Hyderabad: The Greater Hyderabad Municipal Corporation (GHMC) has recovered Rs 6.83 crore after detecting duplicate and excess payments made to contractors for civic works.
The financial discrepancies came to light during internal checks and a preliminary enquiry by the GHMC Vigilance Wing. The payments were linked to contractors handling civil works, road repairs and other infrastructure projects.
According to GHMC Commissioner R.V. Karnan, the preliminary vigilance enquiry report was submitted on August 28, 2026.
The enquiry identified discrepancies across 78 ERP invoices involving Rs 6,92,11,434. Karnan clarified that reports claiming irregularities worth more than Rs 100 crore involving over 200 contractors were exaggerated and not supported by official records.
GHMC Recovers Rs 6.83 Crore From Contractors
The Commissioner said Rs 6,83,75,773 relating to 74 invoices had already been recovered by the civic body.
The remaining Rs 8,35,661 involving four invoices was received through demand drafts. The amount was awaiting credit to the GHMC General Fund, he said.
The discrepancies were detected through GHMC’s internal financial controls. These included online payment validations during an ERP software upgrade, account segregation and a review conducted by the Additional Commissioner (Finance).
The issue involved payments processed through the Trade Receivables Discounting System (TReDS). GHMC has used the digital platform to clear pending contractor bills alongside direct government releases.
The platform was also used by contractors to access funds for urgent personal requirements. Such amounts were subsequently adjusted against their final payments.
Following the trifurcation of the erstwhile GHMC, the TReDS operating agency updated its software. However, the updated system allegedly failed to properly reconcile certain amounts drawn for emergency purposes.
The discrepancy was later identified while mapping contractors’ works and payments.
GHMC blocked the concerned vendors in its ERP system after the discrepancies were detected. Formal demands were subsequently issued and recovery proceedings were initiated.
The matter had already been referred to the Vigilance Wing on July 27, 2026, for a comprehensive enquiry.
Karnan said TReDS platform providers had acknowledged that their blockchain-based duplicate-detection systems failed to prevent identical invoices from being uploaded on a single platform and across multiple platforms.
The Commissioner said the ongoing departmental enquiry and special audit would establish whether there was any deliberate wrongdoing.
If the enquiry establishes mala fide intentions or criminal intent, GHMC will initiate criminal action against those responsible, Karnan said.
The civic body is also expected to strengthen its financial and digital payment controls to prevent similar discrepancies in the future.
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