In Brief
The Indore Development Authority cancelled the first tender for land and issued a fresh notice inviting tender at a higher reserve price after discovering an outstanding property tax liability that was not factored into the initial reserve. The highest bidder challenged this cancellation. The Supreme Court held that a highest bidder acquires no vested right to have an auction concluded in their favour absent formal acceptance and an allotment letter. The Court confirmed the authority's right to cancel tenders for valid reasons and rejected the High Court's direction to allot the land at a modified price, finding this usurped the authority's contractual freedom. The appeal was allowed and the authority was directed to issue a fresh tender.
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