The Hindu : Toll tax bidding process in controversy

Online edition of India's National Newspaper
Thursday, Mar 18, 2004

New Delhi

New Delhi

Toll tax bidding process in controversy

By Our Staff Reporter

NEW DELHI, MARCH 17. Amid allegations of financial transactions in the matter of toll tax collection in the Capital, the political leadership in the Municipal Corporation of Delhi seems to be in a hurry to implement its decision, even overruling serious objections raised by the vigilance and investigative agencies.

While the Central Vigilance Commission (CVC) has asked the Municipal Commissioner, Rakesh Mehta, to submit a report on the deliberate attempts being made to exclude some private companies, the Delhi Chief Secretary, Shailja Chandra, in another confidential letter has informed him that "certain financial transactions" have come under the scrutiny of the Anti-Corruption Branch.

In view of these developments, the Leader of the House in the MCD, Satbir Singh, has asked Mr. Mehta to ensure that the decisions of the Standing Committee to permit just two private companies to participate in the toll tax bidding process are enforced. "Or else he would be held responsible for the delay and revenue loss to the civic body," Mr. Singh said.

In fact, it is this decision of the Standing Committee to shortlist some private companies for the actual bidding process which has attracted the attention of the vigilance agencies, besides the CVC and the Delhi Chief Secretary.

Referring to certain financial transactions, which have come to the notice of the Anti-Corruption Branch of the Delhi Government, Ms. Chandra said the investigating agencies were already keeping a close watch on the "manner" in which various transactions were being conducted as well as the bonafides of the persons.

Releasing the letter to the press, the Leader of Opposition in MCD Standing Committee, Vijender Kumar Gupta, alleged that the leaders of the ruling Congress were purposely delaying the entire process and favouring certain companies.

In her letter, Ms. Chandra alleged that the issue of toll-tax was being delayed with a view to give existing party - Banas Sands Toll Tax Collection Joint Venture -- an opportunity to continue beyond its one year contract that ends on April 30. She sought appraisal from the Commission on the allegations that there was a move to exclude particular companies which had responded to the notice inviting tender (NIT) on grounds which are not legally tenable.

Fourteen companies, including Larsen and Turbo, Kerala State Electronics Development Corporation Ltd, Nagarjuna Construction Company Ltd, IRB-IRD Consortium and Noida Toll, had applied for pre-qualification. Of these only five were short-listed. The Standing Committee further short-listed two companies disqualifying two companies arguing they had given foreign solvency, and the third one was disqualified arguing it had submitted its papers late.

In fact, similar observations were made by the Delhi Mayor, Ashok K. Jain, but the Standing Committee and the MCD House stood by their stand. Mr. Singh in his letter dated March 15, had in fact sought an explanation from the Commissioner why there had been a delay in issuing of bid papers to the companies qualified by them.

Issuing an indirect warning, Mr. Singh in his confidential letter directed Mr. Mehta to ensure the compliance of the Standing Committee so that a new contract was issued before May 1, 2004.

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