Thursday, July 1, 2010

AP faulted for hiring Maytas for relief work

By S A Ishaqui
Hyderabad, June 30 : The AP High Court, on Wednesday, found fault with the action of the state government in entrusting the work of setting up relief and rehabilitation centres (R.R. centres) in Kadapa district under the Galeru Nagari Srujala Sravanthi Phase-I to Maytas Infra Ltd. on a nomination basis.

A division bench comprising Justice Goda Raghuram and Justice R. Kantha Rao, while disposing of a petition filed Mr K. Ramesh Reddy, observed that the method of awarding contracts by nomination basis has the potential to encourage nepotism, waste and carelessness in the award of contracts by public authorities.

It may be recalled that the court had earlier directed authorities not to make any payments for work executed by Maytas, relating to the execution of R.R. centres. The court vacated the stay orders by considering the contention of Mr N. Sridhar Reddy, special counsel for the government, as Maytas Infra almost completed all the work entrusted to it and the stopping of the payments may not be fair on the part of the government.

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