HC stays TN Govt`s smart-card project
Madras High Court stayed Tamil Nadu Government`s tender notification and contract for issuance of smart cards which caused loss of over Rs 96 crore to state.
Chennai: Madras High Court on Monday stayed a Tamil Nadu Government`s tender notification and multi-crore contract for issuance of smart cards for driving licences and vehicle registration certificates, which allegedly has caused a loss of over Rs 96 crore to the state exchequer.
Passing interim orders on a petition by Noida-based Smart Chip Ltd, whose bid was rejected, challenging the selection process, Justice K K Sasidharan stayed all further proceedings pursuant to the June 28, 2010 tender notification and April 30, 2013 contract awarding the project to Bon Ton Softwares(P) Ltd here until further orders.
The Judge posted the matter for further hearing to July 22.
The petitioner firm submitted that the Transport Department issued a tender notification for supply of the Smart Cards in 58 Regional Transport offices and 49 unit offices on Build,Operate,Own and Transfer (BOOT) basis.
The company submitted though it quoted Rs 197.5 crores, the project was awarded to city-based Bon Ton Softwares(P) Ltd., which allegedly quoted Rs 389.80 crores and after negotiations accepted to implement the project at 293.72 crores.
The petitioner contended that by rejecting its bid, a heavy loss had been caused to public Exchequer to the tune of Rs 96.21 crores.