Decision to levy Development Fees has vitiated sanctity of bidding process: CAG

New Delhi: The Comptroller and Auditor-General (CAG) has accused the Ministry of Civil Aviation of allowing the GMR-run Delhi International Airport Limited (DIAL) to levy Development Fees (DF) in contravention of various provisions of the Operation Management Development Agreement (OMDA), thereby vitiating the sanctity of the bidding process.
In the executive summary in the draft report, the CAG said: “This decision to levy DF after the effective date has vitiated the sanctity of the bidding process, as the draft OMDA, which was part of the bid documents, does not mention funding of the project cost of the airport through levy of development fees. In case the JV [joint venture] was to have been permitted to levy DF to finance the project after the signing of the OMDA, this important condition should have been known upfront to all the bidders at the time of bidding.”
26/05/12 Sujay Mehdudia/The Hindu

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Categories: airports May 2012