E-auction of limestone in Nagaur cancelled

E-auction of limestone in Nagaur cancelled
04/06/2018 , by , in ALLIED

The Rajasthan High Court cancelled an e-auction of a limestone block and directed the auctioning agency MSTC to carry out the process afresh.

While disposing of a petition pertaining to the auctioning of a limestone block in Nagaur district, the court observed that it cannot shut its eyes to the revenue losses. The court directed the auctioning agency MSTC to begin auctioning with minimum 50% bid of the total mineral value.

Ramit Mehta, counsel for the petitioner, the JSW Cement, said that three companies had participated in an e-auction of a limestone block spread in an area of 357 hectares in Pithasar in Nagaur.

Challenging this decision in court, the JSW Cement stated that Ambuja was declared a preferred bidder at 41.60 % of the mineral value though the JSW Cement Ltd was ready to go up to 50% of the mineral value but failed to do so in spite of bringing the matter of non-functioning of the website to MSTC within the stipulated time.

Mehta argued that in this situation public revenue loss was approximated to Rs 2000 crores, which could have been avoided, had the JSW Cement been given opportunity to revise its bid.

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