The Bombay High Court has upheld the decision by the City and Industrial Development Corporation (CIDCO) to cancel a tender for leasing 11 residential and commercial plots in Kharghar, stating that tendering authorities are not obliged to provide reasons for such cancellations as they are neither judicial nor quasi-judicial actions. This ruling came on Monday when a division bench, including Chief Justice Alok Aradhe and Justice Bharati Dangre, dismissed a plea from M/s. Infinity Infra, which had challenged the cancellation.
The real estate firm argued that CIDCO had unilaterally removed certain plots from the auction citing vague administrative reasons after the completion of the tender process, despite Infinity Infra submitting the highest bids for the plots. The bids were opened on November 25, 2021, and according to the firm, their offers were significantly above the prevailing market prices, leading them to expect a favorable lease outcome and to mobilize funds accordingly for the payment of lease premiums and necessary infrastructure development.
However, in a communication dated May 19, 2022, CIDCO withdrew two of the plots from the auction, citing “administrative reasons.” Representing CIDCO, Advocates Chetan Kapadia and Soham Bhalerao argued that being the highest bidder did not grant the real estate firm any inherent right to claim the allotment in their favor.
In its judgment, the court emphasized that the state must have sufficient flexibility in managing commercial activities, including tender cancellations. The judges stated, “Neither any right is created in favor of the petitioners (Infinity Infra) to have the plots allotted to them, nor is there any arbitrariness on the part of CIDCO in cancelling the tender process.”
