The recent ruling by the Delhi High Court on the EWS Flats Pricing Dispute has brought clarity to the case involving 21 petitioners. The dispute revolves around the demand letter for the final amount for allotted EWS flats in Sector-19B, Dwarka, Phase-II. The petition seeks to quash the Notification dated 16 November, 2020, and the amendment in Clause 4.4.3B(v) of the Master Plan of Delhi, 2021. Let’s delve into the details of this legal battle over housing pricing.
Facts
- 21 Petitioners filed a petition challenging the demand letter for the final amount of Rs. 25.28 lakhs for allotted EWS flats.
- The tentative disposal price of each EWS flat in Sector-19B, Dwarka, Phase-II, was Rs. 26 lakhs as per the Scheme of 2023.
- There are 728 flats in the Group Housing constructed in Sector-19B, Dwarka, Phase-II under the Scheme of 2023.
- Petitioner No. 1 received a final demand letter dated 10 February, 2024, for Rs. 25.28 lakhs approximately.
- The petition seeks to quash the Notification dated 16 November, 2020, and the amendment in Clause 4.4.3B(v) of the Master Plan of Delhi, 2021.
- They also request a revision of the flat costing as per the earlier notification from Ministry of Urban Development.
- The Scheme of 2023, ‘Diwali Special Housing Scheme, 2023’ auctioned flats under the EWS category.
- The petitioners applied for EWS flats under the Scheme in Sector-19B, Dwarka, Phase-II, on a ‘First Come First Serve’ basis.
- Agenda No 29/2020, dated 14 July, 2020, proposed amendments to Clause 4.4.3B(v) and invited objections through a public notification dated 14 February, 2020.
Arguments
- The CPWD cost index was only applicable for determining the sale consideration in the initial transaction between DE and DDA.
- The Notification dated 14 February, 2020, stated that flats would be allotted to EWS allottees at rates prescribed by DDA.
- The final amendment dated 16 November, 2020, aligns with the Notification from February 2020.
- DDA proposed an amendment to reduce the burden of dual stamp duty by having DE directly sell units to EWS allottees to ensure payment of stamp duty only once.
- The demand letters issued to Petitioner No 1 are in conformity with the tentative disposal price declared by Original Name in its brochure for Scheme of 2023.
- Petitioner No 1’s contention that the amendment was carried out without inviting objections from the public as mandated by Section 11A of DD Act is refuted.
- Challenging the demand after securing the allotment is deemed untenable by the court.
Analysis
- DDA’s stand is that the prices for the EWS flats are as per DDA policy and in conformity with the final amended Clause 4.4.3B(v) of the MPD.
- The modification of the original Clause 4.4.3B(v) was done to simplify the process of transfer of EWS flats directly from DE to EWS allottees identified by DDA.
- The amendment aimed to eliminate the dual process of transferring EWS flats first to DDA and then to eligible EWS allottees.
- The determination of costs based on CPWD index was no longer relevant after the discontinuation of the initial transfer of EWS flats between DE and DDA.
- The amendment proposed that the transfer from DE to EWS allottees identified by DDA would be at rates prescribed by DDA, as published in the Notification dated 14 February, 2020.
- The final handing/taking over of the EWS housing component would be subject to fulfilling quality assurance requirements.
- The Notification proposing the amendment was duly published for inviting objections under Section 11A of the Delhi Development Act, 1957.
- The proposal of direct transfer between the DE and the EWS allottee made the prescription of CPWD rates redundant and unnecessary.
- The original Clause 4.4.3B(v) in the MPD did not regulate the price of transfer between DDA and EWS allottee.
Decision
- The Petitioners participated in the Scheme of 2023 without any reservation to the price declared in the brochure.
- The challenge to the impugned demand in the allotment letter is considered an afterthought.
- The Petitioners have not raised any valid grounds to challenge the price fixed for the EWS flats.
- The tentative price for each EWS flat in the Project was declared at Rs. 26 lakhs in the brochure.
- The final demand notice received by the Petitioners is Rs. 25,28,675/- lakhs, which is in conformity with the Scheme and MPD.
Case Title: KANIKA SINGHAL & ORS. Vs. DELHI DEVELOPMENT AUTHORITY & ANR. (2024:DHC:3814-DB)
Case Number: W.P.(C)-6450/2024
