HC junks Convergence Energy order to bar PMI Electro bid for e-buses supply
This story was originally published at 15:18 IST on 9 September 2025
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NEW DELHI – The Delhi High Court has set aside an order by Convergence Energy Services Ltd. to bar PMI Electro Mobility Solutions Pvt. Ltd.'s bid for procurement, supply, operation and maintenance of electric buses and for development of allied electric and civil infrastructure in Jammu and Kashmir on a gross cost contracting basis under the PM-eBus Sewa scheme. Convergence Energy Services had cancelled the bid because PMI Electro Mobility had not informed about an alleged joint inquiry against the company by the Automotive Research Association of India and International Centre for Automotive Technology.
The high court noted that the petitioner was unaware of the pending inquiry at that time. In January, the Ministry of Heavy Industries closed its inquiry against the petitioner, which was the foundation of the probe conducted by Automotive Research Association of India and International Centre for Automotive Technology.
The court noted that though PMI Electro Mobility was the lowest bidder for procurement of electric buses for Jammu and Kashmir, it was never issued a letter of confidence. It directed Convergence Energy Services to proceed with the issuance of the letter of confirmation and execution of the contract agreement to the petitioner unless the same has become unviable or untenable. In any event, the right of the petitioner to claim damages or monetary relief on account of any loss that may have been suffered on account of cancellation of the bid shall remain expressly reserved, the court added.
The case dates back to the Ministry of Heavy Industries issuing a show-cause notice to PMI Electro Mobility in 2023 for violation of the Faster Adoption and Manufacturing of Electric Vehicle in India Phase-II scheme and the Phased Manufacturing Program Guidelines. The petitioner was asked by the ministry to deposit the entire subsidy amount received and to show cause why it should not be debarred from the scheme. Simultaneously, in 2024, the petitioner emerged as the lowest bidder for the Jammu and Kashmir lot. However, unknown to the petitioner, the ministry informed Convergence Energy Services of a joint inquiry by Automotive Research Association of India and International Centre for Automotive Technology, stating that the petitioner was found non-compliant and advising the respondent to take "necessary action". End
Reported by Surya Tripathi
Edited by Nishant Maher
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