HC restrains TANGEDCO from allotting tenders for electricity

The Madras High Court today restrained state-owned utility TANGEDCO from processing or allotting tenders for the purchase of 29.88 lakh electricity meters.
Justice N Kirubakaran passed the interim order on a petition by Noida-based Capital Power Systems Limited, alleging that its bids were rejected by Tamil Nadu Generation and Distribution Corporation (TANGEDCO) to favour other companies.
The judge then issued notice to TANGEDCO returnable by November 27.
The petitioner company sought the court to forbear TANGEDCO from allotting tenders and to open its price bid for procurement of the meters.
It contended that it was selected for the supply of same type of meters in the previous tender during which it had quoted the lowest price of Rs 453 per meter.

"Though it (company) met all the essential conditions to take part in the tender process this time, another company which quoted Rs 495 per meter bagged the tender," the petitioner said.

Stating that there was a difference of around Rs 42 per meter compared to the previous tender in which an order for 30,00,000 meters was placed, the petitioner claimed that it would cause a minimum loss of Rs 12.50 crore to the power distributor.
In both the tenders, the technical specifications of meters were thesame, it said.
The petitioner further alleged that it was denied an opportunity this time so that other companies could be favoured.