Ahmedabad Municipal Corporation Imposes Rs 5 Lakh Penalty on Consultant for Tender Qualification Error
The Ahmedabad Municipal Corporation (AMC) has taken strict action against its appointed consultant, Multimedia Consultant Pvt Ltd, by imposing a substantial penalty of Rs 5 lakh. This penalty was levied due to a critical error in the qualification process for a major tender worth Rs 49 crore. The tender was for the establishment of a significant 100 million litres per day (MLD) water treatment plant, a crucial infrastructure project for the city.
Discovery of the Qualification Error During Committee Meeting
The issue was brought to light during a recent meeting of the water and sewerage committee, which convened on Monday. Multimedia Consultant Pvt Ltd had been entrusted with the responsibility of preparing and processing the tender documents for the construction of an additional 100 MLD capacity water treatment plant. This new facility was planned to be located at the premises of the existing Raska Water Treatment Plant, aiming to enhance the city's water supply infrastructure.
During the technical evaluation phase of the tender process, five companies were initially declared qualified to proceed. However, a subsequent review revealed a significant discrepancy. One of these firms, Skyway Infra Projects Pvt Ltd, had been cleared despite not meeting the mandatory requirement of having prior experience in constructing water treatment plants. This oversight raised serious concerns about the integrity and fairness of the tender process.
Lowest Bidder Triggered Scrutiny and Investigation
The situation escalated when the financial bids were opened, and Skyway Infra Projects Pvt Ltd emerged as the lowest bidder. This development prompted immediate scrutiny from AMC officials. Upon conducting detailed checks, it was discovered that the consultant had made a grave error by incorrectly considering the company's experience in sewage treatment plants (STP) as equivalent to experience in water treatment plants (WTP). This misinterpretation directly violated the specific conditions outlined in the tender documents, which explicitly required WTP experience.
Consultant Admits Mistake and AMC Imposes Penalty
Following the controversy and the subsequent investigation, Multimedia Consultant Pvt Ltd took responsibility for the lapse. The consultant issued a formal letter to the civic body, openly admitting to the mistake in the qualification process. In response to this admission and the seriousness of the error, the AMC decided to impose a financial penalty of Rs 5 lakh on the consultant. This penalty serves as a disciplinary measure for the lapse that compromised the tender's procedural integrity.
An AMC official, who spoke on condition of anonymity, provided insight into the matter. The official stated that while the error appeared to be unintentional, it was nonetheless serious because it directly affected the transparency and credibility of the tender process. "The consultant acknowledged that STP experience was mistakenly treated as WTP experience," the official confirmed, highlighting the specific nature of the oversight.
Future Steps: Possible Tender Cancellation and Fresh Bids
Dilip Bagariya, the chairman of the Water and Sewerage Committee, confirmed the imposition of the penalty and addressed the next steps. He indicated that the civic body is now considering whether to scrap the current tender entirely. This decision would be made to ensure full transparency and strict compliance with all regulatory norms. If the tender is cancelled, AMC plans to invite fresh bids, thereby restarting the process with corrected parameters and enhanced oversight to prevent similar errors.
This incident underscores the importance of meticulous evaluation in public tenders, especially for critical infrastructure projects like water treatment plants. The AMC's actions demonstrate a commitment to upholding procedural standards and accountability in municipal governance.
