Telangana High Court sets aside Markfed’s new rules

Hyderabad: The Telangana High Court has set aside the stringent conditions imposed by the state marketing federation (Markfed) for the purchase of agricultural commodities such as Bengal gram, red gram, sunflower, jowar and black gram.

According to a petitioner in the High Court, Markfed had stated that the bidder should have an annual turnover in any one of the last three financial accounting years of Rs100 crore per annum. The bidder has to place bids for the entire quantity indicated in the lot, and not piece meal.Another condition was that bidders should pay Rs1,000 per metric tonne as earnest money deposit (EMD) to participate in the tendering process. The total stock to be lifted by the selected bidders is 62,835.375 metric tonnes valued about Rs260.35 crore, and bidders have to deposit Rs2.6 crore to participate in the process.   

These conditions had been challenged by some interested bidders. While allowing the petition, Justice Challa Kondanda Ram opined that the government had not shown due diligence required to be exercised in discharging the functions entrusted to Markfed. Justice Kodanda Ram felt that Markfed should not lose sight of its objective of getting the best price for the commodities, for which they are required to frame terms and conditions like a prudent trader rather than yet another department of bureaucracy.