The Delhi High Court has quashed a ₹56 crore catering contract awarded by IRCTC to RK Associates for failing to disclose a pending criminal case under the Prevention of Corruption Act and PMLA.
The Court held that this non-disclosure violated anti-corruption clauses and IRCTC’s tender terms, impacting credibility assessment.
The petition was filed by rival bidder MS Deepak and Co., who had quoted ₹41 crores against RK Associates successful bidder who submitted a bid of ₹56 crores.
The Court, while rejecting IRCTC’s argument that only recent transgressions required disclosure, the Court directed a fresh tender within three months and allowed RK Associates to continue with interim services to avoid disruption.
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