NHAI bribe case: US firm that paid Rs 6.7 cr was blacklisted in 2015

NHAI to add 50,000 km in next six years

CDM Smith was blacklisted by NHAI in 2015


LATEST NEWS : CDM, the Boston-based consultancy firm that allegedly paid kickbacks to the National Highways Authority of India (NHAI) officials between 2011 and 2015 to bag contracts was blacklisted by the authority in 2015 itself.

According to an official, CDM Smith was blacklisted by NHAI in 2015.

The company admitted to the justice department of the United States that its officials paid bribe of $1.18 million (approximately Rs 6.7 crore) to NHAI officials between 2011 and 2015 to obtain works for highway construction supervision and design contracts and a water project contract in Goa.

The reports mentioned that the company's division for India operations and CDM India paid bribes to receive contracts from NHAI. The bribes were normally 2-4% of the contract price and paid through fraudulent subcontractors, who provided no actual services and understood that payments were meant to solely benefit the officials.

Bribery cases in the past have been a drag on the sector that is awaiting revival of private sector interest.

Recently, an enquiry into the allotment of land for highway projects in Uttrakhand turned into a scam as it was alleged that the land use pattern was changed from “agricultural to non-agricultural, in the back date”, to benefit certain owners.
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