CHANDIGARH: The Punjab and Haryana High Court has raised grave concerns regarding the skyrocketing costs of residential plots and flats auctioned by government development agencies in the Tricity—Chandigarh, Panchkula, and Mohali—asserting these prices have made home ownership unattainable for middle-class and salaried professionals.
The court has instructed the governments of Haryana, Punjab, and UT Chandigarh to develop a proposal aimed at addressing affordable housing, suggesting alternatives like lottery systems for all societal segments, including the salaried and middle class.
“It seems that state authorities have begun prioritizing profit, abandoning the common citizen. The auction prices for residential properties are exorbitant,” the court noted.
Justice Anupinder Singh Grewal, leading the division bench, acknowledged that government entities have substantial financial reserves. Rather than using these funds to provide affordable housing for ordinary citizens and the middle class, they are auctioning residential properties. It was highlighted that minimum bid amounts in these auctions are in crores, far exceeding middle-class affordability.
Justice Grewal pointed out that Article 21 of the Constitution, which guarantees the right to life and liberty, encompasses the right to shelter and affordable housing. It is the state’s duty to ensure access to affordable housing.
“We have observed that the auction prices set by HSVP, GMADA, and the Chandigarh Housing Board for residential plots and flats in the Tricity are beyond the means of professionals, the salaried class, and other less affluent social groups, including the middle class. While these governmental bodies once implemented various allotment schemes, including lottery systems, they have now switched to auction methods, straying from their original purpose,” the bench asserted.
In its detailed order, the bench noted a prior restriction limiting allotment to one plot/flat per family. This restriction seems to have been lifted, as several cases have been reported where individuals have successfully applied for and acquired multiple residential units through auctions.
The matter has been adjourned until March 24 for further discussion, and the bench has appointed attorney Shreenath A. Khemka as amicus curiae, who was present in the court.
‘State Responsibility To Ensure Affordable Housing’
Government agencies engaging in profiteering: The court observed that development authorities in Chandigarh, Panchkula, and Mohali are auctioning residential properties at “excessive” rates, making home ownership unachievable for middle-class and salaried citizens.
Shift from welfare-focused schemes: The bench remarked that agencies like HSVP, GMADA, and the Chandigarh Housing Board have transitioned from earlier draw-of-lots schemes for the public to high-stakes auctions.
Bids starting from crores: The court noted that reserve prices for these auctions often amount to crores, rendering them inaccessible to the middle class and other less privileged groups.
Article 21 and the right to shelter: Justice Grewal emphasized that the constitutional right to life encompasses the right to affordable housing, obligating the state to facilitate this access.
