UDD revokes blacklisting of firm in fake billing scam

The Urban Development Department (UDD) has revoked the BBMP's decision to blacklist JMC Constructions Pvt Ltd in connection with the Rs 10 cr fake billing scam in Govindarajanagar.

Slamming the BBMP, the UDD, in its order, said that procedures were not followed and that the order was untenable. This comes after the blacklisted company challenged the BBMP’s decision in the UDD.

In its order dated July 17, 2019, the UDD said, “The order dated 26/6/2016 by BBMP commissioner blacklisting the petitioner is found untenable and is set aside. Consequently, all restrictions on the petitioner as a result of the said order are also set aside.”

However, the order upheld the action taken against officials saying, “Disciplinary action shall be taken against the Executive Engineer (EE) and other officials who have released the bank guarantees to the contractor prematurely, and who have not made deductions from RA bills towards recovery of mobilisation advance.”

Asking the BBMP to conduct a detailed report on works that have yet to be undertaken, the UDD directed the BBMP to give time to the firm to complete the work and take action only in case of the deadline being flouted.

In its submission to the UDD, the blacklisted contractor said, “Several cases (32) of blacklisting requests are pending with BBMP since 2015 for more than 4-5 years even after COD reports and such. The TVCC, which submitted the report that bills were made without the work taking place, had actually scrutinized the work and had certified in its website domain.”

The contractor said a report to blacklist the firm was made in 36 days and right after it had emerged as the lowest bidder for white-topping in phase-3.

“The JMC became the lowest bidder of White Topping phase-3. To avoid awarding the contract to the company the blacklisting report was made in just 36 days, and right after the firm emerged as the lowest bidder. And the blacklisting was intentionally made to favour the second-lowest bidder of White Topping Phase-3 project."

DH had on July 1 had published an article titled "Vigilance U-turn casts doubt on fake bill scam" about the procedure lapse which took place in the case.