The Hindu Business Line : Airports modernisation: SC admits Reliance appeal

The Supreme Court on Friday admitted an appeal filed by Reliance Airports Developers in the airport modernisation issue and said that various factors, including lowering of standard as well as giving choice in the opening of financial bid in the award of contract for airport modernisation, needed to be examined in detail.

A Bench of the Chief Justice, Mr Justice Y.K. Sabharwal, and Mr Justice C.K. Thakker ordered notice on the special leave petition filed by Reliance challenging a Delhi High Court judgment rejecting its petition seeking cancellation of contracts awarded to two companies for privatisation and modernisation of Delhi and Mumbai airports.

Notices were issued to the Centre, GMR Infrastructure Ltd and GVK Industries Ltd directing them to file reply within two weeks, and rejoinder thereafter by Reliance. The Judges posted the matter for hearing by a vacation Bench in June.

Questions raised in SLP

Reliance Developers, in its appeal, said that the questions that arose for consideration in this SLP were: whether it was permissible for the Government of India to unilaterally alter the tender conditions after evaluation had been done, especially when such alteration would operate to the prejudice of one particular bidder, viz the petitioner in this case.

The SLP said the two firms that had been awarded the contracts knew everything about the bids made by the others and they were deliberately given time to make a bid higher than that of the petitioner.

Tenders were opened on January 31. The next day, Reliance wrote a letter to the Government as well as the Airports Authority of India (AAI) pointing out the irregularities and illegalities committed in the award of the tenders.

It said the Government illegally and arbitrarily reduced the benchmark of technical expertise from 80 per cent to 50 per cent to favour the rivals of Reliance Airports Developer.

HC judgement assailed

Assailing the High Court judgment, the SLP said that it had overlooked the fact that the petitioner was the highest bidder for Delhi airport and was technically best suited for Mumbai airport.

Further it must be noted that the respondents had arbitrarily applied two different standards/yardsticks for the two airports sought to be privatised under the same tender process.

The SLP sought quashing of the impugned judgment dated April 21 and an interim stay of its operation.

It sought a direction to cancel the contracts awarded to GMR and GVK Industries.