Supreme Court Reinforces Article 14: Arbitrariness in Public Contracts is Unconstitutional
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The Supreme Court has ruled that awarding public contracts without tenders or through favoritism violates the Right to Equality under Article 14. The judgment emphasizes that the State must maintain transparency and fairness to prevent the abuse of executive power in public procurement.
In a landmark judgment concerning public works in Arunachal Pradesh, the Supreme Court of India has reiterated that the State's power to award contracts is not absolute and must be exercised within the bounds of constitutional morality. The Court held that any action by the State that is arbitrary, discriminatory, or based on favoritism in the distribution of public largesse is a direct violation of Article 14 of the Constitution.
The ruling underscores that while the State has the freedom to contract, it cannot act like a private individual. Because the State operates using public funds, every action must be guided by public interest. The Court observed that the absence of a competitive tendering process often leads to the 'pick and choose' method, which breeds corruption and nepotism. By bypassing transparent procedures, the executive fails to ensure the best value for the exchequer and denies equal opportunity to qualified citizens and entities.
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