VMC may backtrack on steps taken earlier

Vadodara: The Vadodara Municipal Corporation (VMC) is looking to undo whatever steps it took in the months of December and January alleging that gross irregularities had come to light in the Sanjaynagar housing scheme. The decision follows a legal opinion by a retired justice of the Supreme Court (SC).
VMC had sought legal opinions regarding its decision to oust Water and Power Consultancy Services Ltd (WAPCOS Ltd), a public sector undertaking, as the project management consultant. WAPCOS was sacked by the civic body in January alleging that it had failed in exercising its duties. The consultant was blamed for not being able to ensure that the joint venture (JV) of Narayan Realty, Sai Ruchi and DMC Infra followed the tender conditions.

The VMC had alleged that the JV had violated the tender conditions by changing the share holding pattern. When the JV filed the tender and got the letter of acceptance, Narayan Realty had 51% stake while Sai Ruchi and DMC Infra together had 49% stake. Later this was changed to Narayan Realty having only 15% stake while Sai Ruchi and DMC Infra having 85% stake.

As per the tender conditions, a storm water drain that was passing through the plot on which the housing scheme was to come up was to be made by the realtor. The VMC came up with a tender in this regard and it was alleged that this was done at the behest of the realtors.

A VMC engineer was issued a notice in this regard. The issue took an ugly turn with Manjalpur BJP MLA Yogesh Patel alleging that injustice was being done to the JV and it was being victimised. Patel targeted VMC commissioner Vinod Rao over the issue and made representations to the chief minister who also hold the urban development and housing portfolio.

The civic body had in March decided to take legal opinion regarding the oust-er of WAPCOS and the changes in the JV. Retired SC Justice J M Panchal opined that the order regarding termination of WAPCOS should be revoked in the larger interest. The retired justice also observed that the change in stakes amongst partners of the JV did not amount to a change in composition of the JV.