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This is an archive article published on May 6, 2006

SC issues notices to GMR, GVK on Reliance plea

The Supreme Court today raised questions on the bidding and grant of contracts for modernisation of Delhi and Mumbai airports but stopped short of staying the April 21 order of the Delhi High Court upholding the process.

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The Supreme Court today raised questions on the bidding and grant of contracts for modernisation of Delhi and Mumbai airports but stopped short of staying the April 21 order of the Delhi High Court upholding the process.

Admitting a petition filed by Reliance Airport Developers challenging the Delhi High Court’s decision upholding the government decision, a bench of Chief Justice Y.K. Sabharwal and Justice Y.K. Thakkar issued notice to the Centre, GMR and GVK and asked them to file their reply in two weeks.

Reliance claimed that the Group of Ministers had illegally and arbitrarily reduced the benchmark for technical expertise to favour of its rivals GMR and GVK. Hearing its counsel Mukul Rohtagi, the bench sought to know ‘‘what was the expertise of the Group of Ministers to reduce the benchmark from 80 to 50 per cent’’.

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‘‘What then is the point of having all these experts? What is the yardstick? What was the material before the GoM,’’ the court quizzed additional solicitor general Gopal Subramanium. The ASG, however, maintained that there was no violation of the terms and conditions laid down in the tender document and requested the court not to pass any interim order as the airports had already been handed over to the joint venture consortium.

After listening to the rival pleas, the bench observed that there was a need to examine in detail the lowering of standard as well as giving choice of opening of financial bid for the airport modernisation.

Reliance in its petition contended that the Delhi High Court had overlooked the fact that it was the highest bidder for the Delhi airport and technically the best suited for Mumbai airport. Besides quashing the April 21 HC order, it also requested the SC to stay its interim operation and direction to cancel the contracts given to GMR and GVK.

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