[color=hsl(0, 0%, 0%)]What was meant to be a routine government bullion auction has now snowballed into a full-blown controversy—raising uncomfortable questions about transparency, sanctity of contracts, and whether price greed trumped procedure.
[color=hsl(0, 0%, 0%)]At the centre of the storm is Security Printing and Minting Corporation of India Ltd (SPMCIL) and its Hyderabad mint, accused of abruptly cancelling a concluded silver auction just days after prices surged sharply upward.
[color=hsl(0, 0%, 0%)]A Deal Done—Then Undone
[color=hsl(0, 0%, 0%)]On December 17, 2025, SPMCIL’s India Government Mint, Hyderabad auctioned refined silver bars (purity ranging from 995 to 998.4) through MSTC Ltd, the PSU responsible for e-auctions of government assets.
[color=hsl(0, 0%, 0%)]Among the bidders, Augmont Enterprises Limited emerged successful for three substantial lots—more than 900 kilograms of silver in total. The bids were competitive, the paperwork clean, and the money real:
[color=hsl(0, 0%, 0%)]Earnest Money Deposit (₹1.16 crore) paid on December 16
[color=hsl(0, 0%, 0%)]Balance Security Deposit (₹1.42 crore) paid on December 18
[color=hsl(0, 0%, 0%)]Bid approval and acceptance letters issued by MSTC on December 19
[color=hsl(0, 0%, 0%)]By all conventional auction standards, the sale stood concluded. Delivery and final payments were scheduled by December 27.
[color=hsl(0, 0%, 0%)]Then came the volte-face.
[color=hsl(0, 0%, 0%)]“Administrative Reasons”—Or Market Panic?
[color=hsl(0, 0%, 0%)]On December 22, barely three days after formal acceptance, MSTC stunned the winning bidder with a terse email: Lots 01, 08, and 09 stood cancelled. The reason cited—“administrative reasons”—was as vague as it was sweeping. All prior documents were declared null and void.
[color=hsl(0, 0%, 0%)]Soon after, SPMCIL’s Hyderabad official Durgesh Deshmukh reportedly followed up, asking for bank details to process refunds.
[color=hsl(0, 0%, 0%)]But by then, silver prices had already told their own story.
[color=hsl(0, 0%, 0%)]Between the auction date and the cancellation, silver prices had surged—from around ₹1.64 lakh per kg to well over ₹2 lakh per kg, riding a powerful global rally driven by industrial demand, tight supply, and speculative momentum. On an annual basis, silver was already up nearly 94%.
[color=hsl(0, 0%, 0%)]For Augmont, the timing was impossible to ignore.
[color=hsl(0, 0%, 0%)]The Core Allegation: You Can’t Cancel a Price You Don’t Like
[color=hsl(0, 0%, 0%)]In a formal complaint filed with the PMO, dated January 9, 2026, filed by the Indian Bullion and Jewellery Association, on behalf of its member Augmont, the charge is blunt: SPMCIL and MSTC allegedly cancelled a legally concluded auction because the government suddenly realised it had sold silver too cheaply.
[color=hsl(0, 0%, 0%)]The complaint argues that once bids are accepted, payments received, and confirmation letters issued, auction rules do not permit unilateral cancellation—especially not after market prices move unfavourably for the seller. The total value of the silver involved exceeded ₹17.6 crore, and Augmont is seeking enforcement of the sale, not a refund.
[color=hsl(0, 0%, 0%)]Silence from the Authorities
[color=hsl(0, 0%, 0%)]What adds fuel to the fire is what hasn’t happened. As of now, there is no public explanation, no policy clarification, and no transparency note from either SPMCIL or MSTC explaining:
[color=hsl(0, 0%, 0%)]What precise “administrative reason” justified cancelling only select lots
[color=hsl(0, 0%, 0%)]Why the cancellation occurred after price discovery, acceptance, and deposits
[color=hsl(0, 0%, 0%)]Whether future government auctions can now be reversed retroactively when markets move against the exchequer
[color=hsl(0, 0%, 0%)]In the tightly regulated world of bullion trading, this silence is deafening.
[color=hsl(0, 0%, 0%)]Bigger Questions for Government Auctions
[color=hsl(0, 0%, 0%)]The fallout goes far beyond one silver auction.
[color=hsl(0, 0%, 0%)]If a government PSU can cancel a concluded sale after accepting money—simply because commodity prices spike—then bidders are left asking: Are government auctions binding contracts, or optional price bets?
[color=hsl(0, 0%, 0%)]For market participants, this episode strikes at the credibility of public asset disposal mechanisms. For SPMCIL and MSTC, it opens the door to scrutiny that goes beyond silver bars—into governance, rule adherence, and institutional integrity.
[color=hsl(0, 0%, 0%)]And for the market, the message is chilling: Win fair and square today—lose it tomorrow if prices rise too fast.
[color=hsl(0, 0%, 0%)]As silver continues its relentless climb, one question now hangs heavy over Mint Road and Mint Street alike: Was this an administrative slip—or a market regret dressed up as procedure?[color=hsl(0, 0%, 0%)] |
