CCI penalises six firms for rigging waste disposal tenders floated by Pune civic body

Pune: The Competition Commission of India (CCI) on Wednesday penalised six firms dealing in solid waste processing for rigging tenders floated by the Pune Municipal Corporation (PMC) with a view to dealing with the city’s garbage crisis.

In a press release, the CCI has said that Fortified Security Solutions, Ecoman Enviro Solutions Pvt. Ltd., Lahs Green India Pvt. Ltd., Sanjay Agencies, Mahalaxmi Steels and Raghunath Industry Pvt. Ltd. have been penalised for bid rigging/collusion in five tenders floated by the PMC between December 2014 and March 2015 for “design, supply, installation, commissioning, operation and maintenance of municipal organic and inorganic solid waste processing plant(s)”.

A case against these firms was initiated on the basis of an ‘information’ filed under the CCI Act by Pune-based Nagrik Chetna Manch in 2015.

After an investigation the CCI found evidence of collusive bidding in five tenders. The agency also unearthed illicit action by the six firms to rig the tenders by submitting proxy bids.

Penalties of ₹13.07 lakh, ₹33.9 lakh, ₹21 lakh, ₹90 lakh, ₹1.68 crore, and ₹30.55 lakh have been levied on Fortified, Ecoman, Lahs Green, Sanjay Agencies, Mahalakshmi and Raghunath respectively by the CCI for contravening provisions of the Act.

Expressing happiness over the CCI action, Major Gen. (retd.) S.N. Jatar of the Nagrik Chetna Manch, told

The Hindu, “Often, I find that a lack of awareness about the Act precludes individuals and NGOs from using it to redress such practices. The CCI Act is a much better recourse than courts which are heavily burdened. Court procedures are also much more complicated and cumbersome.”

In 2015, the Nagrik Chetna Manch had written to Chief Minister Devendra Fadnavis, demanding a probe by the Anti-Corruption Bureau into irregularities plaguing the city’s garbage processing units. The Manch, in conjunction with the Sajag Nagrik Manch, had brought to notice the PMC’s crumbling waste disposal plants, accusing the civic body of misusing tax-payers’ money.