HON’BLE SRI JUSTICE NAGESH BHEEMAPAKA WRIT PETITION No. 25331 OF 2025

O R D E R:

Petitioner questions the action of the 3^rd respondent in issuing proceedings dated 20.08.2025, whereby outsourcing work for the Government Medical College, Suryapet, was allotted to the 6th respondent for the financial year 2025-2026 pursuant to Tender Notification dated 06.06.2025. They pray for the said proceedings to be declared illegal, arbitrary and contrary to the tender conditions and the principles of transparency and fairness in government contracts.

2. Petitioner asserts that it is a registered manpower and security services agency under Registration No. SEA/NAL/ALO/NG/56575/2017, renewed periodically, and has been providing outsourcing and security services to various government departments including Government Medical College, Suryapet, for several years without any adverse remarks. Petitioner had successfully executed the outsourcing work for the Government Medical College during the financial year 2024-25 to the satisfaction of the authorities concerned and was even issued a certificate of appreciation by the Principal, Government Medical College, Suryapet, vide Rc. No.

428/E3/GMC-SRPT/2025 dated 15.05.2025. Despite such record, petitioner was ignored for allotment of the subsequent year's work.

2.1. Petitioner states that the 3^rd respondent issued Tender Notification dated 06.06.2025 inviting tenders for empanelment of outsourcing agencies for various departments for the financial year 2025-26. The last date for submission of tenders was 18.06.2025, and tenders were opened on 20.06.2025. Petitioner participated and submitted all the required documents as per the tender form, including turnover certificate, EPF, ESI, GST and Labour registrations along with six months' payment receipts. It is contended that as per Condition No. 6 of the tender, each agency was required to have a minimum turnover of Rs. 30 lakhs in any one of the last three financial years and failure to submit proof of turnover would result in rejection of the bid. The 6^th respondent did not satisfy this condition, as its turnover for 2024-25 was only Rs. 3,62,830 as per information obtained under the Right to Information Act, 2005. Petitioner further alleges that the 3rd respondent improperly accepted a bank guarantee of Rs. 30 lakhs furnished by the 6^th respondent in lieu of the mandatory turnover certificate. Such substitution, according to petitioner, is impermissible as tender conditions did not provide for any alternative form of proof for financial eligibility. Acceptance of the 6th respondent's bid, despite its failure to meet the tender criteria, is contended to be arbitrary, discriminatory and violative of G.O.Rt.No. 4459 dated 27.12.2006, which mandates transparency in empanelment of outsourcing agencies.

2.2. Petitioner also submits that several representations dated 15.05.2025, 26.07.2025, and 04.08.2025 were addressed to official respondents seeking extension of previous contract until completion of the fresh tender process, but the same were ignored. It is therefore, contended that proceedings dated

20.08.2025 are illegal and liable to be set aside.

3. By order dated 25.08.2025, this Court granted interim suspension of the proceedings dated 20.08.2025 till the next date of hearing and the said order was extended from time to time.

4. The 3^rd respondent - District Collector, Suryapet filed a counter affidavit and an additional counter stating that tender notification dated 13.06.2025 was issued strictly in accordance with G.O.Rt.No. 4459 dated 27.12.2006 for empanelment of outsourcing agencies for 2025-26. Thirty-four agencies applied, and twenty-seven were found eligible after scrutiny by the District Level Selection Committee. It is stated that the Committee, while evaluating the Applications, noted that certain agencies were unable to produce turnover proof of Rs. 30 lakhs but were financially sound. To ensure fair participation and adequate competition, t