The cancellation of a tender process is justified when material changes occur, such as the inclusion of railway land, which alters the project's scope and public interest considerations.

JUDGMENT :

(Devendra Kumar Upadhyaya, CJ.)

1. By instituting proceedings of this petition filed under Article 226 of the Constitution of India, the petitioner which is a Company incorporated in the Republic of Seychelles and is a Lead Member of a consortium comprising of various other companies, assails the validity of the decision taken by the Committee of Secretaries ( CoS ) of the Government of Maharashtra ( GoM ) in its meeting held on 27th August 2020 as affirmed by the Cabinet of the State of Maharashtra vide Cabinet resolution dated 29th October 2020 whereby the tender process initiated on 28th November 2018 bearing tender Ref.No.DRP/1/2018 (hereinafter referred to as the earlier tender ) for selection of a Lead Partner for redevelopment of Dharavi Notified Area (hereinafter referred to as “the project” ) was cancelled and it was further decided to take recourse to the process of re-tendering for development of the project.

2. Challenge has also been made to the Government Resolution dated 5th November 2020 issued by the Housing Department of GoM cancelling the tender as per the decision of the Cabinet dated 29th October 2020. The said Government order also embodies a decision for inviting fresh tender by making necessary changes in the terms and conditions of the earlier tender and accordingly, the Chief Executive Officer and Officer on Special Duty, Dharavi Redevelopment Project/Special Planning Authority, Mumbai ( DRP/SPA ) was directed to initiate further action.

3. The petitioner also questions the validity of the letter dated 11th November 2020 issued by the Chief Executive Officer and Officer on Special Duty, Dharavi Redevelopment Project/Special Planning Authority (DRP/SPA) whereby the petitioner was informed that the bid process for selection of the Lead Partner for redevelopment of the project initiated on 28th November 2018 stood cancelled. By the said letter, the petitioner was also informed to collect the Bid Security submitted to the DRP/SPA office.

4. After cancellation of the earlier tender process, the Housing Department of the GoM issued a Government Resolution dated 28th September 2022 whereby approval was accorded to the tender documents for fresh tender process with modified terms and conditions as per the Government Resolution dated 5th November 2018 for integrated development of the project through Special Purpose Vehicle ( SPV ) Company Model along with modified timelines for implementation of the project. Approval by the said Government Resolution was also accorded to the DRP/SPA for inviting proposals through tender process and implementation of the project. After inclusion in the tender documents of certain fresh terms and conditions, primarily relating to transfer of railway land and additional concessions including the terms and conditions of the Railway Land Development Authority ( RLDA ), the Government by issuing this Government Resolution also accorded approval to the Memorandum of Understanding ( MoU ) signed between the RLDA and DRP/SPA. The Government Resolution dated 28th September 2022 also provides for certain other provisions for completion of the project. This Government Resolution dated 28th September 2022 is also challenged herein.

5. On cancellation of the earlier tender process, a fresh tender was floated and the bids submitted pursuant to this tender were evaluated and accordingly a decision for selection of highest bidder as Lead Partner for implementation of the project was taken by the CoS under the Chairmanship of the Chief Secretary, GoM on 15th December 2022. The decision for selection of the highest bidder taken by the CoS in its meeting held on 15th December 2022 was approved by the Cabinet on 22 nd December 2022. The decisions dated 15th December 2022 and 22 nd December 2022 of the CoS and the Cabinet respectively, selecting respondent No.3 as the highest bidder as Lead Partner for implementation of the project, have also been put to challenge in this petition.

6. Based on