Stay on tender awarded to cab firm

Justice K Ravichandrabaabu offered the interim order based on a plea moved by Bharathi Cabs private limited assailing the tender notification issued by the Divisional Railway Manager (Commercial), Southern Railways, Chennai. The plea contended that since SR had fixed the reserve price at Rs 2.17 crore Bharathi Cabs did not participate in the tender. 

Therefore, only three companies – Uber, Ola, and Fast Track – participated. Though the reserve price was fixed as Rs 2.17 crore, none of the three companies quoted their bid at least for a crore. Instead, Uber quoted Rs 80 lakh, Ola Rs 60,00,780 and Fast Track Rs 60 lakh, Ravindran added. 

In spite of all the bidders quoting below half the reserve price, the railways instead of cancelling the tender, allotted the project to Ola, the second highest bidder, since Uber was disqualified for failing to file required documents.