Court rejects German firm’s extension plea to submit bid
The Bombay High Court on Tuesday rejected a petition filed by Siemens Ltd seeking extension of deadline for submission of bids for supplying 72 modern 12-coach Electro Multiple Units (EMUs).mumbai Updated: Dec 08, 2010 02:00 IST
The Bombay High Court on Tuesday rejected a petition filed by Siemens Ltd seeking extension of deadline for submission of bids for supplying 72 modern 12-coach Electro Multiple Units (EMUs).
The Indian subsidiary of Siemens AG, Germany, had moved the high court contending its non-participation in the bidding process would be detrimental to the public interest.
But the division bench of justices DY Chandrachud and Anoop Mohta found no substance in its averments.
The bench primarily considered the fact that 10 world known companies, including Mitsubishi, CSR China, BHEL, Bombardier, and Alstom, which have supplied rakes to railways in the past, had participated in the bidding process.
Siemens Limited, which bagged the earlier contract for supplying 131 new 12-coach EMUs (and has already supplied 110 new rakes), had moved court on Monday seeking extension of the deadline for purchasing the bid documents and submitting bids invited by Mumbai Rail Vikas Corporation (MRVC).
The MRVC, a special purpose vehicle created for implementation of rail component of the World bank-funded Mumbai Urban Transport Project (MUTP), had set December 6 as the deadline for purchasing of bid documents and December 7 as the last date for submitting bids.
Siemens Ltd sought the extension beyond January 1, since Siemens AG — while settling a fraud purportedly committed by its Russian subsidiary with the World Bank — had imposed a two-year self-restriction.
The restriction meant neither the engineering giant nor any of its subsidiaries across the globe could participate in a World Bank project till January 1, 2011.
Hence, MRVC refused to sell bid document to Siemens Ltd.
The company’s counsel, Aspee Chinoy, contended that the company had already installed two dedicated plants at Kalwa and Nashik.
Other bidders would have to incur huge expenditure for setting up the plants, which would make the rakes expensive and delay the delivery.
Counsel for MRVC, Nitin Thakkar, however, opposed the plea saying the Mumbai Urban Transport Project was completely funded by the World Bank and they had no reason to extend the deadline for the bidding process in view of the fact that 10 global giants had submitted their bids.