SC to scan Mumbai duty-free shop bids

NEW DELHI: Bids for allotment of duty free shops at Mumbai International Airport has come under scanner of the Supreme Court. A bench comprising Justice Arijit Pasayat and Justice LS Panta have issued notices to the centre, Airport Authority of India and Mumbai International Airports Pvt Ltd on a petition challenging the bidding process.

The court asking, the concerned parties to file their replies, posted the matter for further hearing in May. Senior counsel Fali Nariman appearing for Flemingo Dutyfree Shop Pvt Ltd, sought intervention of the court to make the bid competitive. Petitioner, a subsidiary of Dubai based company alleged that in order to exclude it from bid process, the airport authorities denied it even basis tender document (RFP) to facilitate the awarding of tender to the selected party. The petition has sought restraining the authorities to proceed with the tender process.

It also sought restrain order from opening the bid submitted by the bidders to whom RFP were issued. Petitioner claimed that it is the first private duty free retailer in Indian airports and seaports and has the experience in running such outlets. It could have given expert competition in the bid process so to eliminate it from the bidding process, the petitioner has been denied the tender document. It will cause immense loss to state exchequer, said the petition. Almost 40 % of the revenue generated from this tender would directly go to the AAI which will be nearly Rs 240 crore.`