Rajasthan High Court Upholds Single Bidder Plot Allotment Against Housing Board Cancellation

In a significant ruling for prospective property buyers, the High Court of Judicature for Rajasthan at Jodhpur has set aside the cancellation of a commercial plot bid directed by the Rajasthan Housing Board (RHB). The court underscored that a valid, compliant bid cannot be rejected simply due to a lack of competitive interest.

A Case of Unmet Expectations

The petitioner, Smt. Kamla Jain, participated in an e-auction organized by the Rajasthan Housing Board for a prime commercial plot in the South Extension Scheme, Udaipur. Following the rules, she submitted the highest bid of Rs. 75,500 per sq. meter—surpassing the established reserve price—and timely deposited the required 15% of the bid value.

Despite her strict adherence to the payment schedule and terms, she was left in the dark for weeks. Later, an RTI inquiry revealed that the RHB had cancelled the bid behind closed doors, citing a “lack of competition” and an alleged failure to realize the “full potential value” of the land.

Legal Sparring Over Policy

The petitioner challenged this decision, arguing that the RHB’s action violated its own policy dated September 3, 2020. The policy provides clear guidelines for the cancellation of auctions, none of which included failing to attract multiple bidders. Furthermore, the petitioner pointed out that a previous attempt to auction the same plot had yielded zero bids, contradicting the Board's claim that valid competition was necessary to justify the transaction.

Representing the respondent, the Rajasthan Housing Board struggled to defend the cancellation in the face of established legal precedents.

The Mirror of Precedent

The court’s decision relied heavily on the precedent set in Smt. Kamal Jeet Kaur v. State of Rajasthan & Ors. (2013). This landmark judgment, which has navigated the appellate process—including being affirmed by a Division Bench and surviving an SLP before the Supreme Court—established that public bodies cannot summarily reject compliant bids simply to re-auction based on subjective criteria.

The RHB counsel was unable to distinguish the current facts from the Kamal Jeet Kaur ruling, leading the court to apply the same relief.

Key Observations

The High Court’s rationale was clear in its commitment to transparency and contractual consistency:

• On Fairness and Compliance: The court noted that the petitioner fulfilled all financial obligations within the stipulated timeframe: "the petitioner... fully meeting all stipulated conditions... despite this impeccable compliance, the file was transferred to Jaipur."
• On the Bounden Duty of the Board: In granting relief, Justice Dr. Nupur Bhati reiterated the directive that the respondent-Board must finalize the allotment of the plot in question.
• On Equitable Resolution: The judgment ensures that no further financial burden is placed on the bidder: "...the respondent-Rajasthan Housing Board, shall not demand any interest on the said bid amount from the present petitioner(s) on account of delay caused due to this litigation."

Final Outcome

The Rajasthan High Court allowed the writ petition, ordering the Rajasthan Housing Board to proceed with the allotment letter and sale formalities. The petitioner is granted three months to deposit any outstanding balance. By holding public authorities accountable to their own tender policies, this ruling serves as a vital safeguard for bidders in government-run auctions, ensuring that procedural compliance is met with professional integrity rather than arbitrary interference.