The Delhi High Court recently stayed a blacklisting order issued by the Food Corporation of India.
The case arises from a dispute over an Agreement dated July 25, 2018, between Vijay Sharma and the Food Corporation of India (FCI) for “demolition and reconstruction of 20 residential flats in Sector-27, Noida”. The work was completed on February 25, 2021.
Consequently, FCI issued an undated communication directing the following actions against the Petitioner:
1. Forfeiture of Security Deposit: ₹26,05,845/-
2. Forfeiture of Withheld Amount: ₹1,50,000/-
3. Debarment from participating in any future tenders for five years.
4. Exclusion from the tendering process for repairs/strengthening/renovation of the said flats.
The court noted that the debarment directive, issued without a show cause notice or opportunity for the Petitioner to respond, prima facie violates natural justice principles. Therefore, the court stayed the debarment order until the next hearing date.
Counsel: Ankur Mahindro, Aditya Kapur, Rohan Taneja, Shubhangi Jain
