Delhi HC modifies verdict as smog tower plan hits roadblock due to lack of funds

The Delhi high court has modified its verdict by which it had directed a logistics company to deposit ₹12

The Delhi high court has modified its verdict by which it had directed a logistics company to deposit ₹12.5 crore as penalty for a smog tower for concealing facts, after noting that the actual amount of the contract was ₹12 crore instead of ₹125 crore as noted earlier.

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On June 1, a bench of Acting chief justice Vipin Sanghi and Justice Jasmeet Singh had directed the erring company to pay 10% ( ₹12.5 crore) while taking of the total contract amount to be ₹125 crore.

However, on June 3, the court was informed that the actual contract value was over ₹12 crore only.

The counsel for the logistics company pointed out to the court that there was a certain arithmetical error in the figure and the 10 per cent amount of the contract value would be ₹1.21 crore and not 12.5 crore as arrived earlier.

Following this, the high court said that its earlier order by which it asked for the installation of a smog tower here is not possible because of the inadequate amount that would be deposited.

In its corrected order of June 3, the court noted that the amount to be ploughed back by the logistics company would be 10 per cent of the total amount which would be ₹1.21 crore, instead of ₹12.5 crore and it would be highly inadequate for installation of the smog tower.

A bench of Acting Chief Justice Vipin Sanghi and Justice Jasmeet Singh said since this amount of ₹1.21 crore would be highly inadequate for setting up a smog tower, the money should be deposited with the court within six weeks which would be disbursed to various authorities.

“Since the aforesaid amount would be highly inadequate to meet the purpose for which we directed the amount to be utilised, namely for setting up of a Smog Tower, we direct the respondent no.3 (logistics company) to deposit the said amount in this court within six weeks, ” the bench said.

It said that ₹25 lakhs each be deposited with the Delhi State Legal Services Authority, Delhi High Court Legal Services Committee, Prime Minister’s National Relief Fund and Armed Forces Battle Casualties Welfare Fund.

Besides, ₹21,49,821 be deposited with the Indigent and Disabled Lawyers Committee, it said.

“To the aforesaid extent, our judgment of June 1 stands corrected. List the matter for reporting compliance on July 19,” it said.

In its June 1 order, the high court had said the Air Quality Index (AQI) level during the COVID-19 period showed a decline due to lockdown and halting of industrial activities, however, now that the commercial activities are going back to the pre-COVID level, “we are on the same path of the air quality becoming ‘very poor’ and ‘severe’”.

It had directed that ₹12.5 crores be deposited by the firm with the Registrar General of the Delhi High Court and he shall call all the stakeholders and ensure that the smog tower is installed at a suitable place where it will contribute towards reducing the AQI levels of Delhi.

The court’s judgment came while deciding a plea by CJDARCL Logistics Ltd, a company engaged in the business of logistics and transportation of goods across India by road and rail, seeking direction to RITES Ltd to cancel the bids of the other private company and grant the tender to the petitioner, being the second-lowest bidder.