The Supreme Court has taken a firm stance against the Gwalior Municipal Corporation (GMC) for restricting a public tender exclusively to multinational companies, calling the move baseless and discriminatory.
The Court denounced the assumption that Indian manufacturers were incapable of delivering quality services, highlighting that all ten companies pre-approved by the GMC for the bidding process were foreign entities. “This clearly implies a flawed belief that only global firms possess the expertise required for the project. We find this logic completely untenable,” the Court observed.
The case arose when Omega Elevators challenged the GMC’s tender process for the supply and maintenance of lifts under the Pradhan Mantri Awas Yojana. The corporation had selectively invited only ten multinational companies, citing them as the “most reputed” options. Excluded from consideration, Omega Elevators sought judicial intervention, but the Madhya Pradesh High Court declined to interfere, citing a previous Supreme Court ruling that discourages intervention in tender matters unless they are blatantly arbitrary or discriminatory.
However, the Supreme Court found the GMC’s reasoning to be purely speculative. It asserted that Indian firms should not be sidelined based on unfounded assumptions about their competence. Citing precedent, the Court reiterated that while judicial intervention in tenders should be minimal, it is justified when a process is tainted by favoritism or unfair exclusion.
Although the contract had already been executed by the successful bidder, making further action unnecessary, the Supreme Court’s strong censure of the GMC’s approach underscores the importance of fair competition in public procurement.