(1) The public body may reject the entire bid or cancel the procurement process in the following cases:-
(a) If any bid is not substantially valid as per clause (d) of sub-section (2) of section 23,
(A1) If an agreement cannot be reached with the bidder even after adopting the procedure as per sub-section (6) of section 27,
(b) if the lowest evaluated substantially effective bid is materially higher than the cost estimate, or
(c) If the requested goods, construction work, consulting services or other services are not necessary.
(2) Notwithstanding anything contained in sub-section (1), tenders shall not be rejected or re-tenders invited merely because some tenders or only one tender is substantially effective.
(3) The public body shall give notice to all the bidders including the reasons for rejection of the bid or cancellation of the procurement in accordance with sub-section (1).
(4) Within 30 days of the notification in accordance with sub-section (3), if any bidder requests information on the grounds that all bids have been rejected or the procurement process has been cancelled, the public body shall provide such information to him.
(5) In the event that no bids are received during the call for bids, or if the entire bid is rejected or the procurement action is canceled in accordance with sub-section (1), when the bids are re-invited, the reasons for the rejection of the bid or the cancellation of the procurement action shall be reviewed and documents related to the bid, technical specification, cost estimate and purchase as necessary. The terms of the contract will also have to be changed.
(6) Notwithstanding anything contained elsewhere in this section, if any bidder is found to have filed a bid in collusion, such bids shall be cancelled.