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Metro fare collection under HC gavel

Srikanth Hunasavadi / DNA
Saturday, October 31, 2009 9:05 IST
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Bangalore: A Bangalore Metro Rail Corporation Limited (BMRCL) tender for setting up an automatic fare collection system came under the high court scanner following a petition, which accused the Corp of "illegally" bypassing the lowest bidder and awarding the tender to a consortium of companies.

Admitting the petition on Friday, the High Court of Karnataka issued notices to the BMRCL and the state and central governments.Justice Ajit G Gunjal also ordered notices to a consortium led by Samsung, before adjourning the matter. The consortium had won the contract for implementing the fare collection system. The petitioner, Spain-based Telvent Trafico y Transporte, had challenged the BMRCL decision.

"On April 8, 2008, the BMRCL had called a pre-qualified tender for design, manufacture, supply and installation of testing and commission of the automatic fare collection system. The petitioner fulfilled all the criteria, and on May 5, 2008, the BMRCL declared the petitioner as the most eligible bidder," the petitioner's counsel submitted before the court.

The petitioner company added that it was the lowest bidder to the tender notification issued on November 7, 2008. However, the BMRCL awarded the tender to the consortium of companies. The petitioner's counsel said that the consortium had quoted a rate that was 70% more than Telvent's. The counsel added that the decision would cost BMRCL an additional Rs30 crore to Rs42 crore.

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