(1) A procuring entity may, for reasons to be recorded in writing, cancel the process of procurement initiated by it,-
(a) at any time prior to the acceptance of the successful bid; or
(b) after the successful bid is accepted in accordance with sub-sections
(4) and (5).
(2) The procuring entity shall not open any bids or proposals after taking a decision to cancel the procurement and shall return such unopened bids or proposals.
(3) The decision of the procuring entity to cancel the procurement alongwith the reason to do so shall be immediately communicated to all the bidders who participated in the procurement process.
(4) If the bidder whose bid has been accepted as successful fails to sign any written procurement contract as required, or fails to provide any required security for the performance of the contract, the procuring entity may cancel the procurement process.
(5) If a bidder is convicted of any offence under this Act, the procuring entity may,-
(a) cancel the relevant procurement process if the bid of the convicted bidder has been declared as successful but no procurement contract has been entered into; or
(b) rescind the relevant contract or forfeit the payment of all or a part of the contract value if the procurement contract has been entered into between the procuring entity and the convicted bidder.