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RTO scam in Gujarat: Private firm shown the door

The state government has finally cancelled the contract awarded to a private firm over a Rs693 crore scam detected at 11 RTO check posts in the state.

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The state government has finally cancelled the contract awarded to a private firm over a Rs693 crore scam detected at 11 RTO check posts in the state.  The irregularities were reported by the Comptroller and Auditor General (CAG) in 2006. The cancellation of contract is the result of a PIL filed in the Gujarat high court earlier this year.

One Vipul Patel, a resident of Vadodara, had filed the PIL through his counsel, Tejas Barot, seeking cancellation of the contract awarded to a private firm, Chasmita Engineers Pvt Ltd. The private company had been given the contract for maintenance of weigh bridges and the automated vehicle tax collection system installed at all the 11 RTO check posts.

As per a CAG report of 2006, the firm had committed many irregularities between 2003 and 2006 which cost the government exchequer Rs693 crore. The report had even exposed irregularities and discrepancies in registering vehicle movement at the check posts.  The petitioner had further pointed out that though the contract had ended in September 2006, the company was allowed to continue operations. The high court had taken a strict view of the matter. In response, the state government had assured the court of action against the firm. 

On Thursday, the state government filed an affidavit before a bench headed by chief justice Bhaskar Bhattacharya stating that it had cancelled the contract allotted to the firm in 2003. The government further said that it had invited fresh bids for the contract for installation and maintenance of the computerised weigh bridges as well as supply of manpower, and running of the computerised system for the check posts.

The transport department has received several bids and is in the process of short-listing the best bid for the contract, the government stated in the affidavit. In the meantime, the work that was being done by Chasmita Engineers Pvt Ltd till now has been entrusted to Gujarat Info Petro Limited (GIPL), a government-owned company. The government also informed the court that it had appointed a committee under the chairmanship of retired additional chief secretary Ashok Bhatia to investigate discrepancies in revenue collection at the RTO check posts that had been brought to light by the CAG.
 

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