Punjab, Haryana HC halts auction of industrial plot by HSIIDC in IMT Bawal, Rewari

New Delhi [India], February 26 (ANI): The Punjab and Haryana High Court has barred Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC) from conducting the auction of an industrial plot at IMT Bawal in the state's Rewari city.
The matter pertains to an exporter, Richaco Exports Pvt. Ltd. (petitioner), who filed a Writ Petition stating that on August 1, 2024, HSIIDC advertised for the auction of an industrial plot in Sector-8, IMT Bawal, Rewari, Haryana, Area 13300 square meters, at a reserve price of Rs 16,300 per square meter.
On August 16, 2024, Richaco Exports deposited Rs 1,08,64,500 as 5 per cent Earnest Money Deposit (EMD) (including processing fee) with HSIIDC.
Thereafter, on November 5, 2024, HSIIDC held the E-Auction and Richaco Exports made last highest bid for the said plot at the bid price of Rs19,300 per square metres which was accepted by HSIIDC. However, on December 2, 2024, HSIIDC rejected the petitioner's said highest bid.
Advocate Sumit Gehlot appearing for Richaco Exports argued that despite his client being the last successful highest bidder in the E-Auction held in November, 2024, till date HSIIDC has not allotted the plot in question and in December, 2024 HSIIDC erroneously rejected his client's highest bid without assigning any valid reason.
Advocate Gehlot further argued that the said rejection is wrongful and his client being last successful highest bidder has indefeasible right in the plot in question.
He further argued that the alleged 1st reason of rejection given by HSIIDC that 'Less than 5 applications received' is not valid, fair and sufficient, since HSIIDC was aware of receiving less than 5 applications at the time of closing of registration on August 16, 2024, itself and in that case, it should not have conducted the auction on November 5, 2024.
He further argued that the alleged 2nd reason of rejection given by HSIIDC that 'less than expected price received' is also not transparent, fair and reasonable and HSIIDC should have kept the higher expected price as reserve price and HSIIDC has recently again advertised auction of the said plot at the same old reserve price.
Advocate Sumit Gehlot further submitted that the said rejection is arbitrary and irrational and contrary to the law settled by the Supreme Court. He further argued that HSIIDC has no dominus status to dictate unilateral terms and conditions of auction and cannot reject the highest bid as per its discretion.
After hearing submissions, the Division bench comprising Justice Sureshwar Thakur and Justice Vikas Suri of Punjab and Haryana High Court on February 25, 2025, directed HSIIDC to maintain the status quo of the plot in question. (ANI)