The Adani Ports and Special Economic Zone (APSEZ) has been disqualified because of a tender condition that prohibits the participation of firms involved in contract termination at other ports.

This decision is in line with the tender condition that prohibits the participation of firms involved in contract termination at other ports.

Back in December 2020, a coal handling terminal at the Vishakapatnam Port Authority that was operated by a unit of APSEZ was terminated.

Under the tender condition, APSEZ was also excluded from a tender regarding the mechanisation of West Quay berths 7 and 8 at the Vizag port.

During a personal hearing with the JN Port Authority, APSEZ maintained that it had terminated the coal terminal contract in Vizag even before getting termination notice for the same. It had taken a similar stand during the official hearing of the matter at the Andhra Pradesh High Court.

"The fact remains that the coal terminal at Vizag port was terminated. Citing this, Visakhapatnam Port Authority rejected APSEZ's application to participate in the tender for West Quay berths 7 and 8. APSEZ has not secured a stay from the courts against its disqualification," a source in the know of developments was quoted in a report by New Delhi's Economic Times.

"JN Port Authority gave enough time to APSEZ to prove its case. It didn't come up with any convincing answers. Finally, JN Port Authority rejected APSEZ's application, going strictly as per law and by following the tender conditions in letter and spirit," the person said.

APSEZ is likely to approach the Bombay High Court to reverse its exclusion from the JNPL tender.