Author:
Publication: The Indian Express
Date: May 14, 2005
CAG: No competition as there was
only one bidder.
Shourie: Decision of each bidderto
continue or not is a commercial one. CCD had then decided that the process
must proceed even if there is only one bidder.
CAG: No written record of why bidders
withdrew.
Shourie: Written record makes no
difference.
CAG: Financial strength of the bidder
was not adequately scrutinized.
Shourie: Bidder paid entire amount
and Government got every paisa of bid price of Rs 153 crore.
Eight banks assessed the creditworthiness
of the bidder.
CAG: Extensions given to bidder.
Shourie: Had extensions of a few
days not been given, govt wouldn't have received Rs 153 crore.
CAG: Interest was not charged for
late payment.
Shourie: Where was the question
of charging the bidder interest when he had not been given possession of
the hotel?
CAG: Reserve price taken at lower
end of band.
Shourie: CAG report sets out the
reasons why the Evaluation Committee chose the reserve price which it did,
Government found these reasons valid.
CAG: Government facilitated the
financing of this transaction.
Shourie: Evidence for this "finding"
is that officials and I met officials of banks. This is strange indeed.
We met officials of banks precisely because we did not take word of the
bidder at face value.
