Cartel, Clause & Contracts: How Two Sewage Tenders Reveal a Pattern of Political Patronage in BMC

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Mumbai: Explosive allegations by Congress leader Sachin Sawant have pulled back the curtain on what appears to be a textbook case of cartelisation and political favouritism in Maharashtra’s infrastructure tenders. In a formal letter to Brihanmumbai Municipal Corporation (BMC) Commissioner Bhushan Gagrani, Sawant demanded a probe into procedural irregularities in the ₹4,276 crore Bhandup 2000 MLD Sewage Treatment Project and the ongoing ₹1,600+ crore Panjrapur 910 MLD Water Treatment Plant tender.

However, internal documents, timeline anomalies, and insider accounts accessed by TheNews21 reveal something deeper — a pattern of manipulated eligibility norms, deliberate bid extensions, and closed-loop tendering, allegedly favouring a single corporate group: Welspun, with French multinational Veolia as its technical partner.

Tender Tailored, Bids Inflated: The Bhandup Blueprint

The Bhandup tender, floated on October 10, 2023, saw six extensions and ten separate addenda, with pre-bid meeting minutes and bidder responses released only on December 18 — four days after the fourth extension.

Crucially, Clause 4.3 (regarding construction experience) was modified, and a new Clause 8 was inserted, which stated:

“The parent company or its subsidiary must have operated in India for at least 10 years and must have a minimum 3 years’ experience in execution and O&M of similar projects in India.”

This clause –  added midway through the process — violates Central Vigilance Commission (CVC) procurement norms, which caution:

“Pre-qualification criteria should neither be stringent nor too lenient to unduly restrict competitions.”

Unsurprisingly, only one bidder qualified — Welspun, with Veolia as its technical partner — and the contract was awarded at nearly 30% above the estimated cost, pushing the final deal to ₹4,276 crore.

Panjrapur: Same Script, Different Tender

The 910 MLD Panjrapur tender was floated on September 24, 2024, and extended eight times before being cancelled on March 10, 2025, due to lack of bidders. It was reissued on April 30, 2025, with expectations that eligibility norms would be relaxed to attract wider participation.

Instead, the same clause that favoured Welspun in Bhandup was reinserted even more rigidly (Annexures 3 & 4). Despite a pre-bid meeting on May 7, the BMC has yet to publish minutes or responses, a blatant violation of transparency requirements.

Since reissue, the tender has seen five more extensions, with the next deadline now set for July 31, 2025.

Recurring Patterns, Recurring Players — A Cartel in Plain Sight

While no documentary evidence directly proves a quid pro quo, multiple sources within the civic and political establishment suggest that companies awarded these contracts may have “extended help” — in undisclosed forms — to the then-ruling party.

Senior officials confirm that some firms were perceived as “sympathetic” to those in power, potentially influencing both eligibility terms and final decisions.

Whether through tacit support or political proximity, the repeated success of Welspun and Veolia in high-value tenders- across two government regimes – appears far from coincident. It strongly suggests a scenario where contracts are awarded not on merit, but for loyalty.

A Power Timeline That Raises Red Flags : 

Bhandup was awarded when Eknath Shinde was Chief Minister. Panjrapur was floated under Shinde’s leadership.Today, under Devendra Fadnavis, the tendering framework and terms remain identical.

Despite changes in political leadership, the same firms benefit, through the same eligibility clauses, amid the same pattern of restricted competition.

The Samruddhi Connection: A Known Playbook

In June 2025, TheNews21 had exposed a similar pattern in the Jalna–Nanded connector of the Samruddhi Mahamarg Extended Corridor: Midway clause changes, Deliberate bid extensions, Cartelised outcomes, 30–40% inflated contract costs And Limited competition leading to repeat winners

The mechanism remains the same. Only the names of projects — and the public funds involved — change.

Also Read: Bidding Cartel, Bloated Costs, Collusion: Rs 12,000 Crore Scam Rocks Samruddhi Connector — Whistleblowers Seek SIT Probe

Public Money, Private Gains

This is not simply about tender rules — it’s about systemic financial damage.

The Bhandup and Panjrapur cases represent a clear drain on public funds, with tenders awarded at inflated rates, not due to market forces but engineered restriction of competition.

Sawant’s Questions Demand Answers

Congress leader Sachin Sawant asks: Why are pre-bid documents delayed time and again?, Why are restrictive clauses reused, even when they deter genuine competition And why do the same firms qualify repeatedly, as if by design?

These questions aren’t political jabs — they’re demands for accountability in a process that appears rigged from the inside.

Mumbai’s Water Infrastructure at Stake

Water treatment isn’t just engineering — it’s public health, environmental security, and economic sustainability. If the Panjrapur project follows the same path as Bhandup, another ₹1,600+ crore could flow to a pre-decided contractor, at the expense of public interest.

The Clock Is Ticking

With July 31 — the next submission deadline — fast approaching, these questions loom large: Will Welspun once again be the only eligible bidder? Will BMC, the CVC, or the Lokayukta intervene? Will this pattern of engineered tendering finally face scrutiny?

Because this is no longer just about two tenders.

It’s about how public resources are manipulated, redirected, and captured — quietly, consistently, and with impunity.

(If you have leads or documents related to this or similar tenders, write to us at thenews21input@gmail.com)