Key Takeaways
- The Supreme Court dismissed Vedanta’s plea against the Goa government’s iron ore mining e-auction.
- The court upheld the Bombay High Court’s ruling, allowing the Directorate of Mines and Geology to proceed with further bidding for the Curpem and Sulcorna Mineral Block-XI.
- Vedanta had emerged as the highest bidder in the e-auction, but the Directorate allowed another bidder, Agravanshi, to improve its bid after a technical error claim.
New Delhi: The Supreme Court dismissed Vedanta Limited’s appeal seeking to prevent the Goa government from resuming the e-auction for the iron ore mining lease at Curpem and Sulcorna Mineral Block-XI in South Goa.
The company had also sought a directive for the state’s mines department to declare it as the preferred bidder and issue a letter of intent for the iron ore mining block.
A Bench led by Justice Abhay S Oka on Monday upheld the February 4 judgment of the Bombay High Court, which allowed the Directorate of Mines and Geology to proceed with further bidding for the block.
The apex court ruled that it was not a “fit case for interference” given the findings of the High Court.
Vedanta had emerged as the highest bidder in the e-auction concluded on November 14. The company challenged the Directorate’s decision to restart the bidding process following complaints from another bidder, Agravanshi Pvt Ltd, which cited a technical glitch during the auction.
Senior counsel Huzefa Ahmadi and counsel Ninad Laud, representing Vedanta, argued against the resumption of the auction, claiming the issue was due to a technical fault on Agravanshi’s side. They contended that MSTC, the e-auction platform, had rejected Agravanshi’s claims of a “server error.” Despite this, the Directorate allowed Agravanshi to improve its bid.
Vedanta alleged that the Directorate’s decision was unjustified, as there was no credible evidence from MSTC to support Agravanshi’s technical error claim. The company argued that this decision undermined its position as the highest bidder.
The dispute centres around the auction of the Curpem and Sulcorna Mineral Block-XI, one of three blocks for which the state government issued a tender in August last year. During the bidding process, Agravanshi reportedly faced a server error for a brief period, which delayed its participation.
Following a review by the technical evaluation committee on November 19, the Directorate decided to resume the auction. This decision was made despite Vedanta’s request for the issuance of a preferred bidder award and letter of intent.
When the company was not declared the preferred bidder, it approached the Bombay High Court. However, the HC dismissed its plea, stating that the Goa government’s decision to resume the auction was neither arbitrary nor unreasonable.
The Supreme Court’s dismissal of Vedanta’s appeal affirms the Bombay High Court’s ruling, allowing the Goa government to proceed with further bidding for the mineral block.
