Chandigarh, January 3
Mega builders in Haryana would now find it difficult to gain out of land acquisition process. The builders, until now, used to enter into collaboration-agreement with landowners after increase in plot prices due to initiation of acquisition process, apply for licence to set up colonies, and then get the land released.
Taking exception to the practice, a division bench of Justice MM Kumar and Justice Jora Singh of the Punjab and Haryana High Court has now put an end to it. “The state would not be entitled to issue license to the landowners or private colonisers after the issuance of notification under Section 4 of the Land Acquisition Act,” says the latest court ruling.
The judgment is significant, as it will affect a large number of colonisers. Some of the ‘mega companies’ active in the state include Eros, Unitec, Ansal, Bestech, Trehan Construction and Vatika Builders.
Laying down the law, the bench asserted: “Once land is proposed to be acquired under Section 4 of the Act for the development of a sector in an urban area, the rates in the surrounding areas and in respect of the land which is not to be acquired go up because the vicinity of such land is likely to be highly developed.
Once that is the situation with regard to the area which has not been notified under Sections 4 and 6, it does not require much imagination to conclude that the area which is to be released from the acquisition process after the issuance of notification under Section 4 would become highly precious.”
The bench further observed: “In releasing the land in bulk to the colonisers, the state or its agencies are not advancing public purpose for which the land is acquired, but would be doing disservice to the society by releasing the land either in favour of a coloniser or a private individual… We are of the firm view that such a course is not available to the state…. We cannot accept the policy of the state government to grant licence in favour of a coloniser who had no interest in land before the issuance of notification under Section 4 and who has acquired interest either by
entering into collaboration-agreement or by acquiring ownership rights after notification under Section 4 of the Act.”
The judgment comes on a bunch of 10 petitions. In one such plea, Hari Chand and three others had sought quashing of notifications under Section 4 dated March 3, 2003, and Section 6 dated March 2, 2004, besides the award dated December 20, 2006, for land in Gurgaon.
Eros Properties Private Limited had entered into collaboration-agreement with Hari Chand and two others on March 7, 2004, for developing the land. The petitioners had then filed an application for license to establish cyber-park city.
