Chandigarh: The Haryana Right to Service Commission, while commenting on an important case, has observed that e-auctioning plots by the Haryana Shehri Vikas Pradhikaran (HSVP) without completing development works at the site is a serious administrative lapse. The Commission stated that before placing any plot for e-auction, the necessary development works in the concerned area must be completed so that allottees can start construction in a timely manner.
A spokesperson of the Commission said that the matter relates to a plot purchased through e-auction in Sector-76/77 of Faridabad. The allottee, Keshav Sharma, had filed a complaint before the Commission stating that despite incomplete development works, he was sent an offer of possession. In its order, the Commission observed that it is clear HSVP conducted the e-auction of the plot without completing development works and later issued an offer of possession, which is not in accordance with proper procedure.
The Commission also found that according to the terms of the allotment letter, if possession is not given within 30 days of receiving the application, HSVP is required to pay interest to the allottee. However, in several cases in Faridabad this interest was not being paid. Only after the intervention and directions of the Commission did HSVP start paying interest in such cases.
During the hearing, the Commission also stated that the role of the then Estate Officer or the e-auction cell of HSVP needs to be examined in this matter, as approval for auction was granted without clearly indicating the status of development works. The Commission further noted that on August 12, 2022, the then Chief Administrator of HSVP had directed the concerned officials to complete the development works within two months, yet the problem persisted for a long time, indicating serious negligence.
In its order, the Commission also referred to another case in which the Punjab and Haryana High Court made strong remarks about the functioning of HSVP, stating that HSVP was established on the principle of “no profit, no loss” with the objective of providing affordable housing, but its conduct in several cases appears profit-oriented, which goes against the interests of the middle- and lower-income groups.
In this case, the Commission has exercised its powers under the Haryana Right to Service Act, 2014 and directed that the complainant, Sh. Keshav Sharma, be paid compensation of ₹5,000. This amount will be paid by HSVP within 15 days and a compliance report must be submitted to the Commission by March 24, 2026. The Commission also stated that initially the amount may be paid from HSVP’s funds and later recovered from the responsible officials.
The Commission further clarified that if any negligence is found in future regarding withdrawal of the possession date, refund of extension fees collected, or payment of interest on delayed possession, strict action will be taken against the concerned officials under the Haryana Right to Service Act.
The Commission also advised HSVP to review its policy regarding payment of interest in cases where plots are purchased through e-auction. At present, such allottees receive only 5.5 percent annual simple interest, whereas allottees who obtain plots through draw of lots receive 9 percent interest after three years. The Commission believes that a balanced and fair policy is needed in this regard.
The Commission further stated in its order that HSVP should complete development works on priority. Over the past few years, HSVP has earned thousands of crores of rupees through e-auctions, and delays in development works are not only economically harmful but also create dissatisfaction among allottees and lead to unnecessary litigation.
The Commission expressed hope that HSVP will soon complete the development works, provide relief to the allottees, and ensure that such situations do not arise in the future.
