1 MINUTES OF THE ORDINARY BOARD MEETING HELD ON 16.09.2014 AT 1600 HOURS IN THE OFFICE OF THE CANTONMENT BOARD, GOLIBAR MAIDAN, PUNE MEMBERS PRESENT Brig. C V Ajay, VSM - President Shri. Sanjeev Kumar, Member-Secretary Nominated Member - Vacant At the outset, Brig. C V Ajay VSM, took oath of office as President Pune Cantonment Board, as required under Section 17 of The Cantonments Act, 2006. 01. CIRCULAR AGENDA – CONTRACT FOR COLLECTION OF PAY & PARKING FEE AND PROVISION OF SPECIFIED SERVICES IN PUNE CANTONMENT To note the Circular Agenda dated 10.09.2014 approving to grant extension to the existing contractor Shri. Sayyed Afsar Ibrahim for collection of Pay & Parking fee and provision of specified services in Pune Cantonment for a period of one month or till finalization of the tender, whichever is earlier w.e.f. 13.09.2014. Connected papers are placed on the table. RESOLUTION NO. 1 ; Considered and noted. 02. TENDER FOR COLLECTION OF PAY & PARKING FEE AND PROVISION OF SPECIFIED SERVICES IN PUNE CANTONMENT FOR THE PERIOD 2014-15 To consider the technical bids submitted by the tenderers and report of Chartered Accountant and Cantonment Board Legal Advisor on the technical bids received for collection of Pay & Parking fee and provision of specified services in Pune Cantonment for the year 2014-15. The public notice inviting tenders was published in two local newspapers i.e. Times of India & Maharashtra Times dated 09.08.2014. The tenders were invited in two parts i.e. technical bid & financial bid. The following two tenderers participated in the tender :- i. Ghai Constructions ii. Shri Sayyed Afsar Ibrahim 2 The technical bids & financial bids were submitted by the aforesaid tenderers on 27.08.2014. The technical bids were opened on the same day in the presence of the tenderers & the Sectional Heads of the Board. The Technical Bids has been scrutinized by Shri. Vinod Toshniwal, Chartered Accountant and Cantonment Board Legal Advisor. Note : The said tenders has been invited for the third time. The Report of Chartered Accountant and Cantonment Board Legal Advisor is placed on the table. The Board may consider the reports of Chartered Accountant & Cantonment Board Legal Advisor and further decide regarding opening of the financial bid of the eligible tenderer in the technical bid. Connected papers are placed on the table. RESOLUTION NO. 2 : Considered. Report of the Chartered Accountant was read by the CEO, which is hereunder – i. Ghai Constructions (Proprietor Jaspalsingh H Ghai) - Even though all the documents required in technical bid have been submitted by the applicant, which fulfills the tender condition in Technical bid except the following facts- In past the tender participant’s contract for VET has been terminated by the Pune Cantonment Board in Financial Year 2007-08 on account of illegal collection of VET and overcharging and also the Security Deposit was also forefeited. Further there has been a court case with Ghai Constructions with the Civil Judge Senior Division, Pune vide Civil Suit No. 1070/2007. Further the documents in the office file shows that later on we have obtained the letter of confirmation about the withdrawal of case against the Board and thereafter the Security Deposit was refunded. Hence the Board may in its own power may take the decision about allowing or not in the technical bid. ii. Sayyed Afsar Ibrahim – All the conditions as per the tender documents has been fulfilled. Further the Board considered the report submitted by the Cantonment Board Legal Advisors- Adv. S N Khurpe & Adv. G V Dange. The Cantonment Board Legal Advisors opined as under – The Board has invited tenders for collection of Pay & Park within Pune Cantonment for the year 2014-15. The tenders are invited in two parts i.e. technical bids and financial bids. The technical bid was opened on 27.08.2014 at 1230 hours. The technical bid in respect of M/s. Ghai Constructions Engineers & Contractors was received, amongst others by the Board along with other tenderers. Ghai Constructions Engineers & Contractors - It appears from the record that M/s. Ghai Constructions Engineers & Contractors was the contractor for toll collection, appointed by Maharashtra State Road Development Corporation Limited (MSRDC) in certain parts of the State of Maharashtra. The record also shows that MSRDC has also received 3 several complaints in the year 2000, 2001 and 2003 against said M/s. Ghai Constructions Engineers & Contractors. These complaints are with respect to violation of rules, regulations and terms & conditions of contract at Shivana Toll booth centre. The MSRDC vide its letter dated 04.02.2000 and 10.01.2001 had written with respect to complaints received and directed the said M/s. Ghai Constructions Engineers & Contractors to refrain from charging excess amount for the trucks and buses with immediate effect. The letter dated 04.02.2010 appears to be the warning given by MSRDC to said M/s. Ghai Constructions Engineers & Contractors. The record also discloses that the MSRDC had written letter to said M/s. Ghai Constructions Engineers & Contractors with respect to collection of toll at Sawangi on Pune-Jalgaon Road for violation of tender conditions. In this letter MSRDC has warned M/s. Ghai Constructions Engineers & Contractors against overcharging the commuters especially the trucks / commercial vehicles, not issuing monthly / daily return passes amongst the other complaints. It also appears from the said letter that the said M/s. Ghai Constructions Engineers & Contractors has not deposited the agreed amount for charging excess tolls as required by the MSRDC. Further vide letter dated 10.09.2003 MSRDC has warned M/s Ghai Constructions Engineers & Contractors about the violations made by them. The officers of MSRDC had given surprised visits and found that Ghai Constructions has been overcharging the toll, their staff misbehaving with general public etc. M/s. Ghai Constructions Engineers & Contractors was appointed as contractor for collection of Vehicle Entry Tax for the year 2007-08, by Pune Cantonment Board. The letter dated 24.07.2007 of the Pune Cantonment Board to M/s. Ghai Constructions Engineers & Contractors, is the termination notice given to said M/s. Ghai Constructions Engineers & Contractors on the ground of illegal overcharging inspite of warning. The record also discloses that the Board vide Resolution No.104 dated 04.12.2008, considered that said M/s. Ghai Constructions Engineers & Contractors was asked to withdraw the pending Civil Suit No.1070/2007 and submit the certified copy to the office of the Board so as to release his Security Deposit. However, in view of the said civil suit not being withdrawn, the said resolution was rejected. However, the record also shows that subsequently the said Security Deposit was returned to said M/s. Ghai Constructions Engineers & Contractors vide entry No. No.Acctt/38 dated11.06.2010, after said suit was withdrawn by M/s. Ghai Constructions Engineers & Contractors on 03.11.2009, without any further Board resolution. The record also discloses that the Central Public Information Officer, Revenue Department of the Board has given a letter on 08.12.2008 to Shri. Jaspalsing Ghai of M/s. Ghai Constructions that ‘as per the record of the Board, M/s. Ghai Constructions Engineers & Contractors are not blacklisted till that date’. Now considering all the record, it can be prima facie seen that though M/s. Ghai Constructions Engineers & Contractors are not blacklisted by Pune Cantonment Board, it is habitual in overcharging, extorting, illegally collecting excess money from the commuters over a period of time. Prima facie these acts are of criminal nature and there is repetitive termination of contracts on the ground of overcharging, extortion, etc. Under such circumstances, M/s. Ghai Constructions 4 Engineers & Contractors cannot be said to be of a clean character / record and awarding contract to such tenderer may be detrimental to the public interest. In Plantation Corporation Ltd. V/s P. L. Agro Technologies Ltd 1995(2) Ker LJ, their Lordships have held that ‘Public Authority has right to enter into a contract with anyone if that is found to be necessary to serve the best interest of it. Public interest should be the guiding principle.’ (emphasis supplied). Under these circumstances, M/s Ghai Constructions Engineers & Contractors may not be considered to be eligible for the Pay & Park collection contract. Prima-facie, if the complaint would have been lodged against M/s. Ghai Constructions Engineers & Contractors, the concerned party could have been considered to be guilty of an offence under relevant provisions of the Indian Penal Code. Hence, it may not be advisable to consider M/s Ghai Constructions Engineers & Contractors as an eligible tenderer for Pay & Park contract. Shri. Jaspalpalsingh H Ghai of M/s. Ghai Constructions Engineers & Contractors informed the President Cantonment Board that he wants to submit some documents before the Board. He was allowed. He submitted one letter dated 14.10.2008 written to him by the then CEO and one letter obtained under the Provisions of RTI Act, 2005. The letters were perused by the Board and it was found that these two letters are part of documents, which were already considered by CBLAs. After detailed deliberations on the opinion of Chartered Accountant and Cantonment Board Legal Advisors, the President Cantonment Board discussed the issue with CA & CBLA, who were present during the deliberation, regarding consideration of technical bid of M/s. Ghai Constructions Engineers and Contractors. They opined that considering the facts and records, the technical bid of M/s. Ghai Constructions Engineers and Contractors is required to be rejected summarily. The Board considered the written and oral advice of CBLA and CA and is of the opinion that the firm has violated the terms and conditions of the contract earlier and his contract was terminated due to default of the agencies for not fulfilling obligations under the contract by the Competent Authority.