'Entrusting Amaravati construction to Singapore firm contrary to law'

HYDERABAD: The Aditya Housing Company, one of the company which has challenged the technical eligibility criteria and bid submission process under the Swiss Challenge method, on Thursday told the division bench of the High Court that the action of the Andhra Pradesh government to entrust the job to Singapore consortium is contrary to the provisions of law. In fact, the clause employment generation was not present in the tender documents prepared for the purpose of selecting a contractor for constructing the core area of Amaravati capital city, it pointed out.


The bench comprising Acting Chief Justice Ramesh Ranganathan and Justice U Durga Prasad Rao was dealing with an appeal filed jointly by the state government and the Capital Region Development Authority (CRDA) challenging the interim order of a single judge who stayed all further proceedings of the notification issued for development of start-up area of Amaravati city. The appellants sought to vacate stay on bidding process to develop start-up area under Swiss challenge method.


Senior counsel D Prakash Reddy, appearing for the respondent Aditya Housing company, alleged that the government usurped the powers of statutory authority CRDA.


There is no provision for penal clause to deal with the situation arising out of failure of Singapore consortium failing to attract investors who could general employment in the new capital city. In fact, the state has formulated the tender conditions with an intention to eliminate Indian companies from participating in the bidding to develop start-up area of Amaravati capital city under the Swiss challenge method. The state is bringing in new theories to suit its agenda from time to time, he said.


Earlier, AP advocate general Dammalapati Srinivas told the bench that the government has intended to build the capital city through Swiss challenge method in order to ensure that a company which has proven credentials in building world class facilities on a foreign soil come forward to build the new capital city for AP state. Mere building ability is not sufficient, but the built-in-space should be allotted to foreign companies.


Besides, they should bring in part of their operations to AP state. The bench posted the matter to Monday for further hearing.

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