High Court raps HSVP, says due diligence must precede plot auctions

The Court’s observation came during a hearing of a writ petition filed by a Faridabad resident who had been denied possession of a residential plot that he had fully paid for nearly two years prior.

A Division Bench comprising Justice Anupinder Singh Grewal and Justice Deepak Manchanda issued notice to HSVP after finding merit in the grievance raised by the petitioner, Anil Raina, whom Advocate Sumit Gehlot represented.

According to the petition, HSVP conducted an E-auction in August 2022 for residential plots in Sector 77, Faridabad, where Raina emerged as the highest bidder for a 200-square-yard plot.

Believing his long-cherished dream of owning a home was about to be realised, he promptly paid nearly one crore, largely financed through a bank loan.

In March 2023, HSVP issued the allotment and offer of possession letters, raising hopes that possession would soon follow. However, despite repeated visits, written representations, and reminders to the Estate Office, the petitioner received no response.

The Estate Office later cited pending development work, as well as remarkably incomplete electrification, as the reason for the delay.

The situation took a turn when, in July 2025, the Estate Officer abruptly rejected the petitioner’s claim, stating that the plot “fell on unacquired land.”

This revelation, coming nearly three years after the auction, left the allottee “traumatised”, as he continued to pay EMIs for a property he never received possession of.

Advocate Sumit Gehlot, appearing for the petitioner, strongly argued that HSVP’s conduct was arbitrary, negligent, and violative of public trust, especially since the authority had already collected the entire sale consideration and issued formal possession documents.

He stated before the Court that his client’s life savings had been invested in the property and that he continues to pay EMIs on a loan taken to secure a plot that never materialised.

Gehlot further contended that HSVP’s failure to verify land acquisition status before auctioning plots amounts to gross administrative failure and an unfair practice against bona fide allottees.

Taking cognisance and issuing notice of the matter, the High Court noted that HSVP “ought to have exercised due diligence before putting the plot to auction“.