Contractor arrested by CBI set to bag Rs 78-cr tender from jail

Bangalore, Jan 15: Is it possible to run a business from inside the prison? Apparently, yes. Look at Chandrakanth Ramalingam, the owner of Ramalingam Construction Company. He was raided by the income tax department and arrested by the CBI. He allegedly brokered deals and looked after the cash belonging to top government officials.

But even while in jail, the staterun Cauvery Neeravari Nigam Ltd (CNNL) has decided to renegotiate with his company for a work that was originally estimated to be Rs 73.34 crore, now escalated to Rs 78.38 crore. Despite the inflated figure, CNNL's bid for the Harangi canal works will most likely go to Ramalingam Construction Company.

When I-T officials had raided top government bureaucrats and found huge stash of new notes allegedly given to them as bribe by Ramalingam, and under-thetable deals with his company with regard to tenders for government projects, including with CNNL.

Surprisingly, though, instead of blacklisting the company, the government is still negotiating with it and awarding it big-ticket projects such as the Harangi right bank canal project and concrete canal lining which is the project in question, and for which Ramalingam Construction Company is the sole bidder now. So, it is almost a done deal.

"The negotiated bid of Chandrakanth Ramalingam is 6 per cent higher than the earlier bid. The managing director has to re-negotiate to execute work within updated amount. The MD was empowered to retender the work if the bidder doesn't give con sent to this," said a source.

The board has decided to re-negotiate with the company. The revised financial bid has been proposed for tender approval committee's decision to seek CNNL clearance, according to the minutes of the meeting.

"Even an official of smaller rank is suspended immediately if there is a corruption charge against him," a bureaucrat told Bangalore Mirror. "Ramalingam and officials associated with him have brought embarrassment to the state, and brought works worth tens of crores being executed by his compa ny under scanner. But instead of being punished, the government is rewarding him with a contract," said the source.

And this is not it. CNNL is considering giving the contract for another project to Ramalingam's company in a joint venture with another, estimated to cost Rs 108 crore.

This work which pertains to concrete canal lining and canal repairs of Harangi right bank canal was originally set to Rs98 crore, and later escalated. Here again, instead of blacklisting the company, the revised financial bid was placed before the tender approval committee for CNNL's approval.

"We have heard of people cooking biryani, taking mobile phones and smuggling contraband, and selling products inside the prison.But Ramalingam is running a company from in there. The projects that he had bid for are getting approvals this proves it," a source said.

CNNL managing director Shivashankar, however, denied finalising or awarding the tender to Ramalingam's construction company.