Kerala High Court stays State government order blacklisting PwC in key projects

In a major setback to Pinarayi Vijayan led LDF government, the Kerala High Court has ordered an interim two weeks stay of the earlier state government's order, which had barred the International Consultancy Firm Pricewaterhouse Coopers (PwC) from participating in state-led projects. The court ruling has dented the efforts to project a clean image of the state government, before the local body elections in the state scheduled from next Tuesday.

The state government has been in trouble over its recruitment of gold smuggling prime accused Swapna Suresh through PwC for Space Park project. To simmer the public opinion against the government,  a meeting was chaired by Chief Minister Pinarayi Vijayan on November 9 and it had concluded that PwC didn't show enough diligence in the controversial appointment and committed a breach of contract with the state. Subsequently, on November 30, the state ordered a ban on the consultancy from participating in state government project promoted by the Electronics and IT Department for the next two years.

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PwC not allowed to defend by state government

Now, this ban has been stayed by Justice PV Asha. PwC in its petition to the court had placed on record that the "individual" (Swapna Suresh) was appointed on the recommendation the Managing Director of state-run Kerala State Information Technology Infrastructure Limited (KSITIL), KFON, and Space Park Projects. PwC counsel also submitted that the consultancy was not allowed to defend itself and be heard before the ban order was put in place, while also asserting that the background check was duly done.

It also questioned the 'arbitrary procedure to bar/blacklist'  and called the ban as 'wholly disproportionate to the purported wrongdoing'. It stated that the two-year ban was undertaken as per the 'whims and caprices' of the state government and thus violates Article 14. The Counsel of PwC was represented by senior lawyer Mukul Rohatgi.

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