HSVP tweaks e-auction policy, sets strict penalties for defaulters

In a significant tightening of its e-auction framework, the Haryana Shehri Vikas Pradhikaran (HSVP) has amended its policy for residential, commercial, institutional and independent commercial properties, mandating strict action against defaulters and faster re-auctioning of cancelled plots.

Takeaways from HSVP’s tweaked e-auction policy

- Cancelled plots must be re-auctioned within 60 days

- Defaulters will forfeit entire earnest money deposit

- They will also lose 10% of original bid (or difference with new bid, whichever is lower)

- No interest on refunded deposits

- Property surrender after three years to attract 50% forfeiture

- Strict payment timelines for residential, commercial and institutional allottees

According to the revised rules, plots cancelled due to non-compliance will now be compulsorily put up for re-auction within 60 days. If the fresh bid turns out to be lower than the original, the allotment will still be made in favour of the new highest bidder, while the original allottee will lose the entire earnest money deposit (EMD). Additionally, the defaulter will forfeit 10% of the original bid amount or the difference between the old and new bid — whichever is lower. No interest will be paid on the deposited amount.

In cases where the re-auction fetches a higher price and the new bidder clears the full payment, HSVP will refund the earlier bidder’s deposit, excluding the forfeited EMD.

The revised policy also lays down strict terms for those choosing to surrender their property. Surrendering within the first year will attract a forfeiture of 15% of the bid amount, rising to 25% if done between one and two years. Properties surrendered between two and three years will see a 35% deduction, while those given up after three years will lead to a hefty 50% loss of the allotment price.

Payment timelines too have been clearly spelt out. After depositing 10% as EMD, allottees will need to pay an additional 15% within 30 days. The balance 75% must be cleared within 120 days in case of residential and smaller commercial properties like booths, kiosks and SCOs.

For larger projects such as group housing or multi-level apartments, an additional 120 days has been granted for the balance amount — applicable only where the due date is pending as on May 13, 2025.

Independent commercial property allottees, including those acquiring complexes and malls, will be given the choice of paying the entire amount in 120 days or opting for six half-yearly instalments with 12% interest. Similarly, institutional allottees such as hospitals, schools and nursing homes will get 180 days, or can spread payments across three annual instalments with a 12% interest burden.

The move, officials said, is aimed at tightening compliance, ensuring financial discipline and bringing more transparency to the e-auction process.