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The Punjab and Haryana High Court has halted the auction of an industrial plot at IMT Bawal in Rewari, Haryana, by the Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC).
The decision came after a writ petition was filed by Richaco Exports Pvt. Ltd., challenging the rejection of its highest bid.
According to the petition, HSIIDC had advertised the auction on August 1, 2024, for a 13,300-square-meter industrial plot in Sector-8, IMT Bawal, at a reserve price of Rs 16,300 per square meter. Richaco Exports participated in the e-auction on November 5, 2024, and emerged as the highest bidder with an offer of Rs 19,300 per square meter. However, on December 2, 2024, HSIIDC rejected the bid without providing a clear explanation.
Advocate Sumit Gehlot, representing Richaco Exports, argued that his client had been the last successful highest bidder and was wrongfully denied the plot. He asserted that the rejection was arbitrary and violated established legal principles. “The rejection is wrongful, and my client, as the last successful highest bidder, has an indefeasible right to the plot in question,” he stated.
HSIIDC cited two reasons for rejecting the bid: receiving fewer than five applications and the bid not meeting expected price levels. However, Advocate Gehlot contended that these justifications were neither valid nor transparent. He pointed out that HSIIDC was already aware of the number of applications at the time of registration closure on August 16, 2024, and should not have proceeded with the auction if the number of applications was insufficient.
Furthermore, he argued that if HSIIDC had a higher expected price, it should have set it as the reserve price from the outset. He noted that the corporation had recently re-advertised the same plot at the same reserve price, further questioning the rationale behind rejecting the initial highest bid.
Gehlot further emphasized that HSIIDC could not unilaterally dictate auction terms and conditions in a manner that undermines fairness and legal precedent. “HSIIDC has no dominus status to dictate unilateral terms and conditions of the auction and cannot reject the highest bid at its discretion,” he argued.
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 regarding the plot. This decision prevents HSIIDC from proceeding with any further auction until the matter is resolved.
