Explained: How Social Welfare Department ‘Cherry-Picked’ Blacklisted Firm for Rs 31.58 Crore Contract Against Rs 14.91 Crore Bid Value

“An ePBG of 0.01 % is practically an invitation for dubious firms to bid. It’s a glaring red flag”

K Koushal

The Social Welfare Department’s Mission Vatsalya program is entangled in a major controversy after awarding a Rs 31.58 crore manpower outsourcing contract to Comtech Info Solutions Private Limited, a firm with a history of alleged fraud and blacklisting. The contract, valued at over 200% of the estimated bid value of ₹14.91 crore, has exposed serious flaws in the tendering process, raising allegations of favoritism, bid manipulation, and deliberate oversight by the department.

According to available documents and reliable sources, the tender issued under the Mission Vatsalya scheme for manpower outsourcing services over a period of 1 year, 6 months, and 3 days, attracted bids from 106 sellers.

However, only three companies qualified, including Glitters Forever Housekeeping Services Private Limited, G Active Security Services, and Comtech Info Solutions Private Limited. All three quoted an identical ₹31.58 crore—more than double the estimated bid value of ₹14.91 crore. This uniformity in bids has sparked suspicions of collusion, with sources questioning how such a significant cost escalation went unchallenged.

“Adding to the controversy, the tender’s Earnest Money Deposit (EMD) Performance Bank Guarantee (ePBG) was set at an unusually low 0.01%, compared to the standard 3-10% for contracts of this scale,” said sources, adding that this leniency allowed firms with questionable credentials, like Comtech, to participate, lowering the financial barrier typically used to filter out unreliable bidders.

“An ePBG of 0.01% is practically an invitation for dubious firms to bid. It’s a glaring red flag,” said a procurement expert familiar with government tenders.

Documents uncovered by The Typewriter revealed that Comtech Info Solutions submitted a fake declaration to secure the contract, concealing multiple pending legal cases against the firm.

According to reports, Comtech was previously blacklisted by the National Health Mission (NHM) in Uttar Pradesh for submitting forged documents and engaging in fraudulent practices, which led to significant financial losses for the state. Despite this history, the Social Welfare Department awarded Comtech the engagement order on May 9, 2025, prompting allegations of “cherry-picking” a favored bidder.

The Typewriter further noted that Comtech’s selection mirrors a pattern of questionable tender awards. The firm allegedly has ties to influential officials, which may have facilitated its clearance despite its tainted record. “This isn’t just negligence; it smells of deliberate manipulation to favor a blacklisted firm,” said an industry insider.

The identical ₹31.58 crore bids from all three qualified firms—over 200% higher than the estimated ₹14.91 crore—have fueled accusations of bid rigging. Sources argued that the Social Welfare Department failed to scrutinize the bids or negotiate a fair price, allowing a massive inflation of costs.

“A 200% jump in cost for a manpower outsourcing contract is indefensible. It suggests either gross incompetence or intentional rigging to siphon public funds,” said sources, adding that the Mission Vatsalya program, designed to support vulnerable children and families, relies on public funds to deliver critical services.

The inflated contract value threatens to divert resources from its intended purpose, undermining the program’s objectives. “This is public money meant for child welfare, not for enriching dubious contractors,” said sources, adding that Comtech’s fake declaration, which concealed pending legal cases, points to a severe lapse in the department’s due diligence. Tender rules typically require bidders to disclose any ongoing litigation or blacklisting, yet Comtech’s submission appears to have been accepted without verification. This raises questions about whether the department deliberately overlooked red flags to favor Comtech or was simply negligent in its vetting process.

Bidding experts have demanded a probe by the Comptroller and Auditor General (CAG) into the tender process. They are also calling for the contract to be canceled and for Comtech to be barred from future government tenders. “This is a betrayal of public trust. The department must be held accountable for squandering taxpayer money,” said experts.

It is pertinent to mention here that earlier as well The Typewriter questioned National Health Mission for awarding contract to Comtech by manipulating and tailoring the terms and conditions. Following the report, the said work was reportedly halted.

Despite repeated calls and text messages to Commissioner Secretary to the Government, Social Welfare Department, Sanjeev Verma and Mission Director, Majid K A Drabu, they were unavailable for comments.

When contacted Sakina itoo, Minister for Social Welfare of Jammu and Kashmir, she also did not respond to repeated calls. However OSD to Minister, Social Welfare said that he will bring up the matter to the notice of the Minister.When asked why Minister is not responding to calls, he tried to dodge the query.