Allegations of irregularities have surfaced in Tamil Nadu’s Municipal Administration Department, with officials claiming that local ministers are interfering in tender procedures and influencing cancellations.
After the coalition government led by Chief Minister Vijay took charge, more than 2,300 tenders were reportedly cancelled. The stated reason was that bidders had quoted prices far higher than the estimated cost of works.
However, some department officials now allege that even tenders with the lowest bids are being cancelled due to political interference. They said new tenders were issued only in July after two months of monitoring and cancelling allegedly irregular tenders from the previous regime.
According to the officials, bid amounts in the Municipal Administration Department—held by the Chief Minister—have fallen sharply, with contractors quoting well below government estimates. They claim that in the absence of a dedicated minister for the department, local ministers have increased their involvement and begun demanding commissions of up to 10%.
One complaint cited an LED bulb installation tender in Erode Corporation, where a firm quoting more than 25% below the government estimate was selected but did not receive a work order. The officials alleged that the local minister’s two brothers approached the firm seeking a 10% commission, and after refusal, the tender was cancelled by invoking a rule on “unreasonably low rates” in the engineering manual. They also alleged that in other Erode construction tenders, work orders were issued after collecting a 10% commission from firms quoting similarly low rates, and that such commission demands are being reported in civic bodies including Tambaram, Tiruppur, Thanjavur and Pudukkottai.
