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Golf course construction: HC cancels firm contract

The development of 18 Holes International Standard Golf Course and Country Club in Navi Mumbai spread over 35.55 hectares has been delayed. Urvi Mahajani reports.

mumbai Updated: Jan 23, 2010 00:56 IST
Urvi Mahajani

The development of 18 Holes International Standard Golf Course and Country Club in Navi Mumbai spread over 35.55 hectares has been delayed.

The Bombay High Court has set aside the contract awarded to Mistry Construction Co. Pvt. Ltd. terming it as illegal.

While quashing the contract given to Mistry Construction, a division bench of Justices B.H. Marlapalle and R.Y. Ganoo directed CIDCO (City and Industrial Development Corporation of Maharashtra Ltd.) to invite fresh bids after fixing reserve price within four weeks.

The court observed, “It is well settled that the decision awarding the tender must be bonafide and in public interest… When a public property or the property of a public undertaking is being transferred/alienated, it must receive the best market price/lease amount.”

The court was hearing a petition filed by M/s Makhija Developers. The court has given liberty to Mistry construction, BSEL Infrastructure (who were awarded contract earlier and later cancelled by CIDCO) and Makhija Developers.

Makhija Developers had approached the HC last year. The lease agreement for the same was signed on August 22, 2009.

In response to the bids invited by CIDCO, 18 parties submitted their proposals. CIDCO labelled Mistry construction as “Non-Responsive Bidder” as it did not furnish bank guarantee of Rs 20 crore. However, it awarded the contract to Mistry constructions.

BSEL challenged the contract given to Mistry construction. However, later CIDCO and BSEL arrived at a settlement and filed consent terms. CIDCO issued a letter of intent in favour of Mistry constructions, which was challenged by Makhija developers.