IRIPA-Brazen Attempts to Subvert Competitive Bidding
Officers cannot make joint representations, cannot form unions, cannot act in any manner which makes them look like engaging in collective bargaining. Similarly, the #vendors who participate in public procurement are expected to act in a manner that does not adversely impact sanctity of #competitive-bidding. We have been pursuing a case of brazen attempts at #cartelisation by creation of an #association of #civil-contractors, misleadingly referred as “Indian Railways Infrastructure Providers Association”, though it is registered as “Indus Reforms” Infrastructure Providers Association. As it engages #Railwhispers in threatening tone, we bring position of law and international practice to explain why we believe that modus operandi of #IRIPA is in #contravention of law and international practices. Our research shows that it is clear that #contractors who are #members of such organisations cannot participate in #Projects funded on multilateral lending-if that is so, how long can members of such organisations participate in Government of India funded projects?
The Beginning-How We Learnt of #IRIPA
Few years ago, we were informed by some senior civil engineers of an organisation which showcased itself as an #association patronised by #IndianRailways. This organisation, we learned is called-Indian Railway Infrastructure Providers Association (#IRIPA) (http://iripa.in). This is an association of railway contractors – mostly civil contractors. They publish a magazine also and conduct social events while inviting politicians.
As we verified with senior railway officers across different #ZonalRailways, a disturbing pattern emerged. Essentially by cleverly misrepresenting its name and affiliation, this organisation has been putting illegal and inappropriate pressure on #civil-engineering officers. Created as three tier association, it has tried to mirror Indian Railways’ three tier structure. With threats of tool down and other aggressive collective agitational tactics entire aura it has created is intimidating.
Based on the inputs received we put material on X –
And also published an article on 5th August, 2024 – “IRIPA पदाधिकारियों के निराधार आरोपों से दबाव में रहते हैं इंजीनियरिंग अधिकारी”
However, in recent publication of the in-house magazine of #IRIPA, knowingly bogus and scandalous charges have been levied against #Railwhispers and its #Editor-Suresh Tripathi. We are used to such threats, the fact that this association is muscling in core of IR’s infra expenditure, the conduct of #IRIPA needs to be dissected in some detail.
August 2024 edition of “Nirman Sutra”
August-2024 edition of “Nirman Sutra”, attempting to target #Railwhispers and its #Editor thankfully exposes itself. We are grateful for this article. Let us take a Quick Look-
There is two-and-half page long diatribe against #Railwhispers and its #Editor in August 2024 edition of inhouse magazine of #IRIPA. It has claimed that #Railwhispers is involved in unscrupulous activities and tries to encash its reach by misrepresenting itself as #IndianRailways supported entity.
Nothing can be farther from truth. Ever since 1997-when we started #RailSamachar, in 2019-when we started #Railwhispers, and when we started our YouTube channel-#RailVisionTV two months ago, no one was/is in any doubt that these publications are independent. Your #newsportals spoke truth to power and is consistent in this!
Even when we knew that officers like Arunendra Kumar, then Chairman, #RailwayBoard and Ranjeet Sinha, then Director, #CBI are so powerful, #RailSamachar still took stand against them and we paid heavy price but survived as torturous legal battle finally delivered justice to us.
We were raided by CBI on 1st May, 2014, in last few days of then UPA government (not in 2024 as “Nirman Sutra” misleadingly mentions). It is perhaps IRIPA and its financed (वित्तपोषित) magazine that can explain how #SureshPrabhu was the railway minister under #UPA!
We did endure lot of #harassment as a result of our #editorial stand, but we did not #compromise with the agents of #ArunendraKumar and #RanjeetSinha, and not even #SudheerKumar, ex-advisor of present MR.
Even recently we took stand against current Railway Minister, even in one-to-one meeting with him on matters of #rotation, #IRMS etc. It was result of our efforts that many positive changes happened, and in process we became goto platform for senior railway officers. With pride we are now routinely helped by retired senior officers of Level-15, level-16 and level-17 in analysing critical issues. We always had choice to accept the deals offered by the emissaries of mighty #officials, #contractors and #politicians-but we have consistently taken principled stand. Our recent campaign against All India Delhi Service (#AIDS) and Khan Market Gang (#KMG) should educate #IRIPA about principled stand of #Railwhispers.
What is wrong with #IRIPA
At the heart of #public-expenditure is #discovery of #lowest-workable-rates through process of #tendering.
For this, the #competitors are expected to quote #independently. In case the competitors are bound by any type of #oath which adversely impacts their ability to act independently, then the #basic-rationale of #Tender process is defeated.
Internationally, executives and promoters of competing companies cannot have any undeclared or undercover or misrepresented meetings. If this comes to light, this becomes ground of #disqualification and leads to sacking of the concerned executives. Even in India, #trade associations like #FICCI, #IEEMA, #ASSOCHAM, #CII are government recognised bodies with detailed protocols whereby these trade bodies do not engage in #anticompetitive activities.
To understand anti-competitive aspect of contractor’s association as platform of competing entities, we referred to professional advice. We quote relevant portion of this advise as under:
- Dr Vincent Power, partner at A&L Goodbody’s EU, #Competition and #Procurement Group sets out the following practical advice which should be borne in mind by executives when encountering competitors:
- Ensure that there is a legitimate purpose for the meeting and that is not a cover for anti-competitive behaviour;
- Remember that the fact that the meeting is part of a trade association gives no extra protection or cover to a meeting which is otherwise anti-competitive or illegal;
- Ensure the management team have been trained on the competition law aspects of meeting with competitors;
- Equally, remember that the competition law rules apply to social events and encounters;
Now let us examine the conduct of #IRIPA. The organisation has used its platform to canvas for individual cases and evidence has emerged that members are expected to take an oath of unity.
Misleading name or accounts not properly maintained is concern of the members, however, binding members with oath militates against spirit of independent unfettered participation in tenders and falls foul of benchmark of anti-competitive conduct. The picture shows members taking oath.
See this extract from the page no. 8 of August 2024 edition of Nirman Sutra-
We now turn to the confusion on its name. Everywhere the organisation has referred itself as “I.R. Infrastructure Providers Association”-
In #socialmedia handles and #press-releases-everywhere, the organisation since its registration is calling or referring itself as “Indian Railways Infrastructure Providers Association”. However, digging a little deeper we discovered that “I.R.” actually stands for “Indus Reforms”, however, it is also amply clear that office bearers never made any attempt to correct the confusion, but instead of they projected and propagated it more and more.
When we were approached by several senior civil engineering officers of Indian Railways who were concerned at the #modus-operandi of the association, we published several issue based material. However, instead of engaging with #Railwhispers and its editor on these issues, the association has been issuing direct threats.
Also as mentioned above, there have been #threats in August edition too.
Further, the #association has been calling itself as apolitical. However, we leave with you dear reader, their political leanings.
Concluding
In conclusion, the actions of the so-called Indian Railway Infrastructure Providers Association (#IRIPA) raise serious concerns about potential and possible #cartelisation and #anticompetitive behaviour in the public procurement process. By pressuring civil engineering officers and binding members with oaths of unity, the association undermines the #integrity of competitive #bidding. The #misleading-name and lack of #transparency in its operations further raise red flags. It is crucial for the railway-authorities to investigate and address these issues to ensure #fair and #transparent-procurement practices.
Further, with maturing of anti-trust jusrisprudence, such conduct clearly puts the members under any kind of oath of joint action at risk of disqualification from public procurement processes. To continue..