The Court directs swift adjudication of a complaint challenging the legality of a land development licence under the Haryana Development and Regulation of Urban Areas Act, 1975.
In a significant ruling, the Punjab and Haryana High Court has directed the Director of Town and Country Planning, Haryana, to expedite the adjudication of a complaint filed by Advance India Projects Limited. The complaint seeks the cancellation of a licence granted for the development of a residential colony and commercial complex in Gurugram, alleging violations of the Haryana Development and Regulation of Urban Areas Act, 1975.
The case, titled Advance India Projects Limited v. Director, Department of Town Country Planning Haryana, revolved around the contentious grant and subsequent transfer of a licence to respondent No.10, who was not the owner of the land at the time of licensing—a clear contravention of Section 3 of the Act of 1975, which requires licences to be issued solely to landowners with clear titles.
The High Court Bench, comprising Justices Jasgurpreet Singh Puri and Sanjiv Berry, highlighted the importance of maintaining the integrity of the licensing process, especially in large-scale projects involving substantial financial investments and multiple stakeholders. They emphasized the necessity of resolving the dispute promptly to prevent further complications affecting the rights of numerous allottees and prospective property buyers.
Advance India Projects Limited, represented by Senior Advocates Mr. R.S. Rai, Mr. Chetan Mittal, and Mr. Nalin Kohli, argued that the licence issued to respondent No.10 and its subsequent transfer to respondent No.14 were executed in violation of Section 3 of the Act, given that respondent No.10 did not possess ownership of the land at the relevant time. The petitioner contends that such missteps not only breach statutory mandates but also jeopardize the project's legitimacy, potentially leading to adverse financial and legal consequences for all involved parties.
In contrast, counsel for the respondents, including Mr. Gaurav Chopra and Mr. Akshay Bhan, asserted that the petitioner lacks the standing to challenge the licence, pointing out that prior legal efforts related to a failed Memorandum of Understanding had already been dismissed by the courts. They maintained that the licensing and transfer processes were conducted lawfully and in accordance with established policies, including Foreign Direct Investment protocols.
Acknowledging the urgency of the matter, the High Court ordered the Director of Town and Country Planning to adjudicate the complaint by July 20, 2026, or to continue hearings on a day-to-day basis until a decision is reached within two weeks thereafter. The Court further mandated that no new allotments or third-party rights be established until the complaint is resolved, ensuring that the interests of all stakeholders are safeguarded throughout the legal proceedings.
The High Court's directive underscores the judiciary's role in maintaining regulatory compliance and transparency in urban development projects, thereby protecting the rights and investments of all affected parties.
Bottom line:-
Grant of licence under Section 3 of the Haryana Development and Regulation of Urban Areas Act, 1975 - Licence issued to a party not owning the land at the relevant time is in violation of Section 3 of the Act, which mandates that the licence can only be granted to the owner of the land with clear title.
Statutory provision(s): Haryana Development and Regulation of Urban Areas Act, 1975 Sections 3, 8
