Mumbai: Aaditya Thackeray alleges road tendering scam in city

Thackeray has alleged the civic administration had approved bids at higher rates. Representation pic

Shiv Sena (UBT) leader Aaditya Thackeray has alleged a scam in the tendering of the Rs 6,000 crore road works in Mumbai. He said on Friday that the municipal administration had approved bids at rates at least 48 per cent more than the usual cost and demanded scrapping of the bids with immediate effect.

Speaking at a media conference, the Worli MLA demanded answers from Chief Minister Eknath Shinde and Dy CM Devendra Fadnavis. His contention was that the costs were escalated after the first tendering process did not elicit any response. The revised tenders have been approved and the work orders will be issued in a day or two, he added.

'Financial advantage'

According to Thackeray, the cost of concretisation of 400 km roads was increased by 20 per cent even while the previous contractors would quote at least 20 per cent less than the estimated value. "This translates into a financial advantage of 40 per cent more for the contractors. Also, the 18 per cent GST cost has been calculated separately and added to the tender value, thus increasing the entire estimate by 48 per cent. In the previous tendering, the GST cost was part of the basic bid value. Also, the bids are 7 per cent to 13 per cent higher than bid values," he said, adding that the taxpayers' money would be wasted on manipulated and escalated estimates.

Aaditya Thackeray, leader, Yuva Sena

Thackeray suspected a cartel in the bids won by the different companies that have been given a package each of the total five. "A company has quoted 7 per cent more for one package while 12 per cent higher for the other. Another company has quoted 6 per cent higher for one package while 13 per cent higher for the other. How can there be such variation for the same type of work? The companies that are of national repute may not have anything to do. The answers should come from the civic administration and the CM (who is their reporting boss). Who has authorised the work and escalation when the general body, the standing committee and other mechanisms are not in place in the BMC? The CM or the Special CM?" asked Thackeray, adding that the government was reckless because there was nobody to hold them accountable and seek answers.

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He said in the legislature, the CM had said the Rs 2,000 road works would be completed in three years. "Now the CM should tell the time needed for 400 km concretisation work. There is no permission from the agencies, especially the traffic police. At least 42 utilities are under the roads, and they need easy access to repair them, and yet these people have decided to lay concrete on roads of all sizes. Usually, the smaller roads are laid with asphalt."

'Mumbai as an ATM'

He further accused the Shinde government of looting the city. "They are using Mumbai as an ATM. The BMC was in a deficit 25 years ago, but we worked properly and used the taxpayers' money to make it revenue surplus. The entire country has its eyes on the city," he said.

‘Real robbers known'

The BJP shot back at Thackeray promptly. MLC Pravin Darekar said Mumbaikars knew the people who have been robbing the BMC coffers in the past 25 years. "Aaditya's press conference was a bomb that did not explode. Why are these people so upset over the work (we are doing)? They should make public the names of the civic contractors and the money the BMC spent in the past 25 years. Mumbaikars knew who has been robbing the BMC and their tax money. The people have given a fitting reaction to Thackeray's party by pushing it to the fifth position in the recent elections. The city will also do the same," stated Darekar.

BMC responds

Responding to the allegations, the BMC said in a statement that the tendering process of concretisation of the 397 km of roads was transparent.

"For the first time, the BMC has invited large-scale tenders for concretisation of nearly 400 km. Large players with national and highway experiences were eligible to bid. It was expected that the bidder should have adequate machinery, man power, technical staff and experience of work on national highways and state highways. To achieve this, a joint venture clause in which many small companies come together, is prohibited. Small companies have regularly been doing the road works in BMC and quality of such roads was always questioned by citizens." the statement said.

Why cost revision

"Taking into the account the price escalation from 2018 to November 2022, all the items required to be operated for construction of roads are revised. The revised cost as of today has increased roughly to 17 per cent. When market rates are so high, big companies showed unwillingness to work at old lower rates. So to match the market rates, BMC has revised the tender rates and the rates have become equal to market rates," the statement said.

The statement further said that many new conditions have been introduced focusing on the quality of roads. "The corporation has incorporated stringent conditions for the construction of roads. At least 50 per cent tests of materials used for road construction are to be carried out at reputed government labs. A minimum of 25 per cent tests are to be carried out at municipal testing labs and the remaining 25 per cent tests may be permitted at BMC approved private labs. Because of these stringent conditions, the old trend of bidding at very lower rates and then doing sub quality works will be curtailed. Since the areas and geographic conditions are different in different areas, the bids won't be same in all packages," the statement added.

Rs 6,000cr
the cost of the road works in Mumbai