The Vigilance wing of Kochi Metro Rail Limited (KMRL) has criticised the agency over a number of alleged omissions in leasing commercial spaces at the 22 stations on the Aluva to M.G. Road to Thripunithura phase-one corridor, according to The Hindu. The report says these lapses led to substantial revenue loss over the past few years.
What the review found
According to The Hindu, the Vigilance wing observed that auctions for commercial spaces were held without advertisements and were less transparent than they should have been. Some auctions were reportedly conducted outside the scope of the procurement manual, and basic principles such as transparency, competition, fairness and the removal of discretion were not fully applied.
The base rates for the spaces were not set using objective data. Instead, the source describes a trial-and-error approach. Frequent changes to rates and to the earnest money deposit (EMD) made prospective bidders wait and see, and existing vendors were treated differently, so a level playing field was missing. The report also notes that e-auction or forward auction through the Government e-Marketplace (GeM) was not considered, and that in most cases there was only a single bidder.
Other issues listed include the absence of a standard operating procedure for auctions, the lack of a finance member on the auction committee, and several corrections and omissions in registration forms and the auction register. According to The Hindu, the terms were relaxed midway through the process without public notice, and the EMD amount changed from one auction to another before it was eventually decided not to collect it at all.
Recommendations
The Vigilance wing recommended that base rates be fixed on the basis of objective data and that KMRL adopt a consistent policy for auctioning spaces for hiring or advertising. It suggested that the GeM forward auction or e-auction module be considered, after proper preparation, in place of physical or hybrid auctions. Other proposals include wider publicity, including through the media, a standard operating procedure for auctions, a finance member on the committee, a mandatory declaration of conflicts of interest by committee members, CCTV recording of the auction or tender process, and preparation of minutes after each auction.
The report, as published by The Hindu, concerns the leasing of commercial spaces and does not describe any change to train services, stations or fares for passengers.