Supreme Court Upholds Bidders' Rights in Auction Dispute

The Supreme Court ruled that auctions cannot be canceled simply because the authority expects a higher bid than the highest offered. This decision came after the Ghaziabad Development Authority canceled a bid from Golden Food Products, which the court deemed arbitrary, emphasizing the need for valid reasons to discard top bids.

The Supreme Court has ruled that auction processes cannot be discarded on the mere expectation of higher bids. The decision came after Ghaziabad Development Authority (GDA) canceled a bid by Golden Food Products India, citing higher prices from similar auctions.

Justices BV Nagarathna and R Mahdevan found the GDA's actions unjustified, noting that the company had offered the highest bid, which was above the reserve price. The court emphasized the sanctity of the auction process, stating it should be discarded only for valid reasons.

The court directed the company to re-deposit the earnest money and instructed the GDA to finalize the allotment within specified time frames. This ruling reinforces the principle that an auction's highest bid should not be rejected without a valid rationale.

(With inputs from agencies.)