City-based NGO Arappor Iyakkam has complained to the Directorate of Vigilance and Anti-Corruption against former Minister S.P. Velumani alleging corruption, favouritism and collusion in the award of tenders in 2015 for construction and maintenance of 400 stainless steel bus shelters in Chennai.
According to a press release, a select set of companies, which belonged to the same owners and with no experience, had been favoured to win tenders and unjustly enrich themselves by ₹437 crore in 15 years from 2015 to 2030, even prospectively. The complaint alleges how a convoluted set of shell companies had been used to launder money in the form of investment or share capital and unsecured loans.
The complaint alleged that a complex web of corrupt practices that had taken place with the collusion of firms owned by close aides of Mr. Velumani.
The complaint seeks a registration of FIR against the former Minister and his associates and close aides.
The complaint seeks the cancellation of tender for bus shelters immediately to prevent loss of ₹200 crore to the public exchequer.
The tenders were for 400 bus shelters which was split into eight packages consisting of 50 bus shelters each. The tender was floated as a public-private partnership on build-operate-and-transfer basis.
The tender was for quoting the concession amount that the successful bidder will pay annually to the Corporation for a period of 15 years during which time the bidders would enjoy the right to collect revenue for the bus shelter advertisements. Successful bidders were asked to construct the bus shelter within three months of the agreement and maintain it for 15 years.
