CAG finds irregularities in Invest Goa 2024 spending
The Comptroller and Auditor General (CAG) has observed irregularities in the expenditure of Rs 3 crore in organising the Invest Goa 2024 event by the Goa Industrial Development Corporation (GIDC).
Tired of too many ads? go ad free now
The CAG said that the GIDC awarded the event to an ineligible bidder, resulting in the loss of GST input credit of Rs 45 lakh.
The CAG said that the GIDC decided on Jan 14, 2024, to organise the one-day Invest Goa 2024 event in collaboration with the Confederation of Indian Industry and the Investment Promotion Board at an estimated cost of Rs 3 crore.
This decision was post facto approved on Jan 20, 2024, by the board.
The event involved hosting 400-500 delegates to showcase Goa as an investment destination and to attract investments, create jobs, and spur economic development in the state.
Accordingly, a request for proposal (RFP) was floated on Jan 16, 2024, under the Quality and Cost-Based Selection (QCBS) method, in which three bidders participated.
Only one bidder, Bandodkar Hospitality Pvt Ltd (BHPL), qualified for the next stage. The financial bid of Rs 3.3 crore, inclusive of GST, was negotiated to Rs 3 crore, and the work was awarded on Jan 24, 2024, to BHPL.
The event took place on Jan 29, 2024, and the vendor was paid Rs 3 crore in Feb 2024.
A CAG officer said that the irregularities were noticed during the audit. The CAG noted that although the RFP had 76 line items describing the requirements under venue, catering, branding, transportation, etc., the money value was not estimated.
The board was requested to approve a lump sum of Rs 3 crore for holding the event without any breakdown or indicative costs for each line item.
Moreover, several line items were vague and ambiguous, such as the absence of specifications for the selection of the venue, the number of special invitees for the gala dinner, and the need for arranging food for 600 guests for an event with 400-500 delegates.
Tired of too many ads? go ad free now
'This was not in conformity with Rule 136(1) of General Financial Rules, which mandated the preparation of detailed specifications and estimates before the commencement of works,' the CAG observed. 'There was no justification placed on record to explain the unjustified hurry to complete the tendering process and hold the event at such short notice.'
The CAG added, 'The unjustified speed of the process adversely affected participation and competition in the tendering process, which was not in the financial interest of the GIDC.'
The CAG said, 'Three bidders (Axis Communications or AXIS, BHPL, and Cas Ant Events Pvt Ltd or CAEPL participated, of which CAEPL had not submitted documentary evidence in the technical bid and was disqualified.'
The two remaining bidders (AXIS and BHPL) were given marks of 60 and 95, respectively, out of a maximum of 100, the CAG said.
It added, 'Since a technical score of 70 or above was required to open the financial bid, the financial bid of BHPL alone was opened…although AXIS had superior capabilities in terms of turnover, employee count, experience, etc.'
Though the marks were awarded by a three-member committee, the scores given by individual members were not on record, the CAG said. 'All the above indicated that the tendering process was not transparent and competitive to safeguard the interest of the GIDC,' the CAG said.
The CAG said that although the basic eligibility criteria were an 'average annual turnover' of Rs 2 crore over the past three years (2020-21 to 2022-23), the CA certificate furnished by BHPL was for an 'aggregate turnover for three years' of Rs 2 crore.
'Despite this ineligibility, the bidder was not disqualified, thereby vitiating the entire tender process,' CAG said. 'Overall, the tendering process and awarding of work to an ineligible bidder lacked transparency, and there was no proper documentation on the execution of the work.'
Further, the GIDC did not take action on the loss of GST input credit of over Rs 45 lakh, the CAG said, adding that the reply of the management was awaited.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
13 minutes ago
- New Indian Express
US and China to talk in Stockholm on trade with eye on Trump-Xi summit later this year
Fentanyl-related tariffs are likely a focus for China In Stockholm, Beijing will likely demand the removal of the 20% fentanyl-related tariff that Trump imposed earlier this year, said Sun Yun, director of the China program at the Washington-based Stimson Center. This round of the U.S.-China trade dispute began with fentanyl, when Trump in February imposed a 10% tariff on Chinese goods, citing that China failed to curb the outflow of the chemicals used to make the drug. The following month, Trump added another 10% tax for the same reason. Beijing retaliated with extra duties on some U.S. goods, including coal, liquefied natural gas, and farm products such as beef, chicken, pork and soy. In Geneva, both sides climbed down from three-digit tariffs rolled out following Trump's "Liberation Day" tariffs in April, but the U.S. kept the 20% "fentanyl" tariffs, in addition to the 10% baseline rate — to which China responded by keeping the same 10% rate on U.S. products. These across-the-board duties were unchanged when the two sides met in London a month later to negotiate over non-tariff measures such as export controls on critical products. The Chinese government has long protested that American politicians blame China for the fentanyl crisis in the U.S. but argued the root problem lies with the U.S. itself. Washington says Beijing is not doing enough to regulate precursor chemicals that flow out of China into the hands of drug dealers. In July, China placed two fentanyl ingredients under enhanced control, a move seen as in response to U.S. pressure and signaling goodwill. Gabriel Wildau, managing director at the consultancy Teneo, said he doesn't expect any tariff to go away in Stockholm but that tariff relief could be part of a final trade deal. "It's possible that Trump would cancel the 20% tariff that he has explicitly linked with fentanyl, but I would expect the final tariff level on China to be at least as high as the 15-20% rate contained in the recent deals with Japan, Indonesia, Vietnam," Wildau said.
Time of India
32 minutes ago
- Time of India
KRT gets Sebi nod for Rs 4,800cr REIT IPO
Knowledge Realty Trust (KRT), sponsored by realty firm Sattva Group and Blackstone, has got Sebi approval to launch its REIT public offering to raise Rs 4,800 crore. Last month, KRT had raised Rs 1,400 crore from investors ahead of its maiden REIT public issue. This is part of a strategy to monetise its 30 prime office assets across major cities. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
41 minutes ago
- Time of India
'Premium pitch key growth pillar for Nestle India'
NEW DELHI: India is one of the fastest-growing markets for Swiss packaged foods giant Nestle globally, driven by the country's large consumption base, strong performance of core brands, and entry into new, high-potential premium categories, according to , the outgoing chairman & managing director of Nestle India. Tired of too many ads? go ad free now With a turnover of over Rs 20,000 crore and a revenue CAGR of just over 10% during the past decade, Nestle India is well-positioned to sustain its growth momentum, he said. Its strategy - anchored in premiumisation, faster-paced innovation, and a sharper focus on 'Rurban' markets through a consumer cluster-based approach - is expected to accelerate growth for the packaged foods company in a market which has been facing stubborn commodity inflation and a consumption slowdown, said Narayanan. "Premiumisation and innovation are the two key pillars of growth. Along with a focus on legacy brands like and KitKat, the company aims to deliver sustained growth. Since the Maggi crisis in 2015, Nestle recalibrated and rejuvenated its portfolio by launching over 150 new products, which now contribute 7% to sales. Innovation is now four times faster than it was a decade ago," he told TOI in an interview. Premium products contribute around 12% of Nestle India's sales, up from 10% in 2018, growing at a 16% CAGR since 2015. With a Rs 7,500 crore market opportunity, premiumisation is a key driver of growth and profitability. Nestle India's capital expenditure has risen from nearly 2% of sales in 2015 to 10% of sales in FY 2024-25 - a clear reflection of the company's growing confidence in the Indian market and its deepening focus on serving evolving consumer needs. Additionally, through a consumer cluster-based and 'Rurban' strategy introduced in 2019, the company strengthened its route-to-market, with its brands now reaching two out of three households, said Narayanan, adding this strategic agility, combined with deep consumer insights, positions Nestle well to capitalise on evolving market trends and shifting preferences. Tired of too many ads? go ad free now Responding to a question on the company's strategy of steering clear of mergers and acquisitions, he said, "We continue to explore good opportunities. But again, the question is one of valuation, potential, synergies, and growth opportunities that we see." India ranks among the top 10 global markets for the Switzerland-based Nestle and is the leading market worldwide for its flagship food brand Maggi, as well as the second-largest market for its confectionery brand KitKat.
