EMD Refund to Unsuccessful Bidders Within Seven Working Days: Supreme Court Clarifies Auction Terms, Sets RFP Deadline

The writ petition, filed in 2004, is part heard and is listed with connected matters: transferred cases, a civil appeal, contempt petitions and a transfer petition (cause title). An Amicus Curiae was appointed by the order of 16.07.2024. The order of 17.09.2026 had required progress to be reported on 28.10.2026 (para 1). Clarifications were sought on an auction of properties at Peddapalli district, for which SBI Capital Markets Limited (SBI CAPS) is to issue a Request for Proposal (para 4). The order does not describe the dispute in the writ petition or say whose properties are being sold.

The Court recorded that ‘the timeline specified in such order has again been breached’ (para 2). It condoned the breach on the reasons offered but impressed upon the parties ‘to henceforth abide by the timelines to be stipulated by us’ (para 3). The auction of the Peddapalli properties may proceed excluding 164.06 square yards which, it is reported, is in the lawful possession of National Thermal Power Corporation since 16 May 1980 (para 4(i)). The net worth requirement for bidders may be kept at 25% of the reserve price, as SBI CAPS suggested (para 4(ii)). Modifying its order of 15.05.2025, the Court directed that EMD may be refunded to unsuccessful bidders within a maximum of seven working days after the tender result is declared (para 4(iii)). The seven days the Income Tax Department needs to finalise the model tender documents and a draft sale deed must be kept (para 4(iv)). On an officer of SBI CAPS assuring that the RFP could issue within two days of receiving the documents, the Court directed that it be issued by 10.11.2026 (para 4(v)). The hearing on directions to the G.F.I.L. Committee on the unclaimed amount was adjourned for want of time (para 5).