December 28: Corporators and officers of the Thane Municipal Corporation not only acted against the interests of the Corporation but bent over backwards to benefit private firms they were dealing with. The Nandlal Committee report carries instances of such decisions taken by both corporators and officials. In some cases, the decisions were blatantly illegal while in others, established procedure was not followed. Arguably, and against the backdrop of the kickbacks system, the motives of the decision-makers are suspect.Among the major cases is the construction of the Rajiv Gandhi Medical College. The series of decisions reflect the wilful neglect on the part of senior TMC officers including the then municipal commissioner J P Dange and city engineer A N Shaikh; it also reveals how a rank outsider, architect firm Shashi Prabhu and Associates, as advisor usurped the decision-making process with no responsibility to the Corporation. Result? There were no efforts whatsoever at the very top to reduce the costquoted by the bidders, points out the report. ``There is room for suspicion that negotiations were only a show,'' it states.
Ajanta Builders was awarded the contract after inviting tenders at a premium of 72 per cent on the estimated cost of Rs 33.4 crore, on the advisor's recommendations. It was a mere one-page recommendation without sufficient grounds to explain the need for the premium, states the report.
Interestingly, Shaikh believed that 46 per cent premium would be more appropriate but went ahead with the recommendation. The advisors had not turned over any relevant documents including its appraisal procedure to the TMC till November 1997 when the contract was cancelled. Ajanta Builders had received over Rs 5.33 crore by then. While branding the advisor firm ``completely irresponsible,'' the Nandlal Committee expressed serious doubts about Dange and Shaikh's decisions.
There's the case of the Abhiruchi Hotel floating art gallery. Unit Arsens was given the project to run the hotel and repair theart gallery. The report shows that it was largely an architectural firm while TMC ignored two other firms that were in the business of hotels. Moreover, the firm put in bills worth Rs 20.85 lakh for repairs and demanded an additional Rs 50 lakh.
The Nandlal Committee report says the city engineer did not even bother to verify that repairs had been done. Worse, the TMC Standing Committee estimated the total cost to be Rs 80 lakh and sanctioned Rs 47.3 lakh; chairman Sudhakar Chavan even informed his colleagues that the project would cost around Rs 1.25 crore. For some reason, K N Electricals was a favoured firm in the TMC during 1995-96. The report states the TMC entrusted it with a project to install sodium vapour lamps in Thane at an estimated cost of Rs 5.4 crore. The work order to the firm read Rs 6.2 crore -- 16 per cent higher than the estimate. Later, the firm managed to get another project worth Rs 3.3 crore, also 16 per cent higher than the estimated cost. The Nandlal Committee report states that KN Electricals was given projects at ``surprising speed''.
Two mega residential complexes -- Saket and Shruti Park -- also came under investigation. The Committee observed that the exact area that builders could develop was decided by concerned officers, but there was some hanky-panky. This could be surmised from the offences registered against a host of officials by the Anti-Corruption Bureau in 1995. Since the case is subjudice, the Committee has refrained from giving its opinion. However, the report brings to light that 103 people including the Thane Collector, tehsildar and TMC city engineer stand accused along with the builders.
Another case shows the illegal and brazen manner in which the Transport Committee in 1992-93 awarded contracts for building 30 buses to three firms that were neither the lowest bidders nor had any outstanding references. Tenders were invited and the lowest bidder was Bharati Workshop for Rs 3.46 lakh.
However, the transport committee finalised three other firms -- StarlineEnterprises, InCoach Builders and Trimurti Body Builders -- for ten buses each. The Anti-Corruption Bureau is investigating the issue. However, from the documents available, the report states that the Transport Committee had acted ``completely illegally.''
Worse, when the ACB requested permission to proceed in the high court against some senior officers, the Transport Committee refused permission in 1996.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.