BMC shortlists contractors that BJP has accused of rigging tenders

In a fresh controversy, the bidders shortlisted for a tender floated by the Brihanmumbai Municipal Corporation (BMC) turned out to be the same who the Bharatiya Janata Party (BJP) – which is in the opposition – has named as the cartel of contractors that has been favoured by the ruling Shiv Sena. The bids were opened on Thursday. The civic administration said it would verify the allegations levelled by BJP.

Earlier this month, BMC had floated a tender for appointing seven different contractors to reinstate utility trenches across seven municipal zones. A day before the bidding was opened, BJP councillor Vinod Mishra had written to the municipal commissioner as well as the mayor, stating that the process of awarding the tenders was already fixed. He had also given a list of seven contractors who he said will be getting the contract on Thursday.

Additional municipal commissioner (projects) P Velrasu on Thursday said that before taking the final step of awarding the contracts to the contractors, the BMC administration will be verifying all the allegations made by Mishra.

The councillor had alleged that BMC has taken down a tender – which it had floated three ago – by amending its conditions to make sure that members of the alleged contractor lobby gets the contract. He claimed that the tender for carrying out trenching works was first floated in September. However, as the contractors quoted 25-30% lower prices than the estimated ones, the tender was cancelled.

He said BMC had later floated another tender for the same project at an estimated price of ₹550 crore and the bidding was supposed to open on Thursday. Mishra said the earlier contract was valued around ₹380 crore, and for the latest contract, the contractors have quoted 15-20% below the estimated price.

“To make sure the contract gets awarded to the favoured candidates, the administration made it mandatory for the contractors to have their own mastic plant in the latest tender. The contract is being awarded to seven different contractors who are part of a cartel. This whole thing was pre-decided and I had shared the details of the contractors to the municipal commissioner and mayor, a day before the bidding was opened,” said Mishra, who wrote to the administration, urging them to cancel the tender and issue a fresh one.

When HT contacted a representative of one of the seven firms that has been shortlisted, which Mishra claimed to be part of the cartel, it said that the price quoted between the latest contract and the earlier contract is different as the cost of bitumen increased by 20% in the past month.

“BMC will pay us only 80% after the project is completed and the remaining 20% will be paid after the maintenance period gets over,” the representative said.

“Laying utility trenches is different from road construction as it requires more labourers. Besides, the price of raw materials has also increased, owing to which the price quoted now is higher than that of last time,” the representative said.