The Punjab and Haryana High Court has recently halted the auction of an industrial plot at IMT Bawal in Rewari, Haryana, by the Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC).
This decision stems from a writ petition filed by Richaco Exports Pvt. Ltd., challenging the rejection of its highest bid during the auction process.
The dispute involves an industrial plot measuring 13,300 square meters in Sector-8, IMT Bawal. HSIIDC announced the auction on August 1, 2024, setting a reserve price of Rs 16,300 per square meter. In the e-auction conducted on November 5, 2024, Richaco Exports emerged as the highest bidder with an offer of Rs 19,300 per square meter.
Despite this, HSIIDC rejected the bid on December 2, 2024, without providing a substantive explanation.
Representing Richaco Exports, Advocate Sumit Gehlot argued that the rejection was legally untenable and violated established judicial principles. “The rejection is wrongful, and my client, as the last successful highest bidder, has an indefeasible right to the plot in question,” he asserted.
HSIIDC defended its stance by citing two reasons: insufficient participation, as fewer than five applications were received, and a final bid price lower than its internal expectations. Advocate Gehlot dismissed these justifications as procedurally flawed. He noted that HSIIDC was aware of the number of applications when registrations closed on August 16, 2024, and should have canceled the auction at that stage if participation was inadequate.
Furthermore, he argued that if HSIIDC sought a higher price, it should have set that amount as the reserve price. The fact that HSIIDC has since re-advertised the same plot at the identical reserve price, he contended, underscores the arbitrary nature of its decision.
Additionally, Advocate Gehlot maintained that HSIIDC lacked the authority to unilaterally alter the terms of the auction in a manner inconsistent with principles of fairness and transparency. “HSIIDC has no dominus status to dictate unilateral terms and conditions of the auction and cannot reject the highest bid at its discretion,” he stated.
After considering the arguments, the Division Bench of Justice Sureshwar Thakur and Justice Vikas Suri issued an order on February 25, 2025, directing HSIIDC to maintain the status quo concerning the plot. This ruling prohibits any further auction proceedings until the legal dispute is resolved.
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