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Yesterday, the Supreme Court noted that not inviting fresh tenders for transporting Rice & other micronutrients under the Wheat Based Nutrition Programme (WBNP), from Food Corporation of India’s depots in the State of Manipur, to the offices of Child Development Project Officers and to continue the contract without inviting fresh tenders on the basis of the Notice Inviting Tender (NIT) issued in June 2017 was a glaring example of lethargy on the part of the State Government.

A bench of Justices MR Shah and AS Bopanna observed that such actions were causing huge loss to the State and the Public Exchequer.

The High Court of Manipur had directed the State Government and in particular, the Social Welfare Department in November last year to take up immediate steps and issue fresh NIT for transportation of food grains and Micronutrients under the WBNP within a period of 10 days.

It was further ordered by the High Court that the whole tender process including the issuance of work order should be completed within 20 days from the date of issue of fresh NIT.

Even after the impugned order was passed by the High Court, the top court found that no steps had been taken till date and the contract had been continued which was by way of an interim arrangement.

The Court further noted that since 2017-18 the contract for transportation of the rice and other micronutrients under the WBNP to the offices of Child Development Project Officers had been continued solely on the basis of the interim arrangement and without inviting fresh tenders and without entering into any permanent contracts.

"To continue with the contracts for transportation of rice and other micronutrients within the State without any fresh tenders and by way of an interim arrangement only and at the rates which were prevailing in the year 2017-18 has caused tremendous/huge loss to the State and the Public Exchequer", remarked the Bench.

This prompted the bench to say,

"The action on the part of the State Government and the Social Welfare Department of the State of Manipur is highly deprecated. Contracts cannot be continued without finalizing of the tender process 5 and/or without issuing fresh tenders and/or without undertaking the fresh tender process and by way of an interim arrangement only and that too at the rates prevailing in the year 2017-18."

"It appears prima facie that everybody is happy, namely, the officers of the State Government, more particularly the officers of the Social Welfare Department and the Contractors and it appears that the State is not interested in issuing fresh NIT", added the Court.

Advocate Pukhrambam Ramesh Kumar, appearing for the State told the court that the Department had not been able to implement the order passed by the Division Bench of the High Court  because of administrative difficulties and the State/Department tenders its unconditional apology for the same.

The Court replied to this by saying, "The aforesaid is a vague explanation which is not accepted."

While disposing of the appeal, the Court directed the State of Manipur and the concerned Department to issue fresh NIT for appointment of transport contractor under Supplementary Nutrition Programme, within a period of 10 days.

"... it is directed that the fresh NIT is conducted in a fair and transparent manner through e-Tender and invitation of the fresh NIT shall be nation-wide and it is the duty of the State/concerned Department to see that there is no cartel by the contractors and that the maximum price is received and there is no loss to the Public Exchequer and the State. The entire tender process be completed within a period of six weeks from the date of issuance of the e-Tender....", reads the judgment.

Stating that any lapse on the part of the State and/or its departments and non-compliance of the instant order shall be viewed very seriously, the Court has directed the State of Manipur to submit a compliance report before this Court.

Cause Title: M/s B.K. Enterprises v. The State of Manipur and Another