The Supreme Courtroom on Tuesday imposed a penalty of ₹5 lakh on the Himachal Pradesh Housing and City Growth Authority (HIMUDA) for appearing in cahoots with a personal firm for the award of a young for the development of a business complicated in Shimla.
A bench of justices Bela M Trivedi and Pankaj Mithal famous that the general public physique tried to hoodwink the excessive court docket by agreeing to award the contract to the identical building firm regardless of a earlier declaration by the state excessive court docket relating to gross irregularities within the tendering course of.
“Now we have no hesitation in holding that the respondent no. 1 (HIMUDA) in collusion with the respondent no. 2 (Vasu Constructions), had taken the excessive court docket for a experience and misused the method of legislation for masking up the irregularities and illegalities dedicated within the tender course of by the officers of the respondent no. 1, and for anyhow awarding the contract to the respondent no. 2 beneath the guise of the court docket’s order,” held the bench.
Setting apart the excessive court docket order of October 2022 that authorised the award of the contract to Vasu Constructions, the highest court docket underlined that since HIMUDA, regardless of being a ‘State’ inside the which means of Article 12 of the Structure of India, acted malafide and in collusion with the personal agency took the excessive court docket for a experience, the general public authority have to be saddled with a heavy price.
“In that view of the matter, the impugned order handed by the excessive court docket is put aside. The enchantment is allowed with price of ₹5 lakh, to be deposited by HIMUDA with the Supreme Courtroom Advocates-on-File Affiliation, inside two weeks from as we speak,” stated the court docket, including the authority could subject a contemporary tender although.
In December 2018, HIMUDA had issued a letter of intent (LIO) to Vasu Constructions for constructing a business complicated in Shimla however the LOI needed to be withdrawn following complaints of irregularities within the course of and litigation earlier than the excessive court docket on the occasion of unsuccessful bidders.
An unbiased committee arrange by the excessive court docket to investigate into the tender course of additionally really useful cancellation of the tender, highlighting many shortcomings and irregularities. In February 2021, HIMUDA cancelled the tender course of within the wake of the proceedings earlier than the excessive court docket.
Nevertheless, after Vasu Constructions challenged the cancellation of the tender, HIMUDA made a press release earlier than the division bench that it had no objection to go forward with the preliminary tendering course of, in case the agency was able to execute the work on the identical phrases and situations as have been agreed initially. The division bench then disposed of the petition recording HIMUTA’s no-objection to the award of tender to Vasu Constructions. This order was challenged earlier than the highest court docket by one other bidder.