Top court green-lights Sec-39 grain market auction

As per the approval granted by the UT administrator, 23 fruit and vegetable SCO sites out of a total of 92 sites at the new location in Sector 39 were put up for e-auction on a leasehold basis, in accordance with the provisions of the Chandigarh Estate Rules

In a move that is likely to clear the way for long-pending shift of the grain market from Sector 26 to Sector 39, the Supreme Court has dismissed a special leave petition (SLP) filed by the Sector 26 Sabzi Mandi Arhtiya Association challenging the e-auction of shop-cum-office (SCO) sites at the new market in Sector 39.

Top court green-lights Sec-39 grain market auction

As per the approval granted by the UT administrator, 23 fruit and vegetable SCO sites out of a total of 92 sites at the new location in Sector 39 were put up for e-auction on a leasehold basis, in accordance with the provisions of the Chandigarh Estate Rules.

The new market is planned over nearly 75 acres and will be developed in phases, with the first phase comprising the fruit and vegetable market and the second phase the grain market.

The bidding process for the 23 SCO sites closed on March 31, 2025, with bids received for 12 sites. While the e-auction committee was evaluating the bids for award to the highest bidders, the Sabzi Mandi Arhtiya Association moved the Supreme Court against the auction. On April 1, 2025, the apex court granted a stay, leading to the award of bids being kept in abeyance.

Phased relocation, de-notification plans

During the resumed hearing on December 17, 2025, the Supreme Court dismissed the petition in favour of the Chandigarh Administration and the State Agricultural Marketing Board. The petitioners had argued that the Chandigarh Estate Rules, 2007, were not applicable to a mandi with restricted usage and alleged that the administration had reneged on its assurance to first accommodate existing Sector 26 allottees.

Earlier, the Punjab and Haryana high court had dismissed a similar petition, observing that the traders were attempting to derail the auction process. A senior UT official said the administration was awaiting formal orders and was hopeful that the auction process would resume in January next year. Once the shops in Sector 39 are allotted, the Sector 26 market will be de-notified in phases, bringing down the curtain on one of the city’s oldest wholesale markets.

Brij Mohan, president of the Sector 26 Sabzi Mandi Arhtiya Association said, we will file review petition in top court, he said.

The Association filed a special leave before the apex court, which granted stay and due to the stay, the award of bid was kept pending.

During resumed hearing on December 17, 2025, the apex court has disposed of the SLP in favour of the Chandigarh Administration/State Agricultural Marketing Board, Chandigarh. Auction is to begin in January next year.