In a major scandal, Vadodara Municipal Corporation (VMC) has given contracts to two Ahmedabad-based companies despite bids exceeding estimates by 32-37%.

Allegations of preferential treatment and corruption in the tendering process arise, costing VMC an extra ₹50.97 cr.

The two Ahmedabad-based companies, Rajkamal Builders Infra Pvt Ltd and Ranjit Buildcon Ltd, were granted several contracts worth a total of ₹542.29 cr, even when their submitted bids were significantly higher than the estimated costs.

These bids were somewhere between 32%-37% more expensive than the initial estimates, resulting in an additional payment of ₹118.55 crore owed to the contractors.

Sources close to the developments have claimed a connection between influential contractors, engineers, and even some leaders in power who are manipulating the tendering system.

Overcharged contracts granted to Rajkamal builders

In a recent standing committee meeting, Rajkamal Builders was awarded a ten-year contract for maintaining the new Sewage Pumping Stations (APS) and pressure line in Vadodara’s Bhayli area at a cost ₹1.14 crore higher than what had been estimated.

Similarly, another contract for a sewage treatment plant (STP) and its maintenance in Tarsali was awarded to this company at the cost of ₹115.79 cr by the VMC. This cost was initially estimated to be at ₹91.05 cr, but it was awarded to Rajkamal at a 27.17% surge translating to an almost ₹24.74 cr cost.

In another such transaction, VMC issued an estimate of ₹108.78 cr to construct an intake well and water treatment plant in Raika. However, Rajkamal Builders submitted a tender with a 37.49% surge cost, over which an additional ₹13.85 cr is now to be paid.

The estimated  cost of ₹50.76 cr was initially set for the construction of a flyover bridge near Vadodara’s Bill village. . However, an extra ₹16.24 cr will now have to be paid to the contractors for tendering at a 32% higher price of ₹ 67.01 cr.

A flyover near Vasna crossroad was estimated at ₹39.84 cr, but the same contractors submitted a 32% higher tender of ₹52.59 cr. An additional ₹12.75 cr will have to be paid.

Overcharged contracts granted to Ranjit Buildcon

In a similar way, the tender for the flyover near Vrundavan Crossroad was submitted by the contractor at a 32% surge cost of ₹64.76 cr. However, its estimated cost was ₹49.06 cr. This means that the VMC will be paying an additional ₹15.7 cr.

A flyover near the city’s Sardar Estate crossroads was estimated to be built for ₹50.62 cr. However, a surge tender of ₹66.82 cr was submitted by the company, over which an additional ₹16.20 cr will be paid at a 32% overcharge.

Similarly, the flyover near Khodiyar Nagar crossroads was estimated to be built at ₹59.61 cr. However, the revised tender from the company was ₹78.69 cr, amounting to an additional cost of ₹19.08 cr, an overcharge of 32%.

These contractual obligations have cost the VMC an additional financial burden of ₹50.97 cr.

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