Land Transfer To DLF For Gurgaon SEZ Struck Down by P&H High Court.

In a major blow to real estate developers DLF Limited and Chandra Jyoti Developers Private Limited, the High Court of Punjab and Haryana has set aside the allotment of land by the state of Haryana to East India Hotels (EIH) and subsequent transfers. EIH in turn had sold off the land at Sector 30 of Gurgaon after receiving “no objection” from the government to DLF and Chandra Jyoti. While initially the land was acquired for setting up of a 300 bedded hospital by EIH, later after the sale, the government approved setting up of a Special Economic Zone (SEZ) instead.

Setting aside the allotment to EIH and subsequent sales in favour of DLF and Chandra Jyoti, the High Court has directed the land to be returned to the government in original, including, if required, after demolishing structures which may have been constructed on it.

The court has held that the allotment in favour of EIH and subsequent sale to DLF and Chandra Jyoti for a commercial and business venture is invalid in view of the fact that land acquisition was done for a public purpose of setting up a hospital.

The High Court has also imposed a fine of Rs. 2 lacs on the companies to be deposited with Legal Services Committee. While passing the order the Division Bench of Justice Jasbir Singh and RK Garg have also clarified that in case the fine is not paid, the committee shall be entitled to initiate recovery proceedings for the same.

The Public Interest Litigation was filed by a Gurgaon resident, Harkishan, who had challenged the use of land acquired for public purpose for commercial and business development.

After land acquisition, the land was handed over to these private developers for setting up of a Special Economic Zone (SEZ). The entire SEZ projects future has become uncertain in view of this decision.

Source : lawetalnews.com