Govt show cause notice to Shimnit, finally

PANJIM, NOV 2 
After months of dilly dallying, Goa government has finally issued show cause notice to M/s Shimnit Utsch Private Limited asking it why the agreement in regard to High Security Registration Plates (HSRP) should not be cancelled.
The Transport Department today issued the show cause notice which comes after intense scrutiny by Advocate General to avoid any arbitration claim by the company.
The notice has asked ‘why the concession agreement signed on February 29, 2008 should not be cancelled.’
The company will have to reply by November 17, 2010.
The show cause notice mentions that a company has done some changes in its Board of Directors (BoDs) without intimating the State government.
 “As per Union Transport Ministry Rules, any changes in the agreement should be intimated to the government,” the notice read.
It also says that Supreme Court in May, this year, had given
judgement in a case against Shimnit Utsch wherein the Apex Court had said that the rates quoted by the company could be scaled down using Indian technology.
The Goa Government has said that rate for number plate, which is Rs 1,250 can be brought down to Rs 467 or Rs 469 using Indian technology.
The notice also cites Public Interest as one of the reason to issue show cause.
The Transport Department has also pointed out observations by Srivastava Committee, which has said that the company had altered few entries in the agreement using ‘pencil.’
“The committee had said that these changes were made after the agreement was signed,” the notice mentions.
After much deliberation on the issue in December 2009, Srivastava committee was formed by State Legislative assembly to submit the report.
Srivastava committee’s report was scrutinised by Advocate General and recommended to the State to issue show cause notice in July, 2010. The notice was issued after much delay as the State feared legal ramifications.