Supreme Court Raps Manipur Govt For Not Inviting Fresh Tenders To Transport Grains From FCI Depot To Child Development Project Officers

The Supreme Court on Friday deprecated State of Manipur for lethargy and negligence on the State and Social Welfare Department ("Department") part for not issuing the fresh tender process and Notice Inviting Tenders ("NIT") after 2018 for transporting rice and other micronutrients from Food Corporation of India's depots in the State to offices of Child Development Project Officers.Considering that since 2017-18 the contract for transportation of rice and other micronutrients under Wheat Based Nutrition Programme ("WBNP") was continuing solely on the basis of interim arrangement without inviting fresh tenders and without entering into permanent contracts, the bench of Justices MR Shah and AS Bopanna observed that, "At the outset, it is required to be noted that this is a glaring example of lethargy on the part of the State Government in not inviting the fresh tenders for transporting Rice & other micronutrients under the Wheat Based Nutrition Programme (WBNP), from Food Corporation of India's depots in the State of Manipur, to the offices of Child Development Project Officers and to continue the contract without inviting fresh tenders on the basis of the Notice Inviting Tender (NIT) issued on 22.06.2017 causing huge loss to the State and the Public Exchequer."The Court in (BK Enterprise v State of Manipur and Another) further observed that, "It can be seen that since 2017-18 the contract for transportation of the rice and other micronutrients under the WBNP to the offices of Child Development Project Officers has been continued solely on the basis of the interim arrangement and without inviting fresh tenders and without entering into any permanent contracts. To continue with the contracts for transportation of rice and other micronutrients within the State without any fresh tenders and by way of an interim arrangement only and at the rates which were prevailing in the year 2017-18 has caused tremendous/huge loss to the State and the Public Exchequer." The observations were made while the bench was considering an appeal against the Manipur High Court's order dated November 4, 2020 by which the High Court had directed the State and its Department to take up immediate steps and issue fresh NIT for transportation of food grains and Micronutrients under the WBNP within a period of 10 days from the date of receipt of a copy of this judgment and order. The High Court had also directed for completing the whole tender process including the issuance of work order should be completed within 20days from the date of issue of fresh NIT. As per the Court till the completion of the tender process and issuance of the work orders, the present arrangement for transportation of food grains under the WBNP pursuant to the interim order dated February 19, 2018 had to continue.Factual Background The State of Manipur through the Director of Social Welfare Department, Government of Manipur issued a NIT on June 22, 2017 for transporting Rice & other micronutrients under the WBNP, from Food Corporation of India's depots in the State of Manipur, to the offices of Child Development Project Officers.In its meeting on December 16, 2017 the State's Higher Tender Committee recommended that the acceptable band of rate was Rs.6.265 – Rs.11,635 per MT per KM. It also recommended awarding Route No.8 to RK & Co and further for conducting fresh tender for other routes. The Director of Social Welfare Department, Government of Manipur awarded contracts for all the routes to one RK & Co. by way of interim arrangement till the finalization of the re-tender process. The appellant ("BK Enterprise") filed a writ petition before the High Court seeking award of tender with respect to route nos. 1,3,5 & 9 alleging inter alia that being the lowest bidder as per Higher Tender Committee's band rate, it should be awarded the contract with respect to route nos. 1,3,5 & 9. During the pendency of the writ, Director, Social Welfare Department on April 30, 2018 cancelled the Higher Tender Committee's proceedings and recommendations dated December 16, 2017.The High Court on June 20, 2018 disposed the writ with directions to the State to constitute a High Power Committee to proceed with the tender process afresh from the stage where and after the technical and financial bids opened by the State/Director, Social Welfare Department and it should be completed on or before July 21, 2018.Aggrieved, the appellant filed a writ appeal before the Division Bench of the High Court. On December 19, 2018 the Division bench directed for equal distribution of the available WBNP rice amongst three contractors, namely, RK & Co., BLL Enterprises and BLL Agency as a temporary arrangement of all nine routes. The State entered into temporary distribution agreements with the aforementioned bidders. Supreme Court's Observations While deprecating the action on the part of the State Government and Social Welfare Department the bench took into consideration that even after the directions of...

Supreme Court Raps Manipur Govt For Not Inviting Fresh Tenders To Transport Grains From FCI Depot To Child Development Project Officers

Shruti Kakkar

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