SC issues notice to Gujarat govt in seaplane firm's blacklisting case

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₹25 lakh for performance guarantee and ₹10 lakh earnest money deposit were forfeited due to non-submission of ownership or lease documents for the aircraft, a mandatory condition in the tender agreement. Last year, the company moved the Gujarat High Court, stating that it had won the bid but received a show-cause notice for termination due to not executing an agreement for the service. In October 2022, the high court dismissed the petition and noted that the show-cause notice had been issued informing the company about proposed actions due to non-compliance with the agreement conditions.

The court order said the blacklisting and forfeiture of the bank guarantee and earnest money deposit were not challenged in the original petition. Senior lawyer Menaka Guruswamy, representing the seaplane company, today argued that they initially planned to deploy one aircraft but faced challenges due to the covid pandemic. When they requested a 25-day extension, the state government not only forfeited their bank guarantee and earnest money but also blacklisted them for future projects.

The senior lawyer sought the court's stay on the blacklisting so the company can bid for future projects. The court stated that it would decide on the blacklisting in the final judgment. On 31 October, 2020, Prime Minister Narendra Modi launched India's first seaplane service between the Sabarmati Riverfront in Ahmedabad and the Statue of Unity near Kevadia in Gujarat's Narmada district.

But less than a year later, on April 10, 2021, the service was suspended. According to the Gujarat government, it initiated the seaplane service for ₹13 crores. However, it had discontinued the service, citing various issues such as maintenance difficulties and higher