New BMC clause to stop cartelisation by contractors

The civic body is planning to include a range of 'disclosure under ethical reasons' in a larger procurement policy it is drafting to make bidding and contract laws more stringent

To prevent cartelisation, BMC has decided to introduce a clause requiring contractors bidding for civic projects to disclose holding/stakes in competing companies.

Responding to allegations by a section of corporators Friday that bids for a project to resurface city bridges were rigged, additional municipal commissioner Aseem Gupta said, "We have decided to include a clause under ethical responsibility of the contractor who will have to disclose if he or his family owns shares in (other) companies participating in the tender process."

Law allowed the civic administration to lodge criminal cases against contractors making false disclosures, he said.

"It is not wrong to own shares in companies and it is likely those companies will also bid for the same project, but we should be aware of such cases and also whether the contractor has a majority shareholding or power of veto in those companies," said Gupta. BMC is planning to include a range of 'disclosure under ethical reasons' in a larger procurement policy it is drafting to make bidding and contract laws more stringent.

Gupta said the civic body would take steps to prevent cartelisation. "We are taking these charges (made by corporators) seriously," he said.

Allegations of companies making multiple bids for a civic project through subsidiaries to bag the contract have been rampant over the past few years. But that did no prevent the BMC statutory standing committee from approving a proposal Friday to resurface 17 city bridges at a cost of about Rs 32 crore.

MNS corporators claimed contractors formed cartels to secure projects and bid low. But the standing committee said it would separately look into the

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