HC flags ‘profiteering’ in Tricity housing auctions; asks Punjab, Haryana, Chandigarh to frame affordable housing plan
The court said agencies were continuing to auction plots at exorbitant rates rather than utilising their resources to promote affordable housing for ordinary citizens
Coming down heavily on the spiraling prices of residential plots and flats in the tricity, the Punjab and Haryana High Court has observed that the States and their housing agencies appear to have “started indulging in profiteering”, leaving the common citizen and the middle class struggling to secure a roof over their heads.
The observation came as the Bench of Justice Anupinder Singh Grewal and Justice Deepak Manchanda directed the States of Punjab and Haryana and the Union Territory of Chandigarh to place before it a proposal aimed at restoring the objective of affordable housing by adopting alternative allotment mechanisms, including draw of lots, so that residential plots and flats remain within the reach of salaried and middle-class families.
At the onset, the Bench asserted the prices at which plots and flats were being auctioned by government instrumentalities in Chandigarh, Panchkula and Mohali had effectively pushed home ownership beyond the reach of professionals, salaried persons and other less affluent sections of society.
“It has come to our notice that the prices at which the residential plots or flats are being auctioned by the Haryana Shehri Vikas Pradhikaran, the Greater Mohali Area Development Authority and the Chandigarh Housing Board in the tricity of Chandigarh, Panchkula and Mohali are out of reach of the professional, salaried class, and other not-so-affluent sections of society, including the middle class,” the court observed.
The Bench added the government instrumentalities earlier had schemes for allotment of plots through draws of lots and other mechanisms designed to widen access to housing. However, the present policy of auctions had deviated from the statutory objective. “The government instrumentalities initially had various schemes for allotment of plots including by way of draw of lots but now have opted to auction the residential plots deviating themselves from the real object of their statute,” the court said.
The Bench further added that the agencies were continuing to auction plots at exorbitant rates rather than utilising their resources to promote affordable housing for ordinary citizens despite having substantial financial reserves.
“We have also noticed that the government instrumentalities are cash rich and have plenty of reserves in their kitty, but instead of utilizing them for providing affordable housing to the everyday citizen and middle class, they are putting residential plots and flats to auction where the minimum bid amounts are exorbitant and running into crores, which is beyond the range of middle class,” the court observed.
Linking the issue to constitutional guarantees, the Bench asserted that access to shelter formed part of the right to life. “Article 21 of the Constitution of India which guarantees the right to life and liberty includes the right to shelter and affordable housing. It is the bounden duty of the States to provide affordable housing,” the court said.
Expressing concern over the manner in which auctions were being conducted, the Bench added: “It appears that the States have started indulging in profiteering, leaving the common man in a lurch. The prices of the residential plots/flats which are being auctioned are exorbitant.”
The court also flagged the removal of an earlier restriction under which only one member of a family could obtain allotment of a residential plot or flat. “Earlier there used to be a restriction that only one person in a family was eligible for allotment of residential plot/flat. The restriction appears to have been done away with and we have come across several instances where one single person has applied and has been allotted multiple residential plot(s)/flat(s) in the auction,” the Bench observed.
Before parting, the High Court asserted: “We, therefore, direct the States of Haryana, Punjab and UT Chandigarh to put forth a proposal for advising the object of affordable housing by taking other measures including draw of lots, for all sections of the society including the salaried/middle class.” The Bench listed the matter for further hearing on March 24 after appointing advocate Shreenath A. Khemka as amicus curiae to assist the court in the matter.
