HC cautions Govt against ‘Cartel-Style’ sanitation tender rules, seeks reasoned decision in 4 weeks
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Shimla, Dec 31,
Raising strong concerns over restrictive tender conditions that could inflate public expenditure and block fair competition, the Himachal Pradesh High Court has directed the State government to take a “judicious and reasoned” call on eligibility rules framed for sanitation contracts in public health institutions.
A Division Bench of Chief Justice G.S. Sandhawalia and Justice Jiya Lal Bhardwaj issued the direction while disposing of a writ petition filed by M/s Tania International Company, which has challenged Clause F(c) of the Health & Family Welfare Department’s sanitation tender notices. The clause limits participation only to contractors who have prior hospital sanitation experience within Himachal Pradesh.
The petitioner argued that the clause effectively blocks experienced firms from outside the state—despite their proven credentials in similar sanitation work for Municipal Councils, Nagar Panchayats and other government bodies. Such public sanitation projects, they said, already require stringent adherence to Solid Waste Management Rules, 2016 and hygiene protocols comparable to hospital environments.
The Court noted that the company had already submitted a detailed representation to the Principal Secretary (Health) challenging the eligibility condition for lacking any rational nexus with the goal of ensuring quality services. At this stage, the Bench held, the administrative process remains incomplete—making judicial intervention premature.
However, the Court issued a clear caution: any rejection of the representation must be supported with valid and cogent reasons. The government has been given four weeks to take a decision.
Legal watchers say the case could influence procurement policy across essential services. Narrow eligibility clauses—if left unchecked—risk promoting cartelisation, eliminating healthy competition and inflating contract values drawn from taxpayer funds.
Industry stakeholders also point out that recognising equivalent, statutory-compliant experience could open the door for more qualified participants, leading to better service delivery in government hospitals already battling manpower and infrastructure gaps.
The petitioner was represented by Advocate Anuja Mehta (Proxy Counsel), while Additional Advocate General Gobind Korla appeared for the State.
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