Supreme Court indicts HIMUDA for colluding with private builder to build commercial complex in Shimla

Tribune News Service

Satya Prakash

New Delhi, April 7

The Supreme Court indicted the Himachal Pradesh Housing and Urban Development Authority (HIMUDA) for colluding with a private company to secure a tender for building a commercial complex in Shimla by deceiving the state high court.

A Bench led by Justice Bela M Trivedi slapped Rs 5 lakh as cost on HIMUDA for acting mala fide; misusing the process of law and colluding with a private builder.

Allowing the appeal filed by Level 9 Biz Pvt Ltd, the top court directed HIMUDA to deposit the Rs 5 lakh cost with the Supreme Court Advocates-on-Record Association in two weeks.

While setting aside the October 18, 2022 order of the Himachal Pradesh High Court, the Bench, however, clarified that HIMUDA shall be at liberty to initiate a fresh tender process in accordance with law and after following the due process of law.

“Having regard to the entire chain of events, and the conduct of the respondent nos. 1 and 2 (HIMUDA and M/s. Vasu Constructions), we have no hesitation in holding that the respondent no. 1 in collusion with the respondent no. 2, had taken the High Court for a ride and misused the process of law for covering up the irregularities and illegalities committed in the tender process by the officers of the respondent no. 1, and for anyhow awarding the contract to the respondent no. 2 under the guise of the court’s order,” the top court said.

“Since, we have found that the respondent no.1 HIMUDA, though ‘State’ within the meaning of Article 12 of the Constitution of India, had acted mala fide and in collusion with the respondent no.2 (M/s. Vasu Constructions), and had taken the High Court for a ride, the present appeal deserves to be allowed with heavy cost,” it said.

“The impugned order (of October 18, 2022) having been passed without proper application of mind and without assigning any cogent reason for brushing aside the findings recorded by the Independent Committee and the observations made by the Single Bench in the order dated 08.01.2021, the same deserves to be quashed and set aside,” it said.

“It is a matter of surprise for us that the High Court also could not notice the ill-intention of the respondent nos. 1 and 2 and disposed of the petition, permitting them to go ahead with the original tender, ignoring the reports of the independent committee and the observations made by the Single Bench in the Order dated 08.01.2021 with regard to the irregularities and illegalities committed by the officers of the respondent no. 1 HIMUDA,” it noted.

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