HC directs MSRTC to cancel contract, float fresh tenders

Akola, Oct 23 (UNI) The Nagpur bench of Bombay High Court directed the Maharashtra Road Transport Corporation (MSRTC) to cancel the existing contract with a Latur-based courier company by December 31 and float fresh tenders in January next year.

The division bench of Justice B H Malrapallai and Justice A H Joshi passed the order yesterday on the writ petition filed by the president of Vidarbha Chamber of Commerce and Industry (VCCI), Akola Ashok Gupta, one of the aggrieved parties.

MSRTC had awarded the contract of parcel and courier service for the entire state to Baba Trading Co for Rs 10 crore for a period of three years from October one, 2005 to September 30 this year. In the contract, there was a clause that the contract would be extended for another two years term.

However, Baba Trading Co subcontracted the work to Sai Transport and Courier Service Pvt Ltd of Auranagabad, the petitioner alleged.

As a result, many times parcels were booked for non-operational areas, leading to call back of the goods and inordinate delay in delivery of goods. For which, the freight charges were never refunded to the concerned parties, the petitioner alleged.

Moreover, MSRTC gave free hand to the said company to charge exhorbitant rates, the petition stated.

The petitioner, therefore, prayed to quash the agreement and direct the company to refund the charges that it had collected illegally.

The division bench has directed MSRTC to float fresh tenders in January next year.

UNI XR SSS VKG1538