25 people died and over 80 were injured in the Kolkata flyover collapse. (Agence France-Presse)
Highlights
- IVRCL bagged the Kolkata flyover project in 2009
- Only 2 per cent of flyover was completed six years into construction
- Builders were reportedly hurrying after CM asked for completion by Feb
IVRCL Group - the company in charge of building the
flyover in Kolkata which collapsed on Thursday causing the deaths of 24 people -
has claimed the disaster was an "Act of God".
The more mundane reasons for the collapse may only emerge after an enquiry.
But a scrutiny of IVRCL's books suggest that much before the collapse, the company has been in the grip of financial turmoil, partly caused by overextending itself.
In the same year it bagged the Kollkata flyover project - 2009 - the Hyderabad-based company also bagged 31 infrastructure projects across India. These ranged from Kosi Canal System in Bihar to reconstruction of Tsunami affected bridge for Highways Department, Chennai, Tamil Nadu
The scorching growth was matched by high debt, almost tripling from Rs 1,661 crores in 2010 to Rs 4,055 crores as of March 2015.
As of 2015, its losses stood at Rs 672 crore. In December last year,
the consortium of banks that have lent to IVRCL took over the reins of the company.
On its website, IVRCL says the Kolkata flyover was a tough project to execute. The area is "very congested, hampering movement of heavy equipment," and "effective working hours only 6 that too at midnight".
This may partially be true. But it also raises questions as to whether the crisis that engulfed the company may have been a factor in the delays.
Six years later, only 45 per cent of the 2-km flyover had been completed, the company had admitted. When it collapsed yesterday, the builders were reportedly hurrying the project after Chief Minister Mamata Banerjee reportedly asked for its completion by February.
Eight officials of the company were detained on Friday in Kolkata and Hyderabad, a FIR has been filed under the relevant sections of murder and attempt to murder. A plea has also been filed in court against the company, seeking an investigation by the Central Bureau of Investigation.
Calling their attitude "casual" and "wrong",
Chief Minister Mamata Banerjee has said, "It is a big loss of human lives, strong action will be taken."
Opposition parties allege that the flyover was being built without proper planning and rules had been overlooked to allow its construction at a teeming commercial area.
BJP's Mukhtar Abbas Naqvi said the disaster was an "act of fraud".
CPM's former minister Ashok Bhattacharya has claimed IVRCL was later blacklisted by some central and state governments. "Why did Mamata Banerjee allow IVRCL to continue," he asked.