No irrigation project work order sans bank guarantee verification


Staff Reporter
Continuing with the task of streamlining the functioning of Water Resources Department (WRD), the new State Government has asked the department not to issue work orders without verification of bank guarantees given by the contractors in case of various irrigation projects.
The decision has been taken to avoid the incidences of ‘bogus’ bank guarantees furnished by the contractors during the previous Government’s regime. The matter of ‘bogus’ bank guarantees had come to fore in the aftermath of multi-crore irrigation scam in Maharashtra. In many cases, the directions of Central Vigilance Commission (CVC) dating back to the year 2007 were ignored to benefit the contractors. BJP-led Government has decided to clear the mess relating to bank guarantee.
In WRD, many works are awarded to contractors. While accepting tender of a contractor after evaluation, the department issues a letter of acceptance and asks the contractor to deposit security deposit. The deposit is accepted through various types of instruments including bank guarantee. However, many cases has come to fore in which the contractors themselves submitted a copy of bank guarantee instrument (document), and there was no verification done. In certain cases, contractors submitted ‘bogus’ bank guarantees.
To keep check on such practices, the new Government has asked WRD not to issue work order to contractor concerned till bank guarantee is not verified. As far as possible, the bank guarantee will be accepted through registered post from the bank concerned. In exceptional cases, if a bank transfers bank guarantee to contractor concerned, WRD has been directed to ask the contractor to request the bank to send an unstamped duplicate copy of original bank guarantee.
T N Munde, Chief Engineer and Joint Secretary (Irrigation), has issued a circular in this regard to all the top officers of WRD and all Irrigation Development Corporations (IDCs). Executive Engineer, Accounts Officer or Accountant, and clerk and tender clerk in sections concerned will be held responsible for financial loss caused to the Government on account of not carrying out verification, extension, and encashment of bank guarantees within stipulated period. 

(Published in 'The Hitavada' CityLine on November 17, 2014) 

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