New Delhi [India], February 28 (HBTV): The Punjab and Haryana High Court has barred the Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC) from conducting the auction of an industrial plot at IMT Bawal in Rewari.

The matter pertains to Richaco Exports Pvt. Ltd., an exporter that 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, covering an area of 13,300 square meters, at a reserve price of INR 16,300 per square meter.

On August 16, 2024, Richaco Exports deposited INR 1,08,64,500 as a 5 per cent Earnest Money Deposit (EMD), including the processing fee, with HSIIDC. Subsequently, on November 5, 2024, HSIIDC conducted an e-auction, during which Richaco Exports placed the highest bid of INR 19,300 per square meter. The bid was accepted by HSIIDC; however, on December 2, 2024, the corporation rejected the petitioner’s highest bid.

Advocate Sumit Gehlot, representing Richaco Exports, argued that despite his client being the highest bidder in the e-auction, HSIIDC has not allotted the plot and erroneously rejected the bid without providing a valid reason.

Gehlot further contended that the rejection was wrongful and that his client, as the highest bidder, had an indefeasible right to the plot. He challenged the two reasons cited by HSIIDC for the rejection.

First, HSIIDC claimed that the auction had received ‘less than five applications.’ However, Gehlot pointed out that HSIIDC was aware of this at the time of registration closure on August 16, 2024, and should not have proceeded with the auction if this was a disqualifying factor.

Second, HSIIDC cited ‘less than expected price received’ as another reason for rejection. Gehlot argued that this was neither transparent nor reasonable, as the corporation should have set a higher reserve price instead. He also noted that HSIIDC has since re-advertised the auction at the same reserve price.

Gehlot asserted that the rejection was arbitrary, irrational, and contrary to Supreme Court rulings. He further argued that HSIIDC does not have the dominus status to unilaterally dictate auction terms and reject the highest bid at its discretion.

After hearing the arguments, the division bench of Justice Sureshwar Thakur and Justice Vikas Suri of the Punjab and Haryana High Court directed HSIIDC to maintain the status quo regarding the plot in question on February 25, 2025.

(ANI)