MUMBAI, Feb. 7 -- The Bombay High Court has cancelled the court auction of leasehold rights to a prime 852-sq-metre plot in the JVPD Scheme at Vile Parle after finding that the property was grossly undervalued and that the bidding process appeared to be manipulated. A single-judge bench of justice Madhav Jamdar also ordered the forfeiture of the Rs.10 lakh earnest money deposit (EMD) paid by each of the five bidders, holding that their conduct showed that the court auction had lost its credibility and fairness. An earnest money deposit, often called a "good faith deposit," is a sum of money paid by a buyer to a seller to demonstrate serious intent to purchase a property or complete a business transaction. The court was hearing the matter after an advertisement for the auction was published on January 22, 2026, following the finalisation of the terms and conditions for the sale. Five bidders appeared before the court on February 4 and submitted their offers. While four bidders quoted relatively low amounts, ranging between Rs.85 lakh and Rs.1 crore, the highest initial bid of Rs.6.03 crore came from M/s Swarnim Gems & Jewellers Pvt Ltd. During the auction, Anay Shah increased his bid to Rs.9.50 crore. However, the court noted irregular conduct when Mahesh Soni, director of the bidding company, stepped out of the courtroom to consult his co-director about enhancing the offer. Shah followed him outside without seeking the court's permission. When they returned, the company raised its bid to Rs.9.75 crore, while Shah said he would not bid any higher. The court observed that this conduct indicated possible collusion between bidders and underbidding, stating that the "sanctity of the court auction is completely lost". The court also questioned the role of the government valuer after noting that the plot had been valued at only Rs.64.47 lakh, despite being located in one of Mumbai's most expensive residential neighbourhoods. The judge said the valuation was clearly unrealistic and had the effect of encouraging low bids. Further strengthening the court's suspicion, one of the bidders told the court that he was willing to offer Rs.15 crore for the plot but was "asked to keep quiet". In view of these findings, the court cancelled the auction, forfeited the deposits of all bidders....