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High Court

High Court stays Swiss Challenge model

Hyderabad, Sept 12 (INN): In a setback to the Andhra Pradesh government, the Hyderabad High Court on Monday stayed the Swiss Challenge model proposed by the state government to award construction of capital city Amaravati.

The HC admitted the petition filed by two private firms- Aditya Constructions and NVN Engineers challenging the government’s decision to adopt the Swiss Challenge model. Justice M.S. Ramachandra Rao directed the state government to file its response and adjourned the hearing till October 31.

Under the Swiss Challenge model, the government or its agency invites a developer to present a bid. Other prospective developers are then asked to offer counter bids. If their bid is lower, the first bidder is asked to submit a fresh bid. If the first bidder comes up with lower bid, it gets the project, and if it fails, the one with lower bid wins the projects

Opposition parties have alleged that there were several irregularities in Swiss Challenge model. YSR Congress sited that the Vijay Kelkar panel had submitted a report to the Centre in 2015 saying that the Swiss Challenge method was unscientific.

Kelkar panel rejected the ‘Swiss Challenge’ model, saying that unsolicited proposals may be actively discouraged as they lack in transparency,” YSRC leader Botsa Satyanarayana said. (INN)


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