#State Contract

The Rajasthan High Court struck down the Jaipur Development Authority’s unilateral withdrawal of an EPC contract for the OTS Flyover, holding that invoking Clause 32 without evidence of contractor default violates both Article 14 and the doctrine of promissory estoppel. This ruling reinforces that state agencies cannot arbitrarily revoke contracts merely on policy grounds, setting a critical precedent for infrastructure contractors relying on state assurances.