Civic body faces heat over bio-composter contracts
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Documents received by TOI alleged that the civic body was bypassing standard procedures, including e-tendering norms, in selecting service providers for the installation and maintenance of bio-composter bins. The allegations point to systematic favouritism towards two companies, Coimbatore-based Omega Ecotech Products India Pvt Ltd and Palakkad-based IRTC, since 2016.
According to sources, instead of floating a formal tender, the corporation invited expressions of interest (EOI) to sidestep mandatory procurement rules.
Omega was given the contract during the first five years from 2016, while IRTC handled it for the next three years. In Jan 2025, despite objections from BJP councillors, the corporation reappointed Omega through a council decision.
The controversy deepens with revelations that Omega is not accredited by Suchitwa Mission. Despite this, the companies received contracts worth a total of Rs 15.37 crore between 2016 and 2024, including Rs 4.87 crore for the ongoing year.
The contracts were awarded based on invoices from Omega, allegedly bypassing the requirement for e-tendering in purchases exceeding Rs 5 lakh, sources said in the document.
In response to mounting protests, the corporation finally initiated an e-tendering process this year. Four companies submitted bids: Omega (Rs 1,876 per unit), Ram Biologicals (Rs 1,653), Radico (Rs 1,928), and Green Village (Rs 1,975). While Ram Biologicals quoted the lowest rate, the corporation disqualified it, citing the company's prior blacklisting by Suchitwa Mission for failing to implement kitchen bins in 2017 and 2022.
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The firm is also reportedly under vigilance investigation following audit reports, sources alleged. Interestingly, Ram Biologicals also submitted the lowest bid in 2022–23, yet the contract went to IRTC. Critics claim this repeated pattern points to a deeper problem.
However, health standing committee chairperson Gayathri Babu refuted the allegations. "Omega was chosen purely on merit. A technical committee comprising Suchitwa Mission officials evaluated all bids based on 10 selection guidelines and Omega came out on top.
It was not the decision made by the corporation alone. They are not just suppliers but service providers who offer chatbot-based assistance and have good user feedback.
I am willing to defend our decision publicly. That said, I cannot comment on decisions made in previous terms," she told TOI. She also added that the contract with IRTC was not renewed as they did not provide an end-to-end solution for users.
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