Smart card driving licence contract stayed

Published: 09th July 2013 12:30 PM  |   Last Updated: 09th July 2013 12:30 PM   |  A+A-

All further proceedings pursuant to a notification dated June 28, 2010 and award of contract dated April 30 for supply of smart card based driving licences and registration certificates to Bon Ton Softwares Private Limited in Chennai, were stayed by the Madras High Court on Monday.

“Taking into account the larger public interest and considering the huge loss to the State exchequer on account of vast difference in the amount quoted by petitioner company Smart Chip Limited in Noida and Bon Ton Softwares, there shall be an interim stay on all further proceedings,” Justice K K Sasidharan observed and posted the matter for further hearing on July 22.

The government had invited tenders for manufacture and supply of driving licences and registration certificates in the form of smart cards to be issued by 58 Regional Transport Offices and 49 unit offices in 2010.

The petitioner submitted its bid quoting Rs 197.50 crore, whereas the final bid of Bon Ton Softwares was Rs 293.72 crore. Hence, the present writ petition was filed.

The judge observed that files produced by the government prima facie showed that the bid submitted by the petitioner was rejected without any justifiable reason, causing a loss of Rs 96.21 crore to the exchequer.


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