Vigilance wing pulls up Kochi Metro Rail Limited over lapses in auctioning commercial spaces
Vigilance finds that auctions were conducted without advertisements and in a less transparent manner, with most cases attracting only a single bidder; it observes that changes in base rates and EMD conditions deterred prospective bidders and created a sense of differential treatment among existing vendors
- ✓Vigilance finds that auctions were conducted without advertisements and in a less transparent manner, with most cases attracting only a single bidder; it observes that changes in base rates and EMD conditions deterred prospective bidders and created a sense of differential treatment among existing vendors
- ✓Primary Authority: Official communique verified from The Hindu National.
- ✓Civic Domain: Categorized under governance public notices.
The Vigilance wing of Kochi Metro Rail Limited (KMRL) has pulled up the agency for a slew of alleged omissions in the leasing of commercial spaces at the 22 metro stations along the Aluva-M.G. Road-Thripunithura phase-one corridor, which resulted in substantial revenue loss over the past few years.
The metro agency’s Vigilance wing observed that the auction of commercial spaces at the stations was conducted without advertisements and in a “less transparent” manner. The auctions were conducted outside the scope of the procurement manual, and the basic principles of transparency, competition, fairness and elimination of discretion were not followed in letter and spirit.
Base rates were not fixed on the basis of objective data. Instead, a trial-and-error method was adopted. In view of these findings, the Vigilance wing recommended that base rates be fixed on the basis of objective data. It also called for a consistent policy on the auction of spaces for hiring or advertising to avoid the trial-and-error approach to fixing base rates, ambiguity in deciding the mode of auction and confusion over the auction procedure.
In this regard, a forward auction module of GeM or its e-auction module should be considered, after due preparation, instead of outdated and less transparent methods such as physical or hybrid auctions. Adequate publicity, including through the media, should be ensured to prevent ad hoc practices and subjectivity in conducting auctions.
A standard operating procedure (SOP) for conducting auctions should be drawn up, and a finance member should be included in the auction committee. The mandatory declaration of ‘Conflict of Interest’ by auction committee members should also be ensured.
Other recommendations include continuous videographing or recording of the auction or tender process through CCTV and preparation of the minutes after the auction.
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| Issuing Authority | The Hindu National |
|---|---|
| Topic Category | GOVERNANCE |
| Jurisdiction | All India / National |
| Publication Date | 3 November 2026 |