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Manesar land scam: Group housing sites, apartments set to go under the hammer
The ball was set rolling for the first-ever auction after the SC in 2022 made it clear that where collaboration agreements were entered into or developmental rights were parted for valuable consideration or licences were applied during the suspect period, the transactions would fall within the mischief of transfer
The first-ever auction of the Gurugram properties handed over to the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) following a 2018 Supreme Court (SC) order in the Manesar land scam is on the cards.
The SC, in its 2018 order, set aside August 24, 2007, decision of the Bhupinder Singh Hooda-led Congress regime in Haryana to drop acquisition proceedings for 688 acres in Manesar, terming it as a clear case of fraud on power. Before that, in 2015, the apex court had ordered a CBI investigation into the scam. Hooda and others are facing trial before a CBI court in Panchkula.
The top court in its 2018 judgment had ruled that the award for this land is deemed to have been passed on August 26, 2007, and 688 acres of prime land shall vest in HSIIDC. All licenses granted in respect of lands covered by the deemed award of August 26, 2007, will stand transferred to HSIIDC, the SC said.
HSIIDC officials said that two parcels of inventory – two group housing sites (GH-2 and GH-4) and 63 apartments in Express Greens towers - were being taken first up for e-auction to sell the land in HSIIDC’s possession. “This is the first sale transaction we are undertaking. The bid documents have been approved by the HSIIDC board of directors in its last meeting held at Chandigarh,’’ said an official.
What’s going under the hammer?
Officials said that two group housing sites measuring about 8.34 acres and 10.80 acres situated on Naurangpur road along the Delhi-Jaipur highway and 63 apartments in Express Greens will be put under the hammer. The bids for the group housing sites for the residential complex will be invited on as is where is basis. The reserve price approved by HSIIDC for 8.34 acres group housing site (GH-2) will be ₹135.61 crore, and for the 10.80 acres group housing site (GH-4) will be ₹175.61 crore.
The reserve price for 63 apartments in the Express Green towers which will also be put up for e-auction was finalised by the price fixation committee of the HSIIDC. The apartments are situated within a residential complex of 33 acres adjacent to residential sector 1 of IMT Manesar.
“There were 1,232 apartments constructed in 15 Express Greens towers and possession had been handed over to more than 700 allottees. Seven towers are at the M1 location, and eight are at the M1A location.
The 63 apartments – 23 in the M1 location and 40 in the M1A location were unsold, which became the property of HSIIDC after the SC orders of July 21, 2022,’’ said a state official.
As per the approved plan, 17 apartments (4 BHK) in the M1 location of Express Greens will be put up for auction at a reserve price of about ₹1.63 crore each, 32 apartments (3 BHK) in the M1A location will be put up for auction at a reserve price of about ₹1.32 crore each. Eight apartments (4 BHK) in the M1A location will be put under the hammer at a reserve price of about ₹1.61 crore each. Three apartments each of 2 BHK and 3 BHK in the M1 location will be put up for auction at a reserved price of about ₹1.08 crore and ₹1.25 crore each, respectively.
‘Mischief of transfer’ spelt out by SC
The ball for the first-ever auction of the “scam hit” properties was set rolling after the SC on July 21, 2022, made it amply clear that the expression ‘transfer’ used in its 2018 Manesar land case judgment was not confined to sale, lease or other encumbrance but also included development and collaboration agreements, as well as licences issued (for development) during the suspect period, whether or not in favour of the real estate developer.
The apex court while answering the applications of developers and others said the state’s decision not to go ahead with the acquisition was mala fide and amounted to fraud under the Land Acquisition Act.
The SC said that the expression ‘transfer’ has to be interpreted widely and not in a narrow or technical manner. “Thus, in all cases where collaboration agreements were entered into or developmental rights were parted for valuable consideration or where licences were applied for during the suspect period whether in favour of the original land owner who might have entered into a collaboration agreement and received monies, the transactions would fall within the mischief of transfer,” the SC bench headed by Justice UU Lalit had said.
Land not excluded from the deemed award
The SC said that as a corollary to its interpretation, lands covered by licences issued to Paradise (transferred to Green Heights); Karma Lakeland (for which collaboration was entered into with Unitech); Ram Pyari, Balbir Singh, Earl and Frontier (used by Godrej); Express Greens (DLF); Kalinga and Innovative amounted to transfer.
Rejecting the contentions of Express Greens to exclude the project from the deemed award, the SC directed HSIIDC to complete the process of validating the title of allottees, including the title to the undivided and proportionate land share, within six months.
Land excluded from the deemed award
The court held that the lands covered by Green Heights (2.68 acres) and Godrej project (13.74 acres), shall be excluded from the deemed award upon payment of about ₹13.40 crore and ₹67.36 crore, respectively, to the HSIIDC within six months from July 21, 2022, failing which interest at the rate of 6% per annum shall be levied from the date of default. It also ordered that land belonging to RP Estates (2.98 acres) and Subros (10.88 acres) stand excluded from the deemed award.
The top court said that the lands of Aditya Buildwell (ABW) shall form part of the deemed award and asked HSIIDC to refund the amounts payable to the allottees of the entire project (residential units, plots, commercial or shop space), within the next 12 months failing which interest at the rate of 6% per annum shall be levied from the date of default.
