Delhi High Court Directs Sports Authority of India to Address Excessive Turnover Requirement and Evaluation Criteria in Tender for Providing Security Services at Major Dhyanchand National Stadium

Court’s Decision: The Delhi High Court directed the Sports Authority of India (SAI) to decide on the petitioner’s representation dated 6th September 2024 within two working days, after considering the petitioner’s challenges to the tender process. The financial bids can be opened, but the contract award must be delayed by one week to give the petitioner time to pursue legal remedies if necessary.

Facts of the Case: Good Year Security Services, the petitioner, challenged the tender (No.GEM/2024/B/5347639 dated 31st August 2024) issued by the SAI for providing security services at five stadiums, including Major Dhyanchand National Stadium. The tender was valued at approximately Rs. 20.65 crores, with a two-year duration and a requirement for 202 security guards.

The petitioner argued that the eligibility criteria, particularly the requirement for an average annual turnover of Rs. 31 crores over three years (five times the tender’s estimated cost), and the evaluation scheme that favored companies with a turnover above Rs. 200 crores, excluded smaller firms like theirs from participation.

Court’s Observations: The court noted that SAI had not responded to the petitioner’s detailed representation submitted on 6th September 2024, which raised concerns about the excessive turnover requirement and evaluation criteria. The court directed SAI to issue a reasoned order regarding the representation. The court also clarified that while financial bids could be opened, no contract would be awarded for one week, allowing the petitioner time to pursue further legal action if dissatisfied with SAI’s response.