CONTROVERSY: Tow away drive initiated by Ludhiana Police Commissionerate comes into thick controversies

Ludhiana, December 31, 2012: City-based RTI Activist Kuldeep Singh Khaira who is actively working for Vigilant Citizens’ Forum today raised a question mark on the allotment of contract under the much publicised Two Away Campaign within jurisdiction of Ludhiana Police Commissionerate. He has alleged “irregularities” in the functioning of the campaign.

On the other hand, Police Commissioner, Ludhiana also issued a counter statement and denied the allegations levelled by Khaira.

In his press statement today Khaira said; “Based on the information obtained under the RTI Act regarding issues associated with much publicized “Tow-away Campaign” carried out by traffic Police, Ludhiana for lifting of wrongly parked vehicles since February, 2012 using private cranes, the following glaring irregularities have been discovered.

Khaira said the “MoU” between the “CPRC” and the selected contractor, was executed on the 13^th February, 2012 while the Tender Notice in this regard was published only on 18^th February, 2012 i.e. 5 days after the contract had already been awarded. In the Tender Notice, the period for submission of tenders was mentioned as 19.02.2012 to 24.02.2012. It clearly establishes that the publication of tenders was just a farce and eyewash.

Adding, Khaira said the following further points are worth attention in this regard:

·         Even though the contract had been allotted on 13.02.2012, the bid of the qualifying contractor is dated 20.02.2012, which again shows that the whole exercise was an afterthought just to complete the file.

·         The handwriting in three of the five bids is the same, again substantiating the manipulations.

·         On 13.02.2012, a resolution was passed by the C.P.R.C. regarding hiring of cranes for lifting vehicles which was cancelled on 15.02.2012 on the pretext that the resolution on 13.02.2012 was passed in a meeting chaired by the Secretary whereas he had no authority to do so as such resolutions could only be approved in a meeting chaired by the President. No further resolution was passed to approve the issue. Thus, the award of contract is without the sanction of the CPRC.

·         The tender notice just mentioned that 10 cranes were to be hired but none of the quotes mentioned the hire charges per month; instead all the bids offered rates per lifting even though there was no mention of the distance of the place where impounded vehicles were to be brought. In the absence of place of impounding, how could a bidder quote the rate per lifted vehicle?

·         In the Memo No.79-5A dated 24.02.2012 of the Ludhiana police regarding the whole issue, it has been mentioned that the opinion of the District Attorney (Legal) has been obtained for hiring cranes from private contractor and for publishing the tender whereas the opinion given by DA (Legal) is only with regard to publishing of tender during the period of Election Code of Conduct. It has, thus, been wrongly projected that the whole matter has been approved legally.

Further, Khaira alleged the conduct of the Ludhiana Police officers is all the more suspicious as all payments running into more than Rs.3 million have been paid in cash instead of cheque in utter defiance of government rules.

Adding, he said the lifting charge of Rs.500 per vehicle was fixed without making any calculation to assess the cost of lifting. As per the information provided, 8,014 vehicles have been lifted from 24.02.2012 to 31.07.2012. The contractor has raked in a huge amount of app. Rs.21,16,000 net of expenses, as detailed below, in five months using five old cranes i.e.Rs.4,23,000 per month. The public has been made to pay an exorbitant rate of Rs.500 per vehicle even though the cost of lifting was at the maximum just Rs.135 per vehicle (Rs.10,89,000/8014).       

Gross earning of contractor @Rs.400 per vehicle lifted for 8,014 vehicles		Rs. 32,05,600
Less: Expenses
Salary of Driver and Helper @ Rs.8,000 p.m. and Rs.5,000 p.m. respectively for 5 vehicles for 5 months and 5 days (24.02.2012 to 31.07.2012)	Rs.3,35,000
Diesel @Rs.75 per vehicle (Av. Distance 15 km. per trip @ Rs.5 per km)	Rs.6,01,000
Repair @ Rs.5,000 per vehicle per month	Rs.1,28,000
Miscellaneous Expenses including taxes and insurance @5,000 per vehicle	Rs.25,000	Rs.10,89,000
Net Profit		Rs. 21,16,600

 

Also, Khaira alleged that the charge of Rs.500 recovered from the public is illegal, as no fee or tax or levy can be charged without government authority. No notification was issued by the Government of Punjab for levy of towing charges. Section 201 of the Motor Vehicle Act empowers the levy of towing charges only in case where a disabled vehicle causing obstruction to free flow of traffic is removed by a government agency. Even in such a case, the towing charges can only be recovered by such authority as the State Government may authorise by notification in the official gazette (sub-section 2). As per the information provided, no notification has been issued by the State Government authorising any official in this regard. There is no other enabling provision for levy of towing charges in the M.V. Act. Thus, the charge of Rs.500 is unlawful being without authority. No towing charges can be levied on the vehicle owners except in case of disabled vehicles. In case of wrongly parked vehicles, the cost of towing has to be borne by the government whereas the Ludhiana Police is not only charging towing fees but also profiteering out of this business.

Further, hKhaira said Community Policing Resource Centre (CPRC) is a private body registered under the Societies Registration Act, 1860 having no authority to recover vehicle lifting charges. Further, the Punjab Government has not given any authority to CPRC to collect charges on behalf of the State Government.

Khaira alleged there is no transparency in the functioning of the CPRC so much so that the Balance Sheet and Income and Expenditure Account of the society is said to be not available for the last three years even though it is mandatory to prepare the annual financial statements, get these audited and file income-tax return.

He also claimed that all the cranes are registered in Himachal Pradesh or Haryana and as per the information provided, none of the vehicles has paid the Road Tax to the Punjab Government though it is compulsory for all commercial vehicles registered in other States to pay taxes to the Punjab Government. The evasion of road tax by the contractor is happening under the nose of the Ludhiana police.   

Reacting to Khaira’s statement issued to the local Press today, Police Commissioner, Ludhiana issued a three-page statement, stating; “The tow away drive initiated by Ludhiana Commissionerate is working under the ages of CRPC which is a registered society registered under the Societies Registration Act which is a separate entity for all means and purposes whose major objective is to provide community policing services with the active support and partnership of the general public. The date mentioned in the Memorandum of Understanding (MoU) us a typographic mistake.

The tow away services were regularly started with effect from February 25, 2012 including its trial which was started on February 21, 2012.

If one person in the office has been assigned a specific duty for a specific purpose his hand-writing on all the papers for that purpose will remain same with minor variations.

The tow away services were regularly started with effect from February 25, 2012 including its trial which was started on February 21, 2012. The resolution dated February 24, 2012 when the tenders/ bids were finalised was approved by all the concerned officials.

A lump sum tow away charge of Rs. 500 was fixed for lifting a vehicle irrespective of the distance. The factum of distance may create certain irregularities and ambiguities.

The then Deputy District Authority (Legal) was consulted regarding the various aspects of tow away campaign and his opinion was also obtained by the then Commissioner of Police, Ludhiana who has opined that the tenders could be published during the period of the applicability of the Election Code of Conduct.

Regarding the allegations that all payments running into more than Rs.3 million have been paid in cash instead of cheque in utter defiance of government rules, the release issued by Police Commissioner, Ludhiana reads; “The allegations levelled in are absolutely false and are denied. A proper record of the accounts of this campaign / scheme has been maintained and which is also being audited by a team of specialised officers. Out of a total amount of Rs. 500, Rs. 100 per vehicle is to be credited into the account of CRPC and Rs. 400 is to be paid to the concerned contractor.”

The release further says that the lowest tender/ bid was accepted and the contractor has also given the undertaking that he will be responsible to deposit the requisite service tax as well as the income tax. Certain overhead charges have not been included in the calculation table.

Further, the release says that the lowest tender/bid was accepted. Commissioner of Police, Ludhiana has already written to W/DGP/Punjab Chandigarh to request the Government of Punjab to frame the requisite rules for tow away scheme. The tow away scheme was working under CRPC which has been a registered society under the Societies Registration Act. Out of a total sum of Rs. 500, Rs. 100 per vehicle is to be credited  into the account of CRPC and Rs. 400 is to be paid to the concerned contractor as per the terms of the bid.

Police Commissioner, Ludhiana further says in the release that the tow away scheme is providing immense convenience to the residents of Ludhiana city and it has been loudly appreciated by many quarters. The accounts of the society under CRPC are properly maintained and are being audited by a team of specialised officers.

If any irregularity regarding the non-payment of any road tax will come to light the contractor will be required to pay the required tax and if he does not do so he could be debarred from making a fresh bid for the tow away scheme.