The Supreme Court has fined the Himachal Pradesh Housing and Urban Development Authority (HIMUDA) Rs 5 lakh for colluding with a private company to fraudulently secure a tender for a commercial complex in Shimla, deceiving the High Court in the process.
In a judgment by Justices Bela M Trivedi and Pankaj Mithal, the court overturned the High Court’s decision, stating that HIMUDA had misled the court and abused legal processes to cover up irregularities in the tender process. The court criticized the High Court for approving the contract to Vasu Constructions without proper consideration, ignoring reports of irregularities and illegalities by the Independent Committee.
The court found HIMUDA and Vasu Constructions’ actions malicious and collusive, directing HIMUDA to pay the fine to the Supreme Court Advocates-on-Record Association within two weeks. However, HIMUDA was allowed to initiate a fresh tender process in accordance with the law.
Background:
In December 2018, HIMUDA granted a letter of intent to Vasu Constructions to build a commercial complex, which was later rescinded due to procedural irregularities and legal challenges. Despite findings of irregularities, HIMUDA agreed to proceed with the initial tendering process if Vasu Constructions accepted the original terms, leading to the High Court’s disposal of the matter and the subsequent contract between HIMUDA and Vasu Constructions.
The appellant challenged the High Court’s decision in the Supreme Court, leading to the fine imposed on HIMUDA for its collusive actions.
