A CAG audit has exposed massive financial irregularities at Mahatma Gandhi Central University (MGCU), revealing a nearly 58% spike in campus construction costs within just six months.
- Campus construction costs skyrocketed from ₹850 crore to ₹1,338.83 crore.
- CAG flagged split tenders designed to bypass competitive bidding.
- Significant lapses found in work orders, documentation, and event expenditures.
The construction of the permanent campus for Mahatma Gandhi Central University (MGCU) in Motihari has come under intense scrutiny following a damning report by the Comptroller and Auditor General (CAG). The audit reveals that the estimated cost of the project surged from ₹850 crore to ₹1,338.83 crore in a mere six-month window.
This staggering increase of approximately ₹488.83 crore—nearly a 58% jump—raises serious questions regarding the university's project planning and the delays in finalizing the Detailed Project Report (DPR). While the Central Public Works Department (CPWD) initially provided a lower estimate, the revised DPR submitted in May 2025 reflected a massive escalation.
Why This Matters
BozokMedia analysis shows that such sudden budgetary inflations in government-funded academic institutions often signal deep-seated structural issues in procurement and oversight. The ability to bypass competitive bidding through 'tender splitting' suggests a systemic failure in maintaining institutional integrity.
The bypass of competitive tendering through contract splitting is a classic red flag for procurement fraud.
Beyond the cost escalation, the CAG audit highlighted a pattern of bypassing competitive tendering. The report notes that several identical works were split into smaller contracts to keep them below the monetary threshold required for open, transparent bidding. This practice effectively neutralized competition and allowed specific agencies to secure contracts without proper scrutiny.
Furthermore, the audit identified significant administrative and financial lapses. These include missing work orders, absent completion certificates, and irregular payments for seminars and workshops. In several instances, payments were processed without original invoices, GST details, or even basic boarding passes for air travel.
Historical Background
Established in 2014 through an Act of Parliament, Mahatma Gandhi Central University is a premier institution in Bihar. However, it currently operates from four temporary locations in Motihari while the 302-acre permanent campus project remains mired in controversy and delays.
| Parameter | Initial Estimate (CPWD) | Revised Estimate (DPR) |
|---|---|---|
| Total Project Cost | ₹850 Crore | ₹1,338.83 Crore |
| Cost Escalation | - | ₹488.83 Crore (58%) |
Frequently Asked Questions
1. What caused the massive cost increase at MGCU?
The CAG attributes the rise to delays in DPR finalization and potential mismanagement in project estimation.
2. What are 'split tenders'?
Split tenders involve breaking a large project into smaller parts to avoid the mandatory requirement of open, competitive bidding.
