Saturday, October 22, 2016

Mumbai firm got Rs5k cr metro deal despite adverse note?

Times of India‎‎‎‎‎: Mumbai: Saturday, October 22, 2016.
Eyebrows are being raised over Mumbai Metropolitan Region Development Authority's (MMRDA) decision to award a Rs5,000crore contract for Metro projects to a blacklisted firm despite associate advocate-general Rohit Deo's critical observations.
Congress general secretary Sachin Sawant said that in view of Deo's observations, it was wrong on the part of MMRDA, headed by chief minister Devendra Fadnavis, to grant such a huge contract to J Kumar Infraprojects Ltd (JKIPL). BMC had on May 15 initiated the process to blacklist the firm due to substandard work. MMRDA had sought Deo's opinion on whether JKIPL can be considered eligible for opening of financial bids, if it is successful, whether it can be awarded the contract, and whether the four companies involved in alleged irregularities would be considered ineligible to participate in bids issued by MMRDA for its work.
Sawant invoked the RTI Act to secure a copy of Deo's opinion. "I have carefully gone through Deo's opinion. Had MMRDA read the opinion, it would not have given the contract to JKIPL. Congress has demanded a probe into the allotment of the contract to JKIPL. Since Fadnavis is committed to eradicate corruption, I am sure the CM will cancel the contract,'' Sawant said.
In his seven-page opinion, Deo said, the scope of the opinion was restricted to explain the broad principles and parameters of the legal position and the decision on opening the financial bid of the contractor concerned would be in the executive domain of MMRDA. "Even a cursory perusal of the clause pertaining to disqualification of the bidder would reveal that a bidder who qualified in the technical bid evaluation can nonetheless be disqualified from further participating in the tender process in the event the bidder has a bad record of poor performance... a bidder whose technical bid is found to be in order can nonetheless be disqualified and MMRDA would be more than justified in not opening the financial bid if material suggests a record of poor performance in respect of work,'' Deo observed.
Deo stated that the poor performance was obviously not restricted to work done in pursuance to a contract that may have been executed on behalf of MMRDA, a record of poor performance would suggest that MMRDA would be more than justified in taking into consideration the assessment of the work of the contractor by any other employer, organization or corporation. "The purpose of the disqualification clause is to ensure that even if a bidder is technically qualified, MMRDA should not be compelled to open a financial bid should there be material to suggest that the capacity or ability of the contractor to deliver the goods is suspect,'' Deo said.
Deo observed that MMRDA could refuse to open the financial bid of JKIPL; however, before disqualifying the firm, it must make an objective assessment and conclude that the contractor has a record of poor performance, and his further participation in the tender process could be subversive of public interest.