Madras High Court asks AAI to call for fresh master concessionaire appt tender

Chennai: Madras high court has directed Airports Authority of India to call for a fresh tender for appointment of Master Concessionaire to design, build, finance, operate and maintain general retail outlets in Chennai Airport. 

Setting aside the bid submitted by Evolve Business Ventures of Bangalore, Justice M. Duraiswamy has ordered fresh bid.

The petitioner, Travel News Services India Private Limited, New Delhi, engaged in the business of operation and management of travel retail shops, which sell and deal in travel retail goods for sale at airports and other places.

It said the Regional Executive Director, Airports Authority of India (Southern Region), Chennai floated a tender for appointment of Master Concessionaire to design, build, finance, operate and maintain general retail outlets at Chennai Airport in October 2016. 

After opening of technical bid, the e-tender portal of the AAI (Southern Region) disclosed that Evolve Business Ventures of Bengaluru was the highest bidder. 

Immediately, the petitioner came to know that Bhawar Lifestyle, and Evolve Business Ventures of Bengaluru, another bidder, were related and under the same management team and both belonged to members of a same family. Submitting their bids were in violation of Clause 2.2.1(c)(vi) of the tender.

Despite various representations challenging the bids, the AAI (Southern Region) on December 22, 2016, declared Evolve Business Ventures as the highest bidder. The company sought to declare a bid submitted by Evolve Business Ventures of Bengalu-ru as it was contrary to the tender condition. 

The judge said, “I am of the view that the relationship between two bidders need not necessarily be Corporate relationship, but a close relationship of two bidders that puts either or both of them in a position to have access of each other information about or to influence the proposal of either or each other, shall be deemed to have Conflict of Interest,” the judge said. 

Justice Duraiswamy has directed the Airports Authority of India (Southern Region) represented by its Regional Executive Director, Chennai Airports Authority of India, represented by its Chairman, New Delhi and Airport Director, Airports Authority of India, Chennai International Airport, to call for fresh tender. 

Meanwhile, the judge has dismissed another writ petition filed by them to forbear the Airports Authority of India (Southern Region) from awarding the Letter of Award to Evolve Business Ventures of Bangalore, as it was fructuous as Tendering Authority had awarded the tender as early as on March 4, 2017 itself and that the Writ Petition was filed only after the award of the tender on March 22, 2017.