Circuit house auction declared ineffective

The court of Additional District and Sessions Judge had fixed January 25 as the date of auction of the circuit house. However,soon after the property went under the hammer — for Rs 4.31 crore to Gurnoor Builders — the state moved in quickly and sought a stay on the sale. It then deposited Rs 72 lakh to be paid to the original holder. The court had then fixed the next hearing on the stay order on February 5.

Amrit Gupta,who was appointed as the auctioneer by the court on January 25,told The Indian Express that the final bidder had to deposit a draft of Rs 1.08 crore on the day of auction but given the huge amount,he was given time till Wednesday. However,since no amount was deposited,the auction stands ineffective,said Gupta.

The auction was held to compensate Kulbir Singh,whose land was acquired in 1986 to set up a leather complex. Unhappy with the amount of compensation,Kulbir had moved the Punjab and Haryana High Court. In 2008,the court ordered increase in compensation and when the government failed to comply with the orders,the court order the auction of the circuit house.