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HomeInfrastructureBid-Rigging Scandal Cartel of Companies Under Scrutiny for BMC Road Works

Bid-Rigging Scandal Cartel of Companies Under Scrutiny for BMC Road Works

In a development raising concerns over fair competition and transparency in municipal contracts, allegations have surfaced regarding a cartel of four companies vying to secure roadworks contracts from the Brihanmumbai Municipal Corporation (BMC).

Brihanmumbai Municipal Corportation

Despite previous controversies involving one of the firms, BMC officials maintain that their participation aligns with established protocols. Months after BMC initiated tenders valued at Rs 6,000 crore for road concretisation across Mumbai’s island city and suburbs, suspicions arose that a group of companies, including one previously blacklisted over a road scam, are conspiring to secure these lucrative contracts. Despite being barred in 2016, the formerly blacklisted company has become eligible to bid again following the expiration of its six-year ban. Seven companies have submitted bids for five sets of roadworks, encompassing areas in the island city, western suburbs, and eastern suburbs. Notably, four of these companies have bid for all contracts, alternating as the lowest bidder in various segments.

For the island city contract valued at Rs 1,142 crore, GHV (India) Private Ltd secured the lowest bid, while Gawar Construction Ltd emerged as the lowest bidder for the Rs 1,224 crore eastern suburbs project. In the western suburbs, CAI Infra Pvt Ltd, RPS Infraprojects Ltd, and BSCPL Infrastructure Ltd clinched the lowest bids for three separate work packages. However, concerns arise over the involvement of RPS Infraprojects Ltd, previously blacklisted in 2016 amidst a road scam investigation. Despite its tarnished history, the company secured the third lowest bid for the eastern suburbs project, sparking scrutiny over the BMC’s selection process and potential collusion among bidders. As allegations of bid-rigging and cartel formation surface, authorities face mounting pressure to ensure transparency and integrity in the awarding of municipal contracts, safeguarding public funds and upholding the principles of fair competition in infrastructure development.

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