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SC reserves airport modernisation judgement

The Supreme Court on Thursday reserved its judgement on an appeal by the Anil Ambani Group firm Reliance Airport Developers.

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NEW DELHI: The Supreme Court on Thursday reserved its judgement on an appeal by the Anil Ambani Group firm Reliance Airport Developers challenging the Delhi High Court verdict that upheld the government's decision to allot modernization work of Delhi and Mumbai airports to rival bidders GMR and the GVK-led consortia.
 
Concluding the marathon arguments, a bench comprising Justices Arjit Pasayat and SH Kapadia directed the parties to file written submissions within a week.
 
The court will examine whether a fair and transparent procedure was adopted in allotting modernisation work of the metro airports.
 
Reliance had filed a special leave petition against the April 21 verdict, that held that the government's action was in no way "discriminatory, illogical or illegal".
 
It questioned the option given to GMR for picking an airport of its choice (Delhi) for modernisation after opening of the financial bid and has alleged that lowering of the benchmark from 80 per cent to 50 per cent was totally arbitrary.
 
The company contended that as the highest financial bidder for Delhi airport and as the highest technical bidder for Mumbai airport, it should have been awarded at least one of the projects.
    
GMR, GVK and Government opposed the appeal contending that the entire process was fair and transparent and there was favouritism in awarding the contract.
 
While upholding the technical parameters adopted in awarding the contracts, the high court had said the government and the Airport Authority of India had "absolute discretion to vary the tender requirements or amend the term of the request for proposal" as per the requirements of the project.
 
Reliance has challenged the award of contracts to GMR and GVK-led consortia on the ground that the government and the AAI had deliberately amended tender norms to favour the rival bidders.
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