Authority: High Court of Andhra Pradesh at Amaravati (Special Original Jurisdiction)

Order Date: 31 July 2026

Case Overview

  • Petitioners: a group of wholesale traders including K L N Traders, SRI VENKATESWARLU Traders, NAIDU Enterprises, M/S SRI VIGNESWARA ENTERPRISES, VICTORY BAZARS PRIVATE LIMITED and others, each filing separate writ petitions (WP Nos. 16444, 16445, 16556, 16558, 16559, 16978, 17156) under Article 226 of the Constitution.
  • Respondents: State of Andhra Pradesh (School Education Department), Samagra Shiksha Abhiyan (State Project Director), and various departmental officials.
  • Relief Sought: Declaration that the tenders issued for supply of non‑perishable items, milk and eggs to KGB Vidyalayas (KGBVs) were arbitrary, discriminatory, violative of General Financial Rules 2017 and fundamental rights (Articles 14, 19, 21), and that the tenders be set aside and fresh tenders re‑issued in accordance with G.O. Ms.No. 53 dated 31‑08‑2023.
  • Tender Details:
  • WP 16444 – Tender ID 935069, Notice KGBV Zone‑IV‑SS‑21021/44/2026‑IED, 139 schools (Nandyal, Kurnool, Chittoor, Tirupati, Kadapa), 10‑month contract, estimated cost Rs 44.26 crores.
  • WP 16445 – Tender ID 934945, Notice KGBV Zone‑I‑SS‑21021/44/2026‑IED, 111 schools (Srikakulam, Parvatipuram Manyam, Vizianagaram), Rs 33.94 crores.
  • WP 16556 – Tender ID 935035, Notice KGBV Zone‑II‑SS‑21021/44/2026‑IED, 106 schools (Visakhapatnam, Anakapalli, Polavaram, ASR, Kakinada, Eluru, NTR), Rs 25.69 crores.
  • WP 16558 – Tender ID 935072, Notice KGBV Zone‑V‑SS‑21021/44/2026‑IED, 127 schools (Ananthapuram, Sri Sathya Sai, Annamayya), Rs 40.07 crores.
  • WP 16559 – Tender ID 935066, Notice KGBV Zone‑III‑SS‑21021/44/2026‑IED, 106 schools (Palnadu, Bapatla, Prakasam, Markapuram, SPSR Nellore), Rs 33.99 crores.
  • WP 16978 – Tender ID 935035 (same as WP 16556) for 79 schools (Visakhapatnam, Anakapalli, Polavaram, ASR, Kakinada, Eluru, NTR), Rs 25.69 crores.
  • WP 17156 – Challenged multiple memos (Memo 5 648 13/PROG‑II/A2/2018 dated 23‑03‑2026 and Memo 564813/Prog‑II/A2/2018 dated 20‑04‑2026) authorising centralized procurement of KGBV items, alleging violation of G.O. 53.
  • Corrigenda were issued on 16‑06‑2026 or 17‑06‑2026 (depending on tender) altering quantities but not contract value.
  • Petitioners alleged restrictive clauses (e.g., mandatory turnover of 100 % of contract value, minimum number of supermarkets, experience criteria) were tailor‑made to exclude them.
  • Interim Applications (IA Nos. 1‑3 of 2026) sought stays of tender proceedings and impleadment of additional respondents; all were dismissed along with the main petitions.
  • The Court noted that about 35 bidders had participated in the tender processes, indicating competitive participation.
  • The Court examined statutory provisions, including GFR 2017 Rule 144(i)(b) (prohibition on brand‑specific references) and found no breach; the tenders complied with G.O. 53 which mandates procurement through AP State Civil Supply Corporation and other approved agencies.
  • The Court referenced several Supreme Court precedents (e.g., State of Andhra Pradesh v. K. Abhimanyudu, Kaluvoy Fishermen Cooperative Society v. State of AP, K. Sampath v. State of Tamil Nadu, Meerut Development Authority v. Association of Management Studies, Prakash Asphaltings & Toll Highways Ltd v. Mandeepa Enterprises) to underscore the limited scope of judicial review in tender matters absent proof of malice, arbitrariness or bias.
  • The Court concluded that the petitioners failed to demonstrate any unlawful motive, that the tender conditions were reasonable, and that the procurement process was within the discretion of the State.

Final Outcome

  • All seven writ petitions (WP 16444, 16445, 16556, 16558, 16559, 16978, 17156) are dismissed.
  • All interim applications seeking stays or impleadment are dismissed.
  • No order as to costs is made.
  • Any pending miscellaneous applications, if any, shall stand closed.

Topics: Tender Procurement, Constitutional Law