Delhi Metro|DMRC likely to blacklist Hyundai Rotem for 5 years


New Delhi: South Korean transport major Hyundai Rotem is likely to be blacklisted for five years from participating in any bidding process by Delhi Metro Rail Corporation (DMRC) for concealing information while placing tenders for supplying 486 coaches for the Phase-III of Delhi Metro worth Rs 4,600 crore.

Sources said the issue of what action could be taken against the company was discussed in detail at the last DMRC board meeting. It is learnt that the decision on blacklisting the firm would be conveyed to DMRC next week for compliance. “The minutes of the meeting will have details of how the decision will be implemented by DMRC,” said an official refusing to divulge whether such a decision would impact the ongoing supply of trains by the South Korean company. However the final decision depends on the Board of Directors, he said.

Only one-and-a-half months back, Hyundai Rotem had supplied the first train to DMRC. In April 2013, DMRC awarded the contract to the company.

At the time of bidding, the company had concealed the fact that it had been blacklisted by Airports Authority of India (AAI). After this revelation urban development ministry had directed DMRC to seek legal opinion on whether the contract should be terminated.

Attorney General Mukul Rohatgi had advised DMRC in December against termination of the contract at this stage in “public interest” even though the Korean company would have been “disqualified” for concealment of facts. AAI had in 2011 debarred Hyundai Rotem from bidding for its contracts till December 13, 2014.

The AG had said though there are several provisions which provide for disqualification, already huge amounts had been advanced to the company – Rs 670 crore against advance payment and another Rs 177.64 crore later. Moreover, production was in full swing. “There is no matter of doubt that public interest would be adversely affected if the contract is now terminated. In such a situation, even the Supreme Court of India has sanctified grant of contract and not cancelled the contract,” the AG had advised.

Rohatgi had also observed that DMRC was “completely blameless” though it could not detect the flaw on the part of Hyundai Rotem.


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