Hyderabad, July 01: The AP High Court on Wednesday pulled up Skol Breweries Ltd, the manufacturer of Royal Challenge Beer, for its failure to ensure proper supplies in the last two years, especially during the summer.
The firm had approached the HC challenging the new beer procurement policy announced by the state government.
Skol’s counsel told Justice B. Seshasayana Reddy that the new policy would reduce its market share and would help its business rival United Breweries to increase its share.
The counsel also alleged that the new policy was issued by the government to benefit UB and said the GO issued by the government to implement it was contrary to the judgment of the Apex Court in the Khoday Distillers Ltd case.
However, the advocate general, Mr. D V. Seetharama Murthy, defended the policy and said it was meant to end the duopoly in the beer market and provide more space and opportunities for smaller players thereby benefiting the consumer with wide range of products.
He also pointed out that Skol failed to supply beer when the indent was placed by the APBCL.
The judge then asked why it was not mentioned in the counter affidavit submitted by the APBCL. Mr Murthy replied that it was referred to, but could not be made the main ground to dismiss the plea.
He further said that the APBCL also issued show cause notice to the company to cancel the purchase agreement.
Following this, the judge remarked that once the petitioner failed in supplying the order it could not claim any prejudice in the policy. He also asked the AG to file an additional affidavit within 30 minutes and asked the petitioner to submit a reply immediately.
However, the judge later consented to the plea of the petitioner’s counsel to give at least a day to reply to the charges.
AP faulted for hiring Maytas for relief work
The AP High Court, on Wednesday, found fault with the action of the state government in entrusting the work of setting up relief and rehabilitation centres (R.R. centres) in Kadapa district under the Galeru Nagari Srujala Sravanthi Phase-I to Maytas Infra Ltd. on a nomination basis.
A division bench comprising Justice Goda Raghuram and Justice R. Kantha Rao, while disposing of a petition filed Mr K. Ramesh Reddy, observed that the method of awarding contracts by nomination basis has the potential to encourage nepotism, waste and carelessness in the award of contracts by public authorities.
It may be recalled that the court had earlier directed authorities not to make any payments for work executed by Maytas, relating to the execution of R.R. centres. The court vacated the stay orders by considering the contention of Mr N. Sridhar Reddy, special counsel for the government, as Maytas Infra almost completed all the work entrusted to it and the stopping of the payments may not be fair on the part of the government.
——-Agencies