Vadodara boat capsize: HC orders probe into VMC chief’s role over ‘illegal’ award of contract

The inquiry is expected to be completed within two months. The HC directed the government to place the inquiry report before it by the next date of hearing, scheduled in June.

The HC issued the direction after going through municipal corporation records, bringing the bench to an “irresistible conclusion that the procedure prescribed by law for award of a public contract has been given a complete go-by while granting contract in favour of Kotia Projects (the firm that redeveloped the lake)”.

“From the turn of events brought on record… in the matter of grant of contract, it is evident that the then municipal commissioner is responsible for granting contract illegally in favour of Kotia Projects. However, this opinion expressed by us be treated as a prima facie opinion to conduct an inquiry against then municipal commissioner of VMC as also other officials whosoever they may be,” the court noted.

As per the incumbency chart of civic chiefs on the VMC website, H S Patel was the municipal commissioner from February 25, 2015 to June 23, 2016, when the proposal of redevelopment of lakes was initiated. He was succeeded by Dr Vinod Rao, who held the post from June 24, 2016 to July 17, 2018, when the contract was finally awarded to Kotia Projects.

The HC noted that on September 15, 2015, a proposal was submitted by then VMC commissioner to the standing committee seeking that the commissioner be authorised to take steps for development of lakes and areas surrounding them on a public-private partnership (PPP) mode.

The proposal, however, was not approved by the standing committee at the time and over a week later, on September 23, 2015, the commissioner himself gave in-principle approval – both administrative and technical sanction – for issuing advertisements in newspapers to invite expression of interest (EOI) to develop Harni lake on PPP mode.

Following this, two bids were received – from Kotia Projects and Almac India Vadodara – by October 15, 2015. However, in the bid submitted by Kotia Projects, in the column of financial turnover, there was “nil” entry, as the company was a new entity, established the very same month on October 5, 2015. Notably, the company submitted its bid in response to the EOI also on October 5, 2015.

The court on Thursday noted that the new entity of Kotia Projects was established only “after the project was conceived by then municipal commissioner by granting approval in principle to himself to go ahead to develop the lake through PPP mode when there was no approval of the standing committee for the project”.

“With this fact, we may record our strong suspicion of the manner in which the EOI was submitted by a new entity, established after the project was conceived. This aspect itself requires inquiry into the manner in which the entire project was conceived by then municipal commissioner,” the court order said.

The HC recorded that both bidders were rejected at the time, as they did not have the required financial capacity. Also, Kotia Projects, being a new entity, also did not have work experience, which was required under the bid.

Despite the rejection of both bids, no public tender was floated at that point of time. Instead EOIs were published a second time in December 2015, following which, Kotia Projects submitted its bid a second time on December 27, 2015. The other bidder this time was Mangalam Construction Company.

By January 8, 2016, both bidders had qualified for further consideration and subsequently, Kotia Projects was awarded the contract by way of approval from the VMC standing committee and then by the general board by way of resolutions in September 2016. Rao was the VMC commissioner then. Work order was finally issued to Kotia Projects in February 2017.

The HC court observed that “it is not understandable how Kotia Projects qualified for the bid within two months”, in December 2015, when it was disqualified in October 2015, noticing that its financial turnover was nil and it was a new entity established on October 5, 2015.