MUMBAI: The men who founded three of the five major companies that in recent times have bagged a large share of Mumbai's road contracts previously worked in government offices. Two of them started as clerks in the Public Works Department (PWD) and a third as a junior engineer in the BMC. Another of the five companies was founded by a man who worked earlier as a stone crusher at a quarry from where gravel was forwarded for BMC roads. The fifth time was a small-time supplier of raw materials to the BMC.
Almost every one of these firms has one thing in common: political patronage. It is a rags-to-riches story born out of enormous sums of taxpayers money spent by the BMC to build roads every year since 1989.
Over the past five years, the BMC has spent Rs 2,000 crore on new roads. Motorists, commuters and pedestrians have been plagued by shoddy roads every monsoon, with potholed surfaces leading to a rise in damage to vehicles and injuries and ailments to people.
The five firms have bagged around three-quarters of the road work contracts handed out by the BMC in recent years, said sources close to the civic roads department. Four of the five firms are today run by the sons of the founders; the fifth is run by the founder's brothers.
There are around 60 road-building firms empanelled with the BMC, most of them fronts for 30 to 35 contractors who have bagged all contracts since 1989. The five firms in question --- RPS Ltd, Relcon, Mahaveer & Co, Prakash Engineering and Shantinath Roadways --- are among the nine which bagged a Rs 550-crore road contract on Monday. Together, they have a turnover of nearly Rs 1,000 crore. RPS Ltd was downgraded by the building proposal department recently for shoddy work.
Nand Bijlani began as a junior engineer in the BMC, while P C Shah started as a PWD clerk. Their sons, Prakash Bijlani (of Prakash Engineering) and Tejas Shah (of Relcon) today drive the most expensive cars. RPS founder R P Shah also was a PWD clerk. His sons Nitin and Ketan drive a glitzy Merc.
Ashwin Shah, of Shantinath Roadways, has a BMW; his father, Shantibhai Shah, was a small-time supplier of raw materials to the BMC. Jitendra Kikavat began as a quarry stone crusher; his brothers move around in a big SUV.
"There is immense rivalry among these five as they are backed by various rival politicians. It has led to an unholy nexus in the BMC roads department," said a contractor who did not wish to be named.
Sources said RPS and Prakash Engineering belong to one faction, while the others, Relcon, Mahaveer and Shantinath, belonged to another. Such factionalism leads to low rates being quoted for tenders, which further lays the ground for inferior quality work, said BMC sources.
Bids for the Rs 550-crore contract were around 25% of the scheduled price.
Almost every one of these firms has one thing in common: political patronage. It is a rags-to-riches story born out of enormous sums of taxpayers money spent by the BMC to build roads every year since 1989.
Over the past five years, the BMC has spent Rs 2,000 crore on new roads. Motorists, commuters and pedestrians have been plagued by shoddy roads every monsoon, with potholed surfaces leading to a rise in damage to vehicles and injuries and ailments to people.
The five firms have bagged around three-quarters of the road work contracts handed out by the BMC in recent years, said sources close to the civic roads department. Four of the five firms are today run by the sons of the founders; the fifth is run by the founder's brothers.
There are around 60 road-building firms empanelled with the BMC, most of them fronts for 30 to 35 contractors who have bagged all contracts since 1989. The five firms in question --- RPS Ltd, Relcon, Mahaveer & Co, Prakash Engineering and Shantinath Roadways --- are among the nine which bagged a Rs 550-crore road contract on Monday. Together, they have a turnover of nearly Rs 1,000 crore. RPS Ltd was downgraded by the building proposal department recently for shoddy work.
Nand Bijlani began as a junior engineer in the BMC, while P C Shah started as a PWD clerk. Their sons, Prakash Bijlani (of Prakash Engineering) and Tejas Shah (of Relcon) today drive the most expensive cars. RPS founder R P Shah also was a PWD clerk. His sons Nitin and Ketan drive a glitzy Merc.
Ashwin Shah, of Shantinath Roadways, has a BMW; his father, Shantibhai Shah, was a small-time supplier of raw materials to the BMC. Jitendra Kikavat began as a quarry stone crusher; his brothers move around in a big SUV.
"There is immense rivalry among these five as they are backed by various rival politicians. It has led to an unholy nexus in the BMC roads department," said a contractor who did not wish to be named.
Sources said RPS and Prakash Engineering belong to one faction, while the others, Relcon, Mahaveer and Shantinath, belonged to another. Such factionalism leads to low rates being quoted for tenders, which further lays the ground for inferior quality work, said BMC sources.
Bids for the Rs 550-crore contract were around 25% of the scheduled price.
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