Alleged Attempt to Benefit Controversial Firm “HP-KCC JV” Comes Under Scanner
Partnership or Proprietorship? Contradictory Documents Shock Finance Committee
Chief Engineer’s Dissent and Financial Advisor’s Objections Stall Tender Approval
Jaipur/Jodhpur: Fresh controversy has erupted in Rajasthan’s ambitious Jal Jeevan Mission (JJM) after serious irregularities surfaced in a ₹209.63 crore rural drinking water project in Phalodi district. The project, aimed at providing Functional Household Tap Connections (FHTCs) to 79 villages and 325 hamlets in Dechu and Lohawat blocks, has now come under intense scrutiny following allegations that departmental officials attempted to favour a technically and financially questionable joint venture firm.
Official documents accessed by Expose Now reveal that the Finance Committee (FC) of the Public Health Engineering Department (PHED) has halted approval of the tender after multiple discrepancies, legal contradictions, and financial concerns were raised regarding the L-1 bidder, M/s HP-KCC JV.
The committee has now ordered a fresh technical scrutiny of all seven bidders participating in the tender process, raising serious questions over whether attempts were made to manipulate eligibility norms in favour of the controversial firm.
₹210 Crore Jal Jeevan Mission Project Under Cloud
The project, floated under NIB No. 01/2025-26, is one of the major rural drinking water schemes in western Rajasthan under the Jal Jeevan Mission. It is intended to deliver household tap water connections to hundreds of remote settlements facing chronic water shortages.
However, instead of progressing towards implementation, the project has become embroiled in allegations of document manipulation, financial ineligibility, and administrative interference.
More Read
According to Finance Committee records, certain senior PHED officials allegedly made extraordinary efforts to technically qualify M/s HP-KCC JV despite glaring irregularities in its submitted documents.
Proprietorship or Partnership? Contradictions Raise Red Flags
One of the most serious concerns relates to the legal status of one of the JV partners, M/s Kailash Chandra Choudhary (KCC).
As per records of the Water Resources Department (WRD), the firm is registered as a proprietorship concern. However, the GSTIN documents submitted during the PHED tender process describe the same entity as a partnership firm.
More Read
Procurement rules clearly state that submission of contradictory or misleading documents can render a bidder “Non-Responsive” and technically disqualified. Despite this, officials allegedly continued efforts to keep the bidder in contention.
The contradiction reportedly shocked members of the Finance Committee and triggered deeper scrutiny into the firm’s credentials.
Alleged Backdated Amendment Attempted to Rescue Bidder
After the discrepancy was identified, officials allegedly attempted to rectify the issue by procuring an “Amended Order” from the Water Resources Department dated August 5, 2025, claiming that the firm should be treated as a partnership entity.
However, the move triggered sharp opposition from the Chief Engineer (CE, U&NRW), who formally recorded a written dissent note.
The Chief Engineer reportedly argued that the amended order was effectively a new document introduced after the tender opening and therefore could not legally be accepted as a clarification under RTPP Rules 60 and 61.
In his written objection, the Chief Engineer recommended that the bidder be declared technically disqualified.
More Read
Financial Eligibility and Net Worth Under Suspicion
The controversy deepened further when the Finance Committee revisited the issue of the JV’s financial eligibility.
In an earlier meeting (FC 914), the committee had directed the Chief Engineer, Jodhpur, to verify the actual net worth and financial capability of the joint venture. However, instead of submitting a detailed financial evaluation report, officials allegedly forwarded only a clarification letter from the Water Resources Department.
Financial Advisor FA(HQ), in official observations recorded under UO No. 18454, reportedly pointed out that no factual report regarding the JV’s net worth had been submitted at all.
The Financial Advisor further noted that the absence of financial verification raised serious concerns that the bidder may not satisfy mandatory financial eligibility conditions and that critical information may have been deliberately concealed.
Controversial Track Record in Other States Also Under Lens
The Finance Committee also examined the technical experience claims submitted by the JV’s second partner, Hindustan Projects.
To establish technical qualification, the company submitted a work completion certificate related to Gujarat’s Sauni Yojna project in Rajkot. However, officials reportedly found that the original work order belonged to another joint venture — M/s Pratibha Industries Limited-Yogiraj JV — and that Hindustan Projects later relied upon a tripartite agreement to establish involvement in the project.
Further concerns emerged regarding KCC’s past performance in Rajasthan itself. The firm had reportedly already been declared “Non-Responsive” by the Rajasthan Water Resources Department in connection with a solar-based sprinkler lift irrigation project in Baran district.
These developments prompted committee members to question why such a controversial and previously disqualified entity was being considered for a highly sensitive ₹210 crore rural water supply project.
Finance Committee Defers Approval, Orders Fresh Scrutiny
Following objections raised by the Chief Engineer, strong reservations from the Financial Advisor, and growing scrutiny surrounding the tender process, the Finance Committee ultimately refused to approve the recommendation made by the Chief Engineer, Jodhpur.
The committee has now officially deferred the proposal until further orders.
Key directions issued by the Finance Committee include:
- Detailed verification of the actual financial eligibility and net worth of M/s HP-KCC JV by FA(HQ).
- Fresh examination of technical bids submitted by all seven participating bidders.
- Review to determine whether any technically eligible firms were unfairly sidelined during evaluation.
- Reassessment of the legality and admissibility of documents submitted after tender opening.
Questions Over Transparency in Jal Jeevan Mission
The controversy has once again highlighted concerns over transparency and accountability in Rajasthan’s Jal Jeevan Mission projects.
Residents of 79 villages and 325 hamlets in Dechu and Lohawat blocks have been waiting for years for reliable drinking water supply. Instead, the project now faces delays due to alleged attempts to favour a disputed bidder despite serious technical and financial deficiencies.
The developments have raised uncomfortable questions about the functioning of Bid Evaluation Committees and whether procurement rules are being selectively interpreted to benefit certain contractors.
Critics argue that when clear discrepancies existed in legal documents, financial records, and technical eligibility, attempts to provide a clean chit to the bidder indicate possible administrative collusion that warrants independent investigation.