The Tamil Nadu government has come under criticism for awarding the contract for developing infrastructure at the upcoming Fintech City in Nandambakkam, Chennai, to the Namakkal-based PST Engineering Construction (PSTEC), which came under the scanner for constructing poor quality apartments for the economically weaker sections at K.P. Park in Chennai.
Chief Minister M.K. Stalin on Saturday laid the foundation for the Fintech City and a Fintech Tower. According to documents available on the Tamil Nadu Government eProcurement System’s website, PSTEC was awarded a contract for ₹82.87 crore for the development of infrastructure at Fintech City.
The website showed that the same company participated in the bidding process for the construction of Fintech Tower as well. However, that contract went to URC Construction Private Limited, the lowest bidder, for ₹151.5 crore.
PSTEC had come in for heavy criticism in 2021 after the residents of the Tamil Nadu Urban Habitat Development Board (TNUHDB) apartments in K.P. Park complained of poor quality construction. The apartments were constructed by PSTEC for TNUHDB during the previous AIADMK government.
The Centre for Urbanisation, Building and Environment (CUBE), which subsequently assessed the quality of these buildings, found “unacceptable workmanship” and “extensive defects” in cement plastering work, besides problems in tiling and widespread seepage due to improper sealing of closets and floor taps. It also raised concerns over the quality of the concrete in the structural elements of one of the buildings.
The government promised stringent action against the contractor. HR&CE Minister P.K. Sekarbabu told the media in October 2021 that the government had decided not to award any more projects to PSTEC.
The NGO Arappor Iyakkam on Monday questioned the need for the government to go back on its assurance and award the Fintech City contract to PSTEC.
Pointing out that CUBE’s report was strongly critical of PSTEC, Jayaram Venkatesan, convenor, Arappor Iyakkam, told The Hindu that there had been no developments on the complaint it filed with the Directorate of Vigilance and Anti-Corruption (DVAC) to probe possible corruption in the award of the K.P. Park contract to the company.
He pointed out that despite the poor quality of construction, the previous AIADMK government awarded ₹90 lakh as a bonus to the company for finishing the project ahead of schedule. “Instead of taking penal action and making the company accountable, the current government has awarded another big contract to it,” he said.
Criticising the government for awarding the contract to PSTEC, Tamil Nadu BJP president K. Annamalai urged for the cancellation of the tender and action against the company.
Government sources, however, said the company could not be prevented from taking part in the tender process as it had obtained a stay from the Madras High Court against its blacklisting after the K.P. Park controversy. PSTEC had quoted a significantly lower amount than its competitors and met all necessary criteria, an official said. According to the official, the cancellation of the tender and a fresh call for bids would have escalated the project cost, while the possibility of PSTEC participating again in the bidding process could not be ruled out.
