BMC Suspends Road Contract Hike for Controversial Firm

The Brihanmumbai Municipal Corporation (BMC) has reversed its decision to increase the cost of a major road contract after the chosen contractor, RPS Infraprojects, faced scrutiny over its past blacklisting. The BMC had initially proposed an increase of INR 189 crore to the contract for Cement Concrete (CC) road construction, a move that has now been put on hold following objections from the BMC’s accounts department.

RPS Infrastructure, selected for a substantial INR 1,566 crore CC road project in Mumbai’s western suburbs, was previously blacklisted for seven years due to involvement in the 2016 roads scam. This blacklisting was later reduced to three years, and the firm faced legal action, including FIRs and arrests of its directors. Despite these issues, the firm was reinstated and emerged as the winning bidder in the recent tender process. The initial proposal for the cost hike, prepared by then Chief Engineer (Roads), aimed to accommodate additional work not initially included in the contract. The proposal cited an increase of INR 188.98 crore following a discussion with the Additional Municipal Commissioner (Projects).

However, this move faced criticism and allegations of procedural violations, as such significant cost escalations are typically disallowed post-tender finalisation. In response to the opposition and internal concerns, the Additional Municipal Commissioner clarified that the proposed increase was removed from the contract scope. He explained that the additional scope involved non-emergency work and hence, did not justify the high cost increase. Consequently, the additional work will now be tendered separately, ensuring compliance with procedural norms and mitigating potential conflicts of interest.