Banking News

Delhi HC upholds SBI’s eligibility criteria for ATM caretaker services


Upholding the SBI’s eligibility criteria for selecting caretaker agencies for its automated teller machines (ATM) in Delhi, the Delhi High Court on Wednesday said the PSU bank was best equipped to gauge the practicalities involved .

“…the court’s role in reviewing tender conditions is typically circumscribed, intervening only when there are manifest signs of arbitrariness, glaring irrationality, or gross perversity,” the HC said, adding that it is of paramount public interest to ensure that the chosen entity has a proven track record and relaxing the criteria might expose the ATM sites to potential security risks.

A start-up had challenged the bank’s eligibility criteria that mandated a bidder to have a minimum average annual turnover of Rs 150 crore in the past three years and also have prior experience of providing similar services for at least five years. It alleged that the eligibility criteria essentially barred start-ups from participating in the tenders and this was contrary to the Central government’s directions that allowed central ministries, departments, and central PSUs to ease requirements for all start-ups and micro and small enterprises in public procurement.


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