Haryana Commission Slams HSVP for E-Auctioning Undeveloped Plots
The Haryana Right to Service Commission has issued a strong rebuke to the Haryana Shehri Vikas Pradhikaran (HSVP), labeling the e-auctioning of residential plots without completing essential development works at the sites as a "serious administrative lapse". This critical observation came during a hearing concerning a complaint filed by an allottee in Faridabad, highlighting systemic issues in the state's urban development authority.
Complaint Reveals Procedural Failures
A spokesperson for the commission detailed on Friday that the matter centered on a plot purchased through e-auction in Sector 76/77 of Faridabad. The allottee, Keshav Sharma, lodged a formal complaint, asserting that despite incomplete development works in the area, HSVP had sent him an offer of possession. In its subsequent order, the commission unequivocally stated that HSVP conducted the e-auction without ensuring necessary infrastructure was in place and later issued the possession offer, which deviated from established procedures.
Interest Payment Discrepancies Uncovered
Further investigation by the commission uncovered that, according to the terms of the allotment letter, HSVP is obligated to pay interest to allottees if possession is not granted within 30 days of receiving the application. However, in numerous cases across Faridabad, this interest was not disbursed. It was only after the commission's intervention and explicit directions that HSVP began compensating affected parties, raising questions about the authority's adherence to contractual obligations.
Negligence and Accountability Under Scrutiny
During the proceedings, the commission emphasized that the roles of the then estate officer and HSVP's e-auction cell warrant thorough examination. Approval for the auction was granted without clearly indicating the status of development works, a oversight that has led to prolonged issues. The commission noted that on August 12, 2022, the then chief administrator of HSVP had directed officials to complete development works within two months, yet the problem persisted, indicating significant negligence within the organization.
Legal Precedents and Compensation Ordered
In its order, the commission referenced another case where the Punjab and Haryana High Court made strong remarks about HSVP's functioning. The court stated that HSVP was established on the principle of "no profit, no loss" with the objective of providing affordable housing, but its conduct in several instances appeared profit-oriented, contrary to the interests of middle- and lower-income groups.
Exercising its powers under the Haryana Right to Service Act, 2014, the commission directed that the complainant, Keshav Sharma, be paid compensation of Rs 5,000. This amount must be paid by HSVP within 15 days, with a compliance report submitted to the commission by March 24. Initially, the compensation may be drawn from HSVP's funds, but it is to be later recovered from the responsible officials, ensuring accountability.
Policy Review and Fairness Advised
The commission issued a stern warning, clarifying that if any negligence is found regarding the withdrawal of possession dates, refund of extension fees, or payment of interest on delayed possession, strict action will be taken against the officials under the Haryana Right to Service Act. Additionally, the commission advised HSVP to review its policy on interest payments for e-auction allottees.
Currently, such allottees receive only 5.5% annual simple interest, whereas those who obtain plots through draw of lots receive 9% interest after three years. The commission called for balance and fairness in these policies to ensure equitable treatment for all citizens.
Broader Implications for Real Estate Governance
This case underscores broader concerns about transparency and efficiency in Haryana's real estate sector. The commission's findings highlight the need for stricter oversight and adherence to development timelines to protect allottees' rights. As urban development continues to expand, such administrative lapses could undermine public trust and hinder affordable housing initiatives.
The commission's directives serve as a reminder to public authorities to prioritize citizen-centric services and uphold procedural integrity in all transactions.
