KOCHI: The Kerala High Court on Friday stayed for two weeks the order issued by the Kerala Government barring/blacklisting PricewaterhouseCoopers (PwC), an international consultancy firm, from participating in projects promoted by the Electronics and IT Department for the next two years. The government had also decided to not extend a contract relating to the Kerala Fibre Optics Network (KFON) project.
Justice P V Asha issued the interim order on a petition filed by Rakesh Paul Punjabi, partner, PwC, challenging the government order. Senior Supreme Court lawyer Mukul Rohatgi appeared for the petitioner. The government landed in a soup following the recruitment of gold smuggling prime accused Swapna Suresh through PwC for the Space Park project.
While barring the company, the government cited that the consultancy company did not perform a comprehensive background check including educational qualifications before recommending Swapna’s appointment in the PMU Space Park. The company had been the management consultant for the Kerala State IT Infrastructure Limited’s (KSITL) Space Park project.
The petitioner contended that the government had not followed the principle of natural justice before issuing the order. It had arbitrarily proceeded to bar or blacklist the petitioner company without hearing it. In fact, it was after receiving the curriculum vitae of Swapna Suresh from the KSITL managing director that the petitioner had got the background checked by a third party, namely M/S Vision Technology and Staffing Solutions Pvt Limited.
Petitioner’s argument
The petitioner argued that the order had been passed in a mechanical manner and without any application of mind. The petitioner had made large investments in equipping itself to perform the works of the KSITL’s project. The government order would render these investments redundant and lose its complete market stand in the state. The government had failed to even state any reasons whatsoever for debarring/blacklisting the petitioner for a period of two years. The company has been barred/blacklisted for a period of two years simply on the whims and caprices of the state government, stated the petition.