Kochi Metro Rail Limited vigilance wing flags commercial space auction lapses
The agency's vigilance wing alleged that non-transparent leasing processes at 22 metro stations led to substantial revenue loss.
The vigilance wing of Kochi Metro Rail Limited (KMRL) has flagged several alleged omissions in the leasing of commercial spaces at 22 metro stations along the Aluva-M.G. Road-Thripunithura phase-one corridor, according to The Hindu.
The wing observed that the auctions for these spaces were conducted without advertisements and in a manner that lacked transparency. It stated that the auctions were held outside the scope of the procurement manual and failed to follow principles of competition, fairness and the elimination of discretion.
The investigation noted that base rates were not fixed using objective data but through a trial-and-error method. The wing also found that the earnest money deposit (EMD) amount changed between auctions before it was eventually decided not to collect it at all.
Other issues identified included the absence of a finance member in the auction committee, which went against procurement manual provisions. The wing also noted corrections, overwritings and omissions in registration forms and the auction register, as well as the relaxation of auction terms midway through processes without public notice.
The vigilance wing recommended that KMRL fix base rates using objective data and adopt a consistent policy for hiring or advertising spaces. It suggested considering the forward auction or e-auction modules of the Government e-Marketplace (GeM) instead of physical or hybrid auctions.
Further recommendations include drawing up a standard operating procedure (SOP), ensuring adequate publicity through media, and including a finance member in the auction committee. The wing also called for mandatory 'Conflict of Interest' declarations and continuous videographing of the auction process through CCTV.