Summary: BVG India Limited secures a major waste management contract in Jalgaon after a legal dispute with Watergrace Products. The court ruled in favor of BVG, dismissing claims of unfair practices.
On December 13, 2024, the Jalgaon Municipal Corporation announced a job opening for waste collection and transportation. The task involved hiring 500 workers and sorting waste where it was collected. Three companies—BVG India Limited, Watergrace Products, and Global Waste Management Cell—competed for the job.
A meeting on December 24, 2024, explained that the company with the lowest price (L-1) would be chosen based on a specific formula involving service charges and tipping fees. All companies, including Watergrace Products, agreed to these terms.
On January 29, 2025, the evaluation showed BVG India Limited as the company offering the lowest price. However, the Municipal Corporation was slow to issue a letter of acceptance, leading BVG to ask the court for help.
"BVG India Limited was indeed the lowest bidder, which would result in lesser cost for the Corporation," argued BVG in court.
Watergrace Products filed a complaint claiming the formula was unfairly changed to favor BVG. They also said BVG lied about not being banned from other projects, which should have disqualified them.
The judges, Manish Pitale and Y.G. Khobragade, looked at the claims. They found that the agreements from the meeting were clear and that BVG's bid was indeed the cheapest, saving the Corporation a lot of money.
"The difference between the two bids was substantial, indicating a rational decision by the Corporation," the court noted.
Watergrace Products claimed BVG was banned by another public body. However, the court found no active ban at the time of the bid, dismissing these claims as baseless.
The court dismissed Watergrace Products' complaint, allowing BVG India Limited to continue with the contract. The decision emphasized fairness and the importance of public interest in awarding contracts.
"The work order issued in favor of BVG India Limited stands, ensuring the continuation of the waste management project," concluded the court.
