Pune: The Pune Municipal Corporation (PMC) is suffering financial losses amounting to ₹6,500 to ₹7,000 per metric ton due to its asphalt procurement process. Instead of purchasing asphalt directly from petroleum companies, PMC has been buying it through contractors, a decision that is allegedly benefiting contractors at the expense of the municipal treasury.
Raising concerns over this issue, former Standing Committee Chairman Nilesh Nikam has demanded an investigation into the matter and action against the responsible contractors and officials. He made these allegations during a press conference and has also submitted a formal complaint to Municipal Commissioner Dr. Rajendra Bhosale.
Change in Procurement Process Led to Losses
For many years, PMC directly procured asphalt from petroleum companies, ensuring cost-effectiveness and transparency. However, three years ago, the administration changed the procurement policy, deciding to purchase through contractors instead. The new tender terms and conditions reportedly favored specific contractors, ultimately leading to higher costs for PMC.
As a result, between August 24, 2024, and February 25, 2025, PMC purchased 2,301 metric tons of asphalt from a single contractor. Had this purchase been made directly from petroleum companies, the municipality could have saved ₹6,500 to ₹7,000 per ton, resulting in significant financial savings. However, this benefit has now gone entirely to the contractor, leading to huge financial losses for PMC.
Allegations of Theft and Fraudulent Transactions
Apart from the financial losses, there are also serious allegations of theft. Nikam claimed that several trucks delivering asphalt to PMC projects failed to unload the full quantity, resulting in the theft of ten truckloads of asphalt.
Additionally, suspicions of fraudulent transactions have emerged. The same contractor supplies asphalt to both PMC and the Public Works Department (PWD). Petroleum companies maintain a tracking system for deliveries to PWD, and records show that the same truck was documented delivering asphalt to both PMC and PWD at the same time.
This raises concerns that either PMC or PWD is being misled and that the contractor may be engaging in fraudulent practices.
"If a complaint has been submitted to the Commissioner regarding the asphalt procurement process, we will verify the documents and take necessary action."
– Aniruddha Pawaskar, Head, Road Department