Seeks review of ‘arbitrary conditions’
SRINAGAR: The Federation of Chambers of Industries Kashmir (FCIK) has strongly condemned the alleged irregularities and biased practices reportedly associated with the recent tenders for the procurement of furniture called by the Chief Agriculture Officer in Baramulla. FCIK has urged for an immediate investigation into these malpractices, which it claims have compromised transparency and fairness, sidelining local manufacturers.
According to the statement issued by the Apex Industrial Chamber, a notice inviting tenders for the procurement of furniture for ‘Kissan Khidmat Ghar’ units was issued by the Assistant Soil Conservation Officer, Baramulla, under e-NIT No: 05/ASCE/Bla/119-27/2024-25 on November 20, 2024, with an estimated cost of 254 lacs. Bidders were instructed to submit their e-bids and supporting documents to the Chief Agriculture Officer, Baramulla, as the designated receiving authority.
Reports indicate that eight bids were received by the department, including those from both traders and manufacturers, the Chamber said, adding, “However, six of these bids were disqualified due to claimed documentation deficiencies.” FCIK asserts that these disqualifications have resulted from arbitrary conditions set by the department which violated established norms, procedures, and guidelines benefiting a select group of traders while disadvantaging other bidders including local manufacturers.
The Chamber said it has informed that the General Financial Rules (GFR) issued by the Union Ministry of Finance, which provide guidelines for financial management, procurement, and budgeting procedures in government departments and public sector enterprises, clearly state that the average turnover of a bidder should be equal to or less than 40% of the estimated bid value. “Therefore, for a tender valued at 254 lakhs, the bidder’s average turnover should have been 101 lakhs or less. However, the department’s criteria required an annual turnover of 10.0 crores, a figure that FCIK asserts seems to have been deliberately inflated to favor certain bidders,” it said.
“The turnover criteria are further relaxed for Micro, Small, and Medium Enterprises (MSMEs) under the Public Procurement Policy issued by the Ministry of MSME, as part of the MSME Act, which also exempts MSME bidders from paying tender document fee and earnest money deposits,” informed the FCIK President.
He said that despite these government guidelines, the tenders submitted by local manufacturers have arbitrarily been rejected due to claimed deficiencies in turnover, earnest money deposits and other manipulated grounds, even though sufficient evidence was reportedly provided by some local manufacturers to demonstrate compliance with the guidelines.
FCIK has requested the intervention of the Mission Director of the Holistic Agriculture Development Programme (HADP) and the District Development Commissioner of Baramulla, who oversee the establishment of the KissanKhidmatGhars project at the Panchayat level in Baramulla. The Federation has urged them to direct the department to revise the turnover and earnest money criteria to align with government guidelines and to consider all bids that meet the prescribed criteria, as this could uncover lower offers that would save public funds and provide better value for the exchequer.
FCIK President has also demanded an immediate and thorough investigation into the department’s actions in order to ascertain intentions and fix responsibility. “To save public funds, it would be more effective to conduct a probe before awarding contracts at higher costs, rather than addressing the issue after supplies have been made”, he said.
The President FCIK has assured local MSMEs that the organization will remain committed to advocating for their rights, emphasizing the importance of transparency, accountability, and adherence to established guidelines in the tendering process. The Federation also made it clear that it will take further appropriate action if justice is not served, reinforcing its commitment to protecting the interests of the industrial community.