High Court stays AP govt's Swiss challenge method for capital development

HYDERABAD: The Hyderabad High Court today granted stay on the Swiss Challenge method adopted by Andhra Pradesh government to allot bids for developing the start-up area of Amaravati, the proposed capital of the state.

Justice M S Ramachandra Rao, of the High court of Judicature at Hyderabad for the state of Telangana and the state of Andhra Pradesh, was hearing a petition filed by Aditya Constructions opposing the method and seeking disclosure of details submitted by Singaporean companies so that it also can participate in the bidding.

The court directed the Andhra Pradesh government to file an affidavit and posted the matter to October 31 for further hearing.

The AP government earlier wanted to develop some part of the proposed capital region under the Swiss Challenge method. A consortium of Singaporean companies had submitted the proposals to Capital Region Development Authority (CRDA) in this regard.

Under the Swiss Challenge, a developer will be asked to present a bid. Then, other prospective developers would be asked to present counter bids. If the latter is lower, the first bidder will be asked to submit another bid again.

If the first bidder comes up with lower bid then he gets the right, and if he fails, the one with lower bid gets the project.