E-Paper
Bids for another PMC tender rigged; three firms fined ₹2.7 crore
This is the second case of bid rigging in the PMC. The first such case was regarding bid rigging of tenders for thermal composting garbage plants in 2014
The Competition Commission of India (CCI) imposed a fine of ₹2.7 crore on three firms and four individuals for indulging in anti-competitive practices by colluding to rig the bid of a tender floated by the Pune Municipal Corporation (PMC).
This is the second case of bid rigging in the PMC. The first such case was regarding bid rigging of tenders for thermal composting garbage plants in 2014.
The CCI’s order comes after a complaint was filed by Nagrik Chetna Manch, a city-based non-governmental organisation (NGO), on March 3, 2017. The NGO alleged that three firms, SAAR IT Resources Private Limited, CADD Systems and Services Private Limited and Pentacle Consultants (I) Private Limited, had rigged a tender floated by the PMC for carrying out geo-enabled tree census in 2015.
CADD and Pentacle acted as proxy bidders to pre-determine the outcome of the tender process, the NGO alleged.
Based on the investigation by the director general of the investigation arm of the CCI, the Commission found that the civic body failed to detect cartelisation happening under its watch.
While Ganesh Sonawane, PMC tree officer, could not be reached for comments, PMC commissioner Saurabh Rao did not respond to any messages or calls. 
The CCI order stated, “With respect to the role of PMC, the Commission has noted that the PMC failed to detect cartelisation in its own tender process. Shortlisting proxy bidders who did not satisfy the technical criteria, and other systemic failures on the part of the PMC indicate that the conduct of PMC may have facilitated bid rigging in this impugned tender.”
The PMC entered into an agreement with SAAR IT Resources Private Limited on April 7, 2016 for carrying out geo-enabled tree census using geographic information system (GIS) and global positioning system (GPS) technology; development of tree census application; operate and manage the census data under provisions of Tree Act and rules within the PMC jurisdiction, under PMC’s tender no. 338 of 2015.
In their order issued, the Commission observed that various individuals including proprietor, partner and director of the firms coordinated to “rig the tenders by way of submitting proxy/cover bids.”
Pentacle Consultants Pvt Ltd was fined ₹1.33 crore, SAAR IT Resources Pvt Ltd ₹1.26 crore and CADD Systems and Services Pvt Ltd ₹0.11 crore, as per CCI orders. Also, SAAR IT’s two directors, a managing director of CADD Systems and a director of Pentacle Consultants were fined a total of ₹5.45 lakh by CCI on August 2.
Maj Gen SCN Jatar (retd), former president of Nagrik Chetna Manch, said, “It appears that bid rigging in the PMC has become customary. PMC must order an independent inquiry by a retired judge into the findings of the commission pertaining to the PMC, failing which the NCM shall be constrained to proceed legally in the matter.”
“This is the second time that the CCI in its report has pointed out a bid rigging scam in the PMC. Commissioner Saurabh Rao must look into the matter minutely which exposes the systematic failure of the PMC,” added Jatar.
Earlier case of bid rigging
The first case of bid rigging, while filing tenders for thermal composting garbage plants in 2014, was exposed by Nagrik Chetna Manch.
The Competition Commission of India (CCI) in its final order imposed a fine of ₹3.57 crore on six firms for colluding with the PMC officials and undertaking bid rigging while filing tenders for thermal composting garbage plants in 2014.
The nexus between PMC officials and contractors for rigging the bids was exposed in detail by Hindustan Times in a series of reports in October 2017.
The tenders pertained to seven thermal composting plants at various locations including Kharadi, Ghole Patil road and Peshwe Park, and were worth ₹14 crore.
