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It is further averred that Jal Mahal Tourism Infrastructure Project was conceived and approval was given by the Standing Committee on Infrastructure Development (for short SCID) in its 3rd meeting held on 21.12.1999. Resolution Annex.10 has been filed in which it was stated that Jaipur Municipal Corporation must own the project. The bids were invited in the year 2000-01 without identification of the land to be used and without studies with regard to environment impact assessment. The bid process was scrapped and JDA was made sponsoring department for the lake side development component in the meeting of Board of Infrastructure Development and Investment Promotion (for short the BIDI) held on 23.8.2002 and 3.9.2002.

Stand of State and authorities In the return filed by the respondents-State and its functionaries/authorities, it was submitted that Master Development Plan 1976-91 of Jaipur City contained provision of various facilities on south and west side of Jal Mahal lake in 200 acres. It was permissible to have five star hotel, tourist bungalows, holiday cottages and other tourist facilities. In the Master Development Plan 2011, similar provision was retained. Erstwhile Urban Improvement Trust, Jaipur proposed a scheme in respect of 520 acres of land which was published in the Gazette on 31.7.1975. The Jaipur Development Authority Act, 1982 came into force and UIT was replaced by JDA. A notification under section 39 of the JDA Act was issued by the JDA on 30th June, 1987, however, development of Jal Mahal area could not materialize. The JDA then decided to undertake the exercise for development of integrated tourism infrastructure development for Jal Mahal and required Project Development Company of Rajasthan (for short the PDCOR) to prepare project on commercial format for private public participation. The preliminary approval was given by the Standing Committee on Infrastructure Development (for short the SCID) in December, 1999. The bids were invited in the year 2000, but no entrepreneur came forward in the bidding process and thus, the tender process was scrapped. Thereafter, JDA was appointed as Nodel Agency to undertake the bidding process. Global tenders were invited on 25.4.2003 and in pursuance thereof, 9 entrepreneurs shown interest. It was mentioned in the advertisement that 100 acres of land would be leased out for 99 years. A pre bid meeting was held on 14.8.2003 for removal of doubts. The Department of Tourism on 6.9.2003 transferred the development of Jal Mahal to RTDC vide letter Annex.R-1/12. On 15.9.2003, pre-qualification bids were opened; 4 entrepreneurs submitted bids; rejection of one bid was recommended on account of inadequate information on evaluation. It was further pointed out that respondent-M/s KGK Enterprises was a partnership concern whereas the criteria for bidder was that it has to be private/public limited company and thus, final view of the Government was sought in respect of qualification/disqualification of M/s KGK Enterprises for the next phase of evaluation. Two other firms were found fit in pre-qualification bid. Later, on 14th November, 2004, KGK Enterprises formed Private Limited Company in the name and style Jal Mahal Resorts Private Limited. The PDCOR suggested retention of KGK Enterprises as its presence will increase competitiveness. The State Government permitted the consideration of bid of KGK Enterprises on 17.10.2003 to enlarge the scope of competitiveness. Thereafter, technical bid was opened on 21.10.2003 and financial bid was opened on 3.12.2003. The RTDC recommended the award of project to the highest bidder, namely, KGK Enterprises and accordingly, the Commissioner, Tourism vide noting dated 19.2.2004 put up the matter before the State Government for issuing of letter of intent and signing the lease agreement in favour of successful bidder. This was forwarded by Secretary, Tourism to Minister Incharge of Tourism (Chief Minister), who approved the minutes of the Empowered Committee on Infrastructure Development and directed to put up draft lease agreement early. On 9.5.2005, the Collector intimated that 100 acres of land has been mutated in favour of RTDC. The approval of lease agreement and license agreement and authorization of Managing Director of RTDC to sign the agreement was granted finally by the Chief Minister on 27.10.2005. On 29th October, 2005,the RTDC authorized the Managing Director to sign Jal Mahal Lease Agreement on behalf of Government of Rajasthan with Jal Mahal Resorts Private Limited and accordingly, lease agreement was executed on 22nd November, 2005. The Central Government MOEF has appreciated the project vide letters dated 13th September, 2002 and 1st December, 2009. It was further contended in the return that it is incorrect to say that size of the lake has been reduced on account leasing out 100 acres of land. The action is as per Master Development Plan. The State Government has submitted the project to the Central Government MOEF for restoration of Mansagar Lake at the estimated cost of Rs.24.72 crores. The Central Government agreed to provide 70% of the cost. The PDCOR in the project report prepared in October, 2001 included the following facilities:-
The State or its tendering authority is bound to give effect to the essential condition of eligibility stated in the tender document and was not entitled to waive such conditions, as held by the Apex Court in Shimnit Utsch India Private Limited & anr. V/s West Bengal Transport Infrastructure Development Corporation Limited & ors. ((2010) 6 SSCC 93). In that case, the Apex Court has further held:-
64. It is true that the State or its tendering authority is bound to give effect to essential conditions of eligibility stated in a tender document and is not entitled to waive such conditions but that does not take away its administrative discretion to cancel the entire tender process in public interest provided such action is not actuated with ulterior motive or is otherwise not vitiated by any vice of arbitrariness or irrationality or in violation of some statutory provisions. It is always open to the State to give effect to new policy which it wished to pursue keeping in view overriding public interest and subject to principles of Wednesbury reasonableness.