Chennai:
The Rs 82.87 crore Fintech City contract was awarded to Namakkal-based PST Engineering Construction (PSTEC), which came under the scanner for constructing poor quality apartments for the economically weaker sections at KP Park in Chennai, as the firm was not yet 'blacklisted', according to the state government. Chief Minister M K Stalin laid the foundation for the Fintech City and a Fintech Tower on last Saturday.
Official sources said that Tamil Nadu Urban Habitat Development Board (TNUHDB) had even started the process to blacklist PSTEC but the developer got the stay from Madras High Court. It is learnt before awarding the tender to PSTEC, there has been a lot of discussion administratively whether to let PSTEC participate in the tender. The legal opinion was sought where in it was highlighted that the developer was not blacklisted as such he can be allowed to participate in the tender. The officials took the decision to give him the tender as there was a difference of Rs 17 crore between PSTEC and the next bidder. Sources said the tender is not for constructing a building but for roads, storm water drains, storm water pumping station, flood wall, domestic water, recycled water and waste water network and external security system. "We followed everything legally," sources said.
While there has been no progress in vacating the stay to proceed againt PSTEC, the government has hit back stating that PSTEC was awarded works in various departments after 2021, including the six laning of the Tuticorin Port Road section of NH-7A (new NH-138) from KM 0.000 to km 6.140 on EPC mode by the National Highways Authority on India on March 31, 2023 at a cost of Rs.130.20 Crore.
Officials are tight-lipped on how the tender was given to a firm which is under investigation with a legal case pending in Madras High Court.
What is more surprising is that the state has said that ongoing process for fixing the accountability for the lapses in the construction of 864 EWS Tenements (Stilt+9 Floors) at K.P. Park will be continuously followed up by Tamil Nadu Urban Habitat Development Board (TNUHDB) and it will be ensured that if any lapses are proved, corresponding penal action as per Transparency in Tenders Act and bid conditions of that project will be taken. This despite Centre for Urbanization, Buildings & Environment (CUBE), a joint Initiative of IIT Madras and Tamil Nadu Government, that assessed the construction quality of tenements of K.P. Park Scheme at Pulianthope found several discrepancies in constructions with poor quality and unacceptable workmanship of plastering being one of the most critical defects.
"The investigation by CUBE has already highlighted the lapses. All Directorate of Vigilance and Anti-Corruption was to do is file a FIR in the criminal case, which it has not done. The government defending the contract given to PSTEC is unacceptable. We will have to move the court to file a FIR in this case," said Jayaram Venkatesan, convenor of Arappor Iyakkam.
The government then had promised stringent action against the contractor. HR&CE Minister P.K. Sekarbabu had on October 2021 said that the government had decided not to award any more projects to PSTEC. However now the governmentciting relevant provisions of the Transparency in Tenders Act, Rules and bid documents, it states disqualification of a bidder can only happen if the entity is found to be blacklisted. "This bidder was found eligible in the technical evaluation, along with two other bidders," the release stated.
The Fintech City project relates to the Infrastructure and Site Development of Phase I of Fintech City over 56.48 acres. As part of the work, site grading, roads, storm water drains, storm water pumping station, flood wall, domestic water, recycled water and waste water network, external security system and security building are to be taken up. The financial bids of the three bidders were opened and after discussions about workability of the prices, the work has been awarded to PST Engineering Construction at Rs.82.87 crore including Goods and Service Tax (GST) which is 16.34% less than the department estimate, by TIDCO. The details of other two bidders who had competed for the tender was not provided.
The release also stated that the e-tender for construction of Fintech tower, a high rise building with a built-up space of 5.6 lakhs square feet was awarded to URC Construction Private Ltd, Bangalore for Rs151.55 crore includingGST which was 11.64% less than the Department Estimate on June 13, 2023.
"The fair participation and competition are exemplified by the fact that both the tenders have attracted very competitive quotes lower than the estimates, thus resulting in a savings of Rs.36.15 crores to TIDCO," the release stated.
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