Rajasthan Housing Board Can't Cancel Auction Merely Because It Received Single Bid: High Court

The Rajasthan High Court asserted that allocation of an auction cannot be cancelled merely on the ground that there was a single bidder and hence, “lack of competition”, especially when the bidder had complied with all the stipulated conditions.

Justice Nupur Bhati was hearing a petition by a person who participated in Rajasthan Housing Board's e-auction for a commercial plot, and submitted the highest bid, following which all the stipulated conditions were also fulfilled by the petitioner.

Despite this, the allocation to the petitioner was cancelled by the State on account of “single bid”, “lack of competition” and “non-realization of full potential value”. Hence, the petition was filed.

The petitioner argued that the cancellation was in violation of the State's own policy order as per which the e-auction could be cancelled only for non-deposit of 15%, 35% or 50% amounts, but nowhere mandated rejection for a single bidder.

The counsel further relied upon the coordinate bench decision in the case of Smt. Kamal Jeet Kaur v. State of Rajasthan & Ors. in which such rejection was overturned by the Court, and the State was directed to allocate the plot to the petitioner.

After hearing the contentions, the Court accepted the petitioner's reliance on the coordinate bench decision, and the State was directed to finalize the allocation of plots to the petitioner and execution of necessary documents.

Accordingly, the petition was allowed.

Title: Smt. Kamla Jain v State of Rajasthan & Ors.

Citation: 2025 LiveLaw (Raj) 428

For Petitioner(s): Mr. Manish Shishodia, Sr. Advocate, assisted by Mr. Naman Mohnot

For Respondent(s): Mr. Mool Singh Panwar

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