Uttarakhand HC quashes lease cancellation for SIIDCUL housing project

30 Sep 2024 CW Team

Amid discussions about the state government's plans to enact legislation aimed at limiting the acquisition of "surplus" land by "non-residents" in Uttarakhand, the High Court (HC) has addressed a petition related to the cancellation of a land lease granted to a residential project. The court annulled the directive from the authorities and mandated that they must issue a notice to the builder before initiating any proceedings.

The petitioner, Delhi Apartments (DAPL), was granted leases on five plots through the State Infrastructure & Industrial Development Corporation of Uttarakhand (SIIDCUL) in Haridwar for the development of residential apartments and commercial buildings. Construction has commenced on four of these plots, while work on the fifth plot has not yet begun, leading to the revocation of its lease.

The regional manager of SIIDCUL had canceled the lease deed on August 22, an action that the petitioner subsequently challenged in the HC. The petitioner’s legal counsel noted that DAPL had been awarded the lease for five plots in Sector 5A of SIIDCUL, Haridwar, and emphasized that the petitioner was not given an opportunity to be heard prior to the lease's cancellation.

During the last hearing on September 23, the HC instructed the respondents' counsel to clarify whether the petitioner had been afforded an opportunity to present their case before the lease cancellation. In the latest hearing, the SIIDCUL counsel informed the court that no show-cause notice was provided to the petitioner prior to the lease cancellation for the fifth plot.

Following the hearing, a single bench led by Pankaj Purohit annulled the August order and directed the respondents to address the issue only after allowing the petitioner a reasonable chance to be heard.

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