As per case facts, a developer failed to complete development works and provide basic amenities, including electricity connections, in several housing projects after obtaining a license in 2006. The license ...
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
Reserved on: 09.04.2025.
Pronounced on: 14.05.2025
(1)
CWP-20106-2021 (O&M)
New Sunny Enclave Residents Social Welfare Association Regd. and
another
...Petitioners
Versus
State of Punjab and others
...Respondents
(2)
CWP-16580-2021 (O&M)
New Sunny Enclave Residents Social Welfare Association
...Petitioner
Versus
State of Punjab and others
...Respondents
(3)
CWP-157-2023 (O&M)
Vinod Kakkar and others
...Petitioners
Versus
State of Punjab and others
...Respondents
(4)
CWP-8941-2022 (O&M)
Sukhjinder Singh and others
...Petitioners
Versus
State of Punjab and others
...Respondents
(5)
CWP-10784-2022 (O&M)
Diksha
...Petitioner
Versus
State of Punjab and others
...Respondents
(6)
CWP-16160-2022 (O&M)
Manohar Lal and others
...Petitioners
Versus
State of Punjab and others
...Respondents
(7)
CWP-25203-2022
Housing Welfare Society
...Petitioner
Versus
State of Punjab and others
...Respondents
(8)
CWP-22678-2023 (O&M)
Amar Jyoti and others
...Petitioners
Versus
State of Punjab and others
...Respondents
(9)
CWP-10336-2023
Ramesh Kumar
...Petitioner
Versus
State of Punjab and others
...Respondents
(10)
CWP-21194-2023
Harbhajan Singh
...Petitioner
Versus
State of Punjab and others
...Respondents
CORAM: HON'BLE MR. JUSTICE SURESHWAR THAKUR
HON'BLE MR. JUSTICE VIKAS SURI
***********
Present: Mr. Rishu Mahajan, Advocate, for the petitioners
in CWPs-10336, 21194 & 22678-2023.
Mr. Rajesh Verma, Advocate, for the petitioner
in CWP-25203-2022.
Mr. Rakesh Dhiman, Advocate, for the petitioners
in CWPs-8940, 16160-2022 & 157-2023.
Mr. Ravi Badyal & Mr.Deepak Kumar Advocates,
for the petitioner in CWP-16580-2021.
Mr. Yashpal, petitioner in person in CWP-28538-2023.
Mr. Puja Chopra, Advocate in person in CWP-20106 of 2021.
Mr. Saurabh Arora, Advocate & Mr. Pawan Kumar, Advocate
for the petitioner in CWP-8941-2022.
Mr. Deepak Goyat, Advocate, for
Mr. Ashwani Talwar, Advocate, in CWP-10336, 21194 and
22678-2023.
Mr. Mohit Kapoor, Sr. DAG, Punjab.
Ms. Anu Chatrath, Sr. Advocate, with
Mr. Nishant Maini, Advocate, and Mr. Ratik Gupta, Advocate
for GMADA & PSPCL in CWPs-8941, 10784 & 15113 of 2022
and 157-2023.
Mr. Baltej Singh Sidhu, Sr. Advocate with
Mr. Divij Datt, Mr. Hemant Singh and Mr. Navjot Singh,
Advocates for for respondent No.4 (Bajwa Developers)
in CWP-15113, 8941, 10784, 16160, 17371, 21194, 7715 of
2022; 16580 of 2021; 10336, 157, 20106 & 22678 of 2023
Mr. Yogender Verma, Advocate, for GMADA
in CWPs-20106-2021, 10784 & 16160-2022.
Mr. V.G. Jauhar, Advocate, for GMADA
in CWP-16580-2021.
Ms. Sweta Beniwal, Advocate, for
Mr. Mohit Rathee, Advocate,
for respondents No.3 to 6 in CWP-21194-2023.
Mr.Shubham Thakur, Advocate, for Mr. Alok Mittal, Advocate,
for respondent No.3 in CWP-25203-2023.
Mr. Kamaldeep Singh Sidhu, Advocate,
for respondent No.5 in CWP-157-2023.
Mr. Anmol Puri, Advocate, for respondents No.4 & 5.
Mr. Lovepreet Singh, Advocate and Mr. J.S. Jaidka, Advocate,
for respondent No.8 in CWP-8941- 2022.
Mr. K.S. Godara, Advocate,
for respondents No.3 to 6-PSPCL in CWP-10336-2023.
Mr. Tushaar Madaan, Advocate,
for respondents No.3 to 6-PSPCL in CWP-22678-2023.
Mr. Gagandeep Singh Virk, Advocate,
for respondent No.13 in CWP-157-2023.
Mr. R.S. Khosla, Sr. Advocate, with
Mr. Yogender Verma, Advocate, for GMADA
in CWPs-20106-2021, 10784 & 16160-2022.
Mr. Vikas Singh, Advocate,
for respondent No.5 in CWP-20106-2021.
Mr. Gurvinder Singh Gill, Advocate for
Mr. Yogesh Saini, Advocate, for
Mr. Suveer Sheokand, Advocate,
for respondent No.15 in CWP-157-2023.
Mr. Prashant Puri, Advocate for
Mr. Prateek Gupta, Advocate,
for respondent No.2 in CWPs-16580-2021.
Ms. Lishika Mehta, Advocate, for
Mr. Sameer Sachdeva, Advocate,
for respondent No.4 in CWP-16580-2021.
Mr. Kamaldeep Singh Sidhu, Advocate,
for respondent No.5 in CWP-16580-2021.
Mr. Abhilaksh Gaind, Advocate, and
Mr. Rakesh Garg, Advocate,
for respondent No.8 in CWP-16580-2021.
Mr. Sudhir Nar, Advocate,
for respondent No.10/UOI. in CWPs-16580 & 20106-2021.
Mr. Ankit Midha, Advocate, for respondent No.12.
*****
SURESHWAR THAKUR , J.
1. Since the issues involved in all the above writ petitions are
similar, therefore, the same are taken up together for decision. With the
consent of the learned counsel for the parties, the facts are being taken from
CWP-20106-2021, titled as ‘New Sunny Enclave Residents Social Welfare
Association Regd. and another vs. State of Punjab and others’.
2. In CWP-20106-2021, the petitioner-New Sunny Encla ve
Residents Social Welfare Association has knocked the door of this Court for
the accordings of the hereinafter extracted reliefs:-
“Civil Writ Petition under Articles 226/227 of the
Constitution of India for issuance of a writ, order or
direction in the nature of mandamus directing State
/official respondents to take strict legal action against
resp. No. 12 in accordance with law especially in view of
non-compliance of orders dated 21.10.2020 &
19.01.2021 Annexures P-18 & P-21 passed by Resp. No.
8 and Committee under Chairpersonship of resp. No. 9
respectively as the official respondents have completely
failed to get their own orders implemented due to
influence of Respondent No. 12 who is a big developer
developing multiple other projects in the State of Punjab.
With a further prayer that this Hon'ble Court may
kindly issue a writ, order or direction in the nature of
mandamus directing official respondents to take over the
Mega Project detailed herein below in view of terms and
conditions of Approval Letter dated 15.12.2006
(Annexure P-2) whereby Resp. No. 12 was required to
obtain completion certificate within stipulated time and
was required to comply with other terms and conditions
enumerated therein and to cancel any further,
unreasonable extension granted by official respondents to
Resp. No. 12, if any and to provide all basic facilities and
amenities and to complete all external and internal
development works as detailed herein below as not
having been provided by the resp. No. 12/developer even
after more than 15 years as resp.No. 12 has diverted the
funds / finances to other projects been developed by him
at the cost of the project in question, in the interest of
justice,
With a further prayer that this Hon'ble Court may
kindly issue a writ, order or direction in the nature of
mandamus directing resp. No. 11 to take action against
resp. No. 12 for causing public nuisance in terms of
complaint dated 08.06.2020 Annexure P-12 which is still
pending without any further intimation regarding date of
hearing.
With a further prayer that this Hon'ble Court may
kindly issue a writ, order or direction in the nature of
mandamus directing the State / official respondents
themselves or through resp. No. 12/developer, especially
in view of the fact that more than 15 years have elapsed,
to provide the basic facilities and amenities and to
complete internal and external development works
forthwith in view of emergent situation on the ground,
during the pendency of the present writ petition, in the
interest of justice.
With a further prayer that this Hon'ble Court may
kindly issue a writ, order or direction in the nature of
mandamus directing the State / official respondents to
terminate all licenses / extensions / approvals
/registrations etc. in favour of Resp. No. 12 and to seize
and forfeit their all the bank accounts, bank guarantees,
security deposits and not to allow or permit in any
manner resp. No. 12 to carve out or develop any other
project or colony until and unless all pending
development works in the project in question are
completed or the grievances of the petitioners are
redressed, in the interest of justice.
Issue any other Writ, Order or direction in the
interest of justice, which this Hon'ble Court may deem fit
and proper in the light of facts and circumstances of the
present case, in favour of the petitioners.”
3. In the present case, vide communication dated 15.12.2006
(Annexure P-2), the layout plan for development of Mega Housing Project
of M/s Bajwa Developers Pvt. Ltd. in Kharar, near Sunny Enclave, Village
Desu Majra, Mohali, was approved and licence was granted to respondent
No.12-M/s Bajwa Developers Pvt. Ltd., by respondent No.4-PUDA, the
conditions of the said licence become extracted hereinafter:-
“1. The company shall fulfil the terms and conditions
specified in the Letter of Intent issued vide letter No.
PUDA/ACA (Pr.) 2006/17666 dated 3.05.2006,
Agreement dated 22.06.2006 made with the Punjab Govt.
and Change in land use issued by Punjab Govt. vide letter
No.18/134/2006-5HG-2/7507 dated 18.08.2006.
2. The company shall fulfil the terms and conditions
specified by the Forest Department vide letter No.4753
dated 11.07.2006 and Punjab Pollution Control Board
(Provisional) vide letter No.5617 dated 05.07.2006 and
obtain necessary clearances / NOCs within the stipulated
time period as specified in these letters and submit copies
of the same with the Competent Authority.
3. No sale / advertisement of plots shall be made by the
company unless the Govt. issues notification/ orders u/s
44 of PAPR Act, 1995 for the exemption of the Project
from PAPR Act, 1995.
4. The company shall sell/ advertise only those plots
which fall within the land/ area solely owned by the
company. No sale /advertisement for plots falling in area
under Agreement to sell or to be acquired by the Govt.
shall be undertaken, till it is transferred in the ownership
of the company and possession taken by them.
5. The detailed planning of areas shown as "Reserved"
and "commercial" pockets shall be got approved from the
Competent Authority. The reserved areas may be planned
for public facilities to the extent of maintain the overall
usable area within limits specified in the Planning
Guidelines of Mega Housing Projects dated 06.10.2006.
6. The design and specifications of all the Development
works provided in the colony shall be as per the Punjab
PWD specifications/ BIS specifications. The company
shall submit a copy of the specifications and detailed
estimates duly signed by a qualified engineer of the
concerned discipline thereof with the Competent
Authority before undertaking any Development Works
on site.
7. The company shall not contravene the provisions of
any other law for the time being enforced in the area
where the colony is being developed.
8. The company shall maintain a separate account in any
Schedule Bank of sums taken by him from persons
intending to take or who have taken by apartments or
plots, as advance, towards the sale price or for any other
purpose or deposit and shall disburse the money for
meeting the cost development works, and shall on
demand in writing, by the Competent Authority, make
full and true disclosure of all transactions in respect of
that account.
9. The company shall obtain demarcation of roads, road
formation level and levels of service lines from the C.E.,
Gamada, Mohali, before the start of work.
10. The Electrive plan/ load will be got approved from
PSEB before execution of work as per their
specification / norms.
11. Whenever the estate services like water supply, storm
water, sewerage system is laid in the periphery by MC/
GMADA / Improvement Trust, the company will
integrate the same with these services at its own
expenses.
12. The rain water harvesting system will be provided by
the promoter as per design approved by CGWB.
13. Zoning plans/ Architectural Control Sheets shall be
submitted to Competent Authority within three months of
issued of Layout plan.
14. The company shall transfer free of cost the open
space like roads, parks, etc. (Not schools &
Community Centre etc.) in favor of Govt. through
GMADA in case the colony is situated outside the
limits of M.C. and in favor of the appropriate
Municipal body, in case the colony is situated within
such limits, to the satisfaction of the concerned body.
The company shall obtain Completion Certified
within five years from the date of agreement. Such
transfers shall be free from stamp duty. However,
onus of maintaining all essential services (open spaces,
parks, roads, parking, landscaping, rain water
harvesting system, electrical system) for a period of
five years from the issue of completion certificate
shall continue to remain with company even after the
transfer of open spaces like road, parks etc.
15. Demarcation of layout plan will be done within two
months of issue of Layout plan and reconciled
discrepancy, if any. In case of any major variations, the
Layout plan shall be got approved from the Competent
Authority. Before getting Architectural Control approved
integrated zoning plans of commercial area, residential
and other buildings shall be got approved from the
Competent Authority within three months of issue of the
Layout plan.
16. Building plans will be approved by the concerned
E.O. GMADA as per the approved zoning
plan/Architecture Control Sheets.
17. The Company shall construct or get constructed at his
own cost schools hospitals, community centres and other
community buildings on the land set apart for this
purpose or transfer such land to the State Government at
any time free of cost or on payment of actual cost of
development of land, as may be decided by the State
Government in which case the State Govt. be at liberty to
transfer such land to any local authority or any person or
institution on such terms and conditions as it may deem
fit.
18. The company will make their own arrangements
of independent water supply and install sewerage
treatment plant and also ensure smooth supply of
electricity and other requisite services of the colony at
their own cost and such costs are included in their
estimates and also ensure that no earth excavation
will be allowed from the plots / reserved / public
building sites for construction of roads.”
4. Since the supra terms and conditions ,as become enclosed in the
licence, as became granted to the licencee by the licensing authority, became
breached at the instance of the licencee, therebys, the apposite licneces,
rather became suspended vide Annexure A-3. Therefore, the restoration of
the licence as appertains to the housing colony concerned, is but a dire
necessity, as therebys only the dwelling units, as occur in the housing colony
concerned, thus, would become legalized, but yet subject to the hereinafter
directions being passed upon the licensing authority i.e. GMADA, as
appertain to the executions of the left over external developmental works
becoming undertaken thereovers i.e. the colony, rather by the GMADA
authorities. Since for the makings of an adjudication upon the instant lis, the
applicable thereon statutory provisions, thus, become embodied in Section 5
of the Punjab Apartment and Property Registration Act, 1995 (hereinafter
referred to as ‘the PAPRA Act’), therefore, the said provisions become ad
verbatim extracted hereinafter:-
“[5. Development of land into colony. - (1) Any
promoter, who desires to develop a land into a colony
having the prescribed qualifications, shall make an
application in the prescribed form alongwith his title of
minimum twenty five per cent of project land and
irrevocable consent for the rest of land, if it is owned by
other persons, permission for conversion of land use from
the competent authority and the prescribed information,
with the prescribed fee and charges, to the competent
authority for grant of permission for the same and
separate permission shall be necessary for each colony.
(2) On receipt of the application under sub-section (1),
the competent authority, after making enquiry into the
title of the land, extent and situation of the land, capacity
of the promoter to develop the colony, layout of the
colony, conformity of the development of the colony
with the neighboring areas, plan of development works to
be executed in the colony, and in case of apartment
buildings, design, specification of material to be used,
common areas and facilities to be provided, structural
safety and fire safety and such other matters as it may
specify, and after affording the applicant an opportunity
of being heard and also taking into consideration the
opinion of the prescribed authority, shall pass an order, in
writing recording reasons either granting or refusing to
grant such permission.
(3) Where an order is passed granting permission under
sub-section (2), the competent authority shall grant a
license in the prescribed form after the promoter has
complied with the following conditions, namely: -
(i) the promoter shall acquire the title of land not
owned by him, within the time period given in the
terms and conditions of the licence, and shall not
make any sale or transfer of land which is not
under his title;
(ii) furnish a bank guarantee equal to thirty five
percent of the estimated cost of the development
works certified by the competent authority, or
mortgage plots falling in the same project equal
to thirty five percent value of estimated cost of
development by equitable mortgage deed to the
satisfaction of the competent authority in the
manner prescribed, which shall be marked on
the layout plan and entered in the revenue
record;
(iii) has entered into an agreement with the
competent authority in the prescribed form for
carrying out the development works in accordance
with the conditions of the licence;
(iv) has paid, subject to the provisions of sub-
section (6), the Change of Land Use Charges,
External Development Charges and such other
charges, as may be notified by the Government
from time to time.
(4) In case, a promoter intends to revise the layout plan
or zoning plan of the approved colony or building plan,
he shall be required to obtain a revised permission,
subject to fulfilment of all liabilities created due to prior
permission, on payment of such charges and such fee and
on such terms and conditions, as may be specified after
giving due notice to the plot or apartment holders.
However, the said revision shall not extend the period of
validity of the license granted under sub-section (3).
(5) The license granted under sub-section (3), shall be
valid for a period of five years and shall be renewable for
a further period of two years on payment of such fee and
charges, and on such terms and conditions, as may be
specified by the competent authority.
(6) The promoter shall enter into agreement give
undertaking to pay development charges for external
development works carried out or to be carried out by
the Government or a local authority.
(7) The State Government shall determine the
development charges and the time within which such
development charges as referred to in subsection (6),
shall be paid to the State Government or to such
authority, as may be notified by the State Government.
(8) The Government may allow payment of external
development charges and other charges mentioned in
such installments, as may be notified by it from time to
time. In such case, the first installment shall be deposited
before the grant of licence and the promoter shall furnish
and give undertaking to pay the balance installments as
per notified schedule supported by such additional bank
guarantee or mortgage of such additional property, as
may be necessary to secure payment of the balance
installments.
(9) The promoter shall carry out and complete the
development of the land in accordance with the
provisions of the Punjab Regional and Town Planning
and Development Act, 1995 (Punjab Act 11 of 1995).
(10) The promoter shall construct or get constructed at
his own cost, schools, hospitals, parks, community
centers and other community buildings, on the land set
apart for this purpose or promoter may sell or transfer
land meant for schools and hospital etc. on such terms
and conditions, as may be specified by the Government.
Further, the area under roads, open spaces, parks and
other public utilities shall be transferred to the local
authority before issue of completion certificate.
(11) The promoter shall, reserve five percent area of the
gross project area in the case of colony and ten percent of
the apartments in the case of apartments in the manner, as
may be specified by the Government for reservation and
disposal of such plots/apartments for economically
weaker section of the society.
(12) The promoter shall carry out all directions issued by
the competent authority for ensuring due compliance of
the execution of the layout and the development works
therein and to permit the competent authority or any
officer authorized by it to inspect such execution
(13) The promoter shall be responsible for the
maintenance and upkeep of all roads, open spaces,
public parks and public health services for a period of
five years from the date of issue of completion
certificate or till the date of transfer the same, free of
cost to the State Government or the local authority:
Provided that after the completion of development works
in the colony, in all respects, the competent authority,
may allow the promoter to hand over the maintenance of
the infrastructure and services mentioned in this sub-
section to an association of residents formed under
section 17-A, which shall be responsible for
management, maintenance, upkeep of common areas,
infrastructure and common services of the colony.
(14) In the event of the promoter contravening any
provisions of this Act, or rules made thereunder or
any conditions of the licence granted under sub-
section (3), the competent authority may, after giving
an opportunity of being heard, suspend or cancel the
licence and enforce the bank guarantee or mortgage
property furnished by the promoter under subsection
(3).
(15) When a licence is suspended or cancelled under
sub-section (14), the competent authority may itself
carry out or cause to be carried out the development
works, and after adjusting the amount received as a
result of enforcement of bank guarantee or by
disposal of mortgaged property, recover such charges,
as the competent authority may have to incur on the
said development works from the promoter and the
allottees in the manner prescribed as arrears of land
revenue.
(16) The liability of the promoter for payment of
development charges referred to in sub-section (15), shall
not exceed the amount the promoter has actually
recovered from the allottees less the amount actually
spent on such development works, and that of the
allottees shall not exceed the amount, which they would
have to pay to the promoter towards the expenses of the
said development works under the terms and conditions
of the agreement of the sale or transfer entered into
between them: Provided that the competent authority
may, recover from the allottees with their consent, an
amount in excess or what may be admissible under the
aforesaid terms of agreement of sale or transfer.
(17) Notwithstanding anything contained in this Act,
after development works have been carried out under
sub-section (15), the competent authority may, with a
view to enabling the promoter, to transfer the possession
of, and the title of, the land to the allottees within a
specified time, authorize the promoter by an order to
receive the balance amount, if any, due from the allottees
after adjustment of the amount which may have been
recovered by the competent authority towards the cost of
the development works and also transfer the possession
of, and the title of, the land to the allottees within
aforesaid time and if the promoter fails to do so, the
competent authority shall on behalf of the promoter
transfer the possession of, and title of, the land to the
allottees on receipt of the amount which was due from
them.
(18) After meeting the expenses on development works
under subsection (15), the balance amount shall be
payable to the promoter.]”
5. At the very outset, it is necessary to allude to the fact that
though, at this stage, the apposite allotments have been made to the
allottees/homebuyers under co-respondent No.12-Bajwa Developers Ltd.
However, since co-respondent No.12 failed to purvey, the licence envisaged
basic amenities, to the allottees/homebuyers concerned or to the owners of
the dwelling units, which fall within the colony. As such, the aggrieved
allottees/homebuyers under co-respondent No.12-Bajwa Developers Ltd.,
thus, are led to access this Court for the passing of a mandamus upon the
official respondent, i.e. the GMADA, who granted the licence to co-
respondent No.12, thus, for undertaking the executions of the left over
external developmental works in the colony.
6. Though, for the purpose of purveying the supra reliefs to the
allottees/homebuyers from co-respondent No.12, they have an efficacious
alternative remedy, inasmuch as, a complaint becoming lodged before the
RERA authorities.
7. Nonetheless, for the reason to be assigned hereinafter, this
Court, however, relents from driving the aggrieved allottees/homebuyers
under co-respondent No.12-Bajwa Developers Ltd., rather to access the
remedies as embodied in the Real Estate (Regulation and Development) Act,
2016 (hereinafter, in short referred to as ‘the RERA Act’). The primary
reason for stating so becomes firmly grooved in the premise, which but
becomes etched in the requisite statutory obligation, in terms of Section 5
(3)(ii), as embodied in the PAPRA Act, thus, becoming enjoined upon the
designated licensing authority. In terms of the said cast statutory obligation
upon the licensing authority, thus, it became incumbent on the licensing
authority, to ensure that the licensee, furnishes a bank guarantee equal to
thirty five percent of the estimated cost of the development works certified
by the competent authority and in the alternative thereto, the licensing
authority becomes entailed with a statutory obligation, to ensure the
mortgaging of plots owned by the licencee and which fall in the colony in
respect whereof the espoused licence is granted to the licensee.
8. The necessity qua imposition of the supra statutory obligations,
upon the licencee as well as upon the licensor, thus, is to ensure the
protections of the interests of the allottees/homebuyers under the developer
concerned, who more especially, in the event of the promoter/developer
rather abandoning the project, whereupons obviously with the external
developmental works, as enclosed in supra clauses 14 and 18 of the licence,
rather remaining unexecuted, thus, theirs becoming enabled to be executed
by the concerned i.e. by the GMADA authorities and by the PSPCL.
Resultantly, therebys, the owners of the dwelling units, which fall within the
residential colony concerned, thus, would become purveyed all the requisite
licence facilities. In addition, since the enjoined external developmental
works to be undertaken in the colony, apart from the constructions, being
made of accessible sectoral roads reaching upto the homesteads raised in the
colony, rather also appertain qua apposite installations of electricity
purveying infrastructure becoming undertaken by the PSPCL. Therefore,
since the moneys for the installations of the said electricity purveying
apparatus’, by the entity concerned, but is also to be liquidated by the
promoter concerned. However, since the said amounts remained
unliquidated by the promoter concerned to the PSPCL. Therebys, the latter
becomes precluded to augment, the already existing electricity purveying
apparatus, at the colony concerned, wherebys some of the dwelling units as
exist within the colony concerned, rather become deprived of the basic
amenity of permanent electricity connections becoming purveyed to them.
9. Now, in the said regard, an affidavit sworn by the promoter,
namely Shri Jarnail Singh Bajwa, Managing Director of M/s Bajwa
Developers Limited, has been taken on record through an unobjected order
becoming passed on 03.05.2025 upon the apposite miscellaneous
application. The contents of the said affidavit are ad verbatim extracted
hereinafter:-
“2. That on submission of Electrical Layout Plan for the
aforesaid residential project of 139.376 Acres in
consonance with the Layout Plan duly approved by
GMADA, Chief Engineer, Commercial, PSPCL issued
NOC dated 29.06.2017 in favour Developer. As per the
said NOC, Developer is supposed to install 24
Distribution Transformers of 500 KVA, 2 Distribution
Transformers of 300 KVA and 1 Distribution
Transformer of 200 KVA (Total 12800 KVA).
In the aforesaid project of 139.376 Acres, at
present, not more than 100 units are existence. Developer
has already provided street lights in the said project and
besides that, from the sanctioned load issued by PSPCL
in the name of Developer, later has provided temporary
connections to all the aforesaid existing residents/units of
the said project. It is also worth mentioning here that
Developer is paying electricity charges @Rs. 13/- per
unit to PSPCL whereas from the residents, for the
electricity charges consumed by them, Developer is
collecting only @ Rs. 8/- per unit, meaning thereby that
Developer is paying Rs. 5/- per unit from its own pocket
for the electricity consumed by the residents. In respect
of said project, Developer has already applied for partial
load to PSPCL vide letter dated 19.05.1922.
3. That as submitted above, in Sector 123, Mohali itself,
GMADA has allowed Developer to carve out a colony
(Sunny Enclave) over the land measuring 159.28 Acres.
On submission of Electrical Layout Plan for the aforesaid
residential project of 159.28 Acres in consonance with
the Layout Plan duly approved by GMADA, Chief
Engineer, Commercial, PSPCL issued NOC dated
06.05.2016 in favour of developer. As per the said NOC,
Developer is supposed to install 23 Distribution
Transformers of 500 KVA, 4 Distribution Transformers
of 300 KVA, 1 Distribution Transformer of 200 KVA
and 1 Distribution Transformer of 100 KVA (Total
13000 KVA). In the aforesaid project of 159.28 Acres, at
present, not, more than 250 units are in existence.
Developer.has already executed work of installing LD
System in the said project requite Bank Guarantee has
already been furnished with PSPCL. Only two
transformers of 300 KVA each and about 20-25 Meter
Panels are left to be installed. PSPCL has already
released permanent connections in favour of the
residents/units, which are about 250 in number and the
said residents are paying the electricity charges being
consumed by them, directly to. PSPCL. It is pertinent to
mention here that although the area of the said project
has been increased from 159.28 Acres to 177 Acres but
with regard to the said increase, which has been duly
approved by GMADA, PSPCL is yet to issue revise
NOC.
4. That PSPCL has issued revised NOC dated 04.03.2022
in favour of Developer for Electrical Scheme of 25 Acres
residential project (Sunny Basant) at Sectors 74-A and
117, Mohali. In the said project also, at present, there are
not more than 100 units. Two transformers of 500 KVA
each have already been brought at the site by the
developer in respect of the said project, which are
sufficient to feed said 100 units. The said two
transformers are however, not been given connectivity by
the PSPCL, on the alleged ground that outstanding has
not been cleared. LT cable has been laid fully, for
executing the said work, Developer has already deposited
Bank Guarantee to the tune of Rs. 21 Lacs with PSPCL.
5. That with regard to arrears of electricity charges,
suffice is to state that the Developer is ready to make the
payment in regard to only the arrears pending in 15
monthly instalments excluding Penalty charges, UUE
etc., which the developer will challenge before the
competent authority.
6. That in regard to the sewerage treatment Plant, the
deponent will complete the entire process of installing
the required number of STP'S and the remaining part of
connecting the said Sewerage treatment plant for final
disposal shall be done by the Competent Authorities.”
10. The above extracted contents of the affidavit sworn by the
promoter which becomes placed on record in CWP-16160-2022 unveils, that
the promoter is providing temporary electricity connections but only to
certain residential units. The supra contents also unfold, that the developer
is paying electricity charges at the rate of Rs.13/- per unit, to the PSPCL,
whereas, the developer is collecting only Rs.8/- per unit, from the residents
of the colony, wherebys, it is stated therein, that the developer is paying
Rs.5/- per unit from his/own pocket for the electricity consumed. It is
further unfolded therein, that in respect of the additional electricity
purveying infrastructure to be installed within the colony, the Chief Engineer
of the PSPCL, has issued NOC dated 06.05.2016 in favour of the developer.
The terms of the NOC enjoin the developer to install 23 Distribution
Transformers of 500 KVA; 4 Distribution Transformers of 300 KVA, 1
Distribution Transformer of 200 KVA and 1 Distribution Transformer of
100 KVA (Total 13000 KVA). The developer has already executed work of
installing LD system and the requisite bank guarantee has already been
furnished with PSPCL, whereas, two transformers of 300 KVA and 20/25
meter panels are left to be installed. PSPCL has already released permanent
electricity connections in favour of certain residential units numbering about
250 and they are paying the electricity charges to the PSPCL directly.
However, in respect of the increased area of the colony from 159.28 acres to
177 acres, in respect whereof though approval has been granted by the
GMADA, but the apposite revised NOC has not been issued by PSPCL.
Nonetheless, it has been further stated that the revised NOC dated
04.03.2022, thus, becomes issued for Electrical Scheme qua 25 acres of
residential project at Sectors 74-A and 117, Mohali, rather, for providing
permanent electricity connections, to about 100 units and two transformers
of 500 KVA have been brought at the site by the developer. Though the
PSPCL has installed transformers, but the apposite connectivity to those
transformers has been yet not given theretos, on the ground that the
outstanding dues have not been cleared by the promoter. Nonetheless, the
affidavit sworn by the developer reveals, that the bank guarantee to the tune
of Rs.21 lacs, has been furnished by the promoter with the PSPCL, thus,
towards liquidation of the relevant arrears.
11. Be that as it may, in the affidavit sworn by Shri Taranjeet
Singh, Sr. Executive Engineer, PSPCL, which has been taken on record
through an unobjected order becoming passed on 03.05.2025 upon the
apposite miscellaneous application, thus, occurs a table mentioning thereins,
the tentative amounts to be deposited with the PSPCL, thus, for causing
releases of permanent electricity connections to the residents of the colony,
besides the outstanding amounts against the developer in respect of the
relevant projects also become detailed thereins. The relevant contents of the
affidavit become extracted hereinafter:-
Sr.
No.
Colony Tentative
Load (in
KVA)
11 KV
Connectivity
System
Loading
Charges
Internal
system cost
Tentative
cost for
connectivity
1 Area measuring 25
acre Sunny Bansal
Colony in Sector
74A and 117,
Sukhjinder Singh
CWP 8941/2022
4362 7819280 14699940 31224038 53743258
2. Area measuring
177.00 Acre namely
Sunny Encalve in
Sec-120,123,124 &
125 Village
Jandpur, Sihampur
and Hassanpur
(Amar jyoti CWP
No. 22678/2023)
(Ramesh Kumar,
CWP No.
10336/2023)
(Harbhajan Singh,
CWP 21194/2023)
No. (Yashpal, CWP
No. 28535/2023)
10068 23161500 33929160 93669750 150760410
3 Area measuring
139.371 Acre
Village Jandpur
Manana Sector 123
Mohali (Diksha
CWP No.
10784/2022;
Manohar Lal, CWP
No. 16160/2022)
1200 8050624 4044000 9344591 21439215
2. That it is imperative to note that the developer has
an outstanding defaulting amount to approximately 11.44
crores, out of which approximately Rs.10.81 crores is
outstanding in respect to the aforementioned three project
against the builder.”
12. The above extracted contents of the affidavit reveal, that the
tentative estimated costs for issuing permanent electricity connections, is
Rs.22,59,42,883/- and the outstanding liabilities of the promoter towards the
PSPCL are in a sum of Rs.10.81 crores. To ensure that the apposite
obstacle, raised by the PSPCL against the releasings of permanent
connections to the residents concerned, besides to ease, the further hurdles
become raised, in the installation of the additional electricity feeding
infrastructure at the sites concerned, thus, require that the sums supra be
ensured to be released to the PSPCL. Therefore, the requisite releases are to
be made in the manner detailed hereinafter.
13. In the said endeavour, to the profound objective contemplation
of this Court, the amounts determined as compensation viz-a-viz the
developer, through the passing of an Award bearing No.569 dated
18.05.2018, when, thus, for the reasons delineated in CWP-13350-2021, but
are required to be initially conditionally released to the petitioner therein.
However, the said release is to be made, in terms of paragraph 16 of the
affidavit sworn by Shri Jarnail Singh Bajwa, Managing Director of M/s
Bajwa Developers Limited, which has been taken on record through an
unobjected order becoming passed on 03.05.2025 upon the apposite
miscellaneous application, the relevant paragraph whereof is extracted
hereinafter:-
“16. That the deponent being the Managing Director of
the petitioner company undertakes that he or the
petitioner company has no objection if after adjusting the
amount of compensation receivable by the petitioner
company against the land in dispute (approximately
30.22 Acres) in terms of the aforesaid Award No.569
dated 18.05.2018 (Annexure A-1) and Award dated
22.12.2023 (Annexure A-2) against the EDC and Licence
Fee due along with reasonable interest, is paid back to the
petitioner company.”
14. Pursuant to the above extracted paragraph, directions for the
apposite conditional releases thereof being made to the promoter, becomes
spoken in the decision recorded by this Court in CWP-13350-2021.
15. The other joint co-option for ensuring the completions, of all
left over external developmental work at the sites concerned, is to ensure qua
the relevant finances in respect thereofs being marshalled from auction sales
becoming made of the mortgaged plots of the promoter as exist within the
colony. The said sales are to be done under the supervision of the District
Collector concerned. However, the impediment against this Court ordering
qua the mortgaged plots of Bajwa Developers Ltd., being subjected to public
auctions, becomes aroused, from the factum qua this Court through an order
made on 12.07.2022 in the connected writ petition bearing No.CWP-13350-
2021, thus, granting interim relief in favour of co-respondent No.12,
wherebys the respondents were directed to not take any coercive action
against co-respondent No.12. To the considered mind of this Court, the said
order is required to be vacated, especially in the wake of the supra
undertaking made on an affidavit sworn by Shri Jarnail Singh Bajwa,
Managing Director of M/s Bajwa Developers Limited.
16. Be that as it may, the exact/precise amounts, thus, required for
making completions of the abandoned external developmental works, is yet
not forthcoming. In consequence, this Court deems it fit and appropriate,
that the District Collector concerned shall, within a period of one month
from today, under his supervision, hold public auctions viz-a-viz the plots
owned by the developer and which become mortgaged by him viz-a-viz the
GMADA, thus, in terms of the provisions carried in Section 5 (3)(ii) of the
PAPRA Act.
17. However, prior thereto, in terms of the current/prevalent
value/circle rates, necessarily of areas proximate, to the subject cites, thus,
the District Collector shall fix the reserved price for the apposite auctions.
Moreover, it shall also be ensured that no rigged public auction is conducted
viz-a-viz the mortgaged plots of the promoter. The maximum time for
depositing the entire auction moneys shall not be more than two months.
The amounts realized from the auction sales of the mortgaged plots, be
delivered to the GMADA. The totals of the said amounts as well as the
figure of the compensation amounts conditionally released to the promoter
but requires qua both becoming initially entered in the books of account
maintained by the GMADA. In case the total incurred expenditure towards
the completion of the unexecuted external developmental works at the sites
concerned, is lessor than, the totals of the supra sums, therebys the apposite
excess amounts be forthwith released to the promoter along with the upto
date interest accrued thereon, which will be calculated at the rate of 7% per
annum.
16. Nonetheless, extreme care and caution is also required to be
taken for ensuring that all the executing agencies deployed for completing
the unexecuted external developmental works at the sites concerned, but do
not ill-spend the supra amounts. Moreover, extreme care and caution is
required to be undertaken, that no embezzlement occurs viz-a-viz the
amounts supra at the instance of the GMADA authorities or by any of the
executing agencies as become employed by it.
17. To streamline the above, the Chief Secretary to the Government
of Punjab, is directed to head a specialized cell manned by three auditors
drawn from the office of the Comptroller and Auditor General, Chandigarh.
18. The said Special Cell shall initially:-
(a) Cull out the precise amounts required to be expended for the
completion of the left over or unexecuted works at the sites concerned. A
signatured chart in respect of the said precise amounts, be prepared but
bearing in mind the imperative fact, that the apposite estimates appertain but
only to the left over incomplete/unexecuted work and to no other work. The
determination of the unexecuted or left over works, shall be made in terms
of what is stated in the licence conditions’. However, in making the said
determination, analyses be made of what has already been spent in respect of
executions thereof. The spendings’ viz-a-viz executions of the left over
external developmental works be unearthed from the licences apposite to the
writ petitions, besides from making a closest scrutiny of the relevant sites.
Moreover, the supra shall be quartered only qua the colonies which are
covered in the instant bunch of writ petitions. The said estimates, under the
seal and signatures of all the members of the Special Cell, to be headed by
the Chief Secretary, be sent to the Chief Administrator, GMADA, so that
subsequently, invitations to offer become floated rather for inviting
responses thereto, from the executing agencies concerned. A closest vision
be kept by the Cell supra, over the executions of the works and also for
ensuring that there no overspendings occur qua the amounts, as detailed in
the floated invitations to offer, rather, at the instance of the executing
agencies concerned. The executing agencies would be the contractors, who
adequately respond to the floated invitations to offer, and the PSPCL
concerned, who may either directly or through contractors engaged by it,
thus, may undertake the requisite works.
(b) The entire exercise supra culminating in the execution of the
incomplete/unexecuted works at the sites concerned, be ensured to be
completed within a period of four months from today. On completions of the
works, a completion certificate be issued by the Cell concerned, whereafter
it shall be forwarded to the Chief Administrator, GMADA, who shall
thereafter, forward the same to all the competent authorities, wherebys not
only regularization of the homesteads built within the colonies, thus, takes
place most expeditiously but also, thus, therebys, the order suspending the
licence issued qua the colony concerned, but becomes most promptly
revoked.
(c) Further, the compensation amounts and the auction moneys be
firstly spent toward the executions of the left over external developmental
works and thereafter, the left over moneys shall be adjusted towards the
outstanding licence fee and other charges, and subsequently, the remaining
amounts, if any, shall be released forthwith to the promoter, thus, along with
upto date interest accruing thereovers at the rate of 7% per annum.
(d) Lastly, the total incurred expenditure be detailed in a sheet to be
sealed and signed by all the members of the Special Cell. The said sheet
shall also detail whether there is any deficit inter se, the amount spent and
the amount received, respectively, after encashing the bank guarantees, after
the auction moneys being received, after the compensation amount being
conditionally released to the promoter, thereupon the said excess amounts
shall be forthwith released to the promoter, thus, along with upto date
interest accruing thereovers at the rate of 7% per annum.
19. Now since an alternative remedy is available to the present
petitioners, inasmuch as theirs accessing the RERA authorities. However,
for the reasons to be assigned hereinafter, the existence of the said
alternative remedy, to the considered mind of this Court, but would be, at
this stage, be an extremely elongated remedy, besides would further enmesh
the allottees/homebuyers in an avoidable quagmire of litigation.
20. The reason for stating so further spurs from the factum, that
there is an imperative requirement qua immediacy of completion of the
requisite external development works in the colonies. Since therebys, the
right to life enunciated under Article 21 of the Constitution, thus, would
become forwarded. As such for ensuring the endowment of the said
constitutional right to the present petitioners, thereupon, this Court deems it
fit and appropriate to assume jurisdiction over the instant writ petition.
21. The further reason for stating so generates from the unobjected
to taken on record affidavit filed and duly sworn by Shri Jarnail Singh
Bajwa, Managing Director of M/s Bajwa Developers Limited (in CWP-
13350-2021), whereins, in the supra extracted paragraph 16, it become stated
that after adjusting the amount of compensation conditionally receivable, by
the developer company against the land in dispute (approximately 30.22
Acres), thus, in terms of the aforesaid Award No.569 dated 18.05.2018
(Annexure A-1) and Award dated 22.12.2023 (Annexure A-2), rather against
the EDC and Licence Fee along with reasonable interest, thus, subsequently,
the remainder of the compensation amount, to which the developer company
is entitled, thus, be released to the promoter but in the manner hereinabove
detailed. In terms of the affidavit sworn by Shri Jarnail Singh Bajwa,
Managing Director of M/s Bajwa Developers Limited, he is to file an
apposite application before the learned Reference Court concerned, stating
thereins the account number of the GMADA, whereinto the compensation
amount is to be remitted.
22. Resultantly, therebys, since there is no resistance at the instance
of the developer viz-a-viz the accordings of the writ remedies and since
therebys, there is no disputed question of fact to be determined by this Writ
Court. As such, in the absence of any contentious facts becoming generated
amongst the contesting litigants before this Court, whereupons, alone this
Court may be coaxed to drive the contesting litigants to avail the alternative
remedy supra. Resultantly, in the face of the active readiness and willingness
of the developer to, thus, in the manners supra, rather ensure the completions
of the unexecuted works at the sites concerned. Therefores and moreovers,
in the light of this Court passing a decision in favour of the developer in the
connected writ petition bearing No.CWP-13350-2021. As such, this Court
assumes jurisdiction over the writ petition as there are no disputed questions
of facts to be determined in the instant lis.
23. Apparently, since in the face of the affidavit, the developer
company has manifested its bona fides to alleviate the writ grievances,
therebys, too this Court, does not deem it fit to relegate the writ petitioners
to the otherwise now prolonged alternative remedy qua theirs instituting a
complaint before the RERA authority.
24. An affidavit sworn by Shri Taranjeet Singh, Senior Executive
Engineer, PSPCL, Mohali, has also been filed, which is taken on record. The
relevant contents as borne in the said affidavit are embodied in para 4
thereof, para whereof become extracted hereinafter:-
“4.1 That the Developer has failed to comply with
the terms of the aforementioned No Objection Certificate
(NOC), which was valid for a period of five (5) years
from the date of its issuance. Furthermore, the Developer
has not applied for a new/revised NOC to date. Copy of
the NOC dated 29.06.2017 is annexed as Annexure A-9.
4.2 That additionally, as per Clause 3 and
Clause 4 of the issued NOC (29.06.2017), the Greater
Mohali Area Development Authority (GMADA) was
responsible for bearing all costs associated with the 66
kV Grid Sub-station, 66 KV Transmission Line, 11
KV Line, and related infrastructure. Moreover, in the
event that the requisite load for the 66 KV Sub-station
to be constructed in Sector-123 was not available with
GMADA, the Developer was obligated to provide land
free of cost for the establishment of the substation
within the project. However, to date, neither GMADA
nor the Developer has provided the requisite land. In
light of the non-compliance with the conditions
stipulated in the NOC, presently, electricity
connections are not being provided to the residents of
the said area.
4.3 That the site inspection of the said colony was
carried out in the month of March, 2025 and it was
observed that total 6 number 500 KVA transformers
(without any seal of PSPCL) are erected and the work for
HT and LT line/cable is still under progress. As such, the
builder is required to seek revised NOC (also compliance
of terms & conditions incorporated in the said NOC) in
addition to the completion of LD system of the colony.
4.4 That as and when revised NOC is sought by
the Builder, and the terms and conditions incorporated in
the said NOC are complied with, only then permanent
electricity connection to all the residents of said area can
be given by the PSPCL.”
25. Shri Taranjeet Singh, Senior Executive Engineer, PSPCL,
Mohali, who was present in Court, submits that the extantly raised requisite
infrastructure rather is already overloaded and that unless additional land for
installation of the requisite infrastructure is released in favour of PSPCL,
thereupto, to the homesteads occurring inside the colony, the electricity
connections, may not be amenable to become released. In the said regard,
reference can be made to Annexure P-22, appended with CM-3795-CWP-
2025 in CWP-16160-2022, whereins, it is mentioned that two acres of land
owned and possessed by M/s Bajwa Developers Ltd., rather is still unsold.
However, only that fraction or that part of the supra land as is direly required
for the additional electricity purveying infrastructure being installed, thus, be
forthwith transferred, but free of cost in favour the PSPCL. Emphatically, to
the considered view of this Court, two acres land may be far in excess, to the
relevant requirement. Therefore, the said insightful view of this Court be
borne in mind by the PSPCL, thus, in the promoter releasing only that
quantum of two acres of land, which is direly necessitated for installing the
requisite electricity purveying infrastructure at the site concerned.
26. The instant writ petitions are allowed in terms of the supra
observations and directions.
27. Pending applications, if any, also stand disposed of.
( SURESHWAR THAKUR )
JUDGE
( VIKAS SURI )
May 14, 2025 JUDGE
harish
Whether speaking/reasoned Yes/No
Whether reportable Yes/No
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