Govt terminates deal with Shimit
HERALD REPORTER
PANJIM, JAN 27
In a significant decision, the State government has finally terminated the controversial contract signed with M/s Shimnit Utsch Private Limited for installation of high security registration plates (HSRP) in Goa.
The termination notice served to the company on January 25 comes after intense scrutiny by the advocate general over the show cause notice reply filed by the company.
The government on November 2, 2010 had issued a show cause notice to the company asking ‘why the concession agreement signed on February 29, 2008 should not be cancelled’. Accordingly, the reply was filed within a fortnight, which was later forwarded to the advocate general for scrutiny.
Director of Transport Arun Desai said that the contract with Shimnit Utsch has been terminated taking into account all irregularities pointed out by the government-appointed Srivastava Committee.
“Several issues were sighted by the committee. The company had failed to provide a necessary reply to the show cause notice,” he said.
The termination notice mentions that the company has carried out some changes in its board of directors (BoDs) without intimating the State government. “As per Union Transport Ministry rules, any changes in the agreement should be intimated to the government,” the notice read.
The director said that on September 26, 2005 when bids were supplied by the company, neither Nitin Shah nor Rushank Shah were directors of the company. However, it was noticed that the joint venture was signed between a German partner and Nitin Shah.
“As a joint venture does not exist, a joint venture agreement in this case is broken,” he said.
“Our contention is that the company did not even qualify for bidding,” the notice reads.
The government in its notice has also stated that the company in its financial bidding had figured that a premium of 48 per cent would be charged on plates.
“The company had altered few entries in the agreement using a pencil. The committee had said that these changes were made after the agreement was signed,” the notice mentions.
It also says that Supreme Court in May, 2010, had given judgment in a case against Shimnit Utsch wherein the apex court had said that the rates quoted by the company could be scaled down using Indian technology to Rs 469.
The notice also cites public interest as one of the reasons to issue the show cause.
The 15 year long HSRP contract awarded to Shinmit Utsch did not augur well with the main opposition Bharatiya Janata Party (BJP) and transporters, who had taken to the streets demanding scrapping of the contract.
Chief Minister Digambar Kamat had on August 18, 2009 formed a State level committee to study aspects of the HSRP.
