Indian High Commissioner Makes It Clear: No Role in Alleged Housing Project Scam in Sri Lanka

Following a report in a Sri Lankan media outlet that claimed there was a scam behind the implementation of an India-funded housing project in the island nation, the Indian mission made it clear that it has no role in the allegation. What is the Indian Housing Project in Sri Lanka? What is its impact on Sri Lanka? What is the alleged scam? ETV Bharat finds out.

New Delhi: Days after a Sri Lankan media outlet claimed to have exposed an India-funded housing project scam, Indian High Commissioner to the Indian Ocean island nation Santosh Jha made it clear why there are no anomalies involved. On April 17, the Daily Mirror news website published a report citing sources that stated that members of the Ceylon Workers Congress (CWC) are forcing the estate superintendents to select their members as beneficiaries of these Indian grant houses.

“Those who have left the estates, those who already have houses and reside in the estates, but work for other private entities are not eligible for these houses,” the report cited sources as saying. “But, we have come under tremendous pressure from the CWC to give houses to individuals falling into these categories; which is not the requirement of the Indian government. What we were told by the Indian High Commission offices is to select the most suitable beneficiaries, but not to do it based on affiliation to any trade union.”

What is the Indian Housing Project in Sri Lanka?

The Indian Housing Project in Sri Lanka is one of the most significant initiatives undertaken by the Indian government to aid in the post-conflict reconstruction and development of Sri Lanka, particularly in the war-torn Northern and Eastern provinces. Sri Lanka experienced a long and brutal civil war, from 1983 to 2009, between the Sri Lankan government and the Liberation Tigers of Tamil Eelam (LTTE). The war resulted in significant displacement and destruction, with many families losing their homes. After the war ended in 2009, there was an urgent need to rehabilitate the affected areas and rebuild the lives of those displaced.

India, which has historical and cultural ties with Sri Lanka, took a prominent role in the reconstruction efforts. As part of its humanitarian assistance, the Indian government launched the Indian Housing Project, designed to support displaced persons and those affected by the civil war. The primary objective of the project was to provide durable and quality housing to war-affected families, with a focus on those who had been displaced or had their homes destroyed. The project aimed to create a sustainable framework for reconstruction, promote self-reliance, and encourage community participation. The Indian Housing Project is being implemented in multiple phases, covering different regions of Sri Lanka and varying types of beneficiaries.

What are the phases of this project?

According to a note by the Indian High Commission in Sri Lanka, in June 2010, the Government of India announced that it would construct 50,000 houses in Sri Lanka at an outlay of LKR33 billion. A pilot project involving the construction of 1,000 houses was launched in November 2010 and was completed in July 2012. A Memorandum of Understanding (MoU) with the Government of Sri Lanka on the modalities of implementation of the remaining 49,000 houses under the project was signed on January 17, 2012.

During the first phase, the Government of India entrusted an agency to construct 1,000 houses for beneficiaries in the Northern Province. The project was completed in July 2012. The second phase was launched on the birth anniversary of Mahatma Gandhi on October 2, 2012, which envisaged the construction of 45,000 houses in the Northern and Eastern Provinces. This was completed in December 2018.

An innovative owner-driven model was adopted to implement the second phase, wherein the Government of India arranged technical support and financial assistance for the owner-beneficiaries to undertake the construction/repair of their houses themselves. Financial assistance of LKR550,000 per beneficiary (LKR 250,000 in case of repair cases) was released in stages and transferred directly to the bank accounts of the beneficiaries by the Indian High Commission.

The third phase extended to the Central and Uva Provinces, targeting estate workers, a significant segment of Sri Lanka’s Tamil population. The project aimed to construct 4,000 houses, addressing the unique challenges of these regions and supporting the welfare of estate workers and their families. In the third phase considering the difficulties in the terrain and accessibility of materials and other logistics, LKR950,000 is disbursed per beneficiary.

During his visit to Sri Lanka on May 12, 2017, Prime Minister Narendra Modi announced an additional 10,000 houses for estate workers and the agreement was formalised in August 2018. This entails an additional commitment of LKR11 billion. Preparatory work for these additional houses is currently underway and the construction of these houses is expected to start soon. This makes the total number of houses being built in the plantation areas 14,000. As of December 31, 2019, more than a total of LKR31 billion has been disbursed by the Government of India under the Indian Housing Project.

What is the latest alleged controversy surrounding the Indian Housing Project all about?

According to the April 17 Daily Mirror report, the earlier phases of the project were implemented under credible neutral like the International Federation of Red Cross and Red Crescent Societies in partnership with the Sri Lanka Red Cross and the United Nations Human Settlements Programme (UN-Habitat).

However, according to certain plantation sector trade unions, this time around, these credible neutral implementation agencies have been replaced without any reason by the National Housing Development Authority (NHDA) and the State Engineering Corporation (SEC).

“The Government of India is so generous and has kept the promise given by Indian Prime Minister Modi in 2017 when he visited Sri Lanka,” the report cited the sources as saying. “But, the way the implementation agencies are appointed… is disturbing (to) our workers. The manner in which the NHDA is going to offer the particular contracts is also dubious. We have received credible information that on the instruction of (a particular) trade union, the implementation agencies have selected contractors although the selection criterion has to be carried out through the Estate Workers Corporative Housing Society (EWCHS).”

According to the Daily Mirror report, money allocated in the fourth phase has been misappropriated by a senior official of the Elkaduwa estate in Matale.

What is India’s response?

On Tuesday, the Indian High Commission stated that it followed a very transparent process in selecting the implementing agencies for the fourth phase of the project.

“An Expression of Interest was floated and several interested parties, including those who were associated with the third and fourth phases, responded to the same,” a statement issued by High Commissioner Jha in response to the Daily Mirror report read. “Thereafter, the selection process involved both technical and financial evaluation of the bids submitted by interested parties. These bids were opened in front of all the parties and evaluation results were duly publicised. The technical evaluation results clearly detail the scores, which each of the entities obtained along different evaluation parameters.”

The High Commissioner further stated that following the publication of results and decision to award work to NHDA and SEC, “the parties were given the chance to seek clarifications if any and no such clarifications were received”. “Therefore, the process of awarding work to NHDA and SEC was done in a manner that was to the satisfaction of all concerned,” the statement read. The Indian High Commissioner made it clear that certain aspects of a project like beneficiaries and site selection are decided by the Sri Lankan authorities.

“In the case of Phase-IV of the Indian Housing Project, both governments have mutually agreed on eligibility criteria for beneficiaries,” the statement read. “As of date, the High Commission of India has not received the list of beneficiaries from Sri Lankan authorities. Furthermore, the High Commission of India is aided by the Implementing Agencies to ensure that the list of beneficiaries meets the prescribed eligibility conditions.”

After publishing the Indian High Commissioner’s response to its April 17 “expose”, the Daily Mirror gave a disclaimer stating that at any point it “did not accuse or level allegations against the Indian Government or the Indian High Commission in Sri Lanka for their involvement in any scams in the Indian grant housing project for the plantation community, but only highlighted how a powerful trade union is attempting to get the estate superintendents to include names of their trade union members as beneficiaries”.

Impact of the Indian Housing Project in Sri Lanka

The Indian Housing Project has been a transformative initiative, improving the lives of thousands of Sri Lankans. It played a crucial role in the rehabilitation and resettlement of displaced people, contributing significantly to social stability in the post-conflict era. The project’s owner-driven approach encouraged community participation and empowered beneficiaries to take charge of the construction process, instilling a sense of ownership and pride.

Beyond providing shelter, the project catalysed local economic growth by generating employment opportunities, promoting skill development and enhancing community infrastructure, thereby uplifting entire neighbourhoods. By providing housing to diverse communities, the project served as a catalyst for social cohesion and reconciliation in a country healing from the wounds of a decades-long conflict, fostering unity and understanding among different groups.