No Transparency in Works Contracts by Railway PSUs

Admin

Despite of CVC’s clear direction on the basis of Hon’ble #SupremeCourt’s order, the Railway’s #PSUs are continuously indulging in awarding #contracts, at a very high rate to the pre-chosen ineligible #contractors.

This is being done on a “back-to-back” basis, and or pre-bid tie-up basis without following the normal procedure of inviting #tenders.

The concerned #executive-department and #director-finance of #PSUs are indulging in close door secret meetings with the #contractors and finalizing the #contract without any #transparency.

The details of such finalized contracts are kept discretely without posting on PSU’s website. Whereas, CVC’s directive is clear that details of all tenders awarded shall be posted on website of the organization.

CVC Circular on Transparency in Works/Purchase/Consultancy contracts awarded on nomination basis

This is against the directives of #CVC vide Circular no. 04/04/21 (no. 005/CRD/19/48024) dated 06.04.2021 and the awarding of such contracts is considered a restrictive practice, eliminating competition, fairness, and equity and breach of Article-14 of the constitution of India as decided by Hon’ble Supreme Court of India ref. case no. 5673/2006 (SLP [Civil] No. 10174/2006) in the case of Nagar Nigam Meerut Vs A1 Faheem Meat Export Pvt. Ltd.

Read the Supreme Court Judgement on the same subject

CVC’s clear observation of common irregularities/lapses during the examination of such awarded works are furnished below-

  1. No transparency in selection of contractors
  2. Ineligible contractor obtains the contract through railway PSUs
  3. Purchase preference misused by the railway PSUs
  4. Railway PSUs sublet the complete work
  5. Infructuous and huge variation in work
  6. No supervision by the PSU as they put the staff mainly for coordination with the Railways
  7. Quality of safety items ultimately suffers, contd..