Stagecoach has decided to take legal action against the government for the Department for Transport’s (DfT) decision to disqualify its bid attempt for the East Midlands Railway franchise.

The firm was excluded from further bids after the DfT raised concerns that it had failed to safeguard the risk of sections of the Railways Pension Scheme.

Stagecoach decided to take legal action as it believed the government breached its statutory duties in its ruling.

The rail operator is also considering taking further legal action against the government over its disqualification from the South Eastern and West Coast rail franchises.

Urgent meetings with the DfT have been sought by Stagecoach as it claimed that the department has full knowledge of the bids “for a lengthy time period”.

Commenting, Stagecoach chief executive, Martin Griffiths, said: “We remain deeply concerned at the DfT's procurement of the three most recent rail franchise competitions and the rationale behind its decisions.

“Despite our continued requests for full transparency around these matters, many fundamental questions remain unanswered.”

Griffiths said that the firm had “no option” but to pursue legal action, while the DfT stated that it would not comment on ongoing legal proceedings.

Dutch government-owned firm Abellio was announced as the company that won the bidding for the East Midlands rail franchise, and it expected to take over the service in August.

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