To cut litigation, HSVP Chief Administrator gets power to restore cancelled bids/LoIs

In a significant move to curb litigation and provide relief to allottees, the Haryana Government has empowered the Chief Administrator of Haryana Shehari Vikas Pradhikaran (HSVP) to restore cancelled bids and Letters of Intent (LoIs) for plots, subject to specific conditions.

Highlights of the new order

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- Restoration is subject to plot availability, reserve price payment, incremental bid value and 15% interest

- The objective is to reduce litigation and establish a structured mechanism for resolving disputes

- The decision follows representations from bidders whose bids were cancelled due to errors in reserve price fixation or other reasons

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- The HSVP had previously cancelled bids due to various factors such as incorrect reserve price fixation, inappropriate bids, short deposits, or differences in Floor Area Ratio

“In order to minimise litigation, it has been decided that the HSVP Chief Administrator is competent to restore such cancelled bids if the respective plot has not been re-sold through e-auction and is available with the HSVP. It will be restored at the correct reserve price with one incremental value of the bid price of the corresponding similar property of the same sector auctioned at the same time, with an interest of 15% per annum for the intervening period — from the date of cancellation/refund to the date of actual deposit,” states the government order.

This decision follows representations from bidders whose bids were cancelled due to errors in reserve price fixation or other reasons, leaving them unable to secure plots despite bidding.

The HSVP had previously cancelled bids due to various factors such as incorrect reserve price fixation, inappropriate bids, short deposits, or differences in Floor Area Ratio (FAR). Delays in issuing LoIs due to encumbrances, court cases or incomplete development works further complicated matters. Some bidders had taken legal recourse, prompting the need for a more structured resolution mechanism.

“The latest order will go a long way in checking litigation and providing relief to allottees. It also provides an institutional mechanism to resolve disputes between the HSVP and the allottees,” said a senior government official.

By formalising this process, the Haryana Government aims to safeguard HSVP’s financial interests while ensuring fairness and transparency for allottees.