CUTTACK: The Orissa High Court has overturned the Life Insurance Corporation of India’s (LIC) decision to revoke flat allotments under its “Policy Holders’ Housing Scheme” at Jeevan Bima Nagar, Chandrasekharpur, Bhubaneswar. The court ordered LIC to finalize the allotment process within eight weeks, contingent on each allottee paying an additional 10% of the original flat cost.
The judgment came after reviewing four separate petitions filed by Satyavan K Panda, Dr. Laxmikanta Mishra, Dr. Swapna Kabiraj, and Saktidhar Das from 2015 to 2018.
In 2014, a lottery was conducted for 75 flats under Phase-II of LIC’s housing scheme, where each petitioner initially paid Rs 1 lakh. However, LIC later decided to cancel the allotments and shift to a public auction due to legal challenges, such as forest clearance and outdated Record of Rights (ROR).
Despite resolving the issue and entering LIC’s name in the ROR, they maintained the cancellation, offering refunds with interest, which the allottees rejected, insisting on the promised flats.
On September 10, Justice Dixit Krishna Shripad emphasized the need to balance the “competing equities” between LIC and the petitioners, particularly considering the delays and increasing property prices.
During the proceedings, LIC argued that real estate prices have escalated significantly over the past decade, making it impractical to offer flats at previous rates. The petitioners countered that the delays were not their fault and that they had adhered to all conditions.
The court decided that LIC must proceed with the allotments while allowing it to charge an additional 10% over the initial price. The petitioners have six weeks to pay the full amount, after which LIC must execute and register the sublease deeds within eight weeks.
