CHENNAI: Two competing firms quoting identical rates, or bids differing by just one paisa, could be a coincidence. But repeated instances of such similarities can also raise suspicions of possible tender manipulation.
A tender to print smart passes for students travelling free on government buses has come under scrutiny, with sources alleging that the bidding conditions were framed to favour two firms that have been securing the contract for some years now. According to documents accessed by TNIE, only two firms participated in the tender whose financial bids were opened in June 2025. Both quoted the same rate of Rs 4.12 per smart pass. In September that year, the contract was split between the two firms, which agreed to print the passes at Rs 3.59 each after negotiations.
In the latest tender, whose financial bids were opened in August, one firm quoted Rs 3.89 per pass, while the other quoted Rs 3.90. A third firm was disqualified before the financial bids were opened. Following negotiations, both firms agreed to print the passes at Rs 3.59 each. The work was split between them and the contract was awarded a week ago. More than 73.50 lakh passes will be printed during the current academic year whereas 35.12 lakh passes were printed during the previous year.
“The technical specifications and experience criteria have been fixed to favour these two firms and prevent new players from participating in the bidding process. The identical rates raise suspicion of cartelisation,” a source alleged. When contacted, a senior IRT official denied any irregularities, stating that the tender process was conducted online, and the contracts were awarded without any misconduct.
“There is no restriction on the number of participants. Only three firms participated in the smart pass tender, and one was disqualified by the technical committee,” the official said.