'Fair & Reasonable': Telangana High Court Dismisses PIL Against Grant Of Contract For Constructing Flats For Homeless Without Public Auction

The Telangana High Court has dismissed a PIL against Greater Hyderabad Municipal Corporation for allotting the work contract in connection with “2BHK Scheme” for construction of flats for homeless persons, without a public auction.

Division Bench of Chief Justice Alok Aradhe and Justice T. Vinod Kumar made it clear that the government may deviate from tender or public auction for allocation of contract, as long as allocation is just, fair, reasonable and in accordance with the principles of Article 14 of the Constitution.

“Therefore, in the facts of the case, we hold that the action of respondents No.1 and 2 is just, fair and reasonable and the deviation from route of tender is neither discriminatory nor arbitrary inviting the wrath of Article 14 of the Constitution of India," it observed while refusing to demolish two buildings in question where 216 families are currently residing.

The PIL was filed by one Gonewar Chandu against allocation of work to M/s DEC Infrastructure Projects.

The Court observed that the petitioner failed to prove any damage to the Public Exchequer and no material was placed on record to rebut GHMC's (respondent No.3) contention that best price was fetched via negotiations. It further observed that contract was awarded to M/s DEC at the same footing as was awarded to the first two Companies involved in the project.

The Bench also gave credence to the judgement passed by the Supreme Court in Indian Medicines Pharmaceuticals Corporation Limited v. Kerala Ayurvedic Cooperative Society Limited and concluded that when the aim of the Government is not revenue maximization, it may allot tender through other methods.

Further, it observed that the State is entitled to appoint any contractor it deems fit, if the project is lagging behind the estimated 'Rate of Progress.' The Court noted that the Preliminary Specifications to Andhra Pradesh Detailed Standard Specifications (APDSS) authorises the Executive Engineer to allot part of the work to any other contractor.

“The Executive Engineer acting under the aforesaid P.S. 60(c) of the APDSS made a recommendation for award of contract in favour of respondent No.3. Thereupon, the Government of Telangana by an order dated 15.11.2020 directed respondent No.3 to complete the balance work at Manasanpally Phases I and II for construction of 2412 2BHK houses."

The Court also took note of the fact that although the tender was allotted to M/s DEC in 2020, the petitioner approached the Court only after completion of the Project.

"It is obvious that the delay in the facts of the case on the part of petitioner in approaching this Court is of vital importance which is unexplained which is fatal to this proceeding. Therefore, prayer of petitioner for demolition of 2BHK houses which have already been constructed and handed over to beneficiaries cannot be entertained in this public interest litigation. We, therefore, hold that the writ petition suffers from delay and laches for which no explanation has been offered. For this reason also, the petitioner is not entitled to any relief.", and with this observation dismissed the PIL.

Case Title: Gonewar Chandu vs. The State of Telangana, Rep. by its Principal Secretary, Housing Department, Secretariat, Hyderabad, and others. (48)

Date: 24.08.2023

Counsel for the petitioner: E.Ramesh Chandra Goud

Counsel for respondent No.1: Pasham Krishna Reddy, Government Pleader for Housing, Municipal Administration & Urban Development Department.

Counsel for respondent No.2: Ch.Jayakrishna, counsel representing Mr. K.Ravinder Reddy, Standing Counsel for Greater Hyderabad Municipal Corporation

Counsel for respondent No.3: M.Govind Reddy, Senior Counsel Representing M.P.K.Aditya

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