CHENNAI: Tangedco on Thursday informed the Madras High Court that the contract awarded to the BGR Energy Systems for setting up a power generation plant was revoked last week and the termination order would be issued soon. The submission was made by Advocate General PS Raman who represented the power utility.
“The contract to BGR was revoked last week. And the termination order is likely to be issued any time now,” he said when a public interest litigation petition filed by three trade unions, affiliated to the Bharatiya Mazdoor Sangh (BMS), came up for hearing before the first bench of Chief Justice SV Gangapurwala and Justice D Bharatha Chakravarthy.
Saying that the petitioners cannot seek a CBI probe into the matter and the petition is not maintainable, the AG also questioned the locus standi of the petitioners.
Senior counsel MR Venkatesh, appearing for the petitioners, submitted that the contract was awarded to the company in 2019 and was cancelled in 2021 since the company failed to furnish the security deposit-cum-performance guarantee because it was unable to tie up with any nationalised or scheduled bank in India or foreign banks having branches in the country. The bench adjourned the hearing as the AG sought time to filing counter-affidavit.