A public authority must act within its statutory powers

The plot had been allotted following a public advertisement and auction. The allottee paid the price and received possession. BIADA later directed construction to stop and proposed cancellation. The allottee challenged the legal basis for taking the plot back. Statutory bodies derive their powers from legislation. They cannot assume a cancellation power merely because an objective is desirable. The Court scrutinised the authority for the action taken. The allottee’s legal challenge succeeded. Bihar Industrial Area Development Authority & Ors. v. M/s Scope Sales Pvt. Ltd. & Anr. | 2026 INSC 89