Wednesday, May 23, 2018

One-Time Settlement Scheme (OTSS) by HUDA has to be challenged before 15th July 2018 else there will be no option left.



The Haryana Shehari Vikas Pradhikaran (HSVP), earlier know as HUDA has been shouting from rooftop that it is under severe cash crunch. Therefore it can be presumed that in order to gather money it has issued Enhancement Recovery Notices throughout HUDA Sectors in Haryana particularly in Gurugram, Panchkula, Faridabad, Rohtak, Ambala, Bahadurgarh, Rewari, Sonipat, Hisar, Panipat and Fatehabad.
There was huge outcry amongst the residents of HUDA Sectors wherein people have been living since last 20-25 years. The reasoning given by HUDA of levying enhancement in these sectors was indigestible and are liable to be withdrawn. Residents of these HUDA Sectors have held rallies, Dharnas etc against the HUDA or Haryana Government's move.
Sensing the outrage and anger amongst residents and plot owners Chief Minister of Haryana who also happens to be the Chairman of HSVP/HUDA convened a meeting on 4th May 2018 of RWAs of these HUDA Sectors and in that meeting he gave an offer of One-Time Settlement Scheme (OTSS) with a rebate of 40% which has to be availed in 2 months and after that keeping in mind the concerns of residents a relook at enhancement will be done and if there are any corrections then same would be done residents but the plot owners will lose the right to avail the rebate.
One-Time Settlement Scheme (OTSS) of HSVP has created the divide in residents and plot owners. Prior to this scheme almost all Sectors of Haryana was ready to fight this enhancement either by demonstration or litigation but by bringing this One-Time Settlement Scheme (OTSS) with a rebate of 40% HUDA has created the divide amongst the residents and plot owners of these HUDA Sectors as not everybody is in frame of mind to litigate. Besides this there are few owners who bought properties just as an investment and would like to exit if given chance, these people will like to avail the OTSS with a rebate of 40%.
Now the residents and plot owners of the HUDA Sector of Haryana wherein enhancement has been levied can be categorized as under:

  • Residents of those sectors wherein the enhancement is not under challenge and they have defaulted the payment will eagerly seek the rebate.
  • Residents  who have money and don't want to litigate will deposit and avail advantage of policy.
  • Residents who want to pay but are unable to accumulate this huge amount in this short span of 2 months.
  • Last one are those who think that whatever enhancement is claimed is un maintainable and will not hold waters if calculated correctly. They will not deposit the enhancement under this scheme.
Now the policy has to be challenged and that too before the expiry of policy, to claim the benefits of the scheme in correct manner and legal points which makes the policy challengeble are:

  1. This offer is being given by a welfare state which has its responsibilities towards its subjects. Hence state can't behave like a private company or a money lender. It can't push its decisions down our throat with no options. This One-Time Settlement Scheme (OTSS) of HSVP  is nothing less than Britisher's Rowlatt Act also known as Black Act wherein there was No Dalil, No Vakil, No Appeal i.e., no pleas, no lawyer, no Appeal.
  2. The outstanding amount displayed in PPM of allottee on which this OTSS Policy is supposedly giving rebate on is being objected and needs to be reduced drastically.
  3. Government and HSVP can't give rebate of fictitious figures and same has to be rational. Only then rebate would have sanctity otherwise it would be like discount offered by some shopkeepers who first escalate prices and then announce sale in order to attract customers.
  4. There has been various instances like in Sector-26, Panchkula, Sector-52 & Sector-51 Gurugram wherein the HUDA/HSVP has reduced their claimed enhancement cost, so it can't be ruled out that there is scope of relief in Enhancement claimed now.
  5. HSVP is forcing the allottees to accept this offer without disclosing the other option i.e what would happen if rebate is not accepted. This is sort of a wager agreement and is liable to declared void in court of law.
  6. Particularly in the case of Sector-57, Gurugram the 1st Enhancement is still under challenge in the Hon'ble High Court and Plot Owners have deposited 1st Enhancement under protest there is every likelihood that HSVP will have to lower its claim as there are big wrongs in the calculations. So before the decision on 1st Enhancement the 2nd Enhancement shouldn't have been issued or this  OTSS Policy of 40% Rebate should be applicable on deposited 1st Enhancement as it is still under challenge.
  7.  In layman terms the discount should be offered on correct amount which HSVP could explain to its allottees.
The current One-Time Settlement Scheme of 40 % Rebate has to be challenged as early as possible as after 14th July 2018 the challenge will be non maintainable. The following allottees can challenge the OTSS Policy of HSVP giving rebate of 40% on outstanding:

  1. Those residents and plot owners who have challenged this or previous enhancements and outcome is still pending.
  2. Those residents and plot owners whose have made their calculations and are of belief that they are on strong footings should challenge this policy and take the relief of 40% on corrected amount.
  3. Those residents and plot owners specially Sector-57, Gurugram who have deposited their enhancements just few days prior to this scheme.
Author of this blog is Pankaj Yadav and is resident of Sector-52, a practicing advocate at High Court of Punjab and Haryana, Chandigarh and was instrumental in reduction of Enhancements in Sector-52 and Sector-51, Gurugram. Author can be reached at pankajyadav.legal@gmail.com or +91-9711791179