The Hindu              27.04.2013

Bidders cannot get more than 5 garbage contracts

Waste must not be transported uncovered, court tells BBMP.

Should you find yourself driving behind a garbage lorry,
chances are you’ll fear that some of its contents many rain on you as
nine times out of ten it is uncovered.

All that will
come to an end with the High Court telling the civic authorities that
waste should not be transported uncovered and that future bidders for
the city’s garbage contracts cannot be awarded more than five packages.

A
Division Bench comprising Justice N. Kumar and Justice B.V. Nagarathna
laid down the guidelines after noticing several “irregularities” by way
of changing the conditions in the tender documents as well as during the
tender process by the Bruhat Bangalore Mahanagara Palike (BBMP), when
it awarded garbage packages to new contractors in November-December last
year.

Positive attempt

However,
the Bench treated the changes made by the BBMP in the tender
conditions, which enabled one agency (M/s BVG India Ltd) to corner 50
out of total 81 packages, as an attempt to break a cartel, which emerged
from an “unholy alliance among the contractors, councillors, elected
representatives, and the corporation officials…” The Bench pointed out
that garbage contract has become a “big business” as BBMP spends
Rs.1,200 crore annually for its collection, segregation and
transportation.

“Even after everyone [has had their
share of the cake], the city is not clean, money is squandered, and
cartels are thriving. It has become an additional source of income to
others who are partners in this enterprise…,” the Bench said. In such a
situation, the changes in tender conditions made by the BBMP cannot be
viewed only on legality; court also has to take note of BBMP’s efforts
to break the cartel. This process cannot be interfered with at the
instance of the petitioners, who were the old contractors. It is because
of them the city began to have garbage problems, the court said..

However,
the Bench made it clear it did not approve of BBMP’s modifications, but
the experience it gained in the process showed that the changes require
reconsideration. BBMP would be at liberty to incorporate such terms and
conditions suitable for executing the garbage contract in terms of the
Municipal Solid Waste (Management and Handling) Rules 2000.

New tender

As
BVG India has surrendered 30 out of 50 contracts it had bagged, the
Bench Court asked BBMP to re-tender them immediately as per these
guidelines.

In case of eight contracts with the BVG
India, where breach of terms were alleged, the BBMP could either resolve
the dispute or re-tender them in case of termination of contract.

Meanwhile,
the Bench set aside the 90 per cent concession offered to the bidders
belonging to Scheduled Castes and Scheduled Tribes in respect of earnest
money deposit (EMD) and solvency. However, the court said the 10
packages awarded to the successful bidders from SC/ST community cannot
be cancelled if they provide within two months the EMD and solvency as
provided by non-SC/ST bidders.