New Delhi, Sep 27: The Supreme Court today stayed till further orders the notification issued by the Karnataka Government on September 17, inviting global tenders for completing the Rs 2,250 crore Bangalore-Mysore Infrastructure Corridor project.
A bench comprising Justices B N Agarwal, P P Naolekar and D K Jain also issued notices to the Karnataka government on a petition filed by Nandi, the contractors of the express highway.
The ruling was seen as a setback to the Karnataka government.
Senior counsel Ashok Desai appearing for Nandi contended before the court that the firm had already invested over Rs 1,200 crore and made further commitments to third parties running into a few thousand crores rupees.
The H D Kumaraswamy Government has been trying its level best to oust the present contractor from the project which involves construction of the 111-km long Bangalore-Mysore Express Highway.
The project also involves construction of the 41-km peripheral road around Bangalore city besides the 9.8 km link road and construction of five satellite townships around the expressway.
The court sought to know from the government how it floated global tenders despite directions of the court to allow the present contractor to complete the project at the earliest.
The apex court had imposed a cost of Rs 5 lakh on the state government for indulging in frivolous ligitations to stall the project.
The court in its order said, ''Issue noted. Until further orders, no action, whatsoever, shall be taken pursuant to the notification dated September 17, 2007 issued by the State Government.
Advertisements shall also not be acted upon.'' Counsel for the government Sanjay Hegde accepted the notice on behalf of the government and sought time to file a counter affidavit.
The court granted two weeks to the government for filing a counter affidavit and two weeks thereafter to the petitioner to file the rejoinder.
According to the state government, Nandi was provided 6,000 acres of land by the previous government and the present contractor had been indulging in real estate business to make crores of rupees through illegal real estate activities.