Supreme Court

Uddar Gagan Properties Ltd. v. Sant Singh and Ors.

MANU/SC/0590/2016

13.05.2016

Land Acquisition

“Profiteering” found in HUDA-private developer transaction

An authority acquiring land under the guise of public purpose, but subsequently passing it on to a private builder amounts to acquisition for a private purpose, the Supreme Court held.

The court quashed Haryana Urban Development Authority’s transfer of publicly acquired land to a private builder. Terming the transaction “fraudulent” and “clandestine”, the court the found the same to be “profiteering at the cost of livelihood and existence of a farmer”.

While the judges concurred with the High Court’s earlier ruling which found abuse of power in the matter, they opined instead that the entirety of the acquisition need not be quashed. Transfer of land by HUDA in favour of the builder was cancelled. Sale compensation paid by the builder to land owners will serve as compensation, who will also not be required to refund any amount.

The land in questions was acquired for commercial and residential development as Sectors 27-28 in Rohtak, Haryana. Over 400 acres of farmland was acquired by HUDA and subsequently transferred to Uddar Gagan Properties, the builder-developer.

Relevant

State of Bihar v. Kameshwar Singh MANU/SC/0019/1952
Bangalore City Cooperative v. The State of Karnataka MANU/SC/0091/2012
Mahavir and Anr. v. Rural Institute, Amravati and Anr. MANU/SC/0763/1995

Tags : Land acquisition fraud huda private use

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