Chennai | The Greater Chennai Corporation (GCC) has cancelled tenders worth approximately ₹284 crore for footpath construction projects across the city after a preliminary review uncovered alleged irregularities in the bidding process. Authorities suspect abnormal cost escalation, restricted competition among contractors and procedural lapses that could have resulted in significant financial loss to the public exchequer.
According to officials, funding for the footpath development project was announced in the civic budget in February 2026, following which the Special Projects Department floated the tenders. The Model Code of Conduct for the Assembly elections came into force shortly thereafter, although the tendering process had already been completed. However, no work orders had been issued for any of the packages.
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The project was divided into 35 separate packages covering footpath construction on several major roads across Chennai. Each package carried an estimated value of around ₹8 crore to ₹9 crore. During scrutiny, officials found that the estimated costs appeared substantially higher than the normal expenditure for similar works.
Officials stated that footpath construction of comparable size and nature would ordinarily cost around ₹1.5 crore to ₹2 crore per project. In contrast, the cancelled tenders reflected costs nearly four times higher in several cases. Investigators also found indications that some contracts were awarded based on bids quoted nearly 10 per cent above the estimated project cost.
The review further revealed unusually limited participation in several tender packages, with only two or three firms submitting bids. In certain cases, even the lowest bidder had quoted rates approximately 9 per cent above the estimated value. Officials noted that under normal competitive tendering conditions, a much larger number of contractors participate and bids are generally submitted below the estimated project cost.
Authorities also found that certain eligibility conditions, including mandatory site visit and machinery inspection certificates, may have restricted participation by a large number of eligible contractors, thereby reducing competition and potentially favouring a limited group of bidders.
Officials further observed that some of the proposed works overlapped with other ongoing infrastructure projects, making a fresh review of the Detailed Project Report (DPR) necessary. They clarified that while the tenders have been cancelled, the project itself has not been abandoned. Revised cost estimates and a fresh DPR will be prepared before the project is re-tendered.
The Municipal Administration Department has also directed a review of several civic works initiated during the previous administration. Around 40 projects are reportedly under scrutiny to examine cost estimates, tender procedures and technical approvals.
Experts note that transparent e-tendering, open competitive bidding, digital verification of documents and robust financial audits are essential safeguards against irregularities in public infrastructure projects. Authorities stated that further action will be taken based on the examination of tender records, financial documents and other evidence, and legal proceedings may follow if any wrongdoing or collusion is established during the investigation.
