VMC decides on re-tendering for signboards

The tender process was in trouble when the VMC realised that the award for the project was given to one Sujal Advertisers Private Limited from which the civic body had to recover around Rs 70 lakh for the previous projects, and that the matter was already subjudice.

Sujal Advertisers had quoted the lowest rate of Rs 1,806 per square meter with five per cent incremental rates.

Incidentally, the civic body had sought a legal opinion on the matter in April. In a letter dated April 27, addressed to VMC, advocate Giriraj Desai had advised certain conditions the civic body should make clear before awarding the contract to the agency.

The conditions mentioned in the letter included: “Breach of any of the conditions shall result in termination of the contract and the bidder will have to reimburse damages in terms of monetary loss to the corporation. The bidder has to pay the fees as per the terms and conditions stipulated in the tender or agreement. Further, penal interest will be charged up to certain period that may be determined as specifically indicated in the agreement.”

 VMC Commissioner M K Das informed the Standing Committee about the refusal by Sujal Advertisers to follow certain conditions of the agreement and also about the court case filed by the company against VMC.

Das told The Indian Express “We have finally decided that we will go for a re-tender as the advertising agency has refused to agree to the rules and regulations, which we have specified in the legal advise we had sought.”

When asked whether the same agency can be allowed to take part in the bid, Das said, “We cannot stop the litigants from taking part in the bidding process. Besides, as far as the amount which we are supposed to recover from the agency is a legal matter, it would be undertaken in a legal way only.”