New Delhi: The Supreme Court on Tuesday upheld a judgment of the Kerala High Court asking the State government to consider the bids of Zoom Developers for the construction of the Rs.6,000-crore Vizhinjam deepwater container transhipment terminal project.

A Bench of Justice Arijit Pasayat and Justice S.H. Kapadia dismissed a batch of special leave petitions filed by the State government, a consortium led by Hyderabad-based Lanco Kondapalli Power Ltd and others challenging the High Court judgment. The Bench, rejecting the contentions of the appellants, asked the Kerala government to consider the financial and technical bids of Zoom Developers within 15 days.

The High Court had on December 5 last ordered that until a decision was taken on the proposal of the Mumbai-based Zoom Developers, the proceedings initiated for awarding the contract to Lanco Kondapalli Power Ltd. be kept in abeyance. It also ordered that if the bid submitted by Zoom Developers was found to be better, the decision to award the contract to the Hyderabad-based company be cancelled.

The State and the Vizhinjam port, in their special leave petitions, had contended that the tendering process that began in 2003 for the project on a build-own-operate-and-transfer basis for 30 years was once terminated owing to non-receipt of bids. In 2005 the tender was awarded to a consortium in which Zoom Developers was a member subject to the Government of India’s clearance. After an internal inquiry, the Centre declined security clearance for the consortium. The petitions said the Bid Evaluation Committee had rejected the bid of Zoom Developers after a detailed evaluation and after perusing the Law Secretary’s opinion. Contending that the directions of the High Court could not be implemented, the petitions sought quashing of the December 5 judgment.