Kannur International Airport Ltd (KIAL) has issued a show-cause notice to STUP Consultants, winner of the integrated project consultancy contract.
KIAL has hinted at cancellation of the consultancy agreement if STUP Consultants is found to have violated Request for Proposal (RFP) conditions as alleged.
Earlier, Kochi-based Mir Projects and Consultants, a rival contender, had approached the High Court of Kerala seeking cancellation of the contract.
It had alleged that the award of the contract to a consortium of STUP Consultants and Darashaw violated the tender requirement that bidders should not have been blacklisted.
The high court proceeded to issue notices to the Kerala Government and KIAL and had posted the case for further hearing for Thursday (September 6).
On Monday, a spokesman for the airport company quoted V. Thulasidas, Managing Director, as saying that the show-cause notice has been served.
This was after KIAL came across comments indicating that STUP had been blacklisted by the Punjab Infrastructure Development Board.
The spokesman said that STUP had earlier submitted an affidavit to KIAL that it was not blacklisted or disqualified in any other contracts. It was also not subjected to disqualification as had been pointed out by a rival bid participant.
He quoted the Managing Director as saying that legal action would be taken if it was found that the RFP conditions have been violated.
STUP was selected project consultant after being ranked first in the composite technical-cum-financial evaluation carried out as per provisions of the RFP.
The consortium would handhold KIAL to develop the greenfield airport project from the design to operational stage.
It will also provide advisory services on strategy and technical, finance, legal, legal and operational aspects.