HSVP Probes Gurugram Plot Auction After Corner Plots Sell Below Regular Ones

Gurugram: Haryana Shehri Vikas Pradhikaran (HSVP) has ordered an inquiry into the auction of two residential corner plots in Gurugram after they fetched substantially less than similarly sized general-category plots sold just days earlier.

The inquiry covers the bidding pattern, the circumstances surrounding the e-auction and a delay in issuing the letter of intent (LOI) for one of the plots. HSVP has also asked its chief vigilance officer to examine the matter and determine whether any financial loss was caused to the authority.

The authority has not concluded that the e-auction portal was hacked or suffered a technical failure. Those possibilities were raised after officials noticed the unusually wide difference between the bids.

Two Corner Plots Fetch ₹10.8 Crore

HSVP had put five residential plots in Sectors 23 and 23A of Gurugram up for e-auction.

Three general-category plots were auctioned on January 29. Two corner plots of the same size were auctioned on February 4.

All five plots measured 286 square metres.

The three general-category plots fetched ₹7 crore, ₹6.6 crore and ₹6.6 crore. Together, they generated ₹20.2 crore.

The two corner plots, meanwhile, fetched ₹5.5 crore and ₹5.3 crore, taking their combined value to ₹10.8 crore.

Gurugram Plot Auction Comparison

The difference becomes more significant when individual plots are compared. According to the report, each corner plot sold for around ₹1.1 crore to ₹1.5 crore less than the general-category plots auctioned shortly before them.

Why the Corner-Plot Bids Raised Questions

Corner plots would ordinarily be expected to command a premium over standard plots.

An HSVP official cited in the report said corner plots are priced around 10% higher than general-category plots. Based on the prices fetched by the three earlier auctions, the two corner plots could have generated around ₹15 crore.

Instead, their combined winning bids came to ₹10.8 crore.

That gap prompted the estate officer's office to alert HSVP headquarters. The officer also raised the possibility of a technical issue with the e-auction portal or a possible compromise of the system.

HSVP has not, however, established either explanation. The current inquiry is intended to examine what happened rather than confirm that the portal failed or was interfered with.

Delayed LOI Adds Another Layer

The issue did not stop with the auction prices.

For the plot that fetched ₹5.5 crore, HSVP headquarters directed that the LOI be issued on February 27. The LOI was subsequently issued on March 2.

The second corner plot, which fetched ₹5.3 crore, faced greater scrutiny. Headquarters directed issuance of its LOI on March 13, but the process did not move forward after the estate officer pointed out the significant difference between the prices achieved by the two categories.

Under the auction terms, a successful bidder initially deposits 10% of the bid amount, with the remaining amount payable later.

This has led HSVP to examine whether the delay in issuing the second LOI caused the authority to lose interest income on money that could otherwise have been deposited by the successful bidder.

HSVP Seeks Accountability If Loss Is Established

The matter has now been handed to HSVP's chief vigilance officer, who has sought a response from the estate officer.

The authority has also ordered that any loss caused by negligence should be recovered from the official or employee found responsible, if the inquiry establishes such responsibility.

The estate officer, while informing headquarters about the sequence of events, has maintained that there was no fault on the part of any officer or employee.

That means the present stage is still one examination. The price difference itself is documented, but the reason behind it has not yet been established.

What the Auction Shows About Government Plot Sales

HSVP routinely uses auctions and allotment mechanisms for residential and commercial plots. The authority's role includes developing urban land and making residential and commercial plots available through schemes and auctions.

The latest case is unusual because the comparison involves plots of identical size and in the same sector, with the two corner plots being auctioned only a few days after the general-category plots.

That does not, by itself, establish that the lower bids were improper. Auction outcomes can vary depending on the number of bidders, bidding intensity and the circumstances on the day. But the size of the gap has been enough for HSVP to seek a formal explanation.

For buyers and investors tracking residential plots in Gurugram, the case also shows why auction prices should be read alongside the plot category, location within a sector and applicable government valuation benchmarks. 

Government valuation benchmarks can also differ from the actual price discovered through an auction. Buyers tracking Gurugram property transactions can refer to the latest Gurugram circle rates for context. 

What Happens Next?

The vigilance inquiry will examine three connected questions: why the two corner plots attracted substantially lower bids, whether there was any technical problem during the auction, and whether the delayed LOI caused a financial loss to HSVP.

For anyone considering an auction property, due diligence remains important because the winning bid does not by itself settle questions around title, approvals, possession or outstanding liabilities. 

The inquiry will also have to establish whether any official negligence occurred.

Until that process is completed, the lower auction prices should not be treated as evidence of manipulation or a compromised e-auction system.

For HSVP, the immediate issue is to establish what caused the unusually wide price difference and whether the authority lost any revenue or interest because of the subsequent delay in processing one of the successful bids.