Laxmi Vs Indore Smart City Development Ltd. And Others (Madhya Pradesh High Court)
Madhya Pradesh High Court dismissed multiple writ petitions challenging the cancellation of a shop allotment tender under the Indore Smart City Development project. The case arose when the petitioner, who won the bid for Shop No. 5 at Gopal Mandir Amphitheater Complex, failed to deposit the required 25% premium amount along with 18% GST within the stipulated 21-day period. The petitioner objected to the GST charge, arguing it should only apply to rent after the shop’s construction and possession. Despite multiple notices from the respondents, including a final deadline, the petitioner did not make the necessary payment. Consequently, the authorities issued a fresh tender and formally canceled the allotment, prompting the petitioner to file the writ petition, claiming the cancellation was premature and that proper opportunity for compliance was not granted.
The court, after reviewing the terms and conditions of the tender, found that the petitioner was aware of the GST requirement at the time of bidding and had failed to comply despite multiple extensions. The court noted that while other bidders for different shops had paid partial amounts and were granted additional time, the petitioner had not deposited any amount, rendering their claim for parity invalid. The court concluded that the petitioner’s objections were an attempt to delay payment, causing financial loss to the respondents. Consequently, the High Court upheld the cancellation of the allotment and dismissed all related petitions, allowing the respondents to claim damages from the petitioner.
