Civic body delays cancellation of smart vending zone contract

LUDHIANA: Even four months after receiving orders from the Chief Vigilance Officer, the Municipal Corporation authorities have neither cancelled the agreement of the smart vending zone project nor taken action against the officials concerned.

The construction of Smart Vending Zone was stopped after the Irrigation Department filed a police complaint. File photo

Harshraj Singh

Tribune News Service

Ludhiana, November 14

Even four months after receiving orders from the Chief Vigilance Officer, the Municipal Corporation authorities have neither cancelled the agreement of the smart vending zone project nor taken action against the officials concerned. The proposal to cancel the project, under which 250 shops were to be constructed under Southern Bypass near BRS Nagar Canal Bridge, was presented before the F&CC during Tuesday’s meeting but was kept pending.

After finding drawbacks in the project, the government had ordered the civic body to cancel the present agreement with the contractor in June 2018. The Local Bodies Director had also asked the MC to submit its report after taking action as per law.

The contractor, backed by certain MC officials, had started construction at the site located under Southern Bypass near BRS Nagar Canal Bridge without any approval from the Irrigation Department. He stopped construction only when the department filed a police complaint.

Now, questions are being raised as to why the MC has been delaying the process to cancel the agreement when the CVO has already recommended for its cancellation.

The complainant, Kuldeep Singh Khaira has alleged that the civic body delayed the process for cancellation of project to protect the MC officials involved in the alleged scam. He further alleges that the civic body wanted to benefit a private contractor who was to generate 90% income from the market while the civic body would get only 10% of the income as licence fee.

“According to the agreement, the actual land owner, Irrigation Department, will get only get only 15% of the income generated by the Municipal Corporation from Smart Vending Zone,” he says. After finding major violations, the CVO had recommended for cancellation of the agreement with the contractor. But, the civic body authorities are trying to protect the contractor and erring officials involved in the scam,” alleged Khaira.

Meanwhile, Mayor Balkar Singh Sandhu said: “We kept the proposal pending. I have asked the authority concerned to fix the responsibility of the officials involved in the project so that action can be taken against them.”

According to the agreement between the MC and the private firm, the latter was empowered to collect up to Rs 10,000 per month from each tenant, and even if they wanted to increase the rent, they could do so with due permission of the Municipal Commissioner. However, the MC would get no fee during first year. It would get Rs 500 per shop per month during second year as licence fee and Rs 1,000 per shop per month in third year as per the agreement.

Information obtained under the RTI Act has revealed that then senior officials, the Secretary (J) and the Superintendent Headquarters, had participated in the meetings held in connection with the project. A pre-bid meeting, which was headed by the then Secretary (J), was convened on April 4, 2017, and it was attended by then Superintendent Headquarters and the representatives of four firms, including two firms which are now handling parking lots of the civic body. Then Secretary (J) had signed the documents to float tenders to invite bids for the project.