SC Upholds Quashing of ₹37.92 Cr Cloud Contract Awarded to MSME Acting on Behalf of Amazon Web Services

The Supreme Court upheld the Allahabad High Court’s decision quashing the ₹37.92 crore cloud services contract awarded to CloudThat Technologies, a registered Micro and Small Enterprise (MSE).

The Court found that 97% of the contract's scope was to be executed by Amazon Web Services (AWS), a non-MSME foreign entity, rendering CloudThat merely a facilitator.

The Court emphasized that granting MSME benefits to intermediaries acting on behalf of foreign companies undermines the MSME Act, 2006.

The court directed a re-evaluation of the tender, stating that only genuine producers or service providers qualify for such benefits.

The matter is scheduled for July 15.