The Greater Chennai Corporation (GCC) has cancelled tenders worth ₹284 crore for the construction of footpaths across Chennai after officials identified multiple alleged irregularities, including suspected tender manipulation, inflated project estimates, restricted contractor participation and bidding patterns that could have caused substantial losses to the public exchequer, as reported in Times of India.
The tenders, which had been floated just weeks before the Model Code of Conduct came into force for the Tamil Nadu Assembly elections, were cancelled on Wednesday following an internal review.
According to officials, the cancelled tenders formed part of a large-scale footpath development project announced by Chennai Mayor R. Priya in the GCC Budget presented on 19 February. The Corporation’s Special Projects Department floated the tenders on 20 February, while the Election Commission’s Model Code of Conduct came into effect on 15 March.
35 Tender Packages Worth ₹284 Crore
The project was divided into 35 individual packages, each valued between ₹8 crore and ₹9 crore, for laying footpaths across several arterial roads in Chennai.
The proposed works covered important stretches including Shastri Nagar in Adyar, Fourth Avenue in Besant Nagar, Raja Muthiah Salai near Jawaharlal Nehru Stadium, Barnaby Road in Kilpauk, Dr P.S. Sivasamy Salai in Mylapore and several other major roads.
Officials said that although the lowest bidders (L1) had been identified for all 35 packages, no work orders had been issued before the tenders were cancelled.
Officials Flag Alleged Four-Fold Cost Inflation
Officials involved in the review stated that the estimated project costs appeared to be significantly inflated.
One official explained that ordinary footpath construction primarily involves masonry work and concrete relaying, which would typically cost around ₹1.5 crore to ₹2 crore for similar stretches. In contrast, each package under the cancelled tenders was estimated at ₹8 crore to ₹9 crore.
Officials cited the example of Chennai’s 500-metre Kader Nawaz Khan Road pedestrian plaza project, which cost ₹19 crore despite involving far more extensive work, including utility shifting, premium paving, decorative lighting, seating facilities, cobblestone installations and aesthetic improvements.
In comparison, officials noted that the cancelled packages proposed spending nearly ₹9 crore merely for relaying conventional concrete footpaths across two or three roads.
They pointed to Package 6 as an example, where tenders worth ₹8.2 crore had been floated to construct approximately one kilometre of footpaths along Park Road and North Avenue Road in Anna Nagar West Extension. Officials said the estimated cost per metre worked out to nearly four times the normal rate.
Restricted Competition And Higher-Than-Estimated Bids Raise Questions
Officials also highlighted unusual bidding patterns across several packages.
In Package 9, covering footpath works worth ₹8.3 crore on Jawahar Street and Sixth Main Road in Mogappair, only two firms, P and CE Projects and Sri Sivaram and Co. participated in the tender process.
Officials said P and CE Projects emerged as the successful bidder despite quoting a price approximately 9% higher than the Corporation’s own estimated cost.
A similar pattern was observed in Package 2, involving footpath works worth ₹7.9 crore on Erikarai Salai, Pillaiyar Kovil Salai and Bazaar Street.
According to officials, P and CE Projects quoted 9% above the estimated value and emerged as the lowest bidder (L1), while Sri Sivaram and Co. quoted 12% above estimate (L2), and Adithya Infrastructure quoted 15% above estimate (L3).
Officials said such bidding patterns were highly unusual.
They explained that in normal competitive civic tenders, including relatively minor road-cutting works, nearly 20 contractors typically participate, with bids usually coming below the estimated project cost rather than substantially above it.
Tender Conditions Allegedly Restricted Participation
Officials also alleged that certain tender conditions unnecessarily restricted competition.
According to them, mandatory requirements such as site visit certificates and machinery inspection certificates effectively prevented a large number of eligible contractors from participating in the bidding process.
Rama Rao, President of the Greater Chennai Contractors Association, said Chennai alone had nearly 400 registered contractors capable of executing such works.
He argued that genuinely open tenders would have attracted much wider participation, resulting in more competitive bids and significant savings for the government.
Rama Rao further questioned why officials responsible for framing the tenders had not yet faced disciplinary action if the Corporation itself had concluded that serious irregularities had occurred.
Overlap With MRTS-CMRL Project Also Flagged
Another senior official stated that certain proposed footpath works also overlapped with areas covered under the MRTS-Chennai Metro Rail Limited (CMRL) project, creating additional concerns during the review process.
However, officials clarified that only the tenders had been cancelled and not the footpath development project itself.
They said the project had already received administrative approval from the State Government and would be revived after preparing revised Detailed Project Reports (DPRs) and fresh cost estimates.
The official added that the revised project would be retendered after the review process was completed.
MAWS Reviewing Tenders Floated During Previous Regime
The cancellation forms part of a wider review initiated by the Municipal Administration and Water Supply (MAWS) Department headed by Chief Minister C. Joseph Vijay.
Officials said the department had directed the Greater Chennai Corporation to scrutinise all major tenders initiated during the previous administration.
According to officials, nearly 40 civic projects are currently under review.
They added that the scrutiny process was progressing rapidly and that revised proposals and updated cost estimates were being prepared for several civic infrastructure projects before they are put up for fresh tendering.
TOI exclusive – A Rs 284 crore footpath scam.
Greater Chennai Corporation has cancelled ₹284 crore worth of footpath tenders floated in Feb after officials flagged multiple irregularities including alleged pre-fixing of contractors, inflated project costs, bids quoted above… pic.twitter.com/pIy4YQHQ4t
— Omjasvin M D (@omjasvinMD) June 26, 2026
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