Shobha Karandlaje seeks CBI probe into Bengaluru's Rs 39,437 crore waste management tender

Bengaluru: Union Minister of State for Labour and MSME Shobha Karandlaje has urged the Karnataka government to suspend the integrated solid waste management tender for Bengaluru and order a CBI investigation into alleged irregularities in the Rs 39,437-crore project.

In a letter to Chief Secretary Shalini Rajneesh, Karandlaje said the tender process for the city's North and South waste management packages was marked by "serious procedural irregularities, financial impropriety, statutory violations and apparent administrative favouritism".

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Karandlaje, the BJP MP from Bengaluru North, alleged that the project deviated from established tendering norms. She said the Detailed Project Report prepared by RITES Ltd had fixed the tipping fee after technical scrutiny and committee approval, but subsequent decisions appeared to depart from the approved framework.

Questioning the tender process, she noted that the first tender was cancelled, while all bidders in the second round were technically disqualified. However, the same entities were later declared technically qualified in the third round without any public disclosure of changes in eligibility criteria.

"Such an unexplained reversal creates a strong apprehension of manipulation in technical evaluation to suit predetermined private interests," she said.

Karandlaje also alleged financial irregularities, claiming that the winning bids exceeded prescribed limits. She said the accepted rates remained substantially above the threshold despite negotiations, in violation of a Finance Department circular dated May 10, 2022, which mandates re-tendering if bids exceed 10% of the estimated value.

The minister further cited Finance Department file notings that reportedly objected to key aspects of the proposal. According to her, the department opposed a proposal to increase land valuation from Rs 1.35 crore per acre, fixed by the competent Price Determination Committee under the Right to Fair Compensation and Transparency in Land Acquisition Act, 2013, to Rs 1.50 crore per acre.

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She said the department had argued that the proposed enhancement was based on unquantifiable claims of "intangible benefits" and warned that such a move could weaken valuation discipline and trigger higher compensation demands in future land acquisitions.

Despite these objections, the proposal was placed before the Cabinet for approval, Karandlaje said, raising questions over whether the Cabinet had been fully informed of the Finance Department's reservations.

The minister also called for scrutiny of alleged links between successful bidders and previously tainted waste management operators. She said the transfer of senior technical officers during key stages of the tender process had heightened concerns about possible administrative interference.

Karandlaje urged the government to immediately suspend further action on the tender, conduct an independent inquiry covering the entire process from DPR preparation to financial approval, and preserve all relevant records, including Finance Department objections.

"If prima facie irregularities are established, the matter should be referred to the CBI, Lokayukta and other competent anti-corruption agencies," she said.