The Supreme Court recently imposed a fine of Rs 5 lakhs on the Himachal Pradesh Housing and Urban Development Authority (HIMUDA) for colluding with a private company in order to secure a tender by deceiving the High Court for building a commercial complex in Shimla.
Reversing the High Court’s order, the Bench of Justice Bela M Trivedi and Justice Pankaj Mithal remarked that HIMUDA deceived the High Court in collusion with the private entity by misusing the process of law for covering up the irregularities and illegalities committed in the tender process by the 13 officers of the HIMUDA, to anyhow benefiting the private entity to receive the contract under the guise of the court’s order.
The top court order stated that they have no hesitation in holding that the HIMUDA in collusion with the Vasu Constructions, had taken the high court for a ride and misused the process of law for covering up the irregularities and illegalities committed in the tender process by the officers of the HIMUDA, and for anyhow awarding the contract to the Vasu Constructions under the guise of the court’s order.
The Supreme Court further questioned the High Court decision which had approved the contract to Vasu Constructions, as the High Court’s order was passed without a proper application of mind and without assigning any cogent reason for brushing aside the findings recorded by the Independent Committee.
The court noted that it is a matter of surprise for them that the High Court also could not notice the ill-intention of the respondents and disposed of the petition, allowing them to go ahead with the original tender, ignoring the reports of the independent committee and the observations made by the single bench in the judgment dated January 8, 2021 with regard to the irregularities and illegalities committed by the officers of the HIMUDA.
The court observed that since, they have found that the HIMUDA, though state within the meaning of Article 12 of the Constitution of India, had acted malafide and in collusion with the Vasu Constructions, and had taken the High Court for a ride, the present appeal deserves to be allowed with heavy cost.
Subsequently, the court ordered the HIMUDA to deposit Rs. 5 Lakhs with the Supreme Court Advocates-on-Record Association within two weeks from the date of the Judgment. Furthermore, the court clarified that the HIMUDA shall be at liberty to initiate a fresh tender process in accordance with law and after following the due process of law.
Earlier in December 2018, HIMUDA granted a letter of intent (LOI) to Vasu Constructions to construct a commercial complex in Shimla. Nonetheless, the Letter of Intent (LOI) had to be rescinded owing to complaints of procedural irregularities and subsequent litigation initiated by unsuccessful bidders before the high court.