The imposition of arbitrary turnover requirements in tender processes, lacking rational justification, violates Articles 14 and 19(1)(g) of the Constitution, ensuring fair opportunity and competition in public contracting.

ORDER :

B.VIJAYSEN REDDY, J.

The writ petition is filed challenging the pre-condition of turnover requirement in Tender Notification No.1451/UF/HMDA/ 2018 dated 19.08.2025 mandating a minimum turnover of Rs.15 crores in any one financial year during the last three financial years as one of the eligibility criterion for “Installation, Operation and Maintenance of the Gymnasium and Swimming Pool at Dr. G.S. Melkote Park, Hyderabad”, for a period of five years, as being arbitrary and unconstitutional. The petitioner has also sought for a consequential direction to set aside the tender notification and to call for fresh tenders.

2. The background facts of the case are set out hereunder:

(a) The petitioner is the sole proprietor of Praxis Fitness Hub. Pursuant to similar tender notification issued by the respondent No.4 in December 2016, the petitioner submitted his bid and he was declared the successful bidder. A Licence Agreement dated 23.03.2017 was executed between the petitioner and the respondent No.4. The petitioner was granted licence rights to discharge the subject work for “Installation, Operation and Maintenance of Gymnasium and Swimming Pool at Dr. G.S. Melkote Park, Hyderabad for five years”. The petitioner was permitted to continue to perform the work until a fresh tender was issued and licence rights are prospectively granted to any subsequent bidder.

(b) In May 2025, the respondent No.3 issued another Tender Notification inviting bids for grant of licence rights and execution of a licence agreement for carrying out the same work vide Notification No.1451/UF/HMDA/2018 dated 30.04.2025. The petitioner, being fully eligible, submitted his bid. But without assigning any reason, whatsoever, the respondent No.3 abruptly cancelled the said tender process vide email dated 14.07.2025. The respondent No.3 again issued a fresh tender notification dated 19.08.2025 whereunder the impugned condition in the form of turnover requirement with condition “must have minimum annual turnover of Rs.15 crores in any one financial year during the last three years” was stipulated.

3. The case of the petitioner is that the impugned financial pre-requisite condition was never prescribed by respondent No.3 in any of the previous tender processes. The Petitioner addressed a representation/letter dated 23.08.2025 to respondent No.3 seeking clarification with respect to the sudden introduction of the impugned financial pre-requisite eligibility condition. However, there was no response from the respondent No.3. The last date and time for submission of bids has been stipulated as 28.08.2025 at 3:00 p.m. The respondent No. 3 has not issued any clarification and due to the impugned condition, the petitioner stands effectively precluded from participating in the tender process. The impugned condition of turnover requirement is disproportionately high, wholly arbitrary, and impractical.

4. It is submitted that to accommodate the persons of their choice, a Corrigendum was issued by respondent No.3 after the issuance of Tender Notification dated 19.08.2025 under the heading "Technical Capacity," which states: "Bidder shall, over the past five (05) years preceding the Bid due date, have the following minimum categories of experience." By the Corrigendum, the word "private" was inserted in the sub-clause relating to experience certificates, which was not there in the original tender notificatio