The Ahmedabad Municipal Corporation (AMC) has quietly adopted a controversial new practice in its tendering process over recent months. Officials are now informally rejecting contractors who have any history of ongoing or past litigation, even when these bidders are technically qualified and submit the lowest financial quotes. This significant shift in policy is not supported by any official circular, rule, or standing guideline, leading to inconsistencies and questions about transparency.
An Unwritten Rule Disrupts Major Infrastructure Project
The real-world impact of this informal policy became starkly clear in the handling of a major lake interlinking project in eastern Ahmedabad, valued at approximately Rs 87 crore. The project, crucial for stormwater management, aims to connect lakes in Nikol, Vastral, Ramol, and Hathijan areas. These include Kanjiyu Lake, Ratanpura Lake, Saat Talavdi, Ramol Talavdi, Thekdi Talavdi, Betla Talavdi, Vadu Talav, and Vastral Lake. The plan is to divert rainwater to the Vinzol culvert using over 24.6 kilometers of overflow gravity lines and stormwater pipelines.
After a consultant finalized the project's cost estimate on April 8 this year, tenders were invited. Six bidders participated, and the price bids were opened. M/s Jayanti Super Construction Pvt Ltd. emerged as the lowest bidder, quoting a sum of Rs 73.95 crore, which was about 14.6% below the estimated project cost.
Lowest Bidder Rejected, Tender Scrapped
Despite meeting all technical and financial criteria, Jayanti Super Construction was denied the contract. The sole reason cited was the company's ongoing litigation history. Instead of awarding the work to the lowest eligible bidder, the AMC took the drastic step of scrapping the entire tender process and calling for fresh bids.
In the second round of bidding, which commenced on October 7, participation dropped significantly. Only three bidders came forward. Subsequently, the AMC's standing committee approved awarding the contract to Ankita Construction, which had quoted a price 20% below the estimated cost.
Officials Cite Future Disputes, Lack of Policy Creates Contradictions
A senior AMC official, speaking on the condition of anonymity, confirmed the screening process. "We and the consultants are said to be screening bids at the approval stage and rejecting those linked to any litigation, treating it as a disqualifying factor," the official stated. The rationale provided by officials is that this practice helps avoid future legal disputes and potential delays in project completion.
However, the absence of a formal, documented policy has created a grey area. This leads to potential contradictions in how different project tenders are evaluated and handled across various departments within the civic body. The informal nature of the rule raises concerns about subjective application and a lack of clear, fair guidelines for all contractors vying for public works projects.
