Bombay HC Validates CIDCO’s Cancellation of Vashi Plot Tender in Public Interest
On 13.7.2022, an advertisement inviting tenders for CIDCO plots on lease in Vashi was published.
On 22.8.2022, the petitioner shortlisted the petitioner as the highest bidder. The bid of the petitioner was 29% above the reserve price. The petitioner made payment of Rs.29,49,76,869/-. There was no communication for 21 months from the CIDCO.
On 22.8.2022, the National Green Tribunal passed an injunction order in respect of plot No.2A as falling under CRZ-I and CRZ-II.
On 28.12.2022, the CIDCO filed affidavit before NGT that it had decided to cancel the tender.
On 17.5.2024, the CIDCO informed the impugned letter of cancellation of tender to the petitioner on the ground that its bid for the plot was far below the prevailing market rate considering the development potential and advantageous location. The cancellation of the tender was to avoid loss to the public exchequer.
HELD that the tender was cancelled prior to the issuance of the allotment letter. There is no concluded contract. A bidder’s enforceable rights are limited to equality, fairness and transparency in the tender process.
Judgment dated 22.12.2025 of the High Court of Bombay in Writ Petition No.7883 of 2024 of Bhagwati Akshar Empire LLP Vs. City and Industrial Development Corporation and others
