The Punjab and Haryana High Court has ordered the Chandigarh Administration to start constructing flats under the UT Employees Self Financing Housing Scheme 2008 within two months, to be completed within a year. Successful petitioners must take possession two months after completion, provided they pay the remaining amount and increased construction costs. The land cost remains at INR 7,920 per square yard. The court ruled that the administration and board cannot retract promises, and delays are not the petitioners' fault. The scheme covers flats in Sectors 52, 53, and 56 of Chandigarh.
Under the UT Employees Self Financing Housing Scheme 2008, the Punjab and Haryana High Court has ordered Chandigarh Administration to begin construction of flats within two months, which is to be completed within the year. Moreover, the court also ordered that possession of the flats must be handed two months post completion.
A division bench, overseen by Justice Sureshwar Thakur and Justice Lalit Batra, mandated that the Chandigarh Housing Board deliver possession of the flats, without any legal obstacles or issues, to the successful petitioners within two months. This is contingent upon the petitioners depositing the remaining amount as per the 2008 Scheme, including the proportionate increase in construction costs, and ensuring all amenities are provided to all the dwelling units.
The court ruled that the land cost for the 2008 Scheme would stay at INR 7,920 per square yard. It concluded that the successful petitioners are entitled to the benefit of the principle of legitimate expectation. Additionally, the High Court stated that the Chandigarh Administration and the Board are prevented from going back on their promises to the petitioners.
The High Court stated that since the draw of lots in 2010, there has naturally been an increase in construction material prices. Therefore, it would be unfair and burdensome for the court to require the board to build housing units at the price listed in the brochure. To ensure fairness to the board, the court suggests that only the expenses incurred by the board on purchasing construction material should be shared proportionately among the allottees, considering the completed areas of construction and the nature of the construction.
The court explained that the market value of the lands has been fixed since 2008. However, due to the significant delays caused by the Chandigarh Administration and the Board without good reasons, it would be very unfair to now make the allottees (successful employees) pay increased land prices. The court emphasised that the delays were the fault of the Administration and the Board, so they should not pass the burden of these additional costs onto the allottees.
The decision maintains that the rate of land will be applicable as the rates on the old brochure, however, the cost of construction will be based on current market rates. The 3930 petitioners who were successful will be able to acquire flats among different categories across Sector 52, 53, and 56 of Chandigarh. Since its launch in 2008, the scheme has run into many legal issues.
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