Another construction firm alleges irregularities in Radial Road-2 tender process

A construction firm has alleged large-scale irregularities in the Radial Road-2 tender process, claiming that contractors were threatened from participating and that tenders were manipulated to favour pre-selected companies. The firm also accused the Telangana government of seeking commissions for awarding projects and clearing pending contractor dues.

Hyderabad: After Congress MLA from Munugode Komatireddy Rajgopal Reddy, now another construction firm has complained about large-scale irregularities in the Radial Road 2 tenders and how Chief Minister A Revanth Reddy’s Office (Chief Minister’s Office) threatened a few contractors from participating in the tenders.

Nama Ramesh, Managing Director of RVM Construction India Limited, charged that the Chief Minister demanded 15 percent commission for awarding these projects to contractors.

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He complained to the Builders Association of India (BAI) over the Radial road tenders evaluation irregularities and urged the body to take up the issue with the State government.

In a letter to the BAI, he said Hyderabad Growth Corridor Limited (HGCL), had floated tenders for Radial Road 2 Tenders in three packages. Leading companies, including NCC, BVSR, GKC and Sushee Infra had participated in the tenders.

However, given the manner in which the tenders were evaluated, it appears that Sushee Infra was deliberately targeted, he stressed.

Generally, 10 to 12 companies participate in the EPC or HAM tenders floated by MoRTH, NHAI and the State government. Interestingly, in the HGCL tenders, only four bidders participated and the remaining bidders were understood to have pre-arranged with Chief Minister A Revanth Reddy, he charged.

“The other contractors, who intended to bid in the tenders, received threatening phone calls from the Chief Minister’s Office. Sushee Infra is the only company, which ventured to participate in the bids,” Nama Ramesh explained.

This apart, during technical evaluation, the client disqualified Sushee Infra, without citing proper reasons. Sushee Infra filed bids for three packages, quoting prices that were much lesser than L1 bidders (lowest bid quoted). The total difference is estimated to be about Rs. 600 crore against the tendered value, he stated.

Usually, the client seeks clarification from a bidder on how it meets the qualifying criteria before deciding on its bid. This was not the case. Instead, to award the work to pre-selected companies, the technical and financial evaluation was completed in a week. Letter of Acceptance was also issued within 24 hours of financial evaluation, he alleged.

“Till date, the client has not disclosed the financial bid of the L1 bidder. Sushee Infra stated that the L1 bidder quoted 3 to 15 percent higher than the estimated cost. This shows a clear lack of transparency in the process and raises serious concerns that the award is being finalized under political influence,” Nama Ramesh said.

He further informed BAI that the State government has to clear Rs. 20,000 crore in payments to contractors in the State. Huge commissions were being demanded to clear the pending bills, he added.

Nama Ramesh urged BAI to press for a transparent tendering process, which facilitates equal opportunity for all contractors. He also wanted the association to impress upon the State government to clear pending dues.

Munugode MLA Komatireddy Rajgopal Reddy had earlier alleged that the State government was deliberately awarding contracts to Andhra Pradesh-based companies, which had quoted higher prices than the estimated cost.

BRS working president KT Rama Rao also charged that there was a scam in Radial Road 2 tenders. He demanded a detailed probe into the tenders and strict action against those found responsible for irregularities.