Greater Chennai Corporation Cancels ₹17 Crore Tenders Over Irregularities, Tightens Procurement Rules

The Greater Chennai Corporation (GCC) has cancelled nearly 150 tenders worth around ₹17 crore after identifying multiple procedural irregularities during an internal review. The decision is part of a broader effort by the civic body to strengthen transparency and accountability in public procurement.

According to GCC Commissioner G. S. Sameeran, the cancelled tenders were floated during the period leading up to the Assembly elections, when the Model Code of Conduct was in force. A review found that several tenders had not followed standard procurement guidelines, prompting the corporation to withhold and subsequently cancel them.

The cancelled works mainly involved road restoration, demolition and reconstruction of public buildings, including anganwadis, public toilets and canal-side retaining walls. Officials clarified that only the tender process has been cancelled, while the projects themselves will be taken up again through a fresh and transparent bidding process.

The Commissioner stated that many tenders did not provide the mandatory minimum seven-day bidding period, limiting fair competition among contractors. In some cases, quotations were reportedly issued directly to contractors without adequate justification. While such provisions are permitted under emergency situations such as flood response or urgent government events, GCC observed that these clauses had been applied inappropriately for routine civic works.

To prevent similar issues, the corporation has issued fresh procurement guidelines. All future small-value projects will be processed through the Tamil Nadu Tenders Portal or the Government e-Marketplace (GeM), ensuring wider participation and greater transparency.

The revised guidelines also prohibit officials from insisting on site certificates, machinery availability certificates or similar documents as pre-qualification requirements. Instead, bidders will be allowed to submit self-certification, reducing opportunities for misuse and protecting bidder confidentiality during the evaluation process.

Additionally, earnest money deposits, security deposits and bank guarantees must now be submitted only through online modes. GCC has also directed officials to upload the bill of quantities, tender conditions and supporting documents immediately after publishing tenders, allowing contractors sufficient time to study project requirements before submitting bids.

The latest measures reflect Greater Chennai Corporation’s commitment to strengthening governance, ensuring fair competition and improving public confidence in civic infrastructure procurement across the city.