E-Paper
HC fines errant firm Rs12.5 crore, tells govt to use it to build smog tower
New Delhi: The Delhi high court on Wednesday imposed a penalty of ₹12
New Delhi: The Delhi high court on Wednesday imposed a penalty of ₹12.5 crore on a company which had earned a tender by concealing facts, while directing the money will be utilized by the city government for installation of a smog tower at any suitable place where it can reduce the air quality index in the national capital.
“According to us, Delhi is gasping for breath on account of high levels of air pollution. The air quality index (AQI) level during Covid-19 period showed a decline due to lockdown and halting of industrial activities. The Delhi Pollution Control Committee (DPCC) has shared a chart which shows a large number of “poor”, “very poor”, and “severe” AQI days are increasing. The number of days of “good” and “satisfactory” air quality level is miniscule,” a bench of acting chief justice Vipin Sanghi and justice Jasmeet Singh said.
It said that “urgent preventive, adaptive, and mitigative steps need to be taken to reduce the air pollution for inter-generational equity” while noting that with the commercial activities going back to the pre-covid level, the air quality is again becoming “very poor” and “severe”.
In its judgment, the court asked the Delhi government to provide suitable space for the smog tower and also cover the financial shortfall, if any.
It asked the city government to look after the repair, maintenance and cost of running of the smog tower, adding that the smog tower shall be based on the same working and operational guidelines as the Connaught Place smog tower,” the court said.
The court’s judgment comes in a tender dispute between two companies, where the petitioner company had alleged that the erring company concealed facts related to its disqualification and obtained the tender on fraudulent means.
The tender was issued by RITES Ltd, a government of India Enterprise and a company registered under Companies Act, 1956 that is directly under control of the Ministry of Railways for engagement of freight forwarders for transportation of export projects (cargo consisting of 34 nos. Passenger Coaches ex. MCF, Raebareli, UP and approx. 200 CBM of spares ex. MCF, Raebareli, UP/RITES Warehouse, Delhi via Mumbai Sea port to Maputo Sea Port, Mozambique on CIF basis).
The court held that the erring company was “squarely guilty of suppression of relevant and material information from RITES Ltd and by doing so, it gained an unfair and undue advantage of being adjudged the L1 bidder, and of being awarded the contract”.
Noting that the contract value is of 125 crores, the court said that the erring company would make, at least, 10% as profits. i.e about 12.50 crores.
It additionally directed RITES Ltd, pay cost of ₹25 lacs, to the petitioner for improper due diligence in awarding the tender to the erring company, adding that in case the costs are not deposited by the respondents within four weeks, the matter be listed before this court for directions.
“The course that commends to us is that respondent No 3 (erring company) should be disgorged of Rs. 12.50 crores and the said amount should partly go to the petitioner, and mainly ploughed back into the society. We, therefore, direct respondent No.3 to deposit in this court an amount of ₹12.50 crores within two weeks. We are of the view that the amount of ₹12.5 crores must be ploughed back into society,” the judgment read, adding that this money has to be ploughed back into the society to reduce the pollution levels.
Noting that a smog tower, costing ₹20 crore was installed at Connaught Place in August 2021, the court said that the entire penalty ( ₹12.5 crores) should be deposited with the Registrar General of the high court within two weeks, who in turn will call all the stakeholders and ensure that the smog tower is installed (maybe of a lesser capacity) at a suitable place where it will contribute towards reducing the AQI levels of Delhi.
“The Registrar shall take steps on a war footing to ensure the installation and operationalization of the smog tower before the advent of winter season as the situation further aggravates during winter months,” the court said.
