Quick Summary: The Supreme Court of India has canceled a previous decision and ordered a new auction for the Mahanadi Sand Quarry in Odisha. This decision follows a long legal fight over the understanding of bidding rules.
On July 11, 2022, the local government official in Tangi Chowdwar, Cuttack, Odisha, announced a call for bids for a five-year contract to take sand from the Mahanadi Sand Quarry. The bids were due by July 18, 2022, and the highest bidder was supposed to get the contract after checks. However, things didn't go as planned.
Out of 20 bidders, the one who offered the highest rate of Rs.2127.27 per cubic meter was disqualified for not submitting the tax return for the financial year 2021-2022. Instead, they submitted the return for 2020-2021. The bidder who offered Rs.1250 per cubic meter was declared the winner.
The losing bidder, M/S Shanti Construction Private Limited, was unhappy and filed a complaint on August 10, 2022, challenging the decision. The High Court initially sided with the winning bidder but noted that the big price difference could harm public funds. They directed the winning bidder to match the highest bid.
On March 29, 2023, the Supreme Court got involved, keeping things as they were until further orders. The case focused on what the term 'previous Financial Year' meant in the Odisha Minor Mineral Concession Rules, 2016.
Justice Alok Aradhe gave the judgment on November 7, 2025. The court decided that 'previous Financial Year' should have been understood as 2020-2021, based on the timing of the auction. The court found the Tender Committee's understanding wrong and ordered a new auction.
This case shows how complicated public bidding can be and the importance of clear rules to ensure fairness and make the best use of public resources.
