HC direction to CMDA to conduct fresh auction of shops

The Madras High Court today directed the CMDA to conduct a fresh auction of shops on pleas challenging the provision for providing 15 per cent reservation of shops in Koyambedu Wholesale Market complex for allotment under the discretionary quota of the then DMK minister and CMDA Chairman Parithi Ellamvazhuthi (now in AIADMK).
The petitioners had alleged that the then minister, also Chennai Metropolitan Development Authority (CMDA) chairman, under the discretionary quota, allotted shops to 26 persons "which is discriminatory, malafide, arbitrary, abuse of power and without jurisdiction."
The petitioners sought a direction from the Court to CMDA to notify the above allotted shops for public auction.

The First Bench, comprising Chief Justice Sanjay Kishan Kaul and Justice M.Sathyanarayanan, which disposed of the petitions, in its order, said "it is not in dispute that no methodology is followed for making allotment of the shops in question, except the so-called discretion of the minister as chairman."
"The legal position is quite clear and thus it is agreed that to resolve this issue, the only appropriate course would be to have a proper advertisement which would facilitate an advance notice to all concerned that the shops would be put to auction and thereafter, the bids are opened and allotment is made."

"We thus dispose of the appeal and writ petitions with a direction to carry out fresh exercise of auction of the shops, as per the norms to be circulated and the needful should be done on or before March 31, 2015," the bench said.
The bench then directed the CMDA to refund the amounts deposited by the parties concerned till date within 15 days from today with interest if any accrued.