The Delhi High Court dismissed a petition challenging the cost of EWS flats under the Diwali Special Housing Scheme. The court held the demand was within the brochure's tentative price and the amendment to the Master Plan was valid and transparent.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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CORAM:
HON'BLE THE ACTING CHIEF JUSTICE HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA JUDGMENT
MANMOHAN, ACJ: (ORAL)
CM APPL. 26870-71/2024 (for exemption)
W.P.(C) 6450/2024 & CM APPL. 26869/2023
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W.P.(C) 6450/2024 Page 1 of 9
strictly in terms of the earlier notification dated 23rd September, 2013 issued by Ministry of Urban Development (Delhi Division). Brief Facts
1 Total 7,436 EWS flats
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W.P.(C) 6450/2024 Page 2 of 9
Arguments of the counsel for the parties
6.1. He states that the allottees of EWS flats are liable to pay only the cost of construction. He states that this become evident from a perusal of the unamended Clause 4.4.3B(v) of the MPD as it stood on 23rd September, 2013, wherein it is directed that the EWS flats are to be purchased by DDA from the Developing Entity (‘DE’) as per CPWD cost index.
6.2. He states that Respondent No. 1 has relied upon the amended Clause 4.4.3B(v) of the MPD as it stood on 16th November, 2020 to contend that Respondent No. 1 is entitled to sell EWS flats at the rates fixed as per DDA policy. He states DDA is relying upon costing done as per the office order dated 04th February, 2002, which is contrary to unamended Clause 4.4.3B(v). He relies upon the proceedings initiated by some other group of allottees under the Scheme of 2023, in W.P.(C) 5708/2024, which is pending before the learned Single Judge.
6.3. He states that Clause 4.4.3B(v) of the MPD was amended by Respondent No. 1 without following the provisions of Section 11A of the Delhi Development Act, 1957 (‘DD Act’) i.e., without inviting objections from the public. In this regard, he relies upon Agenda No. 29/2020, dated 14th July, 2020, placed before the Committee for carrying out amendments to the said Clause and the text of the Notification dated 14th February, 2020, placed in the public domain for inviting objections to the amendment.
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W.P.(C) 6450/2024 Page 3 of 9
6.4. He states that the amendment to Clause 4.4.3B(v) of the MPD carried out vide Notification dated 16th November, 2020, wrongfully deprives benefits and concessions to the allottees under the EWS category.
7.1. He states that initially in a Group Housing Project a DE sold the EWS flats to DDA and thereafter, DDA allotted the said flat to the EWS beneficiary. He states that since these are two separate transactions, it attracted levy of stamp duty twice over and this cost of stamp duty levy was being borne by EWS allottees. He stated that to reduce this burden of dual stamp duty so as to make the housing affordable, the DDA proposed the amendment whereby the DE was then directed to directly sell the unit to the allottee identified by DDA so that the transaction attracts payment of stamp duty, once only. He states that the EWS allottee has therefore, benefitted from the said amendment.
7.2. He states that the term of CPWD cost index which finds mention in the unamended Clause 4.4.3B(v) of the MPD became redundant since the conveyance deed has to now be executed by the DE directly in favour of the EWS allottee. He states that the CPWD cost index was applicable only for determining the sale consideration when the transaction was initially between DE and DDA.
7.3. He states that the Notification dated 14th February, 2020, issuing public notice for amendment to Clause 4.4.3B(v) of the MPD categorically declared that flats will be allotted to EWS allottees at the rates prescribed by
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W.P.(C) 6450/2024 Page 4 of 9
DDA. He states that the final amendment dated 16th November, 2020, is in conformity with the Notification dated 14th February, 2020.
7.4. He states that the demand letters issued to the Petitioners is in conformity with the tentative disposal price declared by Respondent No. 1 in its brochure for Scheme of 2023. He states that the challenge laid by the Petitioners to the demand after having secured the allotment is untenable.
| Clause 4.4.3B as it stood on 23rdSeptember, 2013 |
Proposed Modification vide notification dated 14.02.2020 |
Amendment brought forth in the MPD,21 vide notification dated 16.11.2020 |
|---|---|---|
| Remaining 50% of the | Remaining 50% of the DUs | Remaining 50% of the DUs |
| DUs developed by DE to | developed by DE to be sold | developed by DE to be sold |
| be sold**to DDA for the** | to the eligible beneficiaries | to the EWS housing purpose |
| EWS housing purpose | identified by DDA/Local | will be sold to DDA/Local |
| will be sold to DDA/Local | Bodies as per DDA Policy | **Bodies as per DDA Policy**~~at ~~ |
| **Bodies**at base cost of Rs. | at base cost of Rs. 2000 per | base cost of Rs. 2000 per sq. |
| 2000 per sq. ft. as per as | sq. ft. as per as per CPWD | ft. as per as per CPWD index |
| per CPWD index of 2013 | index of 2013 (plus cost of | of 2013 (plus cost of EWS |
| (plus cost of EWS parking) which shall be enhanced as per CPWD |
EWS parking) which shall be enhanced as per CPWD escalation index at the time |
parking) which shall be enhanced as per CPWD escalation index at the time |
2 At pages 10 and 11 of the List of date and events.
W.P.(C) 6450/2024 Page 5 of 9
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escalation index at the of actual handing over and of actual handing over and time of actual handing can be developed by DE at can be developed by DE at over and can be an alternate site. an alternate site. * developed by DE at an Necessary commercial and Necessary commercial and alternate site. PSP facilities shall also be PSP facilities shall also be Necessary commercial provided by the DE for this provided by the DE for this and PSP facilities shall separate housing pocket. separate housing pocket. The also be provided by the The EWS housing EWS housing component DE for this separate component created by the created by the DE shall be housing pocket. The EWS DE shall be subject to subject to quality assurance housing component quality assurance checks, as checks, as prescribed in this created by the DE shall be prescribed in this regard by regard by Govt./DDA. The subject to quality Govt./DDA. The final final handing/ taking over of assurance checks, as handing/ taking over of this this component shall be prescribed in this regard component shall be subject subject to fulfilling the by Govt./DDA. The final to fulfilling the quality quality assurance handing/taking over of assurance requirements. requirements. The DE shall this component shall be The DE shall be allowed to be allowed to undertake subject to fulfilling the undertake actual actual transfer/transaction of quality assurance transfer/transaction of saleable component under its requirements. The DE saleable component under share/ ownership to the shall be allowed to its share/ ownership to the prospective, buyers only after undertake actual prospective, buyers only the prescribed land and EWS transfer/transaction of after the prescribed land housing component is saleable component under and EWS housing sold/transferred to-the its share/ ownership to the component is eligible beneficiaries prospective, buyers only sold/transferred to-the identified by DDA/local after the prescribed land eligible beneficiaries bodies at the rates and EWS housing identified by DDA/local prescribed by DDA. component is handedbodies at the rates over to-the DDA. prescribed by DDA.
* (the portion struck off is to show what the Respondents have omitted in the final gazette notification without following the procedure under Section 11 A of the Delhi Development Act, 1957)
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W.P.(C) 6450/2024 Page 6 of 9
process, in practice, attracted levy of payment of stamp duty twice and since the burden of the stamp duty was passed on to the end allottee, the process was done away with to reduce the final costs to be borne by the allottee of the EWS flat. Pertinently, the Petitioner has not challenged this object of the modification and it is admitted that now as a matter of fact, the transfer of the EWS flat is affected directly from the DE to the EWS allottees as identified by DDA.
10.1. In addition, the proposal that the transfer from DE to the EWS allottee identified by DDA, shall be at the rates prescribed by DDA was duly published in the Notification dated 14th February, 2020, proposing modification to the original Clause 4.4.3B(v) of the MPD, as required under Section 11A of the DD Act. It is the stand of DDA that the price for the EWS flat of the Project in question are as per the rates prescribed by DDA policy, which is in conformity with the final amended Clause 4.4.3B(v) of the MPD and these prices per flat were duly disclosed in the brochure for the Scheme of 2023.
10.2. The Respondent No. 1 has stated that the condition in the original Clause 4.4.3B(v) of the MPD with respect to determination of cost as per the CPWD costs Index was for the purpose of determining the value of initial transfer of the EWS flat between DE and DDA. It is stated that with the initial transfer from DE to DDA having been discontinued as a matter of policy, the said condition of determination of costs was superfluous and had been rendered redundant; and therefore, was struck out from the final amended Clause 4.4.3B(v) of the MPD. It is stated that the said cost determination was not the basis for fixing the sale price of the transfer to the EWS allottee.
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W.P.(C) 6450/2024 Page 7 of 9
10.3. A perusal of the Notification dated 14th February, 2020, proposing the amendment to Clause 4.4.3B(v) of the MPD discloses that the intention of the DDA was to henceforth, allot the EWS flats at the rates prescribed by DDA by a direct transfer between the DE and EWS allottee. The said Notification was duly published for inviting office objections as per Section 11A of the DD Act.
10.4. So also, the submission of DDA that with the aforesaid proposal of direct transfer between the DE and the EWS allottee, the prescription of the CPWD rates became redundant and superfluous stands to reason. The said condition in the original Clause 4.4.3B(v) of the MPD did not regulate the price of transfer between DDA and EWS allottee.
10.5. Thus, the amendment carried out to Clause 4.4.3B(v) of the MPD vide Notification dated 16th November, 2020, is in conformity with Section 11A of the DD Act.
11.1. The Petitioners have not raised any tenable grounds to maintain a challenge to the price fixed by the Respondent No. 1 for the EWS flats. 11.2. In our considered opinion, the Petitioners participated in the Scheme of 2023 without any reservation to the said price declared in the brochure and the challenge now laid in the present proceedings to the impugned demand enumerated in the allotment letter(s) is therefore, untenable and is an afterthought.
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W.P.(C) 6450/2024 Page 8 of 9
ACTING CHIEF JUSTICE
MANMEET PRITAM SINGH ARORA, J
MAY 7, 2024/ hp/msh/sk
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3 issues framed by the court
Whether the amendment of Clause 4.4.3B(v) of the Master Plan of Delhi, 2021 complied with Section 11A of the Delhi Development Act, 1957.
Whether the demand for Rs. 25.28 lakhs for EWS flats lies outside the scope of Article 226.
Whether the Petitioners can challenge the price fixed in the Scheme brochure after participating in the same.
KANIKA SINGHAL & ORS.
DELHI DEVELOPMENT AUTHORITY
MINISTRY OF HOUSING AND URBAN AFFAIRS
MANMEET PRITAM SINGH ARORA
As recorded by the court registry
A petition under Article 226 of the Constitution asking a High Court to issue a writ against the State or a public authority in a civil matter.
Judgements on the same questions, provisions and authorities, from every court
