HON’BLE SRI JUSTICE NAGESH BHEEMAPAKA WRIT PETITION No. 23933 OF 2025

O R D E R:

This Writ Petition is filed by petitioner aggrieved by the action of the 1^st respondent - State of Telangana, represented by its Secretary, Scheduled Caste Development (Education) Department in issuing G.O.Ms.No.17 SCD (Edn.A2) Department, dated 08.07.2025, whereby the Government constituted a Project Monitoring Unit (PMU) to function as a nodal agency for a uniform procurement system of various items for the hostels and residential educational institutions across the State. The said G.O. was followed by the consequential guidelines dated 25.07.2025 issued by the 2nd respondent- Secretary, Telangana Social Welfare Residential Educational Institutions Society (TGSWREIS), through which the entire procurement system was centralized, treating the district as the unit for dry provisions and the mandal as the unit for fruits, vegetables, mutton and chicken. Petitioner submits that the said G.O. and guidelines are ex facie arbitrary, discriminatory and violative of Articles 14, 19(1)(g) and 21 of the Constitution of India, as they have eliminated over 5000 small contractors who have been earning their livelihood for more than 20 years by supplying dietary provisions and related items to more than 1023 residential schools and hostels functioning under five welfare departments in the State.

2. It is the case of petitioner that their Association, registered under No. 217 of 2024, with its office at Hyderabad, represents approximately 5000 small contractors, who have been engaged in supply of provisions, eggs, milk, fruits, vegetables, chicken, mutton and catering services to residential educational institutions under the Telangana Social Welfare Residential Educational Institutions Society (TGSWREIS), Telangana Tribal Welfare Residential Educational Institutions Society (TGTWREIS), Mahatma Jyothiba Phule BC Welfare Residential Educational Institutions Society (MJPTBCWREIS), Telangana Minorities Residential Educational Institutions Society (TMREIS) and Telangana Residential Educational Institutions Society (TREIS). Collectively, these institutions run over 1023 residential schools and hostels catering to lakhs of students from marginalized backgrounds.

2.1. For more than two decades, procurement of dietary items was conducted independently by each school or hostel, treating each institution as a separate unit. Tenders were called at the school level for specific items such as food provisions, fruits, vegetables, eggs, mutton, chicken and catering services. EMDs. and tender fees were nominal and proportionate to the value of the supplies such as Rs.15,000/- for vegetables, Rs.25,000/- for fruits, Rs.50,000/- for eggs and meat and Rs.2,00,000/- for provisions with 40% concession extended to SC/ST contractors. There was no provision for security deposits and small contractors across the State were able to participate freely, ensuring competition, fair pricing and continuous supply. However, the entire system was abruptly altered when the Scheduled Caste Development Department issued G.O.Ms.No.16, dated 03.07.2025, prescribing uniform standards for procurement and supply of eggs through District Purchase Committees (DPCs) headed by District Collectors. Shortly thereafter, through G.O.Ms.No.17 dated 08.07.2025, Government extended this concept to all dietary items and constituted the PMU, with the Secretary of the TGSWREIS as its Chairman, as the nodal agency for formulating a uniform procurement system for all residential educational institutions across departments. Acting under the said G.O., PMU issued common procurement guidelines dated 25.07.2025, prescribing the procedure for calling for tenders at the district level and introducing a new system that abolished the earlier school-

based tenders.

2.2. Petitioner states that the new guidelines fundamentally altered the existing decentralized system by authorizing the District Purchase Committees to invite tender