PIL against GHMC awarding 2BHK contract dismissed

In his PIL, Gonewar Chandu from Nizamabad alleged that GHMC’s decision to award the contract to DEC Infra was executed without a formal tender process.
Telangana High Court. (Photo | Wikimedia Commons)
Telangana High Court. (Photo | Wikimedia Commons)

HYDERABAD: A bench of the Telangana High Court, comprising Chief Justice Alok Aradhe and Justice T Vinod Kumar, on Thursday dismissed a PIL contesting the contract awarded by the Greater Hyderabad Municipal Corporation (GHMC) to M/s DEC Infrastructure Projects India Pvt Ltd for the construction of flats intended for homeless individuals.

In his PIL, Gonewar Chandu from Nizamabad alleged that GHMC’s decision to award the contract to DEC Infra was executed without a formal tender process. The petitioner also claimed that the arrangement breached the stipulated terms and conditions of the agreed Rs 68 crore payment to the respondent.

In response, counsel representing DEC Infra told the court that given the circumstances of the case, negotiations were deemed the preferred mode for contract awarding, as they could yield the best price.
Counsel said that the allocation of the remaining construction work, left unfinished by other contractors, through negotiations was asserted to be neither arbitrary nor in contravention of Article 14 of the Constitution.

It was posited that the contract had not been awarded with a 38 per cent excess over the standard value.
Counsel also told the court that the petitioner filed a writ petition on November 1, 2022, subsequent to the completion of the project.

In the petition, concerns were raised about GHMC’s decision to grant construction work valued at Rs 180 crore for the construction of 2,412 2BHK houses in Mansanpally Phase I and II without soliciting tenders.

The petitioner’s grievance centred on the alleged disbursement of excessive funds to DEC Infra, with a plea to withhold bills amounting to Rs 68 crores due, as these bills exceeded 38 per cent of the contract value.

Following the arguments, the court concluded that the writ petition lacked merit and dismissed it.

However, the court directed the principal secretary and the GHMC commissioner to ensure adherence to the payment conditions stipulated in the contract while disbursing funds to DEC Infra.

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