Jaipur: The Rajasthan High Court has given relief to a real estate developer by setting aside the Rajasthan Housing Board’s decision to cancel the allotment of a commercial plot in Jaipur.
A Division Bench of Justice Sanjeev Prakash Sharma and Justice Bhuwan Goyal dismissed the Housing Board’s appeal and upheld the developer’s right to complete the purchase.
The case arose from the auction of Plot at Pratap Nagar, Jaipur, where M/s Platinum Developers emerged as the highest bidder with a bid of over ₹21.55 crore. The developer deposited more than ₹2.16 crore as the initial amount, following which the Housing Board issued an allotment letter requiring the remaining amount to be paid within 60 days.
Before the developer could make the payment, however, the Housing Board issued an internal order on June 29, 2024, imposing a general ban on accepting balance payments from successful bidders. The High Court noted that this order was never communicated to the developer, making it impossible for the company to complete the payment despite being willing to do so.
Although the Board lifted the ban on April 22, 2025, it decided that all affected bidders would first be informed to deposit the remaining amount. Despite this decision, no communication was ever sent to Platinum Developers. Instead, the Housing Board cancelled the allotment on June 27, 2025,
Rejecting the Housing Board’s stand, the Division Bench observed that once the Board had itself prevented officials from accepting payments, it could not later blame the bidder for failing to pay.
The Bench also found that the allotment was cancelled without issuing a show-cause notice, violating the principles of natural justice. It noted that the developer had consistently shown its willingness to complete the transaction and had approached the Court only because it was not being allowed to deposit the money.
The Court directed Platinum Developers to deposit the remaining amount within 30 days, after which the allotment will stand confirmed and in case of failing the cancellation of the allotment will automatically come into effect.
The court also directed the Housing Board to hand over possession of the plot and complete all necessary documentation within the following 30 days.
The Bench also ruled that the Housing Board cannot charge interest on the delayed payment, as the delay was caused by the Board itself. It also noted that the developer’s ₹2.16 crore had remained with the Board since 2024 without possession of the plot being handed over.
With these directions, the Division Bench dismissed the Housing Board’s appeal.