Reliance moves court on airport contracts

Reliance Airport Developers today moved the Delhi High Court challenging the government's decision to award contracts to GMR-Fraport and GVK-ACSA for modernising the Delhi and Mumbai airports, respectively.

The financial bid of the company, which is part of Anil Dhirubhai Ambani Enterprises, was the highest for the Delhi airport. Reliance partner in the bid was ASA of Mexico.

The company's petition seeks cancellation of the bidding process on the ground that the government decision was "illegal and arbitrary". The matter will come up for hearing tomorrow.

In a letter to the members of an empowered group of ministers that awarded the contracts on Tuesday, Reliance Airport Developers said GMR-Fraport being allowed to match the highest financial bid on the grounds of it being the highest technical bidder was violative of original bidding conditions, which it alleged were changed twice on the day of the bidding.

It also said the same procedure was not applied for the Mumbai airport, which would have resulted in Reliance Airport Developers bagging the contract.

The letter also said two officials, closely involved in the bidding process, were on the board of Hyderabad Airport International Ltd, a joint venture between GMR and the Airports Authority of India, implementing the new airport project in Hyderabad.

"Had it (GMR-Fraport) chosen the Mumbai airport, the criterion of the highest technical qualification would not have been applied for Delhi but for Mumbai, and Reliance would have been awarded the contract for Delhi as it was the highest financial bidder," says Reliance Airport Developer's petition.

Reliance Airport Developers was downgraded below cut-off after the ministerial group asked a committee of technical experts, headed by Delhi Metro chief E Sreedharan, for a review.

"Can the government and the AAI change the terms and parameters of evaluation and the award of the tender, hours before the final stages without any reason or notice in (an) arbitrary fashion.... The question is whether the second highest tender can be granted a contract of a huge magnitude involving complex issues by allowing it to select an airport of its choice and 'match the higher bid' of the petitioner," the petition says.