HC orders fresh auction of shops at Kamarajar bus stand in Dindigul

Madurai High Court sets aside auction process for Dindigul shops, orders fresh auction with wide publicity.

The Madurai Bench of the Madras High Court has set aside the entire auction process conducted with regard to allotment of 34 shops belonging to Dindigul Corporation at Kamarajar bus stand in Dindigul and has directed authorities to conduct a fresh auction.

A Division Bench of Justices R. Subramanian and L. Victoria Gowri directed Dindigul Corporation to conduct a fresh auction by publishing about it in newspapers having wide circulation in Dindigul and allot the shops to successful bidders. Any attempt to stifle the auction process or convert it into a private treaty would be viewed seriously, the court said.

The court was hearing a public interest litigation petition filed in 2023 by BJP Councillor of ward 14 G. Dhanabalan, who sought the quash of a resolution passed by Dindigul Mayor pertaining to the auction of the shops at the bus stand. The petitioner had complained about several irregularities in the conduct of the auction and sought a direction to authorities to reconduct it in a transparent manner.

The court, taking into account that the publication of the advertisement about the auction was made in the Coimbatore edition of a newspaper that had no circulation in Dindigul, observed that the publication was made in an insignificant newspaper that had no circulation at all. It could be only with a view to prevent largescale participation. People in power, with the connivance of officers, find out ways and means to convert public auctions into private treaties and barter away the valuable assets to a chosen few for a very meagre amount.

The court said it was not imposing any cost on the Corporation, as it would result in further depletion of its revenue.

The local authorities earned revenue from leasing out shops situated in the bus stand and other shopping complexes. The income was the major source of revenue for the local bodies. The ultimate object should be to ensure proper revenue to the local authority, the court observed and directed re-auction after wide publicity.