HC clears decks for shifting of grain market to Chandigarh’s Sector 39
Dismisses plea of Sector 26 grain market traders who are opposing Chandigarh administration’s shop auction process
The Punjab and Haryana high court on Thursday dismissed a plea from the traders of the Sector 26 grain market, challenging the e-auction process of 23 fruit and vegetable shops in Sector 39, paving the way for the market’s long-awaited relocation.

The high court bench of justice Sureshwar Thakur and Vikas Suri dismissed the plea filed by Sabzimandi Aarhti Association, and 60 odd commission agents and traders.
Anticipating that a plea could be filed by the traders, the Chandigarh administration had already filed a caveat before the court.
Disagreeing with the contentions raised by the traders, the court allowed withdrawal of the plea. However, as the petitioners pressed for an order, the court orally remarked that they will be saddled with a cost of ₹2 lakh. The detailed order is awaited.
The UT administration had started the e-auction process on March 3 as part of Sector 26 grain market’s relocation. The auction is being conducted online and for the first time, it has been opened to the general public, a move that drew opposition from traders in Sector 26.
Bidders can upload the required documents on e-auction.gov.in by March 24 and the auction will take place from March 28 to March 31. Each shop, measuring 120 square yards, has a reserve price of ₹3.70 crore. Unlike the previous system, where shops were sold on a freehold basis, these will be allotted on a leasehold basis for 99 years.
The association had argued that the UT was auctioning these shops under the Chandigarh Estate Rules, which was beyond the ambit, scope and sphere of the rules and law—the Punjab Agricultural Produce Markets Act—as per which they were governed.
In January this year, UT administrator Gulab Chand Kataria had approved the auction of 46 out of the 92 fruit and vegetable shops in Sector 39.
The state agriculture marketing board decided to auction 23 shops first, with the remaining to follow based on the response.
The Sector 39 grain market was planned in 2002 to decongest the Sector 26 grain market, which had no room for further expansion. However, UT’s multiple attempts over the past years to auction 92 shops resulted in failure. Once the shops in Sector 39 are allotted, the Sector 26 grain market will be de-notified in phases, marking the end of an era for one of the city’s oldest wholesale markets, as per UT officials.