Arappor alleges Valliyoor panchayat tender violates new contractor registration norms

CHENNAI: Alleging that two civil works tenders worth Rs 42.58 lakh floated by the Valliyoor panchayat union in Tirunelveli violated the State government's new contractor registration guidelines by restricting participation to contractors registered within the panchayat union itself, anti-corruption NGO Arappor Iyakkam has sought cancellation of the tender process, revision of the eligibility conditions, and a fresh tender notification.

In a representation to Chief Minister C Joseph Vijay, Rural Development and Water Resources Minister N Anand, and officials, Arappor said the tender conditions contradict GO No 115 dated June 30 issued by the Rural Development and Panchayat Raj Department, and the government statement explaining the revised registration system.

The fourth condition in the tender notification restricts eligibility to contractors who are only registered within the panchayat union, which is against the GO that had replaced this earlier system with district-level registration through the District Rural Development Agency (DRDA).

Under the new system, contractors registered with a DRDA concerned can bid for tenders floated by any procuring entity within that district, and are also permitted to participate in tenders in adjoining districts, even without a common state-wide registration system.

The organisation said the restrictive condition works against the goals of increasing competition and opening opportunities to new contractors. Limiting eligibility to a small pool cuts down competition and creates room for a winning bidder to be decided in advance, opening the door to favouritism and corruption, it argued.

The tenders were floated under the 2025-26 District Mineral Foundation (DMF) scheme, following administrative sanction from the Tirunelveli Collector's proceedings dated December 1, 2024, and May 11, 2026.

They cover construction of a compound wall around the Erukkandurai cremation ground (Rs 12.86 lakh) and strengthening of the road to the Keezhakulam cremation ground (Rs 29.72 lakh). Both were published on the State's e-procurement portal on July 8, with bids due to close on July 15.

The organisation has asked the government to halt the ongoing tender process, amend the eligibility conditions in line with the new order, issue a fresh notification, and ensure all tenders across Tamil Nadu comply with the Transparency in Tenders Act and the revised registration guidelines.