State Lokayukta M L Tahaliyani ordered the probe last week into contracts awarded by Birhanmumbai Municipal Corporation (BMC) to six firms -- KR Constructions, RPS Infraprojects, Mahavir Infrastructure, J Kumar Works, Relcon Infraprojects and RK Madhani Works -- after RTI activist Anil Galgali filed a complaint with the corruption watchdog.
"The Lokayukta has launched a probe into the matter as stated in the complaint," an official at Lokayukta office, K Chavan said.
The BMC had filed police complaint last year in April against the six companies over their alleged involvement in an alleged scam to the tune of Rs 352 crore.
Galgali in his complaint to the Lokayukta last month, alleged that the BMC was hand in gloves with these firms by awarding them frequent tenders.
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"I found that the civic administration in the first place was quick to lodge FIRs against these firms, while on the other hand, these firms were continued to be given fresh tenders worth crores of rupees," Galgali told PTI.
"These tainted firms have managed to bag the contracts of over Rs 1,000 crore in different projects which reflect the shoddy working of the civic body," he claimed.