Aavin directed not to finalise tender to hire milk tankers

  • | Sunday | 9th June, 2019

By Express News ServiceCHENNAI: The Madras High Court has directed Tamil Nadu Co-operative Milk Producers’ Federation Limited (Aavin) not to finalise a tender to hire 312 milk tankers on a contract basis for three years at a cost of Rs 360 crore, till further orders. Justice M Dhandapani passed the interim order on a plea by S N Rajkumar of a milk tanker contracting firm seeking to quash the tender stating it was illegal. Petitioner said that initially a tender was called for hiring 312 tankers for transporting milk from and to the dairies maintained by the Federation for two years. However, even before the submission of bids, a corrigendum was issued by changing the period of the tender from two years to three years and increasing the cost from Rs 240 crore to Rs 360 crore. When the cost is Rs 360 crore, the federation is mandated to constitute an external committee to float the tender, but no such panel was formed, he said.

By Express News Service CHENNAI: The Madras High Court has directed Tamil Nadu Co-operative Milk Producers’ Federation Limited (Aavin) not to finalise a tender to hire 312 milk tankers on a contract basis for three years at a cost of Rs 360 crore, till further orders. Justice M Dhandapani passed the interim order on a plea by S N Rajkumar of a milk tanker contracting firm seeking to quash the tender stating it was illegal. Petitioner said that initially a tender was called for hiring 312 tankers for transporting milk from and to the dairies maintained by the Federation for two years. However, even before the submission of bids, a corrigendum was issued by changing the period of the tender from two years to three years and increasing the cost from Rs 240 crore to Rs 360 crore. Alleging that the federation’s action was illegal, P Wilson, senior counsel for petitioner, submitted that as per clause 25 of the company’s bye-laws, administration, management and control of the federation vests in the board. Only the board can exercise the powers to enter into agreements or call for tenders. When the cost is Rs 360 crore, the federation is mandated to constitute an external committee to float the tender, but no such panel was formed, he said.

If You Like This Story, Support NYOOOZ

NYOOOZ SUPPORTER

NYOOOZ FRIEND

Your support to NYOOOZ will help us to continue create and publish news for and from smaller cities, which also need equal voice as much as citizens living in bigger cities have through mainstream media organizations.


Stay updated with all the Chennai Latest News headlines here. For more exclusive & live news updates from all around India, stay connected with NYOOOZ.

Related Articles