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2025 Supreme(Telangana) 1534

IN THE HIGH COURT FOR THE STATE OF TELANGANA 
Nagesh Bheemapaka, J.
M/s Bhargavi Enterprises - Appellant
Vs.
The State of Telangana - Respondent
Writ Petition No. 25375 of 2025
Decided On : 14-11-2025

Advocates:
Advocate Appeared:
For the Appellant : G Jyothi Kiran
For the Respondent: GP For Labour

Tender processes should be governed by transparency and fairness; inclusion of agencies lacking formal criteria is permissible if justified by equal treatment and no arbitrariness or mala fides is demonstrated.

Headnote:(A) Constitution of India - Articles 14 and 21 - Tender Law - Challenge to empanelment of outsourcing agencies on grounds of violation of tender conditions - Court finds no evidence of arbitrariness or mala fides in the inclusion of ineligible agencies - Acceptance of bank guarantees as proof of financial capacity deemed within the authority's discretion - Core issue centered on inclusion criteria and authority to relax requirements. (Paras 1, 6, 8, 9, 10)

Facts of the case:
The petitioner, an established outsourcing agency, contested the empanelment of certain agencies that it claimed did not meet statutory and financial criteria set forth in a tender notification for outsourcing work in Suryapet District. It alleged violations of fair competition principles under the Constitution. (Paras 2.1, 2.2, 2.3)

Findings of Court:
The court held that the empanelment and subsequent work allotments followed established guidelines and maintained no illegality or irregularity was found. The petitioner failed to demonstrate discriminatory treatment or procedural impropriety. (Paras 9, 10)

Issues: The main issue addressed was whether the inclusion of ineligible agencies violated the tender conditions and if the distributing authority was justified in relaxing financial criteria. (Paras 7, 9)

Ratio Decidendi: The court concluded that inclusion of agencies lacking turnover documentation was permissible if equal treatment and transparency were maintained through bank guarantees, reaffirming the principle that tender terms are not open to scrutiny unless proven to be arbitrary or discriminatory. (Paras 8, 10)

Result: Writ Petition dismissed.

Table of Content
1. challenging eligibility of outsourcing agencies (Para 1 , 2)
2. court's analysis of compliance with tender requirements (Para 3 , 5 , 6 , 7 , 8 , 9)
3. counter-arguments addressing tender process validity (Para 4)
4. upholding administrative discretion in tender allocations (Para 10)
5. dismissal of petition for lack of merit (Para 11 , 12)

ORDER :

Nagesh Bheemapaka, J.

Petitioner challenges the action of Respondents 3 and 4, in selecting and empanelling Respondents 5 to 10 in the List of Out Sourcing Agencies, Suryapet District (2025-26) in contravention of tender eligibility conditions of Tender Notice dated 13.06.2025 and consequentially allotting Respondents 5 to 10 to the needy government departments for outsourcing work by the 3rd respondent vide proceedings dated 20.08.2025 as illegal, arbitrary, unfair, against the tender rules and conditions and in violation of Articles 14 and 21 of the Constitution of India; consequently, to set aside the list of Outsourcing Agencies, Suryapet District (2025-26) to the extent of the Respondent Nos. S to 10 and also to set aside the consequential orders of the 3rd respondent vide proceedings dated 20.08.2025.

2. The case of petitioner is that it is a duly registered outsourcing agency, having been established in 2016, and has been providing manpower to various Government Departments in Suryapet District for several years. It claims to possess all valid statutory registrations, including labour licence, EPF, ESI, GST and professional tax registrations and asserts that it has been renewing its licence periodically, the latest being valid up to 31.12.2025.

2.1. The 3rd respondent issued Tender Notification dated 13.06.2025 inviting Applications from registered outsourcing agencies for empanelment to provide manpower to various Government Departments in Suryapet District for the financial year 2025-26. As per the tender conditions, all the interested agencies were required to submit Applications along with supporting documents between 16.06.2025 and 20.06.2025. The tender notification stipulated, among other things, that each applicant should have a minimum annual turnover of Rs.30,00,000/-in any one of the last three financial years, should possess valid EPF and ESI registration certificates, should have paid contributions under those enactments for at least six months prior to submission and should hold valid GST registration and submit proof of return filings for the last six months. Additionally, each applicant was required to enclose a demand draft for Rs.15,000/- towards processing fee and Rs.5,00,000/- towards earnest money deposit.

2.2. Petitioner submitted its Application within the prescribed period along with all the necessary documents and certificates to establish compliance with the eligibility criteria. It was thereafter, included in the list of agencies found eligible for empanelment, and proceedings dated 23.07.2025 were issued confirming their inclusion among 27 agencies shortlisted for empanelment for the said financial year. It is contended, after such empanelment, Respondents 3 and 4, without any justification, included certain other agencies, namely Respondents 5 to 10, which were ineligible under the tender terms. The petitioner submits that these agencies neither had the requisite turnover of Rs.30,00,000/- nor the statutory compliance documents required under the tender conditions. Petitioner on discovering that such agencies were nevertheless included and subsequently, allotted outsourcing work through proceedings dated 20.08.2025, filed the present Writ Petition.

2.3. Petitioner states that it has an impeccable record of service and has been executing outsourcing work in various Government Departments such as Medical and Health Department, Revenue Department and the District Treasury, among others, for the past several years to the satisfaction of the authorities. It has duly paid its outsourcing employees' salaries and remitted statutory contributions t

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