The Travancore Devaswom Board vs. The Deputy Director, Local Fund Audit

It is seen from the petition that pursuant to a conference held on 03.02.2020 at TDB Headquarters, the Deputy Devaswom Commissioner informed that there is shortage of Kanikka Vanchies in various devaswoms and directed to urgently submit estimate for supplying Kanikka Vanchies. Accordingly, the Executive Engineer, Estate Division of TDB, by Annexure A, submitted an estimate amounting to Rs.46,38,745/- based on DSR 2016 for supplying Kanikka Vanchies of various sizes viz., (i) 30x30x30cm (150 Nos.),

The Chief Engineer (CE) on receipt of Annexure A estimate from the Executive Engineer checked and modified the estimate and closed for Rs.46,80,000/- varying the quantity as follows:- (i) 30x30x30 cms (200 Nos.) (ii)60x45x60cms (50 Nos.) (iii)60x60x75 cms (35 Nos.) In Annexure B, the split up of the estimate is as follows:- Rs.(i)168390 +(ii)1090268+(iii)1036770 + 139062 (towards unforseen works if any + 7,11,000/- (GST @ 18% + Rs.19,000/- (towards advertisement charges).

The TDB accorded administrative sanction for the said work at the estimate cost of Rs.46,80,000/- based on DSR 2016 as recommended by the Chief Engineer.

Though there were no participants for the tender floated on 24.03.2020, in the second tender invited on 28.05.2020, there were

The Chief Engineer by Annexure E addressed to the Board

When the matter came up for consideration before this Court on 4.03.2021, going through the estimated cost and the bid amount, we found that there is considerable difference between them. In fact, the said aspect was noted and highlighted by the learned Ombudsman in TDB Report No.2/2021. Accordingly, we directed the Chief Engineer of the TDB to explain the basis for preparation of the estimated amount and also as to how such a considerable difference had occurred.

Accordingly, the Chief Engineer has filed an affidavit dated 17.3.2021 explaining the basis for preparation of the estimated amount and the reason for the difference in the estimated cost and bid amount in the contract. The relevant portion of the affidavit of the CE is extracted below:- “4.It is submitted that administrative sanction for the work was accorded for an amount of Rs.46,80,000/- vide Board ROC No.3204/20/M, dated 16.03.2020. This estimate was for the supply of 285 numbers of kanikkavanchies of 3 different sizes. Subsequently e-tenders were invited by the Executive Engineer, Estate Division on 24.03.2020. But no one had participated in the tender call. Hence the work was re-tendered on 28.05.2020. During this occasion, 7 bids were received. Among these bidders, M/s.TJSV Steel Fabrication and Galvanising (India) was the lowest with bid amount of Rs.29,15,440/- and L2, the second lowest quoted @ Rs.36,90,000/-. All the quoted rates were exclusive of GST.

It is respectfully submitted that the original approved estimate amounting to Rs.46,80,000/- is inclusive of GST @ 18% amounting to Rs.7,11,000/- and advertisement charge of Rs.19,000/- and Rs.1,39,062/- as unforeseen expenditure. Thus the actual cost of supply excluding GST would have been Rs.38,10,938/- which was for the supply of 285

Though the sanction was for the supply of 285 numbers of Kanikkavanchies, tender was invited for the supply of 280 numbers of Kanikkavanchies only thereby making a decrease of 1.50 lakh approximately from the originally sanctioned estimate amount. As such, the total estimate excluding GST, advertisement charges and unforeseen expenditure for the supply of 280 numbers of Kanikkavanchies would come to Rs.36,62,828/- only. M/s.TJSV Steel Fabrication and Galvanising (India) has submitted the lowest bid amounting to Rs.29,15,440/- excluding GST. Thus it is clear that there exists a difference of Rs.7,47,388/- only from the original amount of Rs.36,62,828/-. The difference in amount has thus occurred due to the aforesaid situation. The quoted amount of the second lower bidder (L-2) was Rs.36,90,000/- and that of the highest bidder (L-7) was Rs.51,24,370/-, both excluding GST.

It is submitted that the estimate for the supply was based on the data prepared on the basis of DSR 2016 (Delhi Schedule of Rates). The DSR with relevant cost index is in force in the State. Here the rate was made for the supply of Kanikkavanchies exclusively on the basis of DSR 2016 with DSR rates for labour and materials. To ensure the quality of materials, the bidder was asked to produce sample pieces for verification. Since tendering was done on e-tender basis, the origin of tender and the bid amount could be known only when

Even if we go by the figures and reasons stated by the Chief Engineer in the affidavit, admittedly, there exists a difference of Rs.7,47,388/- from the estimated cost and the bid amount. Out of the seven bidders, five of them have quoted far below the estimate rate. The lowest bid is almost 38% below the estimate rate. On going through Annexures A and B, we are of the considered opinion that an exaggerated estimate was prepared. Though an estimate is only an approximation of what things will

We also notice that, in Annexure B checked estimate of the Chief Engineer, an amount of Rs.1,39,062/- has been set apart towards 'unforeseen' works, if any. In an estimate for a work of the present nature, this could have been avoided as it may leave room

Since the amount quoted by M/s.TJSV Steel Fabrication is much below the estimate rate, the work may be awarded after obtaining performance security and fulfilling other conditions of contract. Subject to the above observations, contract sanction is accorded for the work of “Stainless Steel Kanikka Vanchies of various types under the Travancore Devaswom Board Temples” in favour of M/s.TJSV Steel Fabrication and Galvanising (India) Ltd.