The YSRC government on Friday suspended all works at the Polavaram Project site.
As chief minister Y S Jaganmohan Reddy was not in favour of the state government meeting the project construction expenditure, the government directed contractors and officials to stop the ongoing works.
The officials have started looking into the bills paid by the state government in the last four years and the progress of the works at the project site.
The work is likely to resume only after the officials clear the verification of bills. The officials have also asked the water resources department to submit the reports on the bills paid to the contractors.
It is said that the government is also planning to change the contractor if there are any irregularities reported in the work.
Meanwhile, the Polavaram Project Authority, which is visiting the project area and the rehabilitation area, visited the project site on Friday. PPA chief executive officer R K Jain along with senior officials inspected the project work, including the copper dam, diaphragm wall, gates and other activities of the project.
They also enquired about the rehabilitation and resettlement completed so far for the displaced families in the project area.
The PPA had directed the officials to stop work on the copper dam construction till further orders.
The PPA feared that several villages would get submerged in the project if the copper dam is completed. The PPA CEO had reportedly expressed displeasure over the non-completion of the rehabilitation and resettlement for the displaced families as per the Act.