In its affidavit submitted to the Supreme Court, the Kerala Government asserted its ownership of an 82 percent stake in the Uralungal Labour Contract Cooperative Society Ltd (ULCCS). This revelation was accompanied by the disclosure that ULCCS has been granted the authority to engage in an unlimited number of projects without any imposed financial constraints.
The background to this affidavit is a petition filed by M A Mohammed Ali, who contested the awarding of a construction contract for a seven-storey court complex in Kannur to ULCCS. Mohammed Ali’s construction company had submitted the lowest bid for the project. However, the Kerala High Court’s division bench ruled in favor of Uralungal Society, which had quoted 7.1 percent more than Mohammed Ali’s company.
Following this decision, Mohammed Ali sought redress from the Supreme Court, prompting the court to seek an explanation from the state government. The government’s affidavit clarified that it had issued an order stipulating that ULCCS could receive payment of up to 10 percent higher than the lowest quotation provided by a private contractor when undertaking a construction contract.
Furthermore, the affidavit underscored that the state government’s policy involves granting concessions to cooperative societies in the realm of construction contracts.
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