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DEVENDRA KUMAR UPADHYAYA, AMIT BORKAR
Shree Ganesh Enterprises – Appellant
Versus
The City and Industrial Development Corporation of Maharashtra Limited – Respondent
JUDGMENT :
DEVENDRA KUMAR UPADHYAYA, C.J.
1. These proceedings, instituted under Article 226 of the Constitution of India, seek to challenge the decision of respondent no. 1-the City and Industrial Development Corporation of Maharashtra Limited [CIDCO] (hereinafter referred to as “the respondent-Corporation”) whereby the bid submitted by the petitioner-firm in respect of plot no. 8, Sector 23, Node CBD Belapur has not been accepted and the said plot has been cancelled from Scheme No. MM/SCH-30/2022-23 and it has further been ordered that the Earnest Money Deposit (EMD) paid by the petitioner-firm be refunded. The said decision was communicated to the petitioner by means of the letter dated 25th November 2022.
2. The facts, which are essential for appropriate adjudication of the issues involved in this petition, need to be noted. The respondent-Corporation issued an advertisement inviting applications through E-tender and E-auction for lease of plots for residential-cum-commercial and star hotel use at various nodes of Navi Mumbai. The advertisement, apart from the details of the plots to be leased, also mentioned the base rate per square meter against each plot along with the area of
(1) Allotment of Industrial Plot – Ordinarily, when large areas of industrial land are auctioned, overall price would be separately assessed as compared to smaller plots – Merely because selling pric....
The main legal point established is that a public authority's actions in contractual matters, especially those involving public property, should not be arbitrary and must adhere to recognized norms a....
The highest bidder in an auction does not have a vested right, and the authority has the discretion to cancel bids in the interest of public revenue.
The DDA's right to withdraw any plot from auction or reject any bid without assigning any reason is not untrammelled or unrestricted. It must be exercised in a fair and reasonable manner and cannot b....
The authority conducting an auction has the right to reject the highest bid and the decision-making process must be fair and reasonable.
Point of Law - Once State decides to grant any right or privilege to others, then there is no escape from rigour of Article 14.
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