ALLOTMENT OF RESIDENTIAL PLOTS TO DEPARTMENT EMPLOYEES

High Court quashes PUDA’s scheme

Chandigarh, January 25
The Punjab and Haryana High Court today quashed the Punjab Urban Planning and Development Authority's "arbitrary" scheme for allotment of residential plots to its own staff at reserve prices.

The significant judgment came on challenge thrown by advocate HC Arora to an office order dated September 24, 2010, "which prescribed allotment of identified residential plots exclusively to the PUDA employees at reserve price".

The development is significant as Arora had alleged "the allotment of residential plots to its own employees by the PUDA was to enable them to sell these at three to four times higher price; and thus to get financial gains at the cost of tax paying public".

Arora had alleged PUDA was taking steps to allot at reserve prices residential plots from five to 14 marlas to its employees, depending upon their status, from Class-IV to Class-I. Even officers or employees with own residential plots or houses were eligible for allotment, if they have completed five years of regular service with the PUDA.

Allowing the petition, the Bench of Justice MM Kumar and Justice Rajiv Narain Raina asserted: "We are of the view that the scheme is arbitrary, which is amply highlighted by the fact that it does not distinguish an officer/official, who or his/her spouse owns a house in an urban estate."

"In fact, clause four of the scheme expressly postulates that officer/official who had purchased a plot/house/building through open sale in the market or auction is also eligible to submit application under the scheme".

In its detailed order, the Bench added: "Even otherwise, it is well settled, as rightly pointed out by advocate HC Arora, that there cannot be any reservation of plots in favour of the employees or their wards because it has no rational basis….

"The scheme appears to have been finalised only by the Chief Administrator, PUDA, and not by the State Government, which smacks of arbitrariness".

Before parting with the order, the Bench asserted: "The writ petition is allowed. The scheme/office order dated October 24, 2010, or any other similar scheme is hereby quashed".