Enhancement in HUDA Sectors : An insight and ways of going against it.

Many Sectors of HUDA throughout Haryana are reeling under the pressure of Enhancement in HUDA's  Plot cost. There are news of agitations, dharnas etc against Enhanced cost which has been imposed by HUDA on the pretext of Enhanced Compensation that has to be paid by Haryana Government following court's directive to the land owners on which the HUDA Sectors were carved out.

Whether HUDA justified in claiming such Enhanced Cost?

At the time of initial allotment of HUDA Plot there is Condition No. 9 which says " 9. The above price is tentative to the extent that any enhancement in the cost of land awarded by the competent Authority under the land Acquisition Act shall also be payable proportionately as determined by the authority. The additional price determined shall be paid within thirty days of its demand."

Legally speaking while accepting the allotment, allottee enters in Agreement and thus HUDA can force its way under the provisions of The HUDA Act, 1977 and The Indian Contract Act, 1872.

Method of Calculating Enhancement by HUDA is dubious.

It is pertinent to note the method by which HUDA calculates the Enhancement Cost is confusing and opaque. Despite of various efforts HUDA till date never explains the method with which it arrives to a figure. HUDA till all experiences  we have had, calculates the Enhancement keeping the initial plan of the Sector as base, where as at the time when Enhancement is loaded the reality on the ground changes entirely, like large pockets get released, licenses are given to private builders, benevolent schemes are launched by the government etc. Hence, HUDA should calculate the Enhancement keeping the current situation as base of calculation not the initial sector plan.

Can the Enhancement Cost once issued be withdrawn ?

It is the legislative's prerogative to withdraw the enhancement and if the State feels that it can bear the cost onto itself in order give respite to the Plot Owners and Residents of HUDA Sectors, it can withdraw the Enhancement, but there hasn't been a single precedent wherein the Enhancement was  withdrawn.

Withdrawing Enhancement Notice will be like opening  a whole new can of worms for the government as other sectors of Haryana which have paid Enhancements in the past will also start claiming for reimbursement of their paid enhancements through the court of law.

Government can by the way of Gazette Notification or change in HUDA Act stop Enhancements in future, any retrospective relief will have to extended to all Enhancement till date. It is vital to note that HSVP (HUDA) has cleverly issued notices of Enhancement despite of the fact Hon'ble CM was issuing statements promising relief.

Only factual representations to HUDA from the plot owners can save the Day…

There are lot many dharnas, protests, media coverage being done throughout Haryana against the atrocious escalation of Plot Cost. This is genuine outcry but as we all have seen that current and as well as previous dispensation virtually didn't had any sensitivities, all governments have rubbished such demands citing court's order.

A detailed representation wherein the method and points on whose basis the HUDA calculated the Enhancement Cost, needs to be challenged and contradicted. This representations will remain the sole basis for the relief which is being sought from government or the relief which is anticipated from the Hon'ble Courts.

We have seen in the cases of reduction of enhancements in Sector -26 of Panchkula, Sector-52 & Sector-51 of Gurugram that the solid and factual representations led to the reduction of enhancement.

If the plot owners approach the court without filing the representation or after filing vague and emotional representation then there are dim chances of reduction or reversal as has been in the case of 1^st appeal against the enhancement of Sector-57, Sector-27, Sector-28, Sector-42 & Sector-43 of Gurugram.

What should a proper representation be like…

A proper and fitting representations should challenge the method of calculation like:

·        How much area was acquired and how much of area is being used by residents and residents related public utilities.

·        What is the area under Green Belt as per site plan for which enhancement is seeked and what is actual area on ground.

·        Is the area for which enhancement is seeked acquired earlier or land was already with HUDA, as it was the case in Sector-51 & 51 of Gurugram.

·        Open spaces and HUDA Land should be go clarified.

·        What money has Govt has actually paid and what is that it wants to recover, meaning thereby detailed study of awards and actual payments have to be verified.

·        When was the award or court verdict was announced and when the payment was given, delay in payments needs to be proved.

Besides this there are many technical points which needs to be raised to bend the government. As it has been seen relief has only be provided, wherein the HUDA has been confronted.

When and how to approach the court.

Most important part is the unity and common approach. It generally happens that there is difference in opinions as the issue involves public at large. If any group without proper preparation approach the court and is unable to satisfy the court for the grant of adequate relief, this would make the path difficult for those who approach court with proper preparations, as once court rejects or dismisses the petition than it becomes difficult for counsel to convince the court for desired relief. So court should be approached in group and unison.

Author of this blog is Pankaj Yadav 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