In Brief
Adani Gas and IMC Limited challenged the award of CGD (City Gas Distribution) network authorizations in three geographical areas, contending that the highest bidders' projected domestic gas connections exceeded 100% of the 2011 Census household figures, violating a Board criterion. The Supreme Court held that the CGD Regulations do not link projected connection targets to Census data; the Board's internally formulated 2-100% guideline (issued post-bidding) was not binding. The Board lawfully exercised discretion to hear highest bidders justify their reasonableness on a case-by-case basis under the Bid Document's provisions, not mechanically reject them. Other bidders had no right to be heard, as assessment of the highest bidder's reasonableness affects only that bidder's qualification, not other bidders' scores. The methodology for projecting household growth to 2026 was not arbitrary. The appeals were dismissed, upholding the awards to SKN Haryana (Puducherry), AG & P LNG (Kanchipuram), and Torrent Gas (Chennai & Tiruvallur).
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