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Informist, Thursday, Dec. 19, 2024

 

--HC disposes of pleas by PNC Infratech, SPVs against road ministry order 

--CONTEXT:PNC Infratech, 2 SPVs moved HC over being barred from govt tenders 

--HC to road ministry: Decide expeditiously on pleas by PNC Infratech, SPVs 

--HC asks road ministry to consider content of pleas by PNC Infratech, SPVs 

 

NEW DELHI – A division bench of the Delhi High Court on Thursday disposed of petitions by PNC Infratech Ltd. and its two special purpose vehicles' against the Ministry of Road Transport and Highways' order banning the entities from participating in government tenders for one year. The court directed the road ministry to consider the contents of the petition as the representation of the companies and take a decision as expeditiously as possible, and preferably within four weeks. 

 

The case has its genesis from a government's notice inviting tender along with a request for proposal for four-laning of two segments--Package-I and Package-II--of the Jhansi-Khajuraho section from National Highway-75/76. PNC Infratech was the successful bidder in this tender. In compliance with the letter of acceptance in 2017, PNC Infratech had formed special purpose vehicles PNC Bundelkhand Highways Pvt. Ltd. and PNC Khajuraho Highways Pvt. Ltd.

 

In this project, an Integrity Pact was executed between PNC Infratech, its subsidiaries and the National Highways Authority of India, in respect of Package-I and Package-II, setting forth the commitments to ethical practices and transparency. During the operation and management of Package-I and Package-II, the Central Bureau of Investigation registered a first information report in June against certain former officials of the NHAI along with other accused persons including PNC Infratech and some of its employees under the Prevention of Corruption Act, 1988 and the Indian Penal Code, 1860.

 

Subsequently, a chargesheet was filed in August before the Court of the Special Judge for CBI Cases in Bhopal. While the chargesheet had been submitted, the court was yet to take cognizance of the matter, and charges were not yet framed. In light of the criminal prosecution launched by the CBI, NHAI thereafter issued a showcause notice in August to PNC Infratech and its special purpose vehicles, alleging a breach of the Integrity Pact. NHAI said that the violation warranted that the petitioners should be excluded and potentially blacklisted from future contracts.

 

Subsequently, the ministry on Oct. 24 disqualified the petitioners from participating in any of its tender processes for one year, effective immediately. Challenging this, the petitioners moved the single judge bench of the Delhi High Court, which dismissed their petitions on Oct. 29. Against the single judge's order, the petitioners moved the division bench.

 

At 1338 IST, the shares of PNC Infratech were down 1.3% at INR 316.05 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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