Rs 113 cr spent in 3 years: Tamil Nadu govt guest houses under fire

The Tamil Nadu government is facing tough questions over its guest houses in Chepauk (Chennai), Udhagamandalam (Ooty), and New Delhi for raking up a whopping Rs 113.13 crores in spending from 2020 to 2023.

Documents obtained through the Right to Information (RTI) Act reveal eye-popping costs, including Rs 2.1 crores on water and Rs 1.73 crores on rent in New Delhi. An anti-corruption activist is demanding answers, calling these expenses excessive.

Here’s a breakdown of the numbers and why they’re causing outrage.

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Rs 84.72 crores spent in New Delhi

The Tamil Nadu House in New Delhi is the biggest culprit, with spending soaring from Rs 16.71 crores in 2020-21 to Rs 48.63 crores in 2022-23, totalling Rs 84.72 crores over three years.

One shocking figure is Rs 2.1 crores spent on water, with Rs 54.75 lakhs in 2020-21, Rs 57.16 lakhs in 2022-23 and Rs 20.45 lakhs by October 2024.

"Why does a guest house need so much money for water? Were they buying expensive bottled water or were contracts poorly managed? The lack of clarity is raising suspicions. Instead of buying water they can install an RO plant," RTI activist Ramakrishnan told The Federal.

Rent and hospitality

Another major expense was Rs 1.73 crores on rent, including Rs 59.99 lakhs for hospitality services and Rs 41.83 lakhs for hire charges in 2022-23 alone.

Ramakrishnan questioned the expenditure of rent. "If the guest house is meant to house officials, why book hotels outside? This could point to a lack of rooms or mismanagement?"

Fuel costs also stood out, with Rs 1.45 crores spent on petrol and oil — Rs 17.07 lakhs in 2020-21, Rs 53.74 lakhs in 2022-23 and Rs 38.76 lakhs by 2024. Activist Ramakrishnan doubts, were vehicles used efficiently or were costs inflated?

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Hospitality expenses added Rs 1.04 crores, including Rs 7.12 lakhs in 2020-21, Rs 59.99 lakhs in 2022-23 and Rs 16.15 lakhs by 2024. While guests expect comfort, critics wonder if this spending was lavish.

Other costs, like Rs 4.83 crores on staff salaries in 2020-21 and Rs 3.69 crores on contract payments in 2022-23 for services like security, further ballooned the budget.

Rs 9 lakh in phone bills

The State Guest House in Chepauk in Chennai spent Rs 4.24 crores in 2020-21, Rs 3.57 crores in 2021-22 and Rs 4.10 crores in 2022-23, totalling Rs 11.91 crores.

Telephone bills were a surprising Rs 9.27 lakhs over three years — Rs 4.00 lakhs in 2020-21, Rs 2.74 lakhs in 2021-22 and Rs 2.53 lakhs in 2022-23 — possibly reaching Rs 12 lakhs with additional data. "In the age of mobile phones and Internet calls, why these costs? Were these for landlines, or is something else going on?" the activist wondered.

Chennai also spent heavily on materials and supplies, with Rs 33.75 lakhs over three years for items like furniture or cleaning products. Larger sums went to electricity (Rs 47.08 lakhs in 2022-23) and contract payments (Rs 47.77 lakhs in 2022-23) for outsourced services.

Service charges, possibly for maintenance or events, were Rs 41.24 lakhs in 2020-21 but dropped to Rs 1.16 lakhs by 2022-23. These ups and downs make people wonder how funds are being managed.

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What Ooty spent on

The Tamizhagam Guest House in Ooty spent Rs 1.28 crores in 2020-21, Rs 1.55 crores in 2021-22 and Rs 2.06 crores in 2022-23 — in all Rs 4.89 crores. Salaries were a big chunk, with Rs 95.54 lakhs in 2022-23 for staff pay and benefits.

Non-salary costs included Rs 18.41 lakhs for electricity and Rs 39.21 lakhs for contract payments in 2022-23. A hefty Rs 23.79 lakhs went to minor works like repairs in 2022-23, raising questions about whether these were necessary or overpriced.

Telephone charges in Ooty hit Rs 1.13 lakhs in 2022-23, high for a smaller guest house. Other expenses, like Rs 61.83 lakhs for property tax and Rs 83.97 lakhs for materials in 2022-23, add to the sense that even Ooty’s facility is costing taxpayers dearly.

Why the controversy?

The total spending — Rs 22.23 crores in 2020-21, Rs 24.50 crores in 2021-22 and Rs 54.79 crores in 2022-23 — reaches Rs 101.52 crores, with the remaining Rs 11.61 crores likely from early 2023-24 data, such as Rs 12 crores in New Delhi. Activists argue that these guest houses, meant for affordable official lodging, are becoming financial burdens.

"The New Delhi guest house’s spending hike from Rs 16.71 crores to Rs 48.63 crores in two years is especially alarming. Why the jump, and where’s the money going? Also, all this happened amid lockdown and Covid waves," Ramakrishanan said.