CHENNAI: In an important development, the DMK has today lodged a complaint before Director of Vigilance and Anti Corruption Chennai, to file FIR and investigate against Tamil Nadu Chief Minister Mr.Edappadi K.Palanisamy and other public servants who are involved in issuing a tender dated 25th February 2020 for about Rs.1,165 crores.
On behalf of the DMK, its Organisation Secretary Mr.R.S.Bharathi has lodged the complaint and it was submitted by DMK Headquarters advocates Mr.V.Arun and Mr.P.Muthukumar, today- 6th May 2020.
To
Director,
Vigilance and Anti-Corruption,
No.293, MKN Road,
Alandur,
Chennai – 600 016.
Sir,
Sub: Irregularities in the issue of G.O.M.S. No. 40 of 2020 by Highways and Minor Ports Department dated 19.02.2020 followed by Tender Notice dated 25.02.2020, without public interest and only to favour award of contract to a particular company, contrary to rules and procedures. ***
1. The Department of Highways and Minor ports is under the control of Hon’ble Chief Minister Mr. Edapadi. K. Palanisamy. The department is in-charge of improvement and maintenance of National Highways and Minor Ports in the State.
2. The Department of Highways and Minor ports is mandated to call for tenders and to award contract to the lowest bidder by following the provisions of ‘The Tamil Nadu Transparency in Tender Act and Rules’ herein after called as ‘tender rules’.
3. The Principal Secretary to Government , Highways and Minor Ports Department had issued of G.O. Ms No. 40 Highways and Minor ports (HQ1) department dated 19/2/2020 and subsequently the Superintending Engineer, Construction and Maintenance, Highways Department, Trichy issued a Tender notice bearing Tender notice number 37/2019-2020/HDO dated 25/02/2020.
4. The Superintending Engineer invited tenders vide notice dated 25.02.2020 for the subject work for initial rectification including widening, strengthening and Improvements and Performance Based Maintenance Contract(PBMC) for a period of 60 months(5 years) in the State Highways and the Major District Roads for a length of 462.211 KM in Thanjavur, Orathanadu, Pattukottai and Peravoorani, Sub Divisions of Thanjavur [H] C & M, Division. The above tender notice invites Scheduled Tender under two sealed cover system through online only i.e., Pre-Qualification schedule and financial cover containing price bid document of tender (Item rate tenders). The EMD (Earnest Money Deposit) was fixed at Rs. 582.60 lakhs and the estimated amount of the tender was fixed at Rs.116500.00 lakhs(Rs. 1165 crores).The tender documents were made available upto 15/04/2020 15.00 hrs and the bids were to be submitted through online upto 15/04/2020, 15.00 hrs.
5. Quite contrary to the practise till date that a road laying and maintenance of State and National Highways roads have been on the basis of annual tenders, curiously this particular G.O and consequent tender notice was for a period of 5 years. And this G.O.(Ms) No.40,Highways and Minor Ports (HQ1) department dated 19.02.2020, to undertake Ordinary Maintenance, initial Rectification Works, Periodic Maintenance Work on select road totalling approximately 462.211 KM in Thanjavur District. The maintenance work will also include cross drainage works, minor work on the bridge and road side maintenance within the select road limits. Ordinary maintenance will be payable as proportionate monthly lump sums over the 5 years period of the Contract. This procedure of calling for tender for five year at a stretch instead of on annual basis is contrary to practice and procedures and further to keep away the eligible contractors and on the other hand to favour a bidder who is already handpicked by the Honble Mr. Edappadi.K.Palaniswamy, the Chief Minister who is also holding the portfolio of the Minister for High Ways Department.
6. The Superintending Engineer, Highways Department , (Construction and Maintenance), Trichy, had issued a Tender Notice No, 37/2019-2020/HDO dated 25.02.2020 inviting Tender works for the purpose of introducing for the first time Performance Based Maintenance Contract [PBMC] tender system and the same is again aimed to create a monopoly of only big contractors, with the intention of supporting contractors who are in the ruling party or close to the ruling party. This has affected the small contractors who would always bid for a annual tender instead of a 5 years tender which was never in practice.
7. This monopoly for contractors who are in the ruling party or close to the ruling party is being created adverse to the interests of the state exchequer. Rs. 1165 crores is being allotted to one contractor for the work which is usually done by several Class – I contractors in small bits and lots annually under the direct supervision of sub-divisional officers. Now without any proper reason the system is being changed for allotment of one big lot of 462.211 Kms in Thanjavur, Orathanadu, Pattukottai and Peravoorani sub-divisions of Thanjavur (H) C&M division.
8. This has been done by the department in a hurried manner even G.O and tender notice there is a discrepancy of Rs. 74.68 Crores in the value of the cost of the work for 462.211 kms. As per the G.O. the value of the work is Rs. 1239.68 crores and as per the tender notice it is 1165 crores. The value of the work has been hiked in the government order and this is detrimental to the public interests and the State exchequer. The same work done annually would cost just about 75-100 crores and for 5 years (60 months) including maintenance would not exceed Rs.500 crores. Thus an excess of Rs. 700- 800 crores is in-built in the shift to 5 year tender terms.Further, the annual performance based review of the executed work is ruled out because of the five years maintenance contract.
9. When the value of the tender is more than 500 crores, the tender rules mandate that the same has to be published prominently in various national dailies having maximum circulations in English and Vernacular languages. This procedure has not been adhered to intentionally. And the present situation due to the spread of COVID-19 virus the State is under lockdown and sec. 144 Cr PC has been promulgated for the entire State. . From 20th March onwards there are travel restrictions imposed on every one and it is impossible to prepare the papers and file the tender bid. However regardless of all these situations ruling out competitive biddings, the department have hurriedly processed opening the tender even during this lock-down period. And it is learnt only two pre-determined favoured bidders who have all the papers ready for making their bid. It seems like the choice of contractor was decided prior by the ruling party even before issuing the G.O and tender notice. Even at a time of crisis the Government machinery is being used to make undue pecuniary advantage by devising illegal methods to enrich few companies which are run by ruling party, people close to the ruling party and benamis of the Cabinet Ministers, in this case Hon’ble Chief Minister of Tamil Nadu himself.
10. The department normally stipulates a pre-qualification of specific experience of the contractor having successfully completed contract in any one year within the last five years for a value of at 40 % of total contract value of the project. But this tender notification had only fixed 25 % of total cost as pre-qualification which is contrary to practice in theearlier tender notification, solely for the purpose of facilitating the chosen contractor.
11. The cost indicated in the G.O. is exorbitant and there is an in-built excess of Rs. 700- 800 crores in the shift to 5 year tender terms.The same work done annually would cost only about 75-100 crores per year and for 5 years (60 months) including maintenance would not exceed Rs.500 crores. Thus an excess of Rs. 700- 800 crores is in-built in the shift to 5 year tender terms.
12. In the wake of the funds crunch due to COVID-19, the Central government has sent an advisory to the NHAI and all State governments to explore reduction in the road infrastructure construction cost and avoid fresh investments in huge projects. as we are in shortage of funds. The Governments need huge funds to get over this pandemic situation. In the situation ofState government have been requesting funds from the central governments these type of projects only showcases the corruption and greediness of the Ruling Party to amass wealth even at the time of crisis.
13. The present G.O and tender notification and the way in which the tender has been awarded by the department appears to be similar to the Modus Operandi which was there in the previous complaint dated 13.06.2018. against the Hon’ble Chief Minister.
14. All the tenders given by any departments in Government of Tamil Nadu is not sent for the approval of the Finance Department. But this particular tender notification is being sent to the finance department which evokes suspicion of a large scale corruption across departments.
15. Since, the above said offence is committed by the Chief Minister of Tamil Nadu/ Minister for Highways and Minor ports Mr. Eddapadi K. Palanisamy is not relatable to any recommendation or decision taken by such public servant. Hence, the bar under section 17A of The Prevention of Corruption Act is not applicable.
16. The acts of the Chief Minister will fall under section 7(a) and (c) and the bidders in whose favour the tender conditions were altered are also liable to be punished under section 9 of The Prevention of Corruption Act, as amended in 2018.
17. We have reliable information that one Mr. Murugaperumal off R.R. Infra, Madurai and Mr. Kannan of Om Shakthi Construction, Villupuram are actively abetting Chief Minister Mr. Eddapadi K. Palanisamy in committing the above said offences.
18. We also understand that a writ petition in W.P. No. 7469 of 2020 has been filed by one Mr. Durai Jayakumar a contractor who has challenged the G.O.M.S. No. 40 of 2020 of Highways and Minor Ports Department dated 19.02.2020 and Tender Notice dated 25.02.2020 and same is still pending before the Hon’ble Madras High Court.
19. Already complaints have been given against the Chief Minister, Deputy Chief Minister and the Minsters for Health and Municipal Administration. DVAC has not chosen to register FIR even though enough materials are given to you in the complaint itself. DVAC is an independent institution and is not expected of it to be subservient to the persons in power.
I request you to register a case against Hon’ble Chief Minister Eddapadi K.Palanisamy, the contractors who were awarded this project, and other public servants and others who colluded with them and investigate as per law.
Yours Sincerely,
(R.S.BHARATHI,M.P.,)
Organisation Secretary,
D.M.K.
