The Supreme Court has asked Delhi Metro Rail Corporation (DMRC) to explain why its letter of acceptance selecting Indus Towers to install and operate in-building solutions (IBS) for 5G services on the airport express line should not be quashed. The notice came after Crest Digital challenged DMRC’s choice of awarding the work on a nomination basis without competitive bidding, alleging the decision deviated from normal tender rules and undermined its existing license agreement. Crest argued that the license fees offered to Indus are significantly lower than what it currently pays, and that the move could make its agreement defunct.
Meanwhile, DMRC told the court that Crest did not complete the work allocated to it and that the nomination route is permitted under financial rules. Crest had been awarded an earlier contract in 2019 for telecom infrastructure on the same line, while Indus originally handled only outdoor tower installations.
The Delhi High Court had previously upheld DMRC’s move, noting that Crest had not rolled out 5G services even three years after their launch and that upgradation of mobile coverage inside metro stations was essential for commuters and metro operations.
