HC strikes down Cidco's Rs.3,477 cr infra contracts in NAINA region
MUMBAI, May 7 -- The Bombay high court on Tuesday struck down Cidco's decision to disqualify the bids submitted by the Thakur-EVRASCON Joint Venture (JV), for two major infrastructure development works in the Navi Mumbai Airport Influence Notified Area (NAINA) region, worth Rs.3,477 crore. The JV comprises Thakur Infraprojects Pvt Ltd and EVRASCON (OJSC Euro Asian Construction Corporation), a company established in Azerbaijan.
The division bench of Chief Justice Alok Aradhe and Justice MS Karnik struck down Cidco's decision to award one of the works worth Rs.1,909 crore to PNC-Aakshya JV and the approval granted to the financial bid of Ashoka-Aakshya JV for work worth Rs.1,568.86 crore.
On July 23, 2024, Cidco published notices, inviting bids for the two infrastructure works. Thakur-EVRASCON JV submitted its technical and financial bids on November 9, 2024, along with other JVs, including PNC Aakshya, and Ashoka-Aakshya.
The PNC-Aakshya JV and Ashoka-Akshaya JV on September 26, 2024, addressed separate letters to Cidco, raising objections to the bids submitted by Thakur-EVRASCON. Thakur-EVRASCON too sent a communication on September 27, 2024, to Cidco, pointing out deficiencies in the bids submitted by its two rival JVs. Despite submitting clarifications, Thakur-EVRASCON JV's technical bids were rejected by the Cidco on October 8, 2024, on grounds of integrity package, mandatory eligibility documents, work experience certificates and GST registration. Although Thakur-EVRASCON furnished point-wise clarifications to the objections, these were rejected, and the bids were opened on October 9. Aggrieved by this, Thakur Infraprojects Pvt Ltd approached the high court on October 10, 2024, which passed an interim order stating that the final award of the project was contingent on the court's decision in the ongoing writ petition. Despite the order, Cidco on October 15 issued a work order to PNC-Aakshya JV.
The counsel for the petitioner submitted that the procedure followed by Cidco in evaluating the bids was unfair and discriminatory, as the objections against Thakur-EVRASCON JV were acted upon but those against other bidders were ignored.
The senior counsel for Cidco submitted that Thakur-EVRASCON did not fulfil the validity of the tender conditions and said it has given sufficient time to the bidders to clarify their bids.
The court noted that Thakur-EVRASCON lodged an FIR against PNC, the partner in the PNC-Aakshya JV, for irregularity in the integrity pact in respect of the previous tender, which was not considered by Cidco while adjudging the suitability of PNC-Aakshya. "Therefore, the decision-making process of Cidco which led to the grant of contracts cannot be said to be fair, reasonable or transparent," the court said and directed Cidco to consider the bids of Thakur-EVRASCON, PNC-Aakshya and Ashoka-Aakshya as well as those of other eligible bidders and take a decision afresh....
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