HC strikes down CIDCO’s ₹3,477-Cr infra contracts in NAINA region
The court said and directed CIDCO to consider the financial bids of Thakur-EVRASCON, PNC-Aakshya and Ashoka-Aakshya as well as those of other eligible bidders and take a decision afresh
MUMBAI: In a significant ruling, 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, together worth ₹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 M S Karnik also struck down CIDCO’s decision to award one of the works worth ₹1,909 crore to PNC-Aakshya JV and the approval granted to the financial bid of Ashoka-Aakshya JV for work worth ₹1,568.86 crore.
On July 23, 2024, CIDCO had published notices, inviting bids for the two infrastructure works, valued at over ₹1,568.86 crore and ₹1,909 crore respectively. 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 had on September 26, 2024, addressed separate letters to CIDCO, raising objections to the bids submitted by Thakur-EVRASCON in respect of the subject tenders. Thakur-EVRASCON too sent a communication on September 27, 2024, to CIDCO, pointing out deficiencies in the technical bids submitted by its two rival JVs.
Despite submitting clarifications, Thakur-EVRASCON JV’s technical bids were rejected by the CIDCO tender committee on October 8, 2024, on grounds of the integrity package, mandatory eligibility documents, required work experience certificates and GST registration. Although Thakur-EVRASCON furnished point-wise clarifications to the objections raised by CIDCO, 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, indicating legal mala fides.
The senior counsel for CIDCO submitted that Thakur-EVRASCON did not fulfil the validity of the tender conditions. It was further submitted that CIDCO granted sufficient time and opportunity to the JV and other bidders to clarify their bids, and could not have relaxed the tender conditions in favour of Thakur-EVRASCON. “It substantially relied on foreign work experience, which was not authenticated strictly in the manner laid down in the tender,” the counsel said.
The division bench quashed and set aside the decision of the CIDCO tender committee and the word order in favour of PNC-Aakshya JV. It noted that Thakur-EVRASCON had 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 financial bids of Thakur-EVRASCON, PNC-Aakshya and Ashoka-Aakshya as well as those of other eligible bidders and take a decision afresh to award the contracts in question.
