Rs 241-crore trash tendering in Greater Noida under scanner amid favouritism allegations

Allahabad High Court

The Greater Noida Industrial Development Authority’s (GNIDA) plan to appoint a private agency for waste management in Greater Noida West has come under judicial scrutiny. The Allahabad High Court has restrained the authority from finalising any contract under the latest tender, citing serious allegations of favouritism and manipulation in the bidding process, The Times of India reported.

The contract in scanner, valued at over Rs 241 crore, includes integrated mechanical and manual sweeping, door-to-door garbage collection, and waste transportation in Zones 1 and 2 of Greater Noida West. While the court has not stayed the tender process entirely, it has prohibited the awarding of the contract until further notice.

A division bench comprising Justices Mahesh Chandra Tripathi and Prashant Kumar passed the interim order in response to a petition filed by two private agencies. The petitioners alleged that the bidding process had been unfairly tailored to favour a specific agency by repeatedly altering tender conditions and excluding consortium bids. The judges observed that, if proven, these allegations could have grave implications for transparency in public procurement and adherence to judicial directions.

According to the petition, GNIDA floated the request for proposal (RFP) five times within a span of one year. Each time, significant changes were made, especially regarding eligibility norms and the allowance of consortium participation, which allegedly worked against certain bidders and created room for bias.

As per TOI, the first RFP was issued on July 2, 2024, and subsequently modified on August 24 to permit consortium bids. It was cancelled later due to a lack of sufficient bidders. A second RFP was floated on November 6, expanding the project scope but removing the consortium clause. This too was eventually scrapped.

On January 13, 2025, a third RFP was floated, again disallowing consortiums. The petitioners challenged this in court, seeking inclusion of consortium bids. However, that petition was disposed of after GNIDA informed the court that the tender process was in its final stages. Despite this, GNIDA issued a fourth RFP on May 2, allowing consortium bids. The two agencies applied jointly under this RFP.

When GNIDA failed to respond to their application, the companies moved the High Court again. On May 17, the court directed GNIDA to examine their plea. But on June 3, GNIDA cancelled the fourth RFP without addressing the petitioners' concerns.

Subsequently, GNIDA issued a fifth RFP on June 18, once more excluding consortiums and tweaking eligibility criteria. A major change was the increase in the required average turnover from Rs 42.25 crore to Rs 44.10 crore, which the petitioners allege was deliberately crafted to disqualify them. They argued that the increase was not only minor and unrounded but also lacked any rational or policy-backed justification.

In their latest plea, the petitioners told the court that such arbitrary increases in financial thresholds appeared artificial and discriminatory, suggesting an effort to tilt the process in favour of a specific bidder. “The eligibility conditions in the RFPs have been tinkered with in a manner that appears to be tailored to suit a particular bidder, to the exclusion of others,” the petitioners stated.

The court has granted GNIDA two weeks to file a detailed reply explaining the rationale behind cancelling previous tenders and modifying eligibility conditions. The next hearing is scheduled for August 11, TOI reported.

In response to the allegations, GNIDA has maintained that the tendering process is a matter of administrative policy and discretion.