In Brief
A municipal corporation invited sealed bids for sale of 17,000 sq. metres of public land with a reserve price of Rs. 15.47 crores. E-City Entertainment bid the highest amount of Rs. 21.51 crores and deposited earnest money. The Corporation later rejected the bid, believing it fell short of true market value, and cancelled the tender. The Supreme Court dismissed E-City's appeal, holding that public authorities have a duty to protect public interest by ensuring optimal sale price. Merely exceeding the reserve price does not compel acceptance. The Court found the Corporation's cancellation decision valid and unpersuasive the High Court's cryptic order directing compliance with an earlier directive. The earnest money was ordered refunded with 8% annual interest from 2006, payable within two months."
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