HC directs GAIL to maintain status quo in DVPL project tenders

The Delhi High Court today directed state-run gas firm GAIL to maintain status quo in the tenders invited for its crucial Rs 750 crore Dahej-Vijaipur pipeline (DVPL) project after reserving its order.

A division bench comprising Justice Manmohan Singh and Justice Suresh Kait directed GAIL to maintain status quo on three out of the four sections of the project where it had invited 'revised, lower' bids, but was restrained by the court from opening them.

Man Industries was the lowest bidder in three sections but GAIL found its price higher than the one bid by Jindal SAW for the fourth section and so invited revised, lower rate bids.

The bench also said that it would pass its judgement on July 2 over Man Industries petition challenging the PSU's decision to rebid despite being it the lowest bidder.

Yesterday Additional Solicitor General Parag Tripathi appearing for GAIL had informed the court that to avoid any controversy, the firm has scrapped tenders for three sections of DVPL in which Man Industries was the lowest bidder.

During the proceedings today Tripathi contended that though Man Industries was the lowest bidder, but GAIL as per clause 31 of the terms and condition of the tender reserved the right to cancel or re-tender the project.

He also submitted that GAIL being a state-run company can write or rewrite the terms and condition of the tender in which public revenue is benefited.