Jaipur: The sudden decision by the state administration to cancel the e-auction of commercial hotel plots in Daulatpura has triggered a wave of resentment among investors, dealing a heavy blow to the govt’s credibility.The auction, conducted by the state industrial development corporation (RIICO), had drawn overwhelming interest from buyers, pushing land prices to nearly 5-6 times the base reserve price.However, despite the prospect of substantial revenue for the public exchequer, authorities annulled the entire exercise in the final hours of bidding, leaving participants who had locked in lakhs of rupees as earnest money deposits and completed extensive regulatory formalities high and dry.A pattern of erratic decisions marred the process from the start, said a RIICO official.“At first, authorities refused to let the bidding commence for a long time under the pretext of determining the base price. Once the process finally opened, an extension was granted on the final day, only for the entire auction to be scrapped in the last few hours after officials witnessed the massive surge in bids,” he said.RIICO has no choice but to follow the instructions from the higher-ups in the govt, he added.Disgruntled investors pointed out that the arbitrary moves were simply not made in good faith, alleging that major vested interests scuttled the process as land prices surged beyond expectations.“We are confused about what to do in this environment. With such practices, the govt is simply losing trust of the investors,” said an applicant who had applied for three plots in Daulatpura.With public trust severely shaken, market experts warned that such unpredictable governance casts serious aspersions on policy stability and will make it increasingly difficult for investors to trust state-led initiatives in the future.
