The Supreme Court has fined the Himachal Pradesh Housing and Urban Development Authority (HIMUDA) with a penalty of ₹5 lakh. This decision comes after the Supreme Court determined that HIMUDA colluded with a private company in the tender process for constructing a commercial complex in Shimla.
Justices Bela M Trivedi and Pankaj Mithal highlighted HIMUDA’s attempt to deceive the high court by awarding the contract to the same construction company, despite earlier findings of gross irregularities in the tendering process. The bench asserted that HIMUDA, in collaboration with Vasu Constructions, manipulated legal proceedings to conceal irregularities and unlawfully award the contract.
The Supreme Court emphasized that despite its status as a ‘State‘ entity, HIMUDA’s malfeasance warranted significant repercussions. Consequently, the court overturned the high court’s approval of the contract and directed HIMUDA to pay the fine within two weeks to the SC Advocates-on-Record Association.
In addition, the court suggested the possibility of issuing a fresh tender. The case originated from complaints and litigation over irregularities in HIMUDA’s initial tender process, which led to the cancellation of the contract. Despite this, HIMUDA later indicated no objection to reinstating the tender process for Vasu Constructions, prompting legal challenges ultimately brought before the Supreme Court.
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