How Bihar’s MGCU campus cost jumped Rs 488 crore in six months amid tender splits, missing records

Neither MGCU Vice-Chancellor Sanjay Srivastava nor Public Relations Officer Shefalika Mishra responded to queries on the audit findings. (mgcub.ac.in/)

The construction cost for the permanent campus of Mahatma Gandhi Central University (MGCU), Motihari, surged from Rs 850 crore to Rs 1,338.83 crore within just six months due to delays in finalising the detailed project report (DPR), the Comptroller and Auditor General has flagged.

In its latest audit report, the CAG has flagged several “lapses” at MGCU Motihari – from delays in its Rs 1,338-cr campus and missing paper trails to tender violations and inflated event bills. For MGCU Motihari, a central university founded in 2014 by an Act of Parliament, this comes as a major blow, especially given that at least two key administrative posts remain vacant.

The audit report, by the Principal Director of Audit (Central), is from April 2023 to March 2025. The report identifies Rs 8.17 crore in quantified financial irregularities and excess payments, alongside a Rs 488.83 crore cost escalation for campus construction. While there’s a proposed permanent campus, it currently functions from four temporary camp locations across Motihari.

Neither MGCU Vice-Chancellor Sanjay Srivastava nor Public Relations Officer Shefalika Mishra responded to queries on the audit findings.

Here are its major findings:

*Proposed campus delay: The proposed 302-acre campus has come under scrutiny due to a sharp escalation in estimated construction costs and execution delays. According to the audit objection, the estimated project cost rose from around Rs 850 crore to Rs 1,338.83 crore in a matter of months — an increase of approximately Rs 488.83 crore — or nearly 58 percent. The steep increase raises questions regarding project planning, cost estimation and delays in obtaining Detailed Project Report approvals. DPR is a document that details the scope, design, technical specifications, estimated cost and timelines of any project.

According to audit records, the Central Public Works Department (CPWD) initially estimated construction at approximately Rs 850 crore and requested Rs 1.25 crore for a DPR. MGCU deposited this sum with CPWD on February 6, 2025. However, when CPWD submitted the DPR to the university on May 30, 2025, the estimated cost had surged to Rs 1,338.83 crore for construction across 261.83 acres. The university administration informed auditors: “The matter is being examined in consultation with the concerned section.”

*Competitive Tendering Bypassed: The audit notes that several identical works were split into smaller contracts, keeping them below the monetary threshold required for open tendering. “In one tender, two of the three participating agencies were technically disqualified, leaving only one technically qualified bidder who was awarded the work,” the report stated, questioning why competitive bidding was bypassed.

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*Irregular Expenditure & Excess Payments: The report flags irregular expenditure of about Rs 86.42 lakh on repair and maintenance work, along with an excess payment of Rs 3.35 lakh. The audit specifically highlights a payment of Rs 20.79 lakh, calculating a Rs 3.31 lakh overpayment on a single item due to mismatched quantity-rate calculations.

*Missing Work Orders & Paper Trails: The audit found that work orders, agreements and completion certificates were missing for multiple projects. In several cases, Measurement Book entries and required satisfaction certificates were absent.

*Seminars and Workshops: The audit notes that 10 seminars, workshops and conferences were organised during March 2024 at a total cost of Rs 58.45 lakh. However, an integrated plan was not prepared, and the events were submitted separately. The audit identified Rs 9.73 lakh paid towards refreshments across five events to an L1 bidder, flagging inconsistent per-unit rates and questioning procurement transparency.

For one event, three quotations were submitted, but one agency’s GST registration had already been cancelled. Another vendor was selected and paid without a work order.

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Multiple event payments lacked original invoices, taxi bills, boarding passes, GST details or work orders. For instance, in an event hosted by the Department of Social Work & Gandhian Peace Studies, payments were processed despite an invoice missing GST details, taxi bills lacking original receipts, and airfare lacking boarding passes. In another seminar, refreshment payments exceeded the approved budget.

The university management responded to auditors stating that “issues are being actively pursued or examined with relevant sections.” However, audit authorities have requested concrete action-taken reports and evidence of recovery.

Santosh Singh is a Senior Assistant Editor with The Indian Express since June 2008. Expertise He covers Bihar with main focus on politics, society and governance. Investigative and explanatory stories are also his forte. Singh has 25 years of experience in print journalism covering Bihar, Delhi, Madhya Pradesh and Karnataka.   ... Read More

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