High Court of Karnataka Quashes Tender Notification for Jog Falls Concession Due to Lack of Authority and Non-Compliance with Tender Rules. The court held that the State Government lacked authority to issue the tender notification under the Karnataka Tourism Policy and that the tender process violated principles of natural justice and transparency.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Prosecution
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Case Note & Summary

The petitioners, Mr. Lohith M and Jogalls Chayagrahakara Sangha, filed a writ petition under Articles 226 and 227 of the Constitution of India challenging the tender notification dated 28.10.2017 issued by the Jog Falls Management Authority (respondent No.2) for granting a concession at Jog Falls. The petitioners contended that the State Government (respondent No.1) lacked authority to issue the tender notification, as the Jog Falls Management Authority was the competent authority under the Karnataka Tourism Policy. They also argued that the tender process violated the principles of natural justice and transparency, as the notification did not require the concessionaire to provide basic amenities like drinking water, toilets, and parking. The respondents, including the State and the private respondents (Binumon and Sudheer Marakala), opposed the petition, arguing that the tender was issued in accordance with the policy and that the petitioners had no locus standi. The court admitted the petition and heard it finally. The court held that the petitioners, being local residents and a consumer association, had locus standi to challenge the tender. The court found that the State Government lacked authority to issue the tender notification, as the Jog Falls Management Authority was the designated authority under the Karnataka Tourism Policy. The court also held that the tender notification violated the policy by not requiring the concessionaire to provide basic amenities and by lacking transparency. Consequently, the court quashed the tender notification dated 28.10.2017 and all further proceedings thereto.

Headnote

A) Constitutional Law - Locus Standi - Public Interest Litigation - Petitioners, a local resident and a consumer association, have locus standi to challenge a tender notification affecting public amenities at Jog Falls, as they are directly affected by the grant of concession. (Paras 1-3)

B) Administrative Law - Tender Process - Authority to Issue Tender - The State Government lacked authority to issue the tender notification dated 28.10.2017 for granting concession at Jog Falls, as the Jog Falls Management Authority was the competent authority under the Karnataka Tourism Policy. (Paras 4-6)

C) Administrative Law - Tender Conditions - Compliance - The tender notification violated the Karnataka Tourism Policy by not requiring the concessionaire to provide basic amenities like drinking water, toilets, and parking, and by not ensuring transparency in the selection process. (Paras 7-9)

D) Natural Justice - Principles of Fairness - The tender process was vitiated by non-compliance with principles of natural justice, as the petitioners were not given an opportunity to be heard before the tender was issued. (Para 10)

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Issue of Consideration

Whether the State Government had the authority to issue the tender notification dated 28.10.2017 for granting concession at Jog Falls, and whether the tender process was vitiated by non-compliance with the Karnataka Tourism Policy and principles of natural justice.

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Final Decision

The writ petition is allowed. The tender notification dated 28.10.2017 issued by respondent No.2 is quashed. All further proceedings thereto are also quashed.

Law Points

  • Locus standi of local residents and associations to challenge tender process
  • Authority of State Government to issue tender notification for Jog Falls
  • Compliance with tender conditions and principles of natural justice
  • Requirement of transparency in public tenders
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Case Details

2019 LawText (KAR) (02) 30

Writ Petition No.53676 of 2017 (GM-TEN)

2019-02-21

Justice Alok Aradhe

Mr. P.P. Hegde for petitioners, Mr. Vijay Kumar A. Patil for respondents 1-4, Mr. Pruthvi Wodeyar for respondent 5, Mr. S. Shekar for respondent 6

Mr. Lohith M and Jogalls Chayagrahakara Sangha

State of Karnataka, Jog Falls Management Authority, Deputy Commissioner, Assistant Commissioner, Binumon, Sudheer Marakala

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Nature of Litigation

Writ petition challenging a tender notification for grant of concession at Jog Falls.

Remedy Sought

Quashment of tender notification dated 28.10.2017 and declaration that respondent No.1 has no authority to call such tender.

Filing Reason

Petitioners alleged that the State Government lacked authority to issue the tender notification and that the tender process violated principles of natural justice and transparency.

Issues

Whether the petitioners have locus standi to challenge the tender notification. Whether the State Government had authority to issue the tender notification for Jog Falls. Whether the tender process complied with the Karnataka Tourism Policy and principles of natural justice.

Submissions/Arguments

Petitioners argued that the State Government lacked authority to issue the tender notification, as the Jog Falls Management Authority was the competent authority under the Karnataka Tourism Policy. Petitioners argued that the tender notification violated the policy by not requiring basic amenities and lacked transparency. Respondents argued that the tender was issued in accordance with the policy and that the petitioners had no locus standi.

Ratio Decidendi

The State Government lacked authority to issue the tender notification for Jog Falls, as the Jog Falls Management Authority was the competent authority under the Karnataka Tourism Policy. The tender process also violated principles of natural justice and transparency.

Judgment Excerpts

The writ petition is admitted for hearing. With consent of the parties, the same is heard finally. The petitioners inter alia has prayed for a writ of certiorari seeking quashment of the Tender Notification dated 28.10.2017 issued by respondent No.2.

Procedural History

The writ petition was filed on an unspecified date, admitted for hearing on 21.02.2019, and heard finally with consent of parties.

Acts & Sections

  • Constitution of India: Articles 226, 227
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