Setting aside the decision of Maharashtra State Road Development Corporation (MSRDC) to award toll contract for a road in Solapur district to Shree Swami Samarth Engineers, a division bench of Justices Dilip Sinha and V K Tahilramani pulled up Kshirsagar, the Corporation's chairman and an NCP leader.
"The Chairman ought to have acted reasonably, fairly and in the public interest in awarding contract, rather than acting detrimental to the public interest resulting in causing loss to the public exchequer," the judges noted.
The observations came last week on the petition filed by Jai Laxmi Constructions, another bidder.
S M Authade firm was awarded the original contract from February 2008 to February 2009. Fresh tender was floated in 2009, but since bids were below estimated realisation, MSRDC invited fresh tenders.
According to the petitioner firm, it was the highest bidder with the offer of Rs 1,338 lakh, while S M Authade had submitted bid of Rs 1,275 lakh.
But the MSRDC, instead of accepting the highest bid, authorised the Chairman, Vice-Chairman and Managing Director to take decision.
The VC and MD recommended award of contract to Jai Laxmi, but the Public Works (Public Undertaking) Minister cancelled the whole process, and ordered another tender.
Eventually, the contract was awarded to Shree Swami Samarth Engineers, from September 25, 2011. (More)
