The Hyderabad High Court today imparted a stay on the Swiss Challenge system adopted by Andhra Pradesh government to grant 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 questioning the process and seeking disclosure of details tendered by Singaporean companies so that it also can participate in the bidding.
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The court ordered the Andhra Pradesh government to file an affidavit and post the matter to October 31 for further proceedings. The AP government earlier aspired to develop some part of the proposed capital region under the Swiss Challenge method.
A consortium of Singaporean companies had submitted the outlines 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 the lower bid then he gets the benefit and the authority, and if he fails, the one with lower bid gets the project.