Mumbai: Following objections across party lines, the BMC standing committee on Wednesday blocked a blacklisted contractor from bidding for work contracts under a new name. Kaviraj Infratech Pvt. Ltd. had been blacklisted in 2016, and criminal proceedings had been filed against it leading to the arrest of several employees.
However, this firm was allowed by the BMC to bid for civic works under a new name, Kaviraj MBB Waste Management. Corporators found the ‘new’ firm had the same directors and shareholders as the blacklisted firm. In fact, all seven shareholders had the same surname — Jain — and all but one shared the same residential address.
BJP Group Leader Manoj Kotak said: “The new firm has only seven shareholders, as did the blacklisted firm. This is clearly a private entity, and all of them should be considered equally responsible.” Ravi Raja, Congress corporator and Leader of Opposition, said, “This bid has come from a company that is clearly a family-owned firm. When a commerce graduate can see through all this, why don’t the IAS officers in the BMC get it?”
Additional Municipal Commissioner Vijay Singhal sought to justify the clearance given to the firm, saying, “Legally, only company directors and not shareholders can be held liable for the acts of their company.” He said the BMC had taken two legal opinions to fix liability of such shareholders in firms.
This infuriated the standing committee, whose members felt it could open a floodgate of sorts for corruption. The committee was also ticked off by the BMC’s admission that its officers had re-negotiated terms with blacklisted contractors. “Why, who and how can BMC officers negotiate with these contractors?” BJP corporator Abhijeet Samant said. The standing committee has sent this proposal back for new bids to be called.