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The Punjab and Haryana High Court has ruled in favour of land oustees, holding that the Haryana Shehri Vikas Pradhikaran (HSVP) cannot demand current reserve prices for residential plots when allotment delays were caused by the authority itself. The court found that applicants who responded to a 2018 notice and waited several years for allotment cannot be burdened with sharply increased 2025-26 rates. It set aside inflated pricing, strict payment terms, and excessive interest, and ordered HSVP to charge rates applicable at the time of application.
The Punjab and Haryana High Court has delivered a clear ruling protecting land oustees from being charged higher plot prices due to administrative delays by the Haryana Shehri Vikas Pradhikaran. The judgment relates to residential plots offered under the oustee quota, where landowners whose land was acquired decades ago applied for allotment following a public notice issued in 2018. Advertisement
The petitioners had completed the application process and deposited earnest money as required. However, allotment letters were issued only after a delay of nearly six to seven years. When the letters were finally released, HSVP demanded payment at the prevailing 2025-26 reserve price of around INR 58,172 per square metre, compared to nearly INR 21,500 per square metre applicable at the time of the original notice. The authority also imposed a condition requiring 75% of the amount to be paid within 180 days, without instalment options, along with a high rate of interest.
The court held that such demands were arbitrary and unfair. It observed that a public authority cannot take advantage of its own delay and impose a higher financial burden on applicants who had complied with all requirements in time. The bench made it clear that when delays are entirely attributable to the authority, the price payable must correspond to the rate prevailing when applications were invited, not the rate at the time of allotment.
The ruling also addressed the issue of transparency, noting that HSVP had failed to disclose the applicable price in the original advertisement. The court stated that issuing vague notices and later enforcing current rates undermines fairness and violates established legal principles governing public allotments.
As part of the order, the court quashed the clauses in the allotment letters that imposed escalated rates, rigid payment schedules, and excessive interest. HSVP has been directed to recalculate the plot price based on 2018 rates, while allowing only reasonable interest where legally permissible. The authority was also asked to issue revised demand letters accordingly.
The court further imposed costs of INR 3 lakh on HSVP, stating that the authority had ignored settled legal positions and compelled land oustees to approach the court for relief despite clear precedents.
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