Ludhiana MC move to refund 'forfeited' security of defaulter under lens

Kuldip Bhatia

Ludhiana, December 31

The Finance and Contracts Committee (F&CC) of the Municipal Corporation, a statutory body set up under the relevant act to enforce financial discipline and ensure safety/proper utlilisation of public money, has come under scanner over its decision to refund the ‘forfeited’ security of a defaulting parking lot contractor who had failed to take charge of parking sites in Feroze Gandhi Market and Sarabha Nagar I block after his bids were accepted in 2020.

PARKING SITES IN FEROZE GANDHI MARKET AND SARABHA NAGAR I BLOCK 

As the successful bidder of the two paid parking sites had failed to take charge of the parking sites and deposit subsequent part of the balance amount of his bids on the ground that a rebate should be allowed to him due to the Covid-induced lockdown, the civic body had ordered a probe by a Joint Commissioner and in accordance with his report, the contracts were cancelled and security deposited by the contractor was forfeited due to default as per terms and conditions of the bid document.

However, in its recent meeting earlier this week, the F&CC took a U-turn and accorded an approval to the proposal for refund of the forfeited security without citing any ground or rules under which the defaulting bidder was being given this benefit.

Though the MC officials concerned were tight-lipped about compulsions or pressure on the F&CC (including the Mayor) which had to take this decision by flouting all rules and accepted norms of the bidding procedure, it was being alleged that the parking contractor had managed to bring some senior leader of the ruling party who had made the F&CC relent and bend the rules.

A MC official on the condition of anonymity asserted that by creating a precedent of ‘obliging’ the defaulting parking contractor, the F&CC had practically opened a can of worms.

“Now every defaulting contractor would pull strings and get away even after defaulting in execution of the assigned work,” the official said.

“Forfeiture of security for failure to abide by terms and conditions of a work order is an accepted norm and once it is bent, even though as an exception, there will be no end to it because every defaulter will cite the precedent and demand benefit,” the official said.

Civic body had cancelled contracts after probe

As the successful bidder of the two paid parking sites had failed to take charge of the parking sites and deposit subsequent part of the balance amount of his bids on the ground that a rebate should be allowed to him due to the Covid-induced lockdown, the civic body had ordered a probe by a Joint Commissioner and in accordance with his report, the contracts were cancelled and security deposited by the contractor was forfeited due to default as per terms and conditions of the bid document.

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