‘Tainted’ firm loses Topiwala market bid

Second lowest bidder to redevelop Goregaon market

Updated - May 24, 2018 06:32 pm IST

Published - May 24, 2018 12:12 am IST

 Awaiting makeover: Topiwala municipal market in Goregaon is in a dilapidated condition.

Awaiting makeover: Topiwala municipal market in Goregaon is in a dilapidated condition.

Mumbai: Following strong objections, the BMC has decided to not award the contract for redeveloping Topiwala municipal market in Goregaon to a company allegedly linked to a firm blacklisted by it for involvement in the civic roads scam. The civic body will now award the ₹150-crore contract to the second lowest bidder, for which a proposal is with the standing committee

The BMC has been facing flak for allowing tainted firms in new avatars to bag contracts. Even the standing committee’s position in such cases has been inconsistent, and corporators across party lines have turned a blind eye to such cases, including the redevelopment of Topiwala market. The BMC had sought to redevelop it as the market building is dilapidated.

The original proposal was for ₹122 crore, covering redevelopment of the market building, construction of a air conditioned theatre, parking and staff quarters.

After inviting bids in 2017, the BMC had shortlisted M/s Sunrise Stone Industries (SSI) for the job. The company had quoted much below the civic body’s estimates.

Scam taint

Soon, complaints began coming in of the company's links to M/s Relcon Infraprojects, a company whose directors Rakesh Shah and Dipan Shah were blacklisted in the roads scam. Both were issued notices in May 2016 and barred from bidding for BMC contracts in November 2016. Later, it emerged that they were directors in SSI as well. They resigned in 2016 and their shares were transferred to their mother, Kamakshi Shah, now the firm’s director.

Considering this, the BMC took legal opinions to see if SSI can be allocated work. Its legal department and an independent counsel were of the opinion that the company should not be given the contract because ‘SSI comes within the sphere of influence of Relcon’. I.A. Kundan, Additional Municipal Commissioner, BMC, said, “Based on legal opinion, we decided to not go ahead with Sunrise. We rejected their bid and decided to go with the second lowest bidder. The nexus of tainted contractors will not be tolerated.”

The BMC has shortlisted M/s Sheth Construction, who will construct on the 4,000- sq.m. plot and hand it over to BMC. The project is expected to be completed in four years.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.