Political commentator A. Shankar, also known as ‘Savukku’ Shankar, recently lodged a formal complaint with the Directorate of Vigilance and Anti-Corruption (DVAC) levelling substantial corruption allegations implicating the DMK government and BVG Limited, the recipient of the tender for the operation and maintenance of the Kilambakkam Bus Terminus.
The Chennai Metropolitan Development Authority (CMDA) has entrusted the maintenance and operation of the Kilambakam Bus Stand to BVG India Limited, a private company hailing from Maharashtra. The new bus terminus was constructed by CMDA in Kilambakkam, around 35 kms away from the Chennai city with a total cost of around ₹400 crores.
The complaint alleges a mega scam involving corruption and illegal accumulation of public funds by DMK Ministers in the award of the tender for the Operation and Maintenance of Kilambakkam Bus Terminus.
The complaint delves into highlighting various irregularities, emphasizing that BVG India Limited, based in Pune, Maharashtra, emerged as the sole participant in the tender process conducted by the Chennai Metropolitan Development Authority (CMDA).
He states “A tender was floated by the CMDA authorities to Operate & Maintain the New Bus Terminus vide tender notice in No.12/23-24 dated 14.08.2023. A company by name and style M/s. BVG India Limited, Pune, Maharashtra submitted bids vide No.865765 dated 19.10.2023 and finance rebids dated 09.11.2023. For whatever reasons, BVG India emerged as the sole participant in the above tender“
Despite the absence of other bidders, CMDA allegedly proceeded to award BVG the contract for a 15-year term. He questioned “As there were no bidders apart from BVG India, the CMDA ought to have canceled the tender and called for fresh bids. Surprisingly, the operation and maintenance contract has been given to BVG group for a period of 15 years! Instead of cancelling the tender and calling for a fresh tender, the CMDA on its part chose to award the contract to M/s BVG India Limited, Pune.”
The complaint further notes that there was confusion regarding the formation of a Tender Scrutiny Committee and the legitimacy of negotiations with BVG, especially considering that the committee was not established until later stages. The complaint underscores potential violations of Tamil Nadu Tender Transparency Rules, 2000, and expresses concerns about the rushed inauguration of the bus terminal before completing the necessary formalities.
“On 19.12.2023, TN Finance Department, addressed a letter to the CMDA through which CMDA nominated one Thiru. Saravanan, Joint Secretary, Finance as “Member of the External Committee” for evaluation of the tender for operation and maintenance of Kilambakkam Bus Terminal. A question that begs answer is, under what grounds CMDA chose to award the tender to BVG on 23.11.2023 when a tender committee in this regard was not even formed till 19.12.2023. Further, when a Tender Committee was not even formed why was the CMDA conducting negotiations with BVG?” He added.
The delay in registering the Special Purpose Vehicle (SPV) and the Bank Guarantee is highlighted, with CMDA permitting BVG to furnish the Bank Guarantee in its name instead of the SPV’s. Financial aspects are scrutinized, revealing a significant imbalance where BVG stands to earn substantially more than CMDA, leading to a substantial loss for the Government of Tamil Nadu over the next fifteen years.
“The entry fee, as fixed by CMDA for private and government buses is as follows :
Omni bus – per bus per day — Rs.150/-
Govt buses – Rs. 25/-
It is mandatory that, a minimum of 1100 buses should enter Kilambakkam terminus. 400 Omni buses are estimated to use Kilambakkam per day. On a rough estimate, entry fee from government and private buses alone comes to 3.20 crores. Further, BVG can rent out the shops in the terminus. A total of 105 shops at an extent of 45,790 sq. Ft is available for BVG to rent out. As per our enquiries, the rate the shops are let out is Rs.500/- per square feet. This works out to 27.47 crores per year. The income from dormitories which is constructed in 21,190 square feet is expected to fetch 2 crores per year. 1,67,680 square feet is allotted for two and four wheeler parking. This is likely to fetch 6 crores per year. Advertisements will fetch 10 crore a year. To sum up, BVG is likely to earn, 48.60 crores per year. In lieu of this, CMDA will get just 2.40 crores. The loss suffered by the government of Tamil Nadu for the next fifteen years runs into hundreds of crores”.
The complaint further details financial estimations, including entry fees, shop rentals, dormitory income, and revenue from parking and advertisements, emphasizing the considerable earnings anticipated by BVG compared to CMDA’s meager share. The complaint accuses specific individuals, including PK Sekar Babu (Minister for HR&CE and CMDA), SS Sivasankar (Minister for Transport Departmen), Anshul Mishra (IAS, Member Secretary of CMDA), Prashant M Wadnere (IAS, Additional Secretary of Finance Ministry), and BVG India, of engaging in a conspiracy to benefit BVG financially at the state exchequer’s expense. The complainant urges the registration of a case under relevant sections of the Prevention of Corruption Act and the Indian Penal Code against the mentioned individuals and the company.
Complaint given to DVAC against
1) PK Sekar Babu, Minister for CMDA
2) SS Sivasankar, Minister for Transport
3) Anshul Mishra IAS, Member Secretary CMDA
4) Prashanth Wadanare, Addl Secretary Finance1/2 pic.twitter.com/FQjq1kFWDn
— Savukku Shankar (@SavukkuOfficial) January 4, 2024
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