CHANDIGARH: The Punjab and Haryana High Court has granted a significant relief to land oustees. It has overturned the Haryana Shehri Vikas Pradhikaran’s (HSVP) decision to charge current market rates for residential plots, stating that charges should reflect the rates valid at the time applications were submitted. The court emphasized that beneficiaries should not face penalties for delays caused by authorities.
The court concluded that when delays in allotment were entirely due to the authorities, oustees had the right to plots at the rates applicable during the application period, rather than the increased current rates. The division bench, led by Justice Anupinder Singh Grewal, described HSVP’s actions as “manifestly arbitrary,” asserting that authorities could not exploit their own delays by issuing allotment letters years later and demanding inflated prices.
In its ruling, the court criticized the HSVP for not transparently disclosing pricing in advertisements and then insisting on current rates.
The petitioners in this case were landowners whose properties were acquired between 2000 and 2002 for urban development by HSVP. Under existing oustee policies, they were entitled to residential plots within HSVP-developed sectors. Following a public notice from HSVP in 2018, these petitioners applied online and submitted earnest money. However, despite fulfilling all requirements, they received allotment letters only in 2025, a delay of nearly six to seven years.
Alarmingly, the allotments were made at a 2025-26 reserve price of Rs 58,172 per square metre, in stark contrast to the 2018 rate of around Rs 21,500 per square metre. Additionally, HSVP demanded 75% of the plot cost within 180 days without offering installment options.
Three key issues arose during court proceedings: whether HSVP could impose current market rates after significant administrative delays, whether an 11% interest rate was deemed reasonable, and the legality of mandating lump-sum payments within 180 days.
After considering all arguments, the bench annulled the contentious clauses in the allotment letters, instructing HSVP to adjust the allotments according to the rates that were applicable at the time of application, in alignment with established legal principles. The court also clarified that while reasonable interest could be charged, oustees ought not to bear arbitrary financial burdens.
