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ARUN BHANSALI
Madhu Lunawat – Appellant
Versus
State Of Rajasthan – Respondent
JUDGMENT
1. These writ petitions have been filed by the petitioners aggrieved against cancellation/rejection of their bid by order dated 02.02.2022 passed by the respondent- Corporation.
2. It is, inter-alia, indicated in the writ petition that the respondent - Corporation invited small & medium scale businessmen to bid for plots situated in RIICO Industrial Area, Gogelav, Nagaur. The advertisement dated 31.12.2021 in this regard was issued. The petitioners filed applications and deposited EMD with respect to the various plots.
3. Pursuant to the advertisement, e-auction for the plots in question was conducted on 18.01.2022 to 20.01.2022. After conclusion of the e-auction, the petitioners were placed at rank one in the bid process, as their bids were highest for the plot concerned.
4. It is alleged that one of the bidders for other plots made complaints regarding inability to bid for the plots in question and that he was prepared to purchase the plots at higher rates. The respondent - RIICO by its order dated 02.02.2022 rejected the bids of the petitioners.
5. The petitioners made representations regarding cancellation of the bids, however, no response was received and feeling aggrieved
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.
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.
Bidders participating in tender process have no other right except right to equality and fair treatment in matter of evaluation of competitive bids offered by interested persons in response to notice....
The authority has the right to cancel the highest bid and the bids must be competitive. The authority reserves the right to accept or reject any bid without assigning any reason.
The government has the right to change its policy and reject the highest bid for valid reasons, and the decision-making process should be fair and not influenced by malafides or extraneous considerat....
The court affirmed that auction authorities have discretion to reject bids, even if they are the highest, based on competitive bidding considerations.
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