The High Court at Hyderabad for Telangana and Andhra Pradesh Monday granted stay on the bidding process started by the AP Government for construction of the seed capital area of Amaravati, the new capital of AP. The single judge bench ordered the stay in a petition filed by two construction companies which filed separate petitions challenging the Swiss Challenge method adopted by the AP Government and stating that it was illegal. The court asked the AP Government to file a counter and posted the mater to October 31 for a detailed hearing.
The two construction companies had filed petitions against the Swiss Challenge method of the Capital Region Development Authority (CRDA) inviting bids for development of 6.84 sq kms of seed capital region of the AP capital Amaravati. The petitioners also wanted to know the revenue share offered by the Singapore consortium which was awarded the seed capital development project by the AP Government on June 24 this year. The AP Government had earlier stated that it would disclose the details only to bidders who qualify for the bidding process. Attorney General Mukul Rohatgi on behalf of the AP government told the court that Swiss Challenge model has been adopted to build a world-class capital city for AP.
The AP Cabinet on June 24 approved the controversial Swiss Challenge model for awarding the capital city development project to Singapore consortium of Ascendas-Singbridge and Sembcorp Development Limited, which in 2015 submitted a proposal under Swiss Challenge model. AP government has floated a special purpose vehicle (SPV) called Amaravati Development Company (ADC). Singapore consortium and the ADC will together develop the Amaravati capital city.