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Authorities can cancel tenders

The Supreme Court has quashed the Delhi High Court order and upheld the cancellation of the tender by South Delhi Municipal Corporation for civil works stating that the corporation, "being the custodian of public finance, took its decision objectively with bona fide intention to serve the best interest of the public in general. It has not committed any wrong in cancelling its earlier tender notice and ordering e-tender afresh." Two contractors bid the lowest in the first tender, but it was cancelled for "administrative reasons" and to fetch better price. The high court ruled that the cancellation was illegal and arbitrary. The Supreme Court stated that the corporation has the power to do so and there was no favouritism.

Article referred: http://www.business-standard.com/article/opinion/iprs-acquired-get-tax-benefit-sc-115102500743_1.html

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