The penalty had to be charged from the salary of the person responsible for the harassment.

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But, when none of them except ITNL responded, the Ministry on December 23, 2008, amended its Request for Qualification (RFQ) conditions and “invited” PNC-SREI-Galfar Consortium and Oriental Structures – companies which had not been originally short listed.

Within a month, the Ministry made changes in its RFQ and invited a fourth bidder, JMC Projects (India) Limited, by extending the date to January 30, 2009.

Even though the contract was awarded to ITNL and an advance of Rs 77.75 crores (40 percent of the project cost) paid upfront, the norms prescribe an advance grant of 20 per cent of the project cost. Several key questions remain unanswered: why were only four companies out of a total of 16, informed about changes in RFQ or extension of bid filing dates?

Both Minister Balu and Secretary Road Transport and highways, Brahma Dutt, refused to respond to an advance questionnaire.

The compulsions of coalition politics have saved Balu. Over the last five years, he has been hauled over by the coals by the CAG, Prime Minister and the judiciary for shoddy mismanagement and tardy progress of national highway projects. Amazingly, he has got away with it.

The Central Administrative Tribunal (CAT) indicted the ministry for harassing its officials and additionally imposed a penalty of Rs 45,000 in two different cases. The penalty had to be charged from the salary of the person responsible for the harassment. Luckily for the Minister, since he himself had ordered the penal action, fixing responsibility was never difficult.


For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).

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