Between 2007 and December 2012, Thane Municipal Corporation (TMC) has reportedly spent nearly Rs 733 crore on contractors for 11 projects under JNNURM as against the Rs 386 cr estimated for completing them.

According to reports, the civic body paid 90 percent more than its share for these projects because a group of contractors, civic officials, politicians and private consultants inflated prices of 11 infrastructure projects under Jawaharlal Nehru National Urban Renewal Mission (JUNNURM).

Civic officials admitted cost-escalation will balloon and TMC's final amount to contractors will exceed by Rs 400 cr. This, they claimed, was because construction of over 2,800 tenements under basic services for urban poor (BSUP) and a sewage treatment plant (STP) are far from completion.

Some civic officials feel that the corporation wasted the multi-crore stimulus funding by the centre and Maharashtra government for infrastructure development by spending more than double its share owing to fund-inflated project costs to contractors.

It is learnt that expenditure on 11 projects (two BSUP projects were scrapped) exceeded Rs 1,082 cr and eight projects have been completed. Three projects for the construction of 2,800-plus homes under BSUP and STP plants at Kalwa and Mumbra are half way through.