Supreme Court Upholds HP Govt's Move to Cancel ePoS Tender, Orders Fresh Bidding Process
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The Supreme Court has delivered a significant verdict, allowing the Himachal Pradesh government to cancel its tender for upgrading electronic Point-of-Sale devices for Fair Price Shops, citing administrative discretion. In a 40-page judgment, Chief Justice of India Surya Kant ruled that the state government's decision to cancel the Letter of Intent issued to OASYS Cybernetics Pvt. Ltd. on June 6, 2023, was lawful. The HC had previously restored the LoI, but the SC has set aside this order, stating that the LoI did not create any binding or enforceable rights for the firm. The SC has given the state government the freedom to issue a fresh tender for the supply and installation of ePoS devices, with the possibility for OASYS Cybernetics to participate in the process. The new tender must adhere to applicable financial and procurement rules, as well as technical specifications. The case revolves around the HP government's efforts to modernize its Public Distribution System by upgrading existing ePoS devices with advanced features, including Aadhaar-enabled biometric and IRIS-scanning capabilities. The state government's decision to cancel the tender was challenged by OASYS Cybernetics, leading to a lengthy litigation process.
