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Kerala High Court rules against leasing KSRTC terminal

Financial capacity of bidder to pay dues not known, court says.

KOZHIKODE: The leasing out of the new KSRTC terminal complex again hits a roadblock in the light of the recent High Court judgement observing the financial capacity of the bidder was not known.

It also finds that according to a report by the Corporation, the building has not been provided with a number by the civic authorities and not met fire and safety requirements.

Chief Justice Mohan M. Shantanagoudar, in his order, said that the transport department secretary clarified that the winning bidder was a firm registered immediately before the contract. “However, their financial capacity to pay the contract dues are not known. In this regard, it is stated by the secretary to the government that under no circumstances, possession should be handed over to the successful bidder unless the successful bidder remits the entire upfront premium,” the order reads.

The lawyer for the Corporation also submitted that though the building works were completed, it did not get a number as required under the law and that the fire and rescue department is yet to give its permission. He says it may take another one month to complete all the formalities.

The judgement does not even name MAK associates and only mentions about successful bidder.

Kerala Transport Development Finance Corporation (KTDFC) which is in possession of the Rs 65-crore bus terminal here selected MAK Associates. After allegations, the finance department suggested that KTDFC may go for a fresh tender following the transparent e-tendering procedure.

( Source : Deccan Chronicle. )
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