VRS Enterprise vs Union Of India & Ors.

The instant writ has been filed challenging the supply order of fresh rations to the respondents, for the year 2026-27, which has been awarded to the respondent No. 6.

Ms. B. Goyal, learned counsel for the petitioner has submitted that the challenge is on the financial capacity/turnover of Rs. 144 Lakhs prescribed by the Bid Document, which she submits that the respondent No. 6, does not possess, as revealed by an RTI query. The learned counsel has drawn the attention of this Court to the Misc. application that has been filed bringing on record this fact, wherein at Annexure-D (Page-20) thereof, it has been shown that the respondent No. 6, has only done works amounting to Rs. 7,81,285/-, and Reference has been made by the learned counsel to the Contractor’s Performance Certificate of the respondent No. 6, to show the mis-representation, wherein it is stated that the respondent No. 6, has supplied materials to the value of Rs. 1,50,00,000/- (Rupees One Crore Fifty Lakhs). She therefore, submits that the factum of manipulation being clearly exposed through the RTI reply, the supply order in favour of the respondent No. 6, should be cancelled.

Dr. N. Mozika, learned DSGI assisted by Ms. M. Myrchiang, learned counsel for the respondents submits that on these facts, the illegality is apparent on the face of the records, which the authorities have taken due note off, and proper action will be undertaken. However, he submits that as the window for recall or any action in the GeM Portal being available only for 48 Hours, and the same having passed, at this stage, immediate cancellation will not be possible. He further adds the fact that as the respondent No. 6, has taken-over the supply of rations, since 01.06.2026, any disruption caused will be detrimental to the Assam Rifles personnel.

This Court on hearing the learned counsel for the parties and on examination of the materials available, notes that there has been gross illegality and fabrication committed by the respondent No. 6. Though notice has been served on the respondent No. 6, and Mr. K.V. Kharlyngdoh, learned counsel had entered appearance on the last date, however today he submits that no further instructions has been received, nor vakalat given to him for filing. This submission is noted, and the matter is taken up for disposal.

Coming back to the core issue that is financial eligibility, it is noted that a Contractor’s Performance Certificate, which has been appended to the Misc. application bears the purported signature of the Principal one Manu Sharma, which certifies that the respondent No. 6, had supplied rations to the school to the tune of Rs. 1,50,00,000/-(Rupees One Crore Fifty Lakhs), and that the performance of the contractor was good. This Court doubts the veracity of the contents of the Performance Certificate and whether the same has been issued by a competent authority, is unclear. Added to this confusion, it is seen that in the affidavit filed by the respondents Nos. 1 to 5, at Annexure-2 thereof, a letter dated 12.05.2026, certifying the transactions of the respondent No. 6, for the year 2024-25 to be Rs. 34,15,000/- and for the year 2025-26 to be Rs. 28,80,000/-, has been enclosed. The same has also cast further doubts on the status of the entire process of verification, as the RTI reply dated 24.06.2026, which this Court accepts to be the correct information, supplied by the Principal of PM SHRI SCHOOL JAWAHAR NAVODAYA VIDYALAYA, would show that the amount of supply done by the respondent No. 6, for the year 2025 is only of Rs. 7,81,285/-.

In the face of these circumstances, apart from the apparent manipulation, the questionable documents, which have been furnished as to the financial capability and performance, there is no doubt in the mind of the Court that the respondent No. 6, has contrived illegally to secure the Supply. However, as the learned DSGI has submitted that there cannot be any abrupt disruption in the supply, though immediate termination is called for, it is provided that the supply of the respondent No. 6, shall stand terminated not later than 15(fifteen) days, from the date of this order, and the said respondent No. 6, shall continue to supply the rations till such termination. The payment for the supply from 1^st June, 2026, shall be withheld for the time being, if the same has not been released, pending action which necessarily will have to be taken by the respondent Assam Rifles, in accordance with law.

With the impending termination of the respondent No. 6, and as the petitioner being the only tenderer qualified in the Technical Bid, on the offer being made by the counsel for the petitioner that the supply of rations shall be made at the L-1 price, subject to proportionate deduction in the amounts for the period to be determined, after the termination of the contract of the respondent No. 6, this Court finds this proposal feasible, and orders accordingly.

This Court would like to record its displeasure in the manner in which the entire process has been conducted. The respondent authorities are therefore required to put in place a verification process which is more robust, so as not to affect the personnel, who are dependent on a regular supply of quality rations.

Needless to add, the respondent authorities are also to cause an enquiry into the conduct of the respondent No. 6, and the manner in which the documents had been supplied, verified and accepted which should include a statement from the Principal of PM SHRI SCHOOL JAWAHAR NAVODAYA VIDYALAYA itself, as conflicting documents with regard to the certificate granted to the respondent No. 6 are under his signature. In the event if it is felt necessary, appropriate criminal proceedings are also to be initiated against the concerned persons.

With the above directions, the instant writ petition stands allowed and is accordingly disposed of.