The Bombay High Court has ordered a fresh valuation of a prime property in Mumbai’s Vile Parle after finding that the earlier auction process was manipulated. The court noted that the bidders allegedly acted as a syndicate and deliberately quoted lower prices to suppress the property’s value.

Fresh Auction Ordered, EMD Forfeited:

Single Judge Justice Madhav Jamdar directed that a new auction be conducted. The court also ordered that the ₹10 lakh Earnest Money Deposit (EMD) submitted by each of the five bidders will be forfeited until further orders.

Deputy Sheriff of Mumbai Mr. Choudhari submitted Sheriff’s Report No. 6 of 2026, stating that the terms and conditions of the sale were finalised at a meeting held on January 14, 2026. Following this, an Auction Sale Notice was published in the newspapers Free Press Journal and Nav Shakti on January 22, 2026.

Bidders & Initial Price Offers:

The report further recorded that inspection of the suit property was made available to prospective bidders on January 28 and 29, 2026. In response to the said advertisement, the Sheriff’s Office received bids along with an Earnest Money Deposit (EMD) of ₹10,00,000 each from the following bidders:

1. Pinakin Chitalia - Rs 1 Crore

2. Rushi Ajmera - Rs 90 lakhs

3. Anay Nayan Shah - Rs 1 Crore

4. Kushal Shah - Rs 85 lakhs, and

5. M/s. Swarnim Gems & Jewelers Pvt. Ltd. - Rs 6.03 crores.

The lawyer for Bidder No.1 informed the Court that Bidder No.1 was not willing to increase his offer. Bidder No.2 and Bidder No.4also took the same stand.

However, Bidder No.3, who had first offered ₹1 crore, kept raising his bid to ₹8.25 crore, then ₹8.75 crore, and finally ₹9.50 crore. Mr. Mahesh Soni, Director of Bidder No.5 – M/s Swarnim Gems & Jewelers Pvt. Ltd., increased the bid from ₹6.03 crore to ₹8.50 crore, then ₹9 crore, and finally ₹9.75 crore.

Before making the final bid of ₹9.75 crore, Mr. Soni took the Court’s permission to step outside briefly to consult another director. Meanwhile, Bidder No.3 left the courtroom without the Court’s permission after placing his last bid of ₹9.50 crore.

After returning to the courtroom, Bidder No.5 made the final offer of ₹9.75 crore, and Bidder No.3 stated that he did not want to make any further offer.

Court: Sanctity Of Auction Lost

"This is a Court Auction and therefore, sanctity of the process of the Court Auction has to be maintained. The manner in which Mahesh Soni, Director of M/s. Swarnim Gems & Jewelers Pvt. Ltd. (Bidder No.5) and Anay Nayan Shah (Bidder No.3) have conducted themselves and participated in this Court Auction, clearly shows that sanctity of the Court Auction is completely lost. The same clearly shows that this Court Auction is affected by formation of syndicate and under-bidding," the judge held in the order.

The judge noted that Neelam Arch, Architect, Consulting Engineer, Surveyor and Government Property Valuer, had submitted a valuation report dated December 19, 2025. The report valued the 852.50 sq. mtr. plot at ₹64.47 lakh. Considering this valuation and the prime location of the property, Justice Jamdar held that the valuer had grossly “undervalued” the plot.

The Court also firmly held,"It is also required to be noted that the plot in question is at JVPD Scheme, Vile Parle, Mumbai - 400 056 which is a very prime residential area in Mumbai. Not only the Valuation Report valuing the property at Rs.64,47,300/- is grossly undervaluing the property, however, the bids submitted by some of the bidders show that there is high probability that they were knowing the Valuation Report. It is required to be noted that the initial offer of Bidder No.5 was Rs.6.03 Crores and the same was increased to Rs.9.75 Crores. Thus, it is obvious that the other Bidders have given very low offers compared to the market price. Thus, in the facts and circumstances, the possibility of the formation of syndicate just to make a show of competition, cannot be ruled out."

The court observed that several bids, especially those made by Bidder Nos. 1 to 4, were much lower than the market price. Only Bidder No.3, Anay Nayan Shah, increased his bid to ₹9.50 crore.

The bench also noted that Bidder No.1, Pinakin Chitalia, had intended to offer ₹15 crore but was asked to “keep quiet”.

‘Entire Bidding Process Rigged’:

Based on these facts, Justice Jamdar remarked, “Thus, the conduct of all the Bidders noted herein, shows that the entire bidding process has been rigged,”

Therefore the judgement held ,"This is a Court Auction. The properties are to be sold by the Court Auction to ensure that maximum price is fetched. The conduct of all the Bidders noted herein, clearly show that the entire auction process is rigged. Accordingly, in the facts and circumstances, EMD of Rs 10 lakhs, which has been offered by each of the Bidders is forfeited. The same be at present invested in a Nationalised Bank for a period of 6 months. After the subject property is sold in Court Auction conducted in accordance with law, further direction regarding said forfeited amount can be given."

Court’s Order:

For the aforesaid reasons, the entire process of sale of the subject property through Court Auction was quashed and set aside. The Deputy Sheriff of Mumbai was directed to submit a fresh report after obtaining a fresh valuation. Accordingly, Sheriff’s Report No. 6 of 2026 was disposed of in the above terms.

Case Title: Anuradha Nayan Shah vs Jayantilal Vallabhdas Patni (Execution Application 163 of 2005)