POS machines utilized by the contractor were not connected with the website devised for the purpose due to which actual number of Vehicles parked in all these sites did not get reflected in the records which causes the discrepancies of revenue collection and loss of revenue to the Government
Contractor was accepting cash from the persons parking the vehicles but on checking the MIS portal there was no entry of the vehicles parked or only part amount was reflected which clearly depicts that the contractor has indulged in malpractices and cheating
Contractor not only looted public money and Govt revenue, they also invaded GST and IT tax which is direct loss to central Govt. This is a fit case to be investigated by the CBI and the culprits should be booked under law
Prior to this tender JMC was getting Rs 19 lakh PA from two parking slots namely Residency Road parking amounting to Rs 11 Lac per annum and Rs 8 Lacs from Ragunath Bazar Parking slot but after JMC official clubbed 32 parking Slots and allotted to Baba Infra Tech, got only Rs. 108700 even after making 10 parking slots functional.
GY CORRESPONDENT
jammu, apr 18
In continuation to our article published on June 20, 2022 regarding fraud tender of Road Side Parking of Jammu Smart City Limited issued to M/s Jammu Smart Park, Baba Infratech Corporation by hatching criminal conspiracy against general public and J&K Govt. by the blacksheeps of JSCL wherein we already mentioned that huge financial irregularities and criminal conspiracy is going on by the contractor with the help of JSCL official but no action was taken at that time. But now Commissioner, JMC (CEO, JSCL) vide Order No. : JMC/RB/6107-15 dated: 18/03/2023 cancelled Letter of award in favour of M/s Jammu Smart Park, Baba Infratech Corporation to “Install, operate and maintain the IT Based Smart Parking Management System for Jammu City” vide LOA No: JMC/RB/3318-20 dated 20.07.2021 and Contract dated 17.08.2021.
In the Order it is mentioned that a committee was constituted under the Chairmanship of Chief Revenue Officer, JMC, along with team member from JSCL vide No. CEO/smartcity/2022-2023/7997-8003, dated 19.07.2022 for supervision of IT based Parking Project and committee reported that number of parked vehicles reported in the system (Park smart website) was negligible as compared to on spot vehicles.
It was further reported by the committee that POS machines utilized by the contractor were not connected with the website devised for the purpose due to which actual number of Vehicles parked in all these sites did not get reflected in the records which causes the discrepancies of revenue collection and loss of revenue to the Government.
As per Order a survey of the parking sites was conducted by JMC on 14.03.2023 from 5.30 pm to 6.30 pm, 15.03.2.023 from 11.30 am to 12.30 pm and on 17.03.2023 from 11.00 am to 4.30 pm and it came to fore that the contractor was accepting cash from the persons parking the vehicles but on checking the MIS portal there was no entry of the vehicles parked or only part amount was reflected which clearly depicts that the contractor has indulged in malpractices and cheating i.e suppressing the revenue collection and not reporting the accurate figures in order to deprive JMC of its due share in the revenue collection which is against the spirit of the contract.
The order further speaks that the contractor had caused severe financial and reputational damages to the JMC. In view of all these gross violations and criminal fraud by the contractor, Jammu Municipal Corporation hereby orders the termination of the contract to “Install, operate and maintain the IT Based Parking Management System for Jammu City” vide LOA No: JMC/RB/3318-20 dated 20.07.2021 and Contract dated 17.08.2021 as per the provision of termination Clause 4 39 (D) (ix) of the contract agreement for cheating and engagement in malpractices. The termination shall be effective from 18.03.2023. The contractor shall return all the deliverables and work in Progress related to the project including any confidential information or material that may have been shared with him during the course of project. The liabilities and penalty due for the breach of contract by the contractor and consequent termination shall be realized by JMC by appropriating and enchasing the Performance Security, Retention Money and other Bank Guarantees as per the provision of Clause 4.28 (vi) (iv) read with 4.39 {D) (ix) of the contract agreement. In the backdrop of the above mentioned details and as per cancellation order it is very much cleared and accepted by the Commissioner JMC (CEO, JSCL) that the fraud and criminal activity was done by the contractor. The contractor not only looted public money and Govt. revenue, they also invaded GST and IT tax which is the direct loss to the central Govt. This is a fit case to be investigated by the CBI and the culprits shall be booked under law.
Now the following question arises and is the points of investigation:-
Why no FIR/ chargesheet has been registered by JMC against the culprits ?
Who is the creator of this illegal contract. Who is the actual culprit of JSCL involved with the contractors for loot of public money and loss of Government revenue ?
What further action has been taken by JMC/JSCL to recover public money or GST or Income Tax invasion by the contractor ?
Why in JSCL or JMC drafted the contract agreement for revenue share of 4% for JMC and 96% for contractor and on what basis ?
Why JMC agreed for such kind of illegal and criminal contract agreement which clearly shows the loss to the state exchequer.
The valuation of the tender is shown as 09 crores. How the valuation of the 09 crore was
arrived is a big question and how JSCL/JMC accepted this.
Why JSCL provides extraordinary powers to the contractor for fine if the public doesn’t pay parking fee or refused to pay parking fee.
Why the contractor was envisaged with the powers like District Magistrate to double the fine if the public misbehaves or shows resistance.
Why Initially the parking contractor as per the allotment terms & conditions start charging at a very high rates upto Rs 400/- per hour and started looting Jammu Public then after hue & cry and protest by various Unions/organizations the rates were rationalized and revised by JSCL. Question arises here why only after protest the rates were rationalized. Why initially the contractor was allowed for harassment of public and allowed to charge exorbitant rates. Where is that money that was looted from general public.
It needs to be verified by the law enforcement agencies that how much charges were charged initially at the start of Smart parking by the contractor. Each and every transaction needs to be checked. It is the matter of high concern that JSCL has given the rights of seizing/lifting/freezing/clipping public vehicles/properties to a contractor on what basis and under what law, rule and regulation.
Why JSCL paid lacs of amount for Mobile application development to the firm in advance before the commencement of the work.
Why the firm doesn’t have the mandatory security audit/approvals (PCI DSS) required for handling online payments mobile app and also the mobile app is not in compliance with the RBI guidelines issued vide No. RBI/DPSS/2019-20/174 DPSS.CO.PD.No.1810/02.14.008/2019-20 dated : March 17, 2020. PCI DSS certification is required when dealing with client financial data. Even if the service provider use a very secure gateway even then this security certificate is required.
It is a matter of high level probe that who have checked technically the system provided by the contractor and type of Financial clauses have been incorporated and on whose recommendation.
Why the contractor was issuing Receipts on the name of Jammu Municipal Corporation and JSCL without mentioning his firm name. The contractor was also charging GST from the public but the GST No. The GST amount which is collected from the public is not wholly submitted to the GST department at all.
Prior to this tender JMC was getting Rs 19 lakh PA from two parking slots namely Residency Road parking amounting to Rs 11 Lac per annum and Rs 8 Lacs from Ragunath Bazar Parking slot but after JMC official clubbed 32 parking Slots and allotted to above mentioned Contractor Baba Infra Tech, with a deep rooted conspiracy to deceive the state exchequer drafted a very well planned Contract Agreement for the revenue sharing whereby it is mentioned that Contractor shall get 96% and JMC will get only 4% in the first year, 94% / 6% in the 2nd year, 90/10% in the 3rd year, 87% /13% in the 4rth year, 80% /20% in the 5th year and 75% /25% in the 6th year. And JMC which was getting approximately Rs 19 lakh Per Annum from only two above mentioned parking sites now got only Rs. 108700 even after the making 10 parking slots functional for the contractor.As per our investigation team the main mastermind behind drafting and finalization of this smart parking tender and contract is Ashish Anand, General Manager Finance of JSCL. Whose role and responsibility in this tender needs to be investigated by the law enforcement agencies thoroughly. Hon’ble LG J&K and Chief Secretary needs to intervene and issue necessary directions to the law enforcement agencies to take appropriate action in this criminal offence and put the culprits behind the bar.
