The Standing Committee has decided to buy spirally welded mild steel pipes from Delhi-based Saw Pipes, a Jindal group company. The committee was not ready to deal with the company earlier and had even recommended to the State Government to blacklist the company.

The multi-crore deal had seen allegations flying thick and fast in thee civic corridors with a couple of Standing Committee members accusing the Commissioner of favouritism. Saw Pipes had brought its offer down by Rs two crore from Rs 14 crore when the civic body had invited revised offers.

In the past, however, the committee had recommended that the company be blacklisted for it reneging on its offer when the bids were invited for the first time. The civic body did not give the work order during validity period.

When the order was eventually placed after the lapse of the validity period, the company said it could no more afford the original rates as prices of raw material had gone up. The Standing Committee had then sought to blacklist the company.

While the Municipal Commissioner was all for giving the contract to the company, the committee was intent on doing otherwise. But had to fall in line when the Commissioner was able to prove that the deal was beneficial to the civic body as it saved more than half a crore.