The catering tender allotment policy drawn by railway minister Lalu Prasad Yadav providing for 49.5 per cent reservation for SCs, STs, OBCs and other categories was today challenged in the Supreme Court on the grounds that there was no provision in the law for quota in awarding government contracts.
The railway catering policy, 2005 was challenged in a special leave petition by the Railways Catering Contractors Association and the Indian Railways after their petitions were rejected by the Bombay High Court.
A Bench of Justices B.N. Agrawal and P.P. Naolekar issued notices to the Centre and the Railways seeking their replies.
The court, however, permitted the existing contractors, who were members of the two associations, to continue with their catering ventures as per the high court order.
Though the high court had rejected the contractors' petitions, but as an interim measure, it had allowed them to continue with the existing contracts.
