HC Quashes Allotment Of 350-acre Gurgaon Land To DLF

In a major setback to real estate major Delhi Land and Finance Ltd. (DLF), the Punjab and Haryana High Court on Wednesday cancelled Haryana government's auction of 350.7 acres of prime land in Gurgaon. The land was allotted to DLF in year 2010, after a bid of Rs 1,703 crore at Rs 12,000 per sq m.

A division bench headed by Justice Surya Kant cancelled the auction on technical grounds. A bunch of petitions had accused the state government of acquiring the land from farmers in Gurgaon’s Wazirabad village for 'public purpose' to develop a recreational project. Later, the land was auctioned to DLF for commercial activities.

In 2009, only three realtors: DLF, Unitech and Rajarhat IT Park Ltd had participated in the auction. Later, the bids of Unitech and Rajarhat IT Park were cancelled on the basis as they failed to meet the minimum technical requirements, like having developed and managed golf course in the past. DLF was, then, left as the sole bidder; and now it was on this ground the High Court struck down the auction.

The bench, however, upheld the land acquisition process of the state government, directing it to carryout fresh bidding process by inviting international bids from new competitive bidders. The High Court has also clarified that DLF could participate in the bidding process that would be finalized with new terms and conditions by an independent consultant (to be appointed within a month).

The land lies between sectors 42-54 and 43-53 and is behind DLF Phase V. According to the bid condition, the auction-winner had to develop an 18-hole golf course along with low-rise residential units on the land.

It is worth mentioning that the land is considered prime as it is located on the Golf Course Road, which commands highest premium in Gurgaon.
(Image: DLF)