SC to hear airport privt petition on May 5

New Delhi, Apr 26: The Supreme Court will hear on May five an appeal filed by Reliance Airports Developers Private Limited challenging the Delhi High Court order dated April 21 dismissing the writ petition seeking cancellation of contracts for privatisation and modernisation of Delhi and Mumbai airports.

A bench comprising Ms Justice Ruma Pal and Justice Dalveer Bhandari issued the directions for hearing of the matter on May five when senior counsel Mukul Rohtagi appearing for Reliance Developers informed the court that two weeks protection granted by the High Court shall expire on May five and the government may hand over the physcial possession to the two companies, namely GMR Infrastructure Limited and GVK Industries Limited who have been given the tender.

The petitioner had challenged the High Court order on the grounds that the two firms who have been awarded the contracts, knew everything about the bids made by the others and they were deliberately given time to make a bid higher than that of the petitioner.

Tenders were opened on January 31, 2006. Reliance wrote a letter on Feburary 1, 2006 to the government as well as the Airport Authority of India (AAI) pointing towards irregularities and illegalities committed in award of the tenders.

The benchmark of technical expertise was illegally and arbitraily reduced by the government from 80 per cent to 50 per cent to favour the rivals of Reliance Airports Developer.

The modernisation process of two airports having maximum international traffic is likely to cost around Rs 4000 crore.

The petitioner, who is also seeking interim stay against the operation of the impugned High Court order, has also prayed to the Supreme Court to cancel the contracts illegally awarded to GMR and GVK Industries. The petitioner has also contended that the High Court has overlooked the fact that the petitioner was the highest bidder for Delhi airport and was technically best suited for Mumbai airport.

The High Court has also ignored the fact that the appointment of a group of eminient technical experts headed by Delhi Metro Chief E Sreedharan to process the bids from the point of view of technical expertise was illegal.

The petitioner has also pleaded that the act of bringing down the benchmark of technology from 80 per cent to 50 per cent by the government was arbitrary and discriminatory and was therefore violative of Article 14 of the Constitution.

The High Court had dismissed the writ petition of Reliance Airport.

The judgment of April 21, had observed that the decision of the government was neither illegal nor arbitary and the bidding process was fully transparent.

Regarding lowering of benchmark the High Court had ruled that it was the sole prerogative of the government.

It may be noted that when the government announced its decision to privatise the two airports, there was widespread agitation and strike by the employees of the aipports and it was withdrawn only after the government gave a written assurance that their jobs shall remain secure and there shall be no retrenchment.

UNI