M. PEDDA MALLIKARJUNA Vs. PRODDATUR MUNICIPALITY

JUDGEMENT

(1.) Challenging the endorsement vide R.O.C.No.1961/2019 /A1 dtd. 2/2/2024 issued by respondent No.1 and resolution No.1190 dtd. 31/1/2024 of respondent No.2, cancelling the highest bid, the above writ petition is filed.

(2.) The case of the petitioner is that pursuant to the tender notice issued vide ROC No.1961/2019-A1 dtd. 18/1/2024, conducting auction for collection of daily fee/rent for vegetable market and vehicle parking for the year, 2024-25, the auction was conducted on 27/1/2024. The petitioner emerged as the highest bidder for an amount of Rs.1,33,00,000.00. However, the bid was cancelled without assigning any reasons.

(3.) In the Counter affidavit filed by the Commissioner of respondent No.1, it was contended that basing on the representation, dtd. 27/1/2024, made by one C.S. Nizamuddin, that the auction was not conducted properly and the rumour spread out that the bidders, who participated in the auction, conspired and committed syndicate, due to which the auction was stopped at the lowest amount, majority members of Proddatur Municipal Council suggested for cancellation of auction dtd. 27/1/2024 and hence, respondent No.2 passed resolution No.1190. Respondent No.2, to improve the revenue to the Municipality cancelled the highest bid and resolved to conduct fresh auction by fixing the starting bid amount at Rs.1,33,00,000.00. As per point No.7 of the Gazette No.11/2024, Council/Contract Committee can reject the highest bid without revealing any reason. Eventually, prayed to dismiss the writ petition.