Did UT violate general financial rules?

The GFR-2005 came into force on July 1, 2005, vide an order issued under Clause B1 Finance of the Allocation of Business Rules, 1961. Rules 152 and 172 of the GFR-2005 make it mandatory for the technical and financial bids to be submitted simultaneously by the interested bidders applying for a particular tender.

In case of the theme park, however, the Administration did not follow these. After inviting expression of interest for the multi-million project, it shortlisted seven companies and invited technical bids from them. It allegedly further shortlisted the final three companies and then invited the financial bids.

Around 15 companies had showed interest in the project. Following a certain criterion set by its team of officers, the Administration shortlisted seven companies 8212; Pantaloon Limited, Unitech Limited, EMMAR/MGF Limited, Writers and Publishers Limited, DLF Limited, Appu Ghar Limited and Parsvnath Limited.

According to reports, all seven were asked to submit technical bids only, against the rules prescribed for the tendering process under the GFR. The technical bids were opened on July 28, 2006. On August 14, the Administration asked the three shortlisted companies 8212; DLF, Unitech and Pantaloon 8212; to submit financial bids. The documents in possession of The Indian Express reveal that the Administration issued a letter on August 14 to the three successful applicants that said: 8220;Consequent to the technical presentation and submission of technical bid, financial bid should be submitted.8221;

On October 16, 2006, the three companies submitted their financial bids.

The Administration, however, had fixed October 16, 2006, as the date for opening the technical bids again. October 20 was fixed for evaluating the bids and October 26 for opening the financial bids. The Administration finally signed the agreement with Unitech on December 6, 2006.

8220;The Administration first opened the technical bids of seven companies. Three companies were shortlisted and asked to submit their financial bids. How did the Administration open the technical bids again? This is a clear-cut violation of the General Financial Rules. A detailed probe must be sought in this regard,8221; Vivek Aditya, an RTI activist who claims authority in financial regulation laws internationally, has said in his complaint to the Central Vigilance Commission and UT Advisor Pardip Mehra.

Former Director Tourism Vivek Atray said: 8220;The UT standing counsel8217;s advice has been sought in the matter. It will not be appropriate for me to comment any further, as I have already moved out of the UT Administration.8221;

What do Rules say?
Rule 152 8212; two bid system
To purchase high-value plant, machinery etc of a complex and technical nature, bids may be obtained in two parts as under:

Technical bid consisting of all technical details along with the commercial terms and conditions

Financial bid indicating item-wise price for the items mentioned in the technical bid

Both the bids should be sealed by the bidder in separate covers duly superscribed and both these sealed covers are to be put in a bigger sealed and duly superscribed cover. The technical bids are not to be opened by the purchasing ministry or department at the first instance and should be evaluated by a competent committee or authority. At the second stage, financial bids of only the technically acceptable offers should be opened for further evaluation and ranking before awarding the contract.

Rule 172 8212; receipt and opening of proposals
Proposals should ordinarily be asked for from consultants in the 8216;two-bid8217; system with technical and financial bids sealed separately. The bidder should put these two sealed envelops in a bigger envelop duly sealed and submit them to the ministry or the department by the specified date and time. On receipt, the technical proposals should be opened first by the ministry or the department at the specified date, time and place.

Park could have been in Leisure Valley
A communiqueacute; between the Chief Architect and the Chief Engineer, dated May 5, 2006, is in possession of The Indian Express, which indicates that UT officials were planning to set up the theme park at the Leisure Valley in Chandigarh. The letter demanded 8220;necessary action quickly so that the area in front of the Museum and Art Gallery lying in a state of disuse may be properly landscaped and spruced up8221;.

Enclosing two prints showing the layout plan of Leisure Valley, Sector 10-C, Chandigarh, the letter read: 8220;It is requested that the survey plan showing the levels/contours and all existing features/buildings/monuments etc at site, such as cafe, stage/ toilets, mali-huts, sculptures, artworks, trees, electrical poles, bridges, nullah, approach roads/ parkings etc with all dimensions, angles may kindly be sent to this office for further necessary action in the matter. This may kindly be treated as 8216;most urgent8217;.8221;

The proposal, however, could not take off due to certain reasons, and it was decided to take the project to Sarangpur, said officials.