HC directs STCS to frame proper rules for making supplies to state government

GANGTOK, 25 June: The State Trading Corporation of Sikkim has often received flak due to its ambiguous and vague practice in the matter of selecting suppliers – with their questionable rates - for supply of various articles and items to the State government.

It is surprising that the Corporation does not have, apparently, a proper protocol to follow in the matter of selecting suppliers; this bungling comes out starkly when considered in the context that the State Government has issued an order to the effect that all departments have to purchase their supplies from the STCS. Now, the High Court of Sikkim has ordered the Corporation to frame rules and notify them in order to regulate the process.

The High Court has directed the state government to frame appropriate rules and guidelines on the basis of which the STCS is to supply items to the state government.

The single bench of the High Court of Sikkim directed the State government respondents to frame proper rules and guidelines for the State Trading Corporation of Sikkim “…for procedure to be adopted for supply of articles to state government, as early as possible, but not later than a period of three months from today…”. The Court order was issued on 20 June, 2014. Furthermore, the rules are also required to be notified as per the directives of the Court.

This order comes in the wake of a writ petition filed by Tsheten Dorjee Bhutia last year.

It is informed that the primary contention of the petitioner is the irregular manner adopted by the authorities in the selection of suppliers for items required by the State for the Janta Mela distribution such as induction cookers. It was alleged in the petition that the government, including the Rural Management & Development Department and the STCS had issued order for supply of articles to TTK Prestige worth Rs. 13.20 crores. This was allegedly done without issuing of proper advertisements in local and national newspapers. Furthermore, it is also contended that the petitioners were ready to supply the same items at lower rates, whereas the state had placed order for supply at higher rates.

As informed by counsel for the petitioner, UP Sharma, there were a total of 6 articles to be supplied to around 16,000 beneficiaries with the cost of each set to be supplied coming to over Rs. 7,900 which, allegedly, was even higher than the retail price.

“We had sought a CBI inquiry into the matter but we are satisfied as the court has given a progressive direction to the state,” stated Mr. Sharma.

Disposing the matter, the Single Bench of the High Court comprising of Chief Justice NK Jain further ordered that henceforth supply of articles to the State government by STCS, where the tender amount is above Rs. 5 crores, advertisements are to be issued at least in one national daily news paper and two local news papers by the STCS.

A reasonable time period of minimum one month is to be provided for obtaining the tender forms and papers and for submission of the same by interested persons, the Order directs.

During pendency of this petition, the High Court had stayed the payment of 25% of the amount to be paid to the suppliers by the state government. This stay order was lifted with the above order issued by the court; this payment, as per the court ruling, is to be made within three weeks.