FCC

BMC informs HC cancellation of new tender for road concretisation

2024-01-19

The bench declared that the concerned officer was instructed not to issue a mere one line decision. The bench stated that they expected a decision on various items in the show cause notice and asserted, "The present petition will not survive. There is no further tender." Subsequently, the bench disposed of the plea.

The Brihanmumbai Municipal Corporation (BMC) informed the Bombay High Court that the issuance of a fresh tender, valued at over Rs 13.62 billion and issued on December 4 to concretise roads in Mumbai, had been cancelled.

The High Court directed BMC Commissioner Iqbal Singh Chahal to appoint a high-ranking officer to provide a hearing to Roadway Solutions Infra (RSIL). The civic body had terminated RSIL's contract to improve and concretise various roads in November last year. The high-ranking officer was instructed to decide the matter on merit by January 31.

The BMC officer was told to listen to the firm's response to its termination and show cause notice, addressing why a penalty of nearly Rs 520 million could not be imposed for not complying with the contract terms. The High Court maintained the stay on the termination until the BMC sets a date to decide the matter, or until January 31, whichever is later.

The High Court expressed dissatisfaction, stating that although the BMC had earlier offered to provide a hearing in response to the termination notice, no such hearing took place, deeming it "unacceptable."

On December 14, a division bench comprising Justice Gautam S Patel and Justice Kamal R Khata granted an interim stay on the operation and implementation of the fresh tender issued by BMC on December 4 for road concretisation. They noted that the work was "not a matter of emergency."