In a major setback for Tata Motors, the Supreme Court on Friday dismissed the homegrown automaker's plea challenging BEST's (Brihanmumbai Electric Supply and Transport) decision to disqualify the company from a tender bid for supplying 1,400 electric buses worth about Rs 2,450 crore in Mumbai. BEST had earlier disqualified the auto major's bid as 'technically non responsive' and awarded the contract to Hyderabad-based Evey Trans Pvt Ltd, a decision which has been upheld by the court.

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While dismissing the Tata Group-owned company' plea, the apex court has also set aside a Bombay High Court order that had directed BEST to issue a fresh tender for electric buses. The SC, meanwhile, upheld BEST's decision to award the contract to Evey Trans.

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All three parties — Tata Motors, Evey Trans, BEST — had challenged the Bombay HC's order in the top court.

Last year in July, the Bombay HC had upheld the decision of BEST Undertaking to disqualify Tata Motors from a tender bid for operating electric buses in the city. A bench of Justices S V Gangapurwala and Madhav Jamdar dismissed a plea filed by the auto major challenging the disqualification.

The bench held that BEST had been right in disqualifying the Tata Motors. “The petitioner (Tata Motors) was rightly disqualified. It is also held that the decision of BEST to hold Evey Trans technically responsive is incorrect. Evey is also held non-responsive. BEST may, if required, issue fresh tender,” the bench stated.

The auto major had approached the HC challenging the BEST's decision to disqualify it from the tender process for operating 1,400 electric buses for Mumbai.

Tata Motors had participated in the tender process, but its bid was disqualified by BEST following a technical suitability evaluation, the parties had previously told the high court. The auto major had argued that its technical bid was "arbitrarily" rejected to favour the company that won the tender process.

BEST had published a tender notice for the operation of stage carriage services of 1,400 single-decker AC electric buses (with driver) for Mumbai and its suburbs on a gross cost contract (GCC) model for 12 years.

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Tata Motors is yet to issue an official statement regarding on the SC's ruling. Shares of the company were 2.12 percent higher at Rs 519.20 apiece in Friday's trade.

First Published:May 19, 2023 12:12 PM IST