EOW probes Bhopal smart city land tenders over transparency allegation

21 Jul 2021 CW Team

BSCDCL failed to initiate a competitive tendering mechanism, and it has been alleged that the tendering process on commercial plots was made complex to benefit select builders.

An official told the media that they have all documents to prove the transparency adopted by BSCDCL, but he refused to have them in his possession when asked to share the relevant documents.

The bids invited for Plot Number- 79 (A), 80 and 83 are under investigation. The base prices of these plots were Rs 63.80 cr, Rs 70.75 cr and Rs 73.96 cr, respectively.

The complaint alleges that the bid was opened for the first time with just two bidders in stark defiance of set norms, and the tenders were not called for the second time.

One of the builders told the media that the Bids were rigged, incurring huge financial loss to the state government when contacted.

He mentioned that there was no clear information on the Marginal Open Space (MOS) area of the plots in the tender documents, which created confusion among participants making it unviable. Wishing to stay anonymous, he also said that the builders who won the bids were aware of the proposed changes, and the same was done.

The complaint reads that the base price of plot number 82 was Rs 29.48 crore, and it was not in a prime location and was one of the smallest ones with the least financial value. Five bidders came forward for it, and fair competition between the bidders led BSCDCL to earn 20% above its base price, amounting to Rs 35.11 crore.

According to the complaint, while the other three plots were sold at only 8% or 9% above the base price, causing a loss of revenue to the government, which is approximately Rs 35 crore.

Image Source

Also read: Over 5,000 smart city projects in 100 cities remain incomplete

Madhya Pradesh Economic Offences Wing (EOW) initiated an investigation into a complaint alleging corruption, criminal conspiracy and transparent issues in plots sold on a freehold basis for Area-Based Developed (ABD) Area of Bhopal Smart City Development Corporation Limited (BSCDCL). BSCDCL failed to initiate a competitive tendering mechanism, and it has been alleged that the tendering process on commercial plots was made complex to benefit select builders. An official told the media that they have all documents to prove the transparency adopted by BSCDCL, but he refused to have them in his possession when asked to share the relevant documents. The bids invited for Plot Number- 79 (A), 80 and 83 are under investigation. The base prices of these plots were Rs 63.80 cr, Rs 70.75 cr and Rs 73.96 cr, respectively. The complaint alleges that the bid was opened for the first time with just two bidders in stark defiance of set norms, and the tenders were not called for the second time. One of the builders told the media that the Bids were rigged, incurring huge financial loss to the state government when contacted. He mentioned that there was no clear information on the Marginal Open Space (MOS) area of the plots in the tender documents, which created confusion among participants making it unviable. Wishing to stay anonymous, he also said that the builders who won the bids were aware of the proposed changes, and the same was done. The complaint reads that the base price of plot number 82 was Rs 29.48 crore, and it was not in a prime location and was one of the smallest ones with the least financial value. Five bidders came forward for it, and fair competition between the bidders led BSCDCL to earn 20% above its base price, amounting to Rs 35.11 crore. According to the complaint, while the other three plots were sold at only 8% or 9% above the base price, causing a loss of revenue to the government, which is approximately Rs 35 crore. Image Source Also read: Over 5,000 smart city projects in 100 cities remain incomplete

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