Bombay High Court cancels tenders to ‘tainted’ contractors

The Bombay high court on Tuesday cancelled four contracts awarded by the BMC to tainted contractors including RPS Infraprojects Pvt Ltd and J Kumar Infraprojects Ltd. The court was hearing a PIL filed by social activist, Jaishree Khadilkar, objecting to BMC’s decision to award contracts to tainted contractors, which it turned into a suo moto public interest litigation (PIL).

“We are of the view that the decision of respondent no 1 (BMC) is against the larger public interest,” observed a division bench of Justice Shantanu Kemkar and Justice Markand S. Karnik while setting aside the contracts.

With the court order being passed on Tuesday, works including reconstruction of Hancock Bridge at Mazagaon, widening and reconstruction of bridge across Mithi river at Dharavi near Drive-in Theatre in H/East ward, construction of vehicular bridge at the junction of Yari road and Lokhandwala back road near Amernath Tower building, and construction of Railway Over Bridge at Vikhroli Railway station have been quashed and set aside.

“It shocks our conscience that respondent No 1 (BMC), though fully aware of preliminary enquiry reports (that work done by these contractors was of poor quality) and the decision of the Municipal Commissioner to initiate action of blacklisting and also criminal action, first decided to award contracts and immediately thereafter, took a decision to suspend registration (of these contractors),” observed the bench.

The bench also said that though the BMC had submitted that the procedure as laid down had been followed while awarding the contract, “In our considered opinion, the circumstances are so compelling that we are inclined to interfere. We are of the view that the power of BMC under section 69(c) of the MMC Act to award contract has not been exercised fairly and justly and in fact, the same has been exercised with a view to defeat the public interest.”

It also said, “Apprehending that if the show cause notice is issued, they will not be able to award tenders, hurried steps for award of contracts have been taken as if heaven were going to fall. The decision taken by the BMC in our considered view is intended to favour respondent no 3 and 4.

Therefore, we have no option but to allow this petition and quash the impugned decision.