The Hyderabad High Court on Monday stayed the plans to build the Andhra Pradesh's new capital Amravati, saying there were irregularities in the tendering process. Justice Ramachandra Rao also cancelled the September 13 deadline set by the government for receiving counter-bids to the one filed by a Singapore-based consortium, which was awarded the contract in 2015.

In July, new firms had been asked to put in competing proposals. Under this process, if the government preferred the new bids, the Singapore consortium would be allowed to counter them once again. The government would then decide on the final contract.

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Monday's order came after the bench heard two petitions filed by Indian builders that alleged that the Chandrababu Naidu government had intended to hand over the contract to the Singapore firm all along. Aditya Housing Company and Envian Engineering Pvt Ltd claimed that the government had prescribed conditions that no Indian builder could fulfil. They further sought to know the revenue sharing model offered by the consortium of Ascendas-Singbridge and Sembcorp Development Limited, The Indian Express reported.

However, Attorney General Mukul Rohatgi told the court on behalf of the state that no Indian builder would have been able to take up the contract, barring “exceptions” such as Larsen & Toubro, which had also bid for the contract. Rohatgi cited the Supreme Court’s criticism of local builders and said, “These Indian builders have become more of defaulters rather than good builders.”

Rao observed that the state was acting in a non-transparent manner and that its tender process violated sections of the Infrastructure Development Act. He further said that the state had set very short deadlines for competing construction firms to challenge the consortium’s offer. “This does not provide a level-playing field to interested applicants,” he added. The court has directed the government to file its reply in the matter and posted the case for hearing on October 31.