HC respite for Shalimar Estates plot holders

CHANDIGARH: In a major relief to plot holders in Panchkula-based Shalimar Estates Private Limited, the Punjab and Haryana High Court has ruled that restrictions on erection or re-erection of buildings in a controlled area were not applicable to the land being developed as a private colony by the builder.

Saurabh Malik

Tribune News Service

Chandigarh, October 26

In a major relief to plot holders in Panchkula-based Shalimar Estates Private Limited, the Punjab and Haryana High Court has ruled that restrictions on erection or re-erection of buildings in a controlled area were not applicable to the land being developed as a private colony by the builder.

The ruling by the Bench of Justice Rajesh Bindal and Justice Darshan Singh came on a petition filed against the state of Haryana and other respondents by Shalimar Estates through senior advocate ML Sarin, Nitin Sarin and Ritesh Aggarwal.

The Bench was told that the petitioner, in August 2001, entered into an agreement for purchasing 211 kanals and 10 marlas. Another 172 kanals and 5 marlas were purchased in October 2001.

Sarins told the court that the petitioner started developing the area as a colony and invested about Rs 3.50 crores on the project up to June 2002.

But notification dated July 11, 2002, was issued by the state government under the Punjab Scheduled Roads and Controlled Areas Restriction of Unregulated Development Act, 1963, “just with a view to derail the project”.

The land around the existing boundary of Haryana State Industrial Development and Infrastructure Development Corporation Limited in the Industrial Estate of Alipur village in Panchkula district was declared a controlled area.

Sarins also told the court that the notice for alleged violation of the 1963 Act was issued in July and August 2002. In its reply, the petitioner claimed the nature of land had already been changed as a colony. As such, the provisions of the Act had not been violated. But the petitioner was directed to demolish the construction already done without affording further opportunity and permitting the petitioner to lead evidence vide order dated August 8, 2002. The order was totally non-speaking and cyclostyled, where only certain blanks were filled.

The petitioner’s appeal before the Tribunal constituted under the 1963 Act was dismissed without appreciating the contentions raised by it, especially that the land notified on July 11, 2002, was already being developed as a colony and substantial number of plots carved out had already been sold by issuing advertisements and collecting earnest money through banking channel.

Allowing the petition, the Bench asserted: “It is declared that on the date of issuance of notification dated July 11, 2002, under the 1963 Act, the land in process of being developed a colony should have been shown as such in the plan prepared under the provisions of the Punjab Scheduled Roads and Controlled Areas Restrictions of Unregulated Development Rules, 1965.

The Bench also directed setting aside the impugned orders dated August 8, 2002, passed by the respondent and January 28, 2003, passed by the Tribunal.