Tata Motors wins case against firm that won contract to supply e-buses

Tata Motors had challenged the tender Brihanmumbai Electric Supply & Transport awarded to Evey for supplying 2,100 electric buses

Tata Motors won a case against Evey Trans when the Bombay High Court on Tuesday cancelled a contract awarded in May to Olectra Greentech’s subsidiary for supplying electric buses to the city’s transport agency.

The automobile giant had challenged the tender BEST (Brihanmumbai Electric Supply & Transport) awarded to Evey for supplying 2,100 electric buses. The cancellation of the tender, worth Rs 3,675 crore and one of the biggest orders in e-mobility, is a setback for Evey. It won the contract after emerging as the lowest bidder.

Tata Motors, which was represented by Karanjawala & Co and other law firms, challenged the contract on the grounds that two hours before a technical evaluation, BEST allowed Evey Trans to change its bid. This violated tender conditions that embargoed changes after technical bids were opened, said a statement from Karanjawala.

During the evaluation of the technical bid, there was a clear prohibition in the tender on bidders on unduly influencing BEST by contacting the agency on any matter. BEST allowed Evey Trans to correct its bid after it was opened on May 4.

Tata Motors had urged the court to take a stern view on the favour extended by BEST to Evey Trans and preserve the sanctity of the tender process.

The court upheld Tata Motors' disqualification. However, if BEST floats a fresh tender, Tata Motors will be able to bid afresh.

The supply order was based on the Gross Cost Contract (GCC) /Operational expense model for a period of 12 years, according to media reports. Evey was to procure the electric buses either directly by itself or through its special purpose vehicle from Olectra Greentech. The buses were to be delivered over a period of 12 months. Olectra was to also undertake maintenance of the buses during the contract period.