INDORE DEVELOPMENT AUTHORITY vs SMT. SADHANA AGARWAL & ORS.

The Supreme Court addressed the legality of unilateral price hikes by the Indore Development Authority under the M.P. Nagar Tatha Gram Nivesh Adhiniyam, 1973. The Court held that such arbitrary increases in the cost of flats, which were initially advertised at fixed rates, violate principles of fairness and transparency in public contracts. The Court ruled in favor of the respondents, stating that the Development Authority must adhere to the original terms of the hire-purchase agreement without imposing unjustified increases.