Explained: The Panchkula plot and the case against AJL and Hooda

What is this coveted piece of land?

The plot measures 3,360 sq m, and is located opposite the Haryana Police headquarters in Panchkula’s Sector 6, an upscale neighbourhood packed with palatial homes, a government hospital, and offices of HUDA, the Haryana State Industrial & Infrastructure Development Corporation (HSIIDC) Ltd, the state marketing board, and the forest department, etc.

At the time of the reallotment of the plot by Hooda’s government, AJL was the publisher of The National Herald newspaper. On August 14, 2014, barely two months before Assembly elections in Haryana, an Occupation Certificate was issued to the four-storey building that had come up on the plot, according to HUDA records.

The plot is categorised as a “government office”, as per HUDA records. It’s original allotment value was Rs 59.3 lakh.

Who are the officebearers of AJL?

AJL was established by Pandit Jawaharlal Nehru in 1937. The officebearers of the company include senior Congress leaders and loyalists of the Nehru-Gandhi family including Oscar Fernandes, Deepender Singh Hooda (Bhupinder Hooda’s son), Sam Pitroda, Motilal Vora, Dipakbhai Ratilal Babaria, and Suman Dubey.

How did the plot come to AJL?

The plot was originally allotted to AJL in 1982 when Bhajan Lal was CM. HUDA resumed it in 1996, when Bansi Lal, also of the Congress, was CM. In 2005, Hooda’s government re-allotted the land to AJL for just Rs 69.39 lakh (at the old rate of around Rs 59.3 lakh, plus interest) when the market price, according to the ED, was around Rs 64.93 crore.

According to records accessed by The Indian Express, Chief Minister Hooda allegedly overruled the Haryana Legal Department and used his “discretion” to re-allot the plot to AJL, that too, on old rates.

What did the Haryana Legal Department argue?

A note dated August 17, 2005, signed on behalf of the then Legal Remembrancer (LR), Haryana, says: “The revision petition (by AJL) having been dismissed way back on 10.10.1996, the order of resumption has attained finality. There can thus be no question of re-allotment or restoration of the plot to the same allottee. If, however, the provision or the policy allow, fresh allotment at prevalent rates can be made as per the procedure for allotment of institutional sites.” The then Chief Administrator of HUDA endorsed the Legal Department’s note, and forwarded it to the Chief Minister’s Office on August 18, 2005.

Hooda, however, rejected the advice of both the Legal Department and the HUDA Chief Administrator. On August 28, 2005, the CM wrote: “Shri Motilal Vora, Chairman, Associated Journals Limited (AJL) vide letter dated 29.6.2005 has represented to me that the organisation was not able to undertake construction of building within the stipulated period due to financial crunch. They had requested HUDA authorities for extension of time. HUDA authorities, however, did not accede to their request and cancelled the allotment… Shri Vora has requested that allotment of this plot be restored to the AJL.”

He added: “…Order of resumption is a last resort… In my view, this was a fit case for grant of further extension in time for construction. The AJL is a renowned organisation founded by Pt. Jawaharlal Nehru. The Hindi Daily ‘Navjivan’ which this organisation plans to start will serve huge public interest… I, therefore, order that plot No. C-17, Sector-6, Panchkula be re-allotted to M/s Associated Journals Limited at original rates plus interest thereon till date. This re-allotment will be subject to the condition that the AJL would start construction in the next six months and complete the same in a period of two years.”

What is the current status of the case?

The BJP government of Chief Minister Manohar Lal Khattar took office in Haryana on October 26, 2014. In May 2016, the Haryana government ordered an investigation by the Vigilance Bureau into the alleged irregularities in the re-allotment of the plot to AJL. The Vigilance Bureau registered a case against Hooda and others.

In June 2016, the Enforcement Directorate registered a money-laundering case against Hooda for causing loss to the government exchequer by re-allotting the plot to AJL. Based on the State Vigilance Bureau’s report, Chief Minister Khattar ordered that the case be handed over to the CBI for a further and thorough investigation.

After conducting a Preliminary Enquiry (PE), the CBI in April 2017 registered a Regular Case (RC), and booked Hooda and others on charges of criminal conspiracy, criminal breach of trust, cheating, and misuse of official position by a public servant. The FIR did not mention Hooda by name; only as chairman of HUDA, a position he held at the time of re-allotment.

The Chief Administrator and Administrator, HUDA, Financial Commissioner, Town and Country Planning Department, and M/s Associated Journals Limited, the beneficiary of the re-allotment, were also named in the FIR.

In December 2018, CBI filed a detailed chargesheet in the case accusing Hooda, Vora and AJL on charges of corruption, cheating and criminal conspiracy. The case is pending trial in the CBI court in Panchkula. Both Hooda and Vora are currently on bail.