Mysuru: Despite clear Government directives requiring departments to procure services and supplies from other Government agencies, the Mysuru City Corporation (MCC) has flouted norms by turning to private companies for vehicle insurance.

MCC operates over 650 vehicles — including those used by officials, garbage collection units and water supply tankers. Insuring these vehicles and ensuring timely renewals is mandatory.

As per regulations, this must be done through the Karnataka Government Insurance Department (KGID).

However, MCC has consistently bypassed KGID and opted for private insurers, raising serious questions about compliance and accountability.

Adding to the violation, Government rules clearly mandate that any service costing over                   Rs. 1 lakh must go through a tender process. The insurance bill runs up to Rs. 40 lakh, yet no tender was called. Instead, officials selected private firms based merely on quotations, without transparency or competitive bidding.

This double breach — ignoring KGID and flouting tender norms — has sparked allegations of irregularities and misuse of public funds. 

Sources claim this is not an isolated incident, but part of a pattern of systemic lapses within the MCC. While some violations surface, many are quietly buried. Only a thorough investigation can reveal the full extent of wrongdoing.

‘No involvement in the decision’

Clarifying on the matter, MCC Environmental Officer Mythri said: “The task of insuring MCC vehicles has been given to private companies based on previous practices. I joined MCC in December 2023 and I am unaware of what transpired before that.”

“Yes, there is a rule mandating insurance through KGID. However, the practice of using private insurers has been ongoing for a long time and continues even now. I have no role in this decision-making process,” she said.

Tender mandatory for services over Rs. 1 lakh

There is a rule within MCC that vehicle insurance must be obtained through the Karnataka Government Insurance Department (KGID). If done through a Government agency, calling for a tender is not required. However, availing insurance from private companies without inviting tenders, based merely on quotations, is a clear violation.

This matter did not come to my notice until now. I recently took charge as the Commissioner and during my short tenure, I have not authorised any insurance through private firms. As per the rules, if the cost exceeds Rs. 1 lakh, a tender is mandatory.

I will immediately call for relevant documents from officials. I will ensure corrective action is taken if any irregularity is found.—Shaikh Tanveer Asif, MCC Commissioner