Court Imposes Costs on HSVP for Charging Current Prices and Delaying Allotment in Contravention of Legal Precedents
In a significant decision, the Punjab and Haryana High Court has quashed the Haryana Shehri Vikas Pradhikaran's (HSVP) practice of charging current market prices for plots allotted under the oustee quota, instead of prices prevailing at the time of application or advertisement. The court ruled that the HSVP's actions were contrary to the Full Bench judgment in "Rajiv Manchanda v. Haryana Urban Development Authority" and the established policies.
The case, "Ram Lal Mahendru v. State of Haryana," highlighted the grievances of the petitioner, whose land was acquired by HSVP in 2001 for urban development. Despite applying under the oustee quota in 2018, the petitioner received an allotment letter only in 2025, demanding payment based on the inflated current reserve price. The court found HSVP's delay in issuing allotment letters and charging of current prices unjustifiable and arbitrary.
The bench, comprising Justices Anupinder Singh Grewal and Deepak Manchanda, reinforced the necessity to adhere to legal precedents, stressing that the allotment price should reflect the rate at the time of the initial application or advertisement. The court also addressed the exorbitant interest rate of 11% per annum imposed on the allotment price, deeming it unreasonable. Instead, the court mandated a rate of 5.5%, aligning with other HSVP policies and financial norms.
Additionally, the court criticized HSVP's imposition of a 180-day lump sum payment schedule for the balance 75% of the plot's price. Drawing on previous decisions, the court directed that payments should be structured over six annual installments, ensuring fairness to the allottees.
Highlighting the doctrine of "stare decisis," the court emphasized the binding nature of judicial precedents, underscoring that settled legal principles must guide future actions of state authorities. The court imposed a cost of Rs. 3 lakhs on HSVP, to be deposited with the Poor Patients Welfare Fund at PGIMER, Chandigarh, as a punitive measure for their arbitrary conduct.
The judgment directs HSVP to issue fresh allotment letters reflecting the corrected price and interest calculations within two months and restrains any coercive actions against the petitioner until compliance. This ruling serves as a reminder of the judiciary's role in upholding legal consistency and protecting citizens' rights against arbitrary administrative practices.
Bottom Line:
Oustee Policy - Determination of allotment price for oustees under Haryana Urban Development Authority (HUDA), now Haryana Shehri Vikas Pradhikaran (HSVP) - Allotment price should be as per the rate prevalent on the date of advertisement or application, and not the current price at the time of allotment. Interest rate should be reasonable and not arbitrarily fixed.
Statutory provision(s): Haryana Urban Development Authority (HUDA) Oustee Policy, Clause 15-A of the Policy dated 08.05.2018, Doctrine of Stare Decisis, Promissory Estoppel.
Ram Lal Mahendru v. State of Haryana, (Punjab And Haryana)(DB) : Law Finder Doc id # 2826057
