Karnataka HC directs Refund of EMD Due to GST payment condition in Tender Document

The Karnataka High Court has ordered the refund of Earnest Money Deposit (EMD) to a tenderer after the condition in the tender document required GST payment. The court found this requirement to be contrary to the principle that EMD should not be subjected to additional conditions like GST, as it should solely serve as a security deposit for the bid. The court emphasized that the condition violated the norms governing tender procedures. Consequently, the court directed that the amount paid as EMD, including GST, be refunded to the bidder along with interest.