Chennai: Citing elements of scam in ₹284 crore worth tenders for construction of footpaths across the city, the Greater Chennai Corporation (GCC) cancelled them on Wednesday.The tenders, floated days ahead of the model code of conduct for the assembly polls, had multiple irregularities such as pre-fixing tenders to a few contractors and a four-fold increase in project cost, and another 10% increase while bidding. Officials said they could have caused significant loss to the exchequer.Funding for the project was announced in the GCC budget by Mayor R Priya on Feb 19. The special projects department floated tenders on Feb 20. The model code of conduct came into force on March 15.The project was split into 35 packages to lay footpaths across key roads including Shastri Nagar in Adyar, Fourth Avenue in Besant Nagar, Raja Muthiah Salai along Jawaharlal Nehru Stadium, Barnaby Road in Kilpauk and Dr P S Siasamy Salai in Mylapore, among other arterial stretches. While the L1 arrived for all 35 works, the GCC had not given work orders.Each package, covering footpath works across two to three roads, carried a tender value of ₹8 crore to ₹9 crore. Officials said the budgeting appeared grossly inflated.“Footpath work largely requires masonry and concrete flattening, which would typically cost around ₹1.5 crore to ₹2 crore per project for similar stretches,” an official said.Officials cited the example of the 500m-long Kader Nawaz Khan Road pedestrian plaza project, which involved major utility shifting and cosmetic upgrades with lighting, seating, cobble-stones, with premium flooring and itself cost ₹19 crore. In comparison, they said the cancelled packages proposed spending nearly ₹9 crore merely for relaying concrete footpaths across two or three roads per package.For instance, under Package 6, GCC floated tenders worth ₹8.2 crore to lay around 1km of footpaths on Park Road and North Avenue Road in Anna Nagar West Extension. Officials said the per-metre cost worked out to nearly four times the usual rate.Another key irregularity was the selective contractor participation patterns during the tendering process. In Package 9, involving footpath works worth ₹8.3 crore on Jawahar Street and Sixth Main Road in Mogappair, only two firms — P and CE Projects and Sri Sivaram and Co. P and CE Project — participated. The first company won the contract though it had quoted 9% above the estimate.Similarly, in Package 2, involving footpaths on Erikarai Salai, Pillaiyar Kovil Salai and Bazaar Street worth Rs 7.9 crore, the same firms participated. P and CE Projects quoted 9% above estimate and emerged L1, Sri Sivaram and Co quoted 12% above estimate (L2), while Adithya Infrastructure quoted 15% above estimate (L3).In competitive tenders, even for a road cut, at least 20 contractors participate and the bid-value is in minus of project cost.Another top official said a few works also colluded with the MRTS-CMRL project site. “The project received a state approval so it isn’t shelved. We have cancelled the tenders alone. The DPR will be reviewed, and the project will come up again with a revised estimate,” the official said.These tenders also had site visit and machinery visit certificates limiting participation of a large set of contractors, said officials.“There are 400 contractors in the city alone, and if there were open tenders, many would have participated in competitive bidding. It will only be a savings for the exchequer. These tenders were restricted to a few,” said Rama Rao, president, greater Chennai contractors association, adding that there must be action against the officials involved. “If GCC is aware this happened, then why are they not punishing the officials involved?,” he asked.Municipal Administration and Water Supply (MAWS) department, headed by chief minister C Joseph Vijay, had directed GCC to scrutinise all ongoing tenders initiated during the previous regime. About 40 works are under review. “The works are being reviewed and scrutinised fast. Newer proposals and estimates are being readied for many civic works,” the official said.
