Nagpur: The Nagpur Municipal Corporation’s (NMC) Transport Department has landed in controversy over allegations that it increased payments to Chalo Mobility Private Limited (CMPL) under its five-year Aapli Bus contract without mandatory approval from the competent authority.Official documents show that NMC issued a work order to the Mumbai-based company on March 11, 2024, and signed the agreement on July 11, 2024, appointing it as the Integrated Bus Transport Management (IBTM) operator. The 60-month contract is valued at Rs216.30 crore, including Rs113.40 crore towards service charges for supplying conductors and Rs102.90 crore towards consultancy.Sources alleged that the Transport Department revised the service charges without the required administrative sanction, increasing the monthly payout from about Rs1.88 crore to nearly Rs3.26 crore.The consultancy component comprises 60% fixed charges and 40% performance-linked payments. The variable portion is to be released only after evaluating three parameters — Earnings Per Kilometre (EPKM) (15%), passenger count (15%) and digital ridership (10%).Sources, however, said the higher expenditure was driven by operational requirements. Since the agreement came into force, the Aapli Bus fleet has grown from about 500 buses to nearly 730, leading to a substantial increase in the number of conductors deployed. A revision in their wages also contributed to the rise in service costs.“These operational changes may have warranted a revision in the project cost. However, any increase in the approved contract value required prior approval from the competent authority. The procedure prescribed under the agreement had to be followed before revising the monthly payments,” sources said.The civic administration has now proposed an audit, and a file seeking approval has been submitted to Municipal Commissioner Vipin Itankar.The audit is expected to examine whether the enhanced payments received the requisite administrative approval, complied with the terms of the contract, and met the conditions governing the release of performance-linked payments. Its findings will determine whether the revisions were procedurally valid or warrant corrective action.Key Contract Details• Agreement period: 60 months (July 2024–July 2029)• Total contract value: Rs 216.30 crore• Consultancy component: Rs 102.90 crore• 60% fixed consultancy charges• 40% performance-linked variable charges• Service charges (conductors): Rs 113.40 crore for 60 months• Performance parameters:• EPKM (15%)• Passenger count (15%)• Digital ridership (10%)• Fleet at the time of agreement: Around 500 buses• Present fleet: Nearly 730 buses• Reported monthly payment:• Original: Approx. Rs 1.88 crore• Enhanced: Approx. Rs 3.26 crore• Increase in monthly outgo: Approx. Rs 1.36 crore• Allegation: Service charges enhanced without approval from the competent authority• Action initiated: Audit proposal submitted to Municipal Commissioner Vipin Itankar
