High Court Orders Construction Completion Within a Year, ET RealEstate

June 9, 2024
2 mins read
High Court Orders Construction Completion Within a Year, ET RealEstate


<p>Representative Image</p>
Representative Image

CHANDIGARH: Directing the Chandigarh administration to commence construction of flats within two months under the UT Employees Self Financing Housing Scheme 2008, the Punjab and Haryana high court has held that the administration must complete the construction within a year.

The court also directed the administration to hand over the possession of flats within two months thereafter.

A division bench, comprising Justice Sureshwar Thakur and Justice Lalit Batra, directed, “A mandamus is also passed, upon the Board (Chandigarh Housing Board) to ensure that encumbrance free delivery of possession of flats is made to the petitioners (successful employees) within two months thereafter along with all the amenities being provided to all the dwelling units, subject to deposit of remainder of amount by petitioners (successful employees) in terms of Scheme, 2008, as well as proportionate escalation of cost of construction.”

The court held that cost of the entire land meant for implementation of Scheme, 2008, would remain at Rs 7,920 per square yard.

The court concluded that the present petitioners (successful employees) are to be endowed with the beneficent grace of the principle of legitimate expectation.

Moreover, the HC also held that the Chandigarh administration as well as the board are estopped from resiling or breaching the assurance, meted to the petitioners (successful employees).

“Since the happenings of the draw of lots in the year 2010 up to now, there is but naturally escalation in the prices of construction material. Therefore, irrespective of the above, it would be extremely unjust and oppressive, that this court entails an obligation, upon the board to construct the dwelling units, at a price detailed in the brochure. For ensuring, that thereby no injustice is done to the board, this court is of the view that only expenses incurred by the Board, on the purchase of construction material be, in terms of the completed areas of constructions, besides given the nature of construction, thus, be proportionately shared by the allottees concerned,” the HC said.

The court clarified, that since the market value of the lands, is to remain static since 2008 up to now, but because of the reason, that there has been an immense delay and, for no well advanced reasons on the part of the Chandigarh Administration as well as the Board, to resile from the promises made to the allottees (successful employees), thereby it would be grossly unjust, and, harsh to yet ask to the allottees that the Chandigarh Administration, and/or the Board are yet permitted to, on account of their own elongated delay since 2008 upto now, claim escalations in the lands prices, and, the said escalations becoming proportionately incumbent upon the allottees (successful employees).According to the decision, the rate of land will be applied as per the brochure and the cost of construction will be applied as per current rate. Now the 3930 employees who were successful in the draw of the scheme will be able to get flats of different categories in Sector 52, 53 and 56 of Chandigarh. The scheme was floated in 2008, but since has been tangled into legal troubles.

  • Published On Jun 9, 2024 at 01:00 PM IST

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