SC stays govt bid to hand over TIA management to Indian firm

Mon, Jul 30, 2012 12:00 AM on Others, Others,

KATHMANDU, JUL 30 - 

The Supreme Court on Sunday issued an interim order directing the government to stop its alleged bid to hand over the management and up-gradation work of Tribhuvan International Airport (TIA) to an Indian Company.

The court said the Investment Board did not follow the due process (of open competition) while inviting the Expression of Interest (EoI). The Infrastructure Leasing & Financial Services Limited (IL&FS) had expressed interest in the TIA work.

In their petition, Advocates Shree Prasad Pandit, Krishna Prasad Bhattarai and Bhupal Basnet had said the letter sent by the Chief Executive Officer of the IB to the Indian firm on June 3 asking the latter to submit a formal proposal in response to its EoI would seriously affect national security and cause an irreparable loss to the nation.

However, the bench was not unanimous in the order. In a three-member special bench, Justices Sushila Karki and Tarka Raj Bhatta were for issuing the stay order, while Justice Ram Kumar Shah argued that the petitioners' claim does not hold ground. Shah said the IB decision to only send the letter has not violated the law.

On the claim of the petitioners that the government has entered into a Memorandum of Understanding (MoU) after receiving an EoI from the Indian firm that could affect areas such as immigration, customs and security, Justice Shah said the petitioners have not clarified as to what kind of understanding was reached and what process was adopted while entering into such an agreement.

Citing a reply furnished by one of the defendants, Prime Minister Baburam Bhattarai, and arguments put forth by government attorneys that no MoU was signed, Justice Shah said the petitioners' claim that an MoU has been signed does not hold ground.

The advocates had moved the apex court on July 4 against the government's alleged "anti-national" and "illegal" TIA move.

The petition also said a tender where even Nepalis can participate must be invited if the up-gradation of the TIA is to take place under the Build, Own, Operate and Transfer (Boot) system.

The defendants include the PM and his office, Minister for Civil Aviation and Tourism and his ministry, Finance Secretary, Law Secretary, Chief Executive Officer of the Investment Board and Director General of the Civil Aviation Authority of Nepal.

The write had argued that the move to hand over the management of the TIA, a sensitive area that concerns the economy, strategic interest and security, when "time and again it has been brought to notice that India has been mounting pressure to allow the presence of its Army and security forces at the TIA" is "indicative of the government interest".


Source: The Kathmandu Post