Kochi: The Kerala High Court temporarily blocked the state government from awarding a contract for a uniform software application across primary agricultural credit societies (PACS) in the state. Justice A A Ziyad Rahman issued the interim order, citing ambiguities in the tender process that require closer scrutiny.

The stay follows a petition from a consortium led by Malabar Information Technology Co-operative Society, Kannur, contesting the selection of Dinesh Information Technology Systems (DITS) to implement the software. The petitioners argued that their bid, covering all 1,612 PACS with a total value of ₹273 crore, was overlooked in favour of a government-favoured consortium quoting ₹58.88 crore for only 280 societies.

Discrepancy over project scope

Government representatives maintained the lower quote was for a pilot project covering 280 societies. However, the court noted that the tender’s introduction and scope of work suggested the bid was intended for all 1,612 PACS. The court observed that the instructions left room for misunderstanding regarding the total rate to be quoted, necessitating further review. It also observed that the petitioners had submitted the lowest bid under the current tender.

Justice Rahman directed the state government not to proceed with the tender until the next hearing on 19 May. The government has been asked to submit a detailed affidavit clarifying the issues raised, ensuring that no contract is finalised in the interim.