Archive · 6 Jun 2025
Orissa High Court Supports LIC in Flat Auction Case
The Orissa High Court sided with LIC in a case about selling flats.
LIC had originally planned to sell flats to policyholders but canceled the plans in 2014.
A policyholder sued, claiming LIC was now charging too much for the flats.
The court said LIC could sell the flats through auction.
The court explained that it can't force LIC to sell at the original, lower price, as time and costs have changed.
The court found LIC acted legally and dismissed the policyholder's complaint.
The ruling permits LIC to proceed with an e-auction, which is planned for 2025.
Orissa High Court dismissed a plea against LIC over flat sales.
LIC cancelled initial flat allotments in 2014 due to ROR unavailability.
A policyholder sued, contesting the increased cost of the flats.
The court ruled in favor of LIC, allowing public auction.
The court cited changing costs and lack of a finalized agreement.
- Who
- The Orissa High Court and LIC were the primary parties involved.
- What
- The Orissa High Court dismissed a plea against LIC regarding the public auction of cancelled flat allotments.
- When
- The initial allotment cancellation was in 2014, and the e-auction is planned for 2025. The court's ruling was uploaded on May 29.
- Where
- The flats are located in Jeevan Bima Nagar, Chandrasekharpur in Bhubaneswar.
- Why
- The court dismissed the plea due to changes in land classification and escalating construction costs, and the absence of a sale agreement.
Policyholder
LIC and Court
Pricing of Flats
Policyholder
The policyholder alleged that LIC was attempting to profit from the same flats by hiking its cost, which is arbitrary and exploitative.
LIC and Court
LIC is entitled to re-value and dispose of its assets in a lawful, transparent manner, reflecting present-day market and construction realities.
- Court
- Orissa High Court
- Main Entity
- Life Insurance Corporation of India (LIC)
- Original Allotment Cancellation
- 2014
- Planned e-auction
- 2025
- Location
- Jeevan Bima Nagar, Bhubaneswar
- Initial Deposit
- Rs 1 lakh
- Current Flat Cost
- Rs 80.54 lakh
- Original Flat Cost
- Rs 58.10 lakh