Supreme Court Sets Aside Cancellation of Madhya Pradesh Sand-Mining Auctions

The Supreme Court set aside cancellation of two Madhya Pradesh sand-mining auctions where the highest bids exceeded reserve prices but were lower than bids made in an earlier auction.

Background and dispute

Sahakar Global and Dhanlaxmi Merchandise emerged as successful bidders for areas in Shahdol and Katni in October 2025. The State mining corporation cancelled the auctions citing reduced revenue compared with previous offers.

Legal issue and court’s approach

Justices Aravind Kumar and Vipul M. Pancholi held that the government may reject bids but must exercise that power on objective, fair grounds. Comparison with earlier offers alone was insufficient in the circumstances.

Order and practical consequence

The cancellation orders were set aside, reinforcing fair treatment of bidders in public resource allocations.