NDA government in Bihar has cancelled 350 contracts worth Rs 826 crore, which were awarded during the previous RJD-led 'Mahagathbandhan' dispensation in the state for supplying drinking water in rural areas, a minister said on Tuesday. The decision to cancel the contracts was taken after an inquiry by the Public Health Engineering Department revealed that there were "irregularities in the process of selecting contractors", he said.
«During the previous RJD-led grand alliance regime in the state, many contracts were awarded by the department. An inquiry by the department revealed that due process was not followed in awarding 350 contracts worth Rs 826 crore. These were related to the rural water supply, including the installation of hand pumps and mini water supply systems,» PHED Minister Niraj Kumar Singh told PTI.
The department has handed over the preliminary inquiry report to the competent authority in the state government for a thorough probe, he said.
«I recently called a meeting of senior officials of the department after getting the report, and later the cancellation order was issued,» he said, adding that strict action would be taken against those who would be found guilty.
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RJD leader Lalit Yadav was the PHED minister during the previous grand alliance government in the state.
Altogether 1,160 contracts worth Rs 4,600 crore of the PHE department were awarded by the