Authority objects to awarding of contracts

Nagpur: The Comptroller and Auditor General of India (CAG) disapproved on the Brihanmumbai Municipal Corporation (BMC) awarding road works to contractors other than the lowest bidder. The Bharatiya Janata Party (BJP) has been slamming the Shiv Sena over corruption in awarding road contracts. The CAG also objected to the practice of awarding contracts in such a manner.

As per the directions of Central Vigilance Commission (CVC), it is binding on all state governments and local bodies to award tenders to the lowest bidders. But CAG observed that in some matters, these directions are flouted.

From June-September 2011, contracts were allotted for 33 road works. The BMC awarded the contracts in nine tenders which were higher by Rs 8.67 crore. In August 2011, RK Madhani was the lowest bidder at 23.50 per cent below the estimated cost, but work was allotted to KR Construction, which made the second lowest bid of rs 43.77 crore which was rs 2.64 crore more than the lowest bid. In September 2011, works were given to Bitcon Infrastructure for rs 49,80 crore, which had made the third lowest bid.

In the road works carried out from January 2012 to March 2014, as per the tender condition, all materials including excavating tools were required to be transported by dumpers to their designated locations. However, it was found later that this materials were transported by seven motor vehicles, four cars, a bus and a three-wheeler. The CAG raised an objection to this.