Kerala HC stays govt decision to bar PwC for 2 yrs in IT-related projects

The Kerala High Court on Friday stayed

the state government's decision to bar consultancy firm PricewaterhouseCoopers Limited from participating in any project of the Electronics and Information Technology Department for two years for alleged lapses in selection of resource persons for the Space Park project.

The government took the decision on November 27 on the recommendations of a committee constituted by it following allegations of appointment of Swapna Suresh, a key accused in the Kerala gold smuggling case, in the project of the state government, of which PwC was the consultant.

Justice P V Asha issued the interim stay order today while considering a petition filed by the PwC, challenging the government decision.

The court also issued notices to the state government and the Kerala State IT Infrastructure Ltd (KSITIL), which had appointed PwC as the consultant of its Space Park project.

In its plea, the PwC said that the decision to bar it from IT-related projects was taken without hearing its view on the matter.

The company alleged that the government took the decision violating the principles of natural justice.

In its plea, the company contended that Suresh was appointed at the recommendation of the Managing Director of the KSITIL.