1. Heard Mr. Diganta Das, learned senior counsel assisted by Mr. R.B. Phukan and Mr. R. Sharma, learned counsels appearing on behalf of the petitioner. Also heard Mr. K. Ete, learned Addl. Advocate General for respondent No. l and Mr. S. Dutta, learned counsel appearing on behalf of the respondent Nos. 2 and 3.

2. By filling this writ of certiorari, the petitioner who is proprietor of a firm M/s. Krishna Agency, has challenged the Notice Inviting Tender (NIT) and terms and conditions in the Request for Proposal ( ‘RFP’) for selection of Distributors and/or Selling Agents for Marketing of Conventional Paper and on-line Lottery floated by the State of Arunachal Pradesh.

3. Clause 3.1 of the RFP, which are under challenge as discriminatory and arbitrary, are as under :

“The company should be operational in India for at least the last 5 financial years.

‘The Bidder should be a profitable vendor for the last 3 years with profit records arid must have an annual gross turnover of not less than Rs, 50 crores per annum for the last 3 financial years (as on 31.3.2012)

The minimum experience of the Bidder should not be less than 1 year during last 3 years in the capacity of working directly with any State Governments as distributor/stockist/marketing agent, etc.”

4. Narrating the background facts Mr. Das, learned counsel for the petitioner has submitted that Lottery in the State of Arunachal Pradesh was banned in the year 2010 and was re-introduced in conformity, with the Central Rules 2010 with effect from 26th July, 2011. Secretary to the Government of Arunachal Pradesh (respondent No. 2), floated Notice Inviting Tender dated 1.11.2013 for appointment of Distributors/Selling Agents for marketing and promotion of conventional paper and on-line lottery of Arunachal Pradesh.

5. It is contended by the learned counsel on behalf of the petitioner that Pre-qualification Requirement in clauses 3. 1. 1, 3. 1. 2, 3. 1. 8 of the NIT are arbitrary, illegal, etc., in view of the clauses 3. 7. 1, 5. 1, 5. 2 and 5. 3 thereof which adequately secures the interest of the State. Aforementioned clauses are quoted hereunder:

“Clause 3.1.1: The Bidder should have registered office in India. The company should be operational in India for at least the last five financial years.

Clause 3.1.2: The Company should be a profitable vendor for the last 3 years a with profit records and must have an annual gross turnover of not less than Rs. 50 crores per annum for the last three financial years (as on 31.3.2012).

Clause 3.1.8: The minimum experience of bidder should not be less than 1 year during last 3 years in the capacity of working directly with any State Government as Distributor/Stockiest/Marketing Agent etc. The proposal shall b be supported by certificate issued by concerned State Governments along with copy of valid agreement as on date signed between concerned State Governments with bidder.

Clause 3.7.1: Interested bidders should furnish Earnest Money Deposit (HMD)/Bid Security in the following denominations: Rs. 2. 00 crore only.

Clause 5.1: Advance Payment of Sale Proceeds.

Selected Distributor/Selling Agent should deposit a sum of equivalent to 1 years ‘ guaranteed (revenue) as Advance Payment of Sale Proceeds in the form of demand draft drawn on any Nationalized / Scheduled Bank located , at Itanagar in favour of Secretary, Department of State Lottery, Government of Anmachal Pradesh within 10 working days following the date of signing of the agreement.

Clause 5.2: Performance Bank Guarantee.

A PBG of stun of equivalent amount of 1 years’ guaranteed revenue would be furnished by the bidder in the form of a Bank Guarantee from Indian Public Sector Banks or Private Sector Banks authorised by the Government to conduct Government transaction. Details of the bank are to be furnished in the commercial offer. The PBG should be furnished between the signing of contract and before the first draw is conducted and should be valid for six months beyond expiration of contract per

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