The Punjab and Haryana High Court has directed the Haryana Shahari Vikas Pradhikaran (HSVP) to allot an alternative plot to an allottee after finding that the plot sold through an e-auction was situated on unacquired land. The Bench of Justice Suvir Sehgal and Justice Deepak Manchanda termed HSVP's conduct as unjust, arbitrary, and a clear instance of mala fide.
Court Orders Alternative Plot Within Three Months
The court directed HSVP to allot an alternative plot within three months, either in the same vicinity or sector, by carving out a fresh plot, allotting a plot in a newly developed site, or through other suitable measures. The order came on a petition by an allottee who was declared a successful bidder for a plot in Sector 77, Urban Estate, Faridabad, through an e-auction. After depositing the entire sale consideration, the allottee was issued an allotment letter.
HSVP's Failure to Deliver Possession
The court noted that although possession was formally offered, actual physical possession could not be delivered because the plot was on unacquired land. HSVP acknowledged this in a communication dated November 24, 2023. The Bench observed that the allottee paid the full amount, but HSVP recommended cancellation of allotment and offered a refund with interest as per policy.
However, the court noted no evidence that the amount was ever refunded, and HSVP's stand implied the money remained with the authority. The Bench agreed with the petitioner's senior counsel that the allottee was not at fault and was suffering due to HSVP's inaction and lapses.
Lack of Due Diligence by HSVP
The judges stated that the pleadings and material clearly showed a lack of due diligence by HSVP before advertising the plot. The impugned action reflected abuse of discretion and arbitrariness, where no public authority can act unfairly to the detriment of law-abiding citizens. HSVP admitted its mistake by acknowledging the plot was on unacquired land, solely due to lack of prior verification.
Court Rejects HSVP's Defense
The court rejected HSVP's argument that there was no provision for alternative plot allotment under the e-auction policy, calling it unsustainable. It noted that similar issues had arisen before, and co-ordinate Benches had granted relief in comparable circumstances. Allowing the petition, the court directed HSVP to allot an alternative plot within three months.
