The Punjab and Haryana High Court has dismissed a challenge by the traders of the Sector 26 grain market against the e-auction of shops in Sector 39, clearing the path for the proposed market shift. The decision came on Thursday from a bench comprising Justice Sureshwar Thakur and Vikas Suri, effectively ending the long-standing dispute regarding the relocation.
The Sabzimandi Aarhti Association, along with about 60 commission agents and traders, had filed the plea opposing the e-auction process initiated by the UT administration for 23 fruit and vegetable shops in Sector 39. However, the court sided with the administration, dismissing the plea and allowing for the continuation of the auction process.
In a move to prevent delays, the Chandigarh administration had proactively filed a caveat anticipating opposition from traders. The court, addressing the traders’ contentions, allowed for the withdrawal of the plea but warned that pressing further could result in a ₹2 lakh cost imposition on the petitioners. A detailed order from the court is still pending.

The e-auction process began on March 3 as part of the strategy to relocate the grain market from Sector 26 to Sector 39. This auction marks the first time it has been opened to the general public, a development that initially faced resistance from the current traders. Prospective bidders are required to upload necessary documents on e-auction.gov.in by March 24, with the auction scheduled from March 28 to March 31.
Each of the shops up for auction measures 120 square yards and has a reserve price set at ₹3.70 crore. Unlike the previous arrangement where shops were sold on a freehold basis, the new shops will be allotted on a leasehold basis for 99 years.
The traders’ association argued against the auction, claiming it was conducted under the Chandigarh Estate Rules, which they believe does not apply to them as they are governed by the Punjab Agricultural Produce Markets Act.