BBMP may be in legal trouble over fresh white-topping contract

The BBMP may be in legal trouble for the decision to issue fresh tenders to build 150 kilometres of concrete roads at Rs 1,450 crore.

The civic body had already issued work orders for two of the six packages for the now-shelved white-topping project. Contractors have used a strongly binding agreement allowing them to seek compensation if the municipal authority has backed out on the agreement.

The Bruhat Bengaluru Mahanagara Palike (BBMP) invited tenders for the third phase of the project estimated at Rs 1,172 crore when the first (86 km) and second (50 km) phases of the white-topping project were underway.

The third phase was split into six packages. After the tendering process, the BBMP dropped the first package, issued a letter of acceptance (LOA) for three packages and signed work orders for two others.

The formalities were completed when H D Kumaraswamy was the chief minister.

Authorities issued work orders to JSP Projects Pvt Ltd and RPN Infratech, both of whom bagged works worth Rs 360 crore.

The grant allocated for the third phase was withdrawn in 2019 after B S Yediyurappa took over the reins in 2019. Yediyurappa cited irregularities in the tendering process. Ruling party MLAs also did not approve the third phase since several of the roads (worth Rs 750 crore) were located in constituencies represented by Congress and JD(S) MLAs.

UDD’s self-goal

The Urban Development Department (UDD), which acts as a regulatory agency to keep the BBMP in check, has asked the civic body to find out if cancelling the old white-topping contracts could have legal implications.

Sources privy to the developments say seeking the BBMP’s opinion is a familiar ploy by the UDD to dodge responsibility and accountability.

The UDD’s question was in response to a letter by BBMP Chief Commissioner Tushar Girinath, who is keen to concretise new roads as the first and second phases of the white-topping project are nearing completion.

Responding to the BBMP, the UDD asked three questions: does the cancellation of previous contracts lead to legal double? is there a possibility of bidders approaching arbitration in the future? and what are the choices before the BBMP and the government should they face the legal situation?

The letter, seen by DH, has been written by UDD Secretary Lakshmi Sagar N K. There is also talk that the letter has been written as an indirect warning to the six bidders to make them fall in line.