The Karnataka High Court quashed a tender awarded by Bharat Heavy Electricals Limited (BHEL) to a company with links to a Chinese company. The High Court has declared the awarding of the tender invalid.

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"The mere claim of public interest without following the due procedure of registering with the competent authority cannot be pitted against the national interest," stated the division bench headed by Chief Justice Prasanna B. Varale and Justice M.G.S. Kamal.

The tender by BHEL was in violation of an order of the Finance Ministry, the order said.

The BHEL awarded the tender to a Kolkata-based BTL EPC Ltd, which has a consortium agreement with a Chinese company Fujian Longking Co. Limited. However, the respondents contended that the consortium agreement between the entities was not a consortium in its strict sense.

“As a mandatory requirement of registration with the competent authority not having been complied with, a mere claim of public interest getting adversely affected cannot be pitted against the national interest," the Court said.

The petition was filed by a Noida-based company, Macawber Beekay Private Limited. The bench ruled that BHEL could not have awarded the contract to BTL EPC Ltd. solely based on their lower bid amount. Earlier, the single bench had quashed the petition challenging the awarding of the tender to the company with Chinese links.

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First Published:Aug 2, 2023 8:10 PM IST