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

New Delhi: The Supreme Court on Tuesday issued a notice to Gujarat State Aviation on a plea involving the blacklisting and forfeiture of the performance guarantee of seaplane operator Maritime Energy Heli Air Services Private Ltd. The company had challenged the actions taken by Gujarat State Aviation after it won a bid to operate a seaplane service between the Sabarmati riverfront and the Statue of Unity but failed to show procurement of an aircraft.

A three judge bench, led by Chief Justice DY Chandrachud, directed the Gujarat government to file an affidavit and adjourned the case for four weeks. In June 2023, the company was blacklisted, and its security of 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.

The seaplane project that never took off 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 operating costs due to the aircraft being registered abroad. Sabarmati River Front and Statue of Unity water aerodromes were identified in UDAN for seaplane operations.

According to media reports, the Airports Authority of India has awarded 14 water aerodromes (seaplane routes) under UDAN, including locations in the Andaman and Nicobar Islands and Lakshadweep Islands. Livemint tops charts as the fastest growing news website in the world to know more. Unlock a world of Benefits! From insightful newsletters to real time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away!.