Delhi Lieutenant Governor Vinai Kumar Saxena has approved a major change in the Delhi Development Authority’s tendering system, clearing the use of the Swiss Challenge Method for the disposal of high-value land and long-term licence projects.
The move aims to end the long-standing problem of repeated tender cancellations caused by single bids, a hurdle that has delayed major DDA projects for years and pushed costs upward.
Under the new system, any single bid received by DDA will no longer result in automatic cancellation. Instead, that bid will be placed in the public domain and treated as the new reserve price, higher than the original reserve price, before inviting fresh competing bids.
The original bidder will also be allowed to participate in the re-auction. The change ensures that DDA always receives an amount above its reserve price while preventing projects from stalling due to a lack of competition.
The Swiss Challenge Method is commonly used in public asset disposal where transparency and price discovery are essential. By opening the single bid to a competitive challenge, it ensures that valuations reflect actual market demand. The system, officials said, also eliminates arbitrary awarding of projects and strengthens fairness in the disposal of high-value land.
Officials said the shift will help DDA complete long-term projects faster, increase market participation and protect revenue interests. The method is aligned with DDA’s recently approved model Request-for-Proposal (RFP) structure for high-value projects on 55-year licence terms.
DDA explained that the Swiss Challenge mechanism complements the model RFP structure by ensuring that projects do not get cancelled or delayed simply because only one bidder comes forward. In several past cases, tenders had been cancelled multiple times due to a lack of multiple bids, leading to loss of time and increased costs. The new method prevents such failures and guarantees timely disposal.
Officials highlighted several benefits of adopting the Swiss Challenge Method. The biggest advantage is that it avoids the collapse of the tendering process when only one bidder applies. Instead of restarting from scratch, which takes months, the authority can quickly initiate a competitive challenge and arrive at a new, market-tested price. The method also maximises revenue for DDA by pushing bidders to outbid the original offer.
Since the licenses are for long terms up to 55 years, any increase in annual licence fees has a major long-term financial impact. Counter-bids help the authority secure higher revenue and protect public assets from being undervalued. The system also adds a safety layer against low bids. If the first bid is below market value, competing bids in the challenge round reveal the true demand.
If challengers outbid the original applicant, DDA earns more. If not, the original bid still stands above the authority’s reserve price.
Officials said the method also creates room for faster decision-making in strategic projects. Instead of lengthy re-tendering cycles, the structured challenge process allows timely allotment. Moreover, the DDA retains the flexibility to accept the best offer or allow the original bidder to match the highest bid, ensuring both fairness and financial advantage.
The move is part of a series of reforms introduced at DDA under the direct supervision of the Lieutenant Governor over the past three years. Measures such as first-come-first-served sale of unsold inventory, auction of flats and allotment of plots on long-term lease rent have already led to record revenues.
