BMC fines disqualified firm, clears it to bid again
The Brihanmumbai Municipal Corporation (BMC) has cleared a major roadworks contractor, disqualified for concealing information, of any deliberate wrongdoing.mumbai Updated: Oct 01, 2011 01:40 IST
The Brihanmumbai Municipal Corporation (BMC) has cleared a major roadworks contractor, disqualified for concealing information, of any deliberate wrongdoing. RP Shah Infra Projects Ltd (RPS Infra) was disqualified for hiding information while submitting its bid for contracts worth Rs577 crore in total.
The civic roads department, which conducted a probe into the matter, came up with a conclusion that RPS Infra had made a 'mistake' while submitting the documents and that there were no vested interests behind hiding information. While the civic body has decided not to de-register the contractor, it has imposed a fine of Rs70 lakh on the firm.
This would mean that RPS Infra would be now eligible to bid for all civic contracts.
HT had reported on September 7 that the BMC had disqualified RPS Infra, which was short-listed among nine contractors and was to bag a road contract worth Rs72crore. The firm could bid for the contract due to its enhanced bidding capacity because it had concealed that the cost of another one of its contracts had risen. RPS Infra did not disclose this fact while submitting the bid for the road contract.
Defending its decision to allow the firm to bid again, additional municipal commissioner Aseem Gupta said, "It is wrong that the contractor made such a mistake while submitting his bid and hence, we have decided to penalise him heavily. But, the case is legally not so strong for us to de-register or file a criminal case against the contractor."