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CIDCO’s Tender cancellation for plot allotment quashed

August 25, 2025 legaldeli

By the Board Resolution dated 31.7.2021, the Cidco decided to consider the Partnership Firms also for the allotment of plots for private super specialty Hospitals in Navi Mumbai.

On 2.4.2022, the tender notice was issued for 16 hospital plots in anticipation of Government approval to the Board Resolution.

The petitioner – partnership firm for the Fertility Clinic – was the highest bidder for Plot No.25. However, allotment was not made since Government approval was pending.

On 8.2.2024, the Government granted approval to the Board Resolution, it was communicated on 14.10.2024 and received on 16.10.2024 by the Cidco.

However, on 3.9.2024, the Cidco passed resolution to cancel tender of Plot No.25 and re-advertise the same for non-receipt of approval and change in valuation on account of passage of three years.

HELD that once approval was granted by the Government before cancellation of the tender process, the said reason becomes perverse. Secondly, the Cidco’s inaction in not securing information on the status of approval by the Government for eight long months cannot be a reason for arbitrary cancellation of auction process. The Head Office of Cidco is located at stone throw distance from Mantralaya. It was the duty of the Cidco to keep track of approval.

The second reason of change in valuation is also perverse. The fresh advertisement published in July, 2025, the base price is shown as Rs.35,039/0 per sq.mt. The petitioner’s bid was for Rs.40,211/- which was still higher in 2025. Therefore, no loss could be caused to the Cidco.

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