Deficiencies in Tender Procedures Prompt Court-Directed Investigation to Ensure Accountability and Transparency
In a significant move towards ensuring transparency and accountability in government procurement processes, the Kerala High Court has mandated a detailed investigation into the alleged irregularities and deficiencies observed in the tender procedures for a large-scale Digital Survey Project. The judgment, delivered by a division bench comprising Chief Justice Soumen Sen and Justice Syam Kumar V.M., highlights the necessity for adherence to the Stores Purchase Manual and the rectification of procurement discrepancies to uphold the integrity of government projects.
The case, titled Shaji J. Kodankandath v. State of Kerala, arose from concerns regarding the procurement processes for a substantial project intended to facilitate digital surveying. The petitioner, Shaji J. Kodankandath, represented by advocates Shri. K.B. Gangesh and others, alleged significant lapses in the tender procedures, including price escalations and equipment damage shortly after procurement.
During the proceedings, the court was apprised of several deficiencies identified in the tender process. Notably, M/s Hexagon Geo systems India Private Limited was selected through a tender process with an initial estimate of Rs. 168 crore. However, subsequent modifications to specifications and quantities of equipment resulted in a procurement cost exceeding double the original estimate. Furthermore, a substantial portion of the purchased equipment sustained damage shortly after procurement, with unresolved issues persisting.
The court noted that despite identifying deficiencies in the tender advertisement, the government hastily issued orders for a fresh tender without adhering to the Stores Purchase Manual, aiming to expedite project completion. An enquiry report recommended forming a team of technical and financial experts to scrutinize the procurement procedures and the quality of the acquired equipment.
The bench directed the Revenue Secretary, the second respondent, to file an affidavit detailing actions taken based on the recommendations from a report dated 12th August 2024, which called for a comprehensive investigation into the procurement deficiencies. The court emphasized the absence of any material indicating action by the Principal Secretary, Revenue Department, following the receipt of communication recommending the investigation.
The judgment underscores the court's commitment to ensuring that government procurement processes are conducted with transparency and accountability. The court has granted a period of three weeks for the Revenue Secretary to file the affidavit, with the matter scheduled for further hearing on 21st May 2026.
Bottom Line:
Failure to adhere to tender procedures and deficiencies in procurement processes for a large-scale government project warrant a detailed investigation and remedial measures.
Statutory provision(s): Stores Purchase Manual, Government Procurement Procedures, Affidavits in Court Proceedings
Shaji J. Kodankandath v. State of Kerala, (Kerala)(DB) : Law Finder Doc id # 2879372
