Arbitrary raise of plot prices wrong even if the rules/Agreement allows the same – SC

The Karnataka Industrial Areas Development Board was wrong in raising the price of industrial plots arbitrarily, the Supreme Court stated while dismissing its appeal against the high court ruling. The board had allotted plots after receiving payment. But 13 years later, it asked the allottees to pay more. This was challenged by the allottees. The board claimed that it has power under the rules to raise the demand. The high court rejected this stand. The Supreme Court also underlined that though the rules may grant undefined power to fix the final price, the power would have to be exercised “...