In a startling revelation, an aggrieved contractor, who reportedly side-lined by ‘nexus’ has come forward to expose potential financial irregularities in the tendering process for a vital road project from Sujdandhar to Ratnote via Gabber Sarote Block Bhomag district Reasi.
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The construction, initiated under NABARD funding by the Chief Engineer of PW(R&B) Department Pir Panjal Rajouri, has been mired in controversy over the (inflated) turnover certificate submitted by M/S DRF Infra Builders Pvt. Ltd., the lowest bidder (L1).
According to the contractor, who spoke on condition of anonymity, “In the turnover certificate submitted by M/S DRF Infra Builders Pvt. Ltd., the gross receipts from civil construction works during the FY 2022-23 are stated as Rs 2301.05 lacs. However, a closer examination of supporting documents such as Form 26AS, Tax Deducted at Source (TDS) records, ITR and profit and loss statements reveals discrepancies.”
The contractor further stated, “The turnover certificate submitted by entity in questions indicates a gross receipt of Rs 2301.05 lacs from civil construction work during FY 2022-23. However, Form 26AS reveals that TDS under section 194C (payment to contractors and sub-contractors), has been deducted from an amount of Rs 20,32,30,842, the amount which has been received by the firm on account of constriction woks.
Additionally, the profit and loss statement submitted shows revenue from operations as Rs 21,06,50,601.98, with a breakdown of (from sales of goods Rs 1,38,74,790 and Rs 19,67,75,812 from sales of services) which clearly reflects in the ITR. Notably, there is no documentation to verify the turnover of Rs 2301.05 lacs, prompting questions about its origin and accuracy.”
Raising concerns about questionable transactions, the contractor alleged that total payment received under section 194 C (Rs 2,02,30,842) was inclusive of two transaction of Rs 2,00,20,104 from M/s Fazal Rehman Dar, Sister concern of M/s DRF Infra Builders Pvt Ltd. On 31/03/2023 and the other of Rs 4,95,10,500 from M/s Vipan Kumar Contractors on 01/03/2023.
“No documents in support of these transactions has been submitted which can prove that the payments have been made in lieu of any contract or sub contract because section 13 of Chapter 20 of PWD Engineering Manual -2020 does not permit a contractor to sub let the contract. Contrary to this, as per form 26 of M/s Vipan Kumar, a payment of Rs 7,80,35,787.20 (Rs 83,88,974.50+ RS 1,19,08,312.70 + Rs 4,95,10,500) has been received by M/s Vipan Kumar from M/s Fazal Rehamn Dar on 31/03/2023. This clearly indicates that the money trail took place only to achieve the financial turnover”, the contactor alleged.
Mujeed Ur Rehman Dar, owner M/s DRF Infra Builders Private Ltd, the entity secured the road contract, when contacted said, “There are no discrepancies (inflated turnover) in my documents. I participated in the bid and furnished all the documents requested by the tender-inviting authority. If there are any discrepancies, it is the duty of the authorities to point them out and take action.” However, information provided by the sources narrates an oppositve story, what Mr Dar claims in his defence.
Highlighting discrepancies in project commitments, the contractor stated, “Out of total existing commitments of RS 4112.85 Lacs, works worth RS 1070.00 lacs allotted by PHE Department with completion period of six months have not been completed in spite of lapse of completion period. Two works worth Rs 404.26 lacs (Rs 203.74+200.52) were allotted on 18/10/2022 with completion period of six months but after al apse of more than one year works worth Rs 227.00 lacs (47.00 +180.00) which is more than 50 percent is still to be completed due to which the public of the area is being deprived of the drinking water facilities. No reasons for delay in completion has been given.”
Clause 4.8 of the e-NIT/SBD clearly states that even though the applicants meet the above qualifying criteria, they are subject to be disqualified if they have; (i) made misleading or false representation in the forms, statements and attachments submitted, and /or (ii) Record of poor performance such as abandoning the works not properly completed the contracts, inordinate delay in completion, litigation history or financial failure etc. It is beyond understanding that why the Technical Bid Evaluation Committee head by the Chief Engineer did not take cognizance of the above explained facts.
The tendering process, initiated by Chief Engineer PW(R&B) Department Pir Panjal Rajouri, began with the invitation of online bids through e-NIT No 04 of 2023 dated 28/12/2023, with an advertised cost of Rs 2724.50 Lacs. The deadline for bid submission was set for 17/01/2024, with the opening of technical bids scheduled for 18/01/2024 at 11.00 AM. According to the technical bid evaluation uploaded on the department’s e-portal on 05/03/2024, out of 10 bids received, nine were accepted, while one bid from M/S Construction Engineer was rejected due to discrepancies including the absence of EPF upload and affidavit issues.
The controversy escalated when objections were submitted by multiple bidders, including M/S DRF Infra Builders Pvt Ltd, Green Earth Infrastructure Pvt Ltd, and TBA Infrastructure Pvt Ltd, regarding the technical evaluation results. These objections led to the revocation of the tender and the subsequent uploading of a revised technical evaluation on 20/03/2024. However, the revised evaluation saw six more bids being rejected, leaving only three bids responsive. Reasons for rejection ranged from hiding information on ongoing works to unacceptable turnover certificates and bid security validity issues.
Despite objections raised by affected bidders and their appeals to higher authorities, including the Administrative Secretary PW(R&B) Department, no resolution was reached. Further exacerbating the situation, objections submitted by M/S DRF Infra Builders Pvt Ltd on 21/03/2024 resulted in the rejection of the bid from M/s Vikesh Kumar, the 8th bidder, due to similar issues with ongoing works information. Ultimately, the revised (second time) technical evaluation, uploaded on 28/03/2024, left only two bidders, M/s DRF Infra Builder Pvt Ltd and Green Earth Infrastructure Pvt Ltd, responsive. The financial bid was then opened on 04/04/2024, with M/s DRF Infra Builders Pvt Ltd declared as L1 with a quoted rate of minus 0.52 percent, and Green Earth Infrastructure Pvt Ltd as L2 with a quoted rate of minus 0.25 percent.
The controversy has raised concerns about the conduct of Technical Evaluation by Technical Committee, headed by the Chief Engineer, with accusations of abuse of official position and failure to uphold the integrity of the tendering process. Was there a healthy competition, there might have been a saving of about 5 to 7 crores of rupees to the state exchequer as the similar nature works in the same area are being executed at much lower rates. This episode underscores the need for greater transparency and accountability in government procurement processes to ensure fair competition and prevent potential losses to the government exchequer.
“Chief Engineer PW (R&B) Pir Panchal, Anil Pandohi, defending the decision taken by the authorities, said, “There are no discrepancies in the process. We have verified it with the GST department.” “In financial matter we reply on the certificate issued by the chartered accountant (CA). If anything is found wrong, it is the fault of the CA who issued the certificate. We are not an investigating agency,” he added.
