minister for Public Works, Brijmohan Agrawal, demanded a bribe of $ 1 million from a Canadian civil contractor tasked with constructing a road through Maoist-affected Dantewada district. Mr. Agrawal has denied these claims.

According to the Star , Canadian national Mir Ali's company Superbuild India won a contract to construct a 77.8 km stretch of the National Highway 221, linking the town of Sukma in Dantewada district to Konta, a settlement on the Chhattisgarh-Andhra Pradesh border. Mr. Ali posted a $ 4 million bank guarantee and Superbuild India began work last year, only to be attacked by armed men, who assaulted workers and torched equipment. Superbuild's contract was subsequently terminated.

“Family threatened”

Mr. Ali, the Star report continues, then approached Mr. Agrawal, who demanded $ 1 million as bribe, failing which Mr. Ali's bank guarantee of $ 4 million would be forfeited. When Mr. Ali refused to pay the bribe, the Star alleges, he was shadowed by unidentified men and his family was threatened.

On Saturday, documents released by the State government cast doubts on the veracity of the Star 's report, but reveal a set of backroom deals between private operators that plague the State and the Central government's attempts to build infrastructure in the country's Maoist-affected areas.

In July 2010, the Union Ministry of Road Transport and Highways approved the construction of 77.8 km of NH 221 under a scheme to improve road connectivity in districts affected by “Left Wing Extremism.” The contract, however, was not granted to Superbuild India, but to Niraj Cement Structurals Ltd., a firm listed on the Bombay Stock Exchange (BSE). In its July 26, 2010 disclosure to the BSE, Niraj Cement Structurals announced it had won an order worth Rs. 1,368,448,390 to build parts of the highway.

In December 2010, however, Chhattisgarh's Principal Secretary M.K. Raut wrote a letter of complaint to the Union Ministry, alleging that Niraj Cement Structurals was yet to begin road construction and recommended that the company be disqualified from bidding for future works.

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