The department has also recommended that the three bureaucrats, who were posted as commissioners of municipal corporations (MC) in Amritsar, Jalandhar and Ludhiana when the work was allotted, should also be charge sheeted.
An investigation into all the tenders allotted under the Urban Mission will also be undertaken, an official spokesman of the department said.
The move came after the Punjab Advocate General (AG), Atul Nanda, opined that the awarding of work under a single tender was "not valid".
Nanda, in his opinion said, "Yes, under very rare and exceptional circumstances, after recording justification on file for this and pursuant to the permission from the competent authority."
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The Punjab AG also opined that the procedure adopted, at present, for consideration and granting such tenders was not valid.
The circular dated February 22, 2011 of the local government department was not in conformity with law and has no binding effect, he had opined.
Besides, the department had also said charge sheet would be prepared against three bureaucrats -- Sonali Giri, G S Khera and Ghanshyam Thori -- the then commissioners of MCs of Amritsar, Jalandhar and Ludhiana respectively
The vigilance team of the department had found that work order worth Rs 500 crore, out of Rs 800 crore, were allotted on a single bid in violation of rules of MCs of Amritsar, Jalandhar, Ludhiana and Bathinda.
Besides, charge-sheet against Giri, Khera and Thori may be framed and put up on a separate file, which is to be sent to the chief minister's office for sanction, he said.