Purchase order by MTNL’s Delhi unit riddled with controversy

MTNL Delhi unit did not take the required mandatory permission from the corporate office for the purchase of MLDN equipment from M/S HTL-Tellabs Limited, Chennai. Further, the tender was given to ITI-Tellabs inspite of Alcatel being the lowest bidder and the price difference due to the purchase from a higher bidder is to the tune of Rs 13 lakhs.

A tender for procurement of MLDN equipment (bulk tender for Delhi and Mumbai for three year requirement) was floated by the corporate office via a tender dated June 19, 2000. The tender was evaluated and letter of intent (LoI) was issued to the lowest bidder, Alcatel on August 8, 2000. On August 14, 2000 a communication was sent from the office of Minister of State (MoS) to go for further examination and the tender was referred to the Telecom Engineering Centre. A three member committee, consisting of Director (finance), CGM Delhi and CGM Mumbai was set up to look into the matter.

In fact if the procurement by the Delhi unit was done as per the lowest rates of HTL/ITI as per the bulk MTNL tender, the difference in the total amount would have been to the tune of Rs 10 lakhs. In case the procurement by the Delhi unit was done as per the lowest rates of the bulk MTNL tender, the difference would have been to the tune of Rs 13 lakhs.

The internal note has urged the CMD to look into the irregularity and has also urged the director (finance) to suggest suitable action to be taken on the irregularity by the Delhi unit.