In a landmark judgment providing significant relief to landowners whose properties were acquired decades ago, the Punjab and Haryana High Court has strongly rebuked the Haryana Shehri Vikas Pradhikaran (HSVP). The court set aside the authority's demand to charge current, escalated market rates for residential plots, instead of the prices that were prevalent at the time applications were invited.
Court Slams "Manifestly Arbitrary" Conduct of HSVP
The division bench, headed by Justice Anupinder Singh Grewal, termed the HSVP's conduct as "manifestly arbitrary." The bench firmly stated that the development authority cannot benefit from its own inaction and delays. The court recorded that issuing allotment letters after a gap of six or seven years and then demanding the higher prices of 2025 was unjust.
The core legal principle established is clear: where the delay in allotment is entirely attributable to the authorities, the allottee is entitled to the price prevalent at the time of application or the initial advertisement, not the escalated current rate. The beneficiaries, the court held, cannot be penalized for administrative delays.
A Timeline of Delay and Shock
The petitioners were landowners whose land was acquired by the HSVP for urban development projects between 2000 and 2002. As per the applicable oustee policies, they became eligible for residential plots in HSVP-developed sectors.
The process saw a public notice issued by HSVP in 2018. The petitioners applied online and deposited the earnest money promptly. Despite completing all formalities, they received their allotment letters only in 2025, marking an unexplained delay of nearly six to seven years.
The shock came with the pricing. The allotments were made at the 2025-26 reserve price of Rs 58,172 per square metre. This was a massive jump from the approximate rate of Rs 21,500 per square metre that was applicable in 2018 when they applied. Additionally, HSVP demanded a 75% lump-sum payment within 180 days, offering no instalment facility.
Three Key Issues Before the High Court
During the proceedings, the high court examined three primary issues:
- Whether HSVP could legally charge current market rates after such prolonged delays caused by itself.
- Whether levying an 11% interest on the dues constituted "reasonable interest."
- The legality of forcing allottees to make a bulk payment within 180 days without any instalment option.
Verdict and Directives: A Major Win for Oustees
After hearing all arguments, the bench quashed the offending clauses in the allotment letters. The court directed the HSVP to rework the allotments by charging the rates applicable at the relevant time—i.e., 2018—in accordance with settled law.
The judgment also disapproved of the common practice of not disclosing prices in advertisements and later insisting on current rates. On the financial terms, the court held that while reasonable interest could be charged, the oustees cannot be burdened with arbitrary financial conditions like the stringent lump-sum payment mandate.
This ruling sets a crucial precedent for thousands of similar cases where citizens face financial hardship due to procedural delays by government authorities, ensuring they are not unfairly taxed for time lost by the administration.
