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HC gives relief to Haryana landowners, fines HSVP Rs 3 lakh

The Punjab and Haryana High Court quashed the HSVP’s decision to demand 2025 prices and 11 per cent interest from landowners whose land was acquired for developing urban estates.

4 min readUpdated: Dec 25, 2025 05:31 PM IST

The 45-page order came on a bunch of 58 writ petitions, some involving multiple petitioners.

The Punjab and Haryana High Court slapped a cost of Rs 3 lakh on the Haryana Shehri Vikas Pradhikaran (HSVP) for acting in a “manifestly arbitrary” manner by demanding the prevailing rate of Rs 58,172 per square metre instead of the 2018 rate of Rs 21,500 per square metre from landowners whose land was acquired for developing urban estates.

Calling HSVP’s conduct “wholly unjustified” and “tainted with mala fides”, the division bench of Justice Anupinder Singh Grewal and Justice Deepak Manchanda on Wednesday also reset the applicable price and payment terms.

The 45-page order came on a bunch of 58 writ petitions, some involving multiple petitioners. All the petitioners were oustees—a term used for landowners whose properties were acquired by HUDA/HSVP for development and who are entitled, under policy, to a reserved quota of residential plots in the developed sectors.

The petitioners complained that after they applied under the oustee quota, pursuant to a 2018 public notice and deposited earnest money, HSVP went silent for nearly seven years and then suddenly issued allotment letters in May 2025, applying the steeply escalated 2025-26 reserve price and forcing them to pay 25 per cent upfront and the remaining 75 per cent in a lump sum within 180 days at 11 per cent interest.

They termed this demand “arbitrary, illegal, unjust, non-transparent and discriminatory,” and argued that it violated the full bench ruling in Rajiv Manchanda vs HUDA and the doctrine of legitimate expectation. They sought quashing of the questionable clauses and a direction to charge the “rate applicable in 2018” instead.

Relief on price and interest

Relying extensively on the full bench ruling, the court reiterated that where “the respondents are entirely at fault” and an oustee could have been allotted a plot earlier, “the oustee would be entitled to the benefit of the price that was prevalent when he made the application,” but must pay “reasonable interest” for the intervening period.

It found that HSVP had “misinterpreted” this mandate and “selectively and conveniently interpreted the said judgment to suit their own interests” by omitting any price in the 2018 advertisement and later using that omission to justify charging the current rate.

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Holding that the current price of Rs 58,172 per square metre in the 2025 allotment letters was “contrary” to Rajiv Manchanda as well as Clause 15-A of HSVP’s May 8, 2018, oustee policy, the bench directed authorities “to redetermine the price of allotment pursuant to price prevailing on the date of the application/advertisement in 2018 instead of current price.” On interest, the court rejected the 11 per cent figure as neither explained nor shown to be “reasonable interest” and fixed the rate at 5.5 per cent, noting that HSVP itself uses 5.5 per cent in other schemes, including on delayed refund of earnest money.

The bench also struck down the harsh repayment schedule that required oustees to deposit the remaining 75 per cent of the tentative price “within period of 180 days” with no instalment facility, warning that failure would lead to automatic cancellation.

The court ordered that the balance amount be made payable over a period of six years “in equal instalments along with interest 5.5 per cent per annum”. It further directed HSVP to issue fresh allotment letters within two months.

The judgment noted that HSVP had “no explanation” for the seven-year delay in issuing the allotment letters.

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Terming HSVP’s repeated departures from binding precedent a “conscious attempt to circumvent a binding precedent rather than to faithfully apply it,” the bench imposed Rs 3 lakh costs on the HSVP as a “punitive measure.” The court asked the HSVP to deposit this in the Poor Patients Welfare Fund, PGIMER, while advising the state to “retrace its steps rather than persist in passing unjustified and legally unsustainable orders.”

Manraj Grewal Sharma

Manraj Grewal Sharma is a senior journalist and the Resident Editor of The Indian Express in Chandigarh, where she leads the newspaper’s coverage of north India’s most politically and institutionally significant regions. From Punjab and Haryana to Himachal Pradesh and the Union Territory of Chandigarh, she oversees reporting at the intersection of governance, law, politics and society. She also reports on the diaspora, especially in Canada and the US. With a career spanning journalism across several countries, academia and international development, Manraj brings a rare depth of perspective to regional reporting. She is widely regarded as a leading chronicler of Punjab’s contemporary history and socio-political evolution, particularly its long shadow of militancy, federal tensions and identity politics. Her book, Dreams after Darkness, remains a definitive account of the militancy years and their enduring aftermath. Professional Background & Expertise A gold medalist in mass communication and a post-graduate in English literature, Manraj has a multifaceted career spanning journalism, academia, and international development. She was also awarded a fellowship by National Foundation of India and did several in-depth pieces on Manipur. Internationally, she has reported from Israel, US, UK, Myanmar, and Mauritius Her key focus areas include: Regional Politics, History, Agriculture, Diaspora, and Security. Of late, she has started focusing on Legal & Judicial Affairs: Much of her recent work involves reporting on high-stakes cases in the Punjab and Haryana High Court, ranging from environmental policy to civil rights. International Consulting: She previously served as a consulting editor for the Asia Pacific Adaptation Network and a publishing consultant for the Asian Development Bank (ADB) in Manila. Academia: For five years, she was the managing editor of Gender, Technology and Development, a peer-reviewed international journal at the Asian Institute of Technology, Bangkok. Recent Notable Articles (Late 2025) Her recent reportage focuses heavily on judicial interventions and regional governance: 1. Environment & Governance "‘NGT can’t test legality of policy’: HC hears challenge to Punjab’s ‘Green Habitat’ plan" (Dec 22, 2025): Covering a critical legal battle over whether the National Green Tribunal has the authority to strike down a state policy regularizing farmhouses on delisted forest land. "High court pulls up Punjab poll panel over audio clip probe" (Dec 10, 2025): Reporting on judicial concerns regarding the transparency and fairness of local body elections. 2. Legal Rights & Social Welfare "HC issues notice to Punjab, Haryana over delay in building old age homes" (Dec 22, 2025): Reporting on a contempt petition against top officials for failing to establish government-run homes for the elderly as promised in 2019. "Victims can appeal acquittals in sessions court without seeking special leave" (Dec 19, 2025): Highlighting a significant procedural shift in criminal law following a Supreme Court ruling. "HC upholds benefits for Punjab FCI officer acquitted in 20-year-old bribery case" (Dec 19, 2025): A report on the concept of "honourable acquittal" and its impact on employee benefits. 3. Human Rights & Identity "As Punjab denies parole to MP Amritpal Singh, HC asks it to submit ‘foundational material’" (Dec 1, 2025): Covering the legal proceedings regarding the radical preacher and sitting MP's request to attend Parliament. "Protecting life paramount: HC backs Muslim woman in live-in after verbal divorce" (Nov 6, 2025): Analyzing judicial protections for personal liberty in the context of traditional practices. Signature Beats Manraj is recognized for her ability to decode complex judicial rulings and relate them to the everyday lives of citizens. Whether it is a 30-year-old land battle in Fazilka or the political implications of Kangana Ranaut’s candidacy in Mandi, her writing provides deep historical and regional context. Contact @grewal_sharma on X manrajgrewalsharma on Instagram ... Read More

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