Shillong, Jan 6: The Meghalaya High Court has upheld the five-year debarment of the joint venture (JV) of M/s BSCPL Infrastructure Ltd and M/s C&C Constructions by the Public Works Department (PWD) Roads over allegations of corrupt practices.

Justice H.S. Thangkhiew dismissed the JV’s writ petitions, ruling the blacklisting lawful, proportionate, and in the public interest. The court found no violation of natural justice or lack of authority by the state.

The case relates to a 2011 highway project for two-laning NH-44E and the Nongstoin-Rongjeng-Tura road, initially awarded at Rs 1,303.83 crore. Cost escalations due to additional works and price adjustments raised the project cost above Rs 2,400 crore. Disputes led to arbitration, during which the state examined the contractor’s ledgers.

The documents allegedly showed repeated payments for gifts, liquor, hospitality, and other benefits to public officials, engineers, and Dispute Resolution Board members. The government cited this as evidence of “outright and rampant corruption.”

Following a September 2024 show-cause notice, the PWD issued a debarment order on December 3. The JV, which had received Rs 2,523 crore plus Rs 94 crore through arbitral awards, challenged the order as mala fide and prejudicial.

The court rejected these claims, upholding the state’s authority under contract Clause 59.2(h) and its discretion in contractor selection. Noting that the JV had responded to the show-cause notice, the court deemed the arbitral tribunal-validated evidence credible. It ruled that a five-year ban was proportionate, considering the scale of the project, public funds involved, and the severity of misconduct, adding that public interest outweighed private concerns.