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Mohali: HC stays action against Lalru institute in Ballopur land case

The case stems from a complaint alleging that nearly 68 bighas and 14 biswas of shamlat land (common land) in Dera Bassi’s Ballopur village, which was leased out to the UES, was mortgaged to raise loans in violation of lease conditions

Published on: Jul 20, 2026, 08:20:02 IST
By , Mohali
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Days after a local court granted the president of the Universal Educational Society (UES) interim protection from arrest in the Ballopur shamlat land case, the Punjab and Haryana high court has directed the Punjab government that no coercive steps be taken against the UES pursuant to the rural development department’s move seeking cancellation of the institution’s change of land use (CLU) permission and withdrawal of its recognition by the higher education department.

According to the petition, the society was granted a 33-year lease by the Ballopur gram panchayat over 68 bighas and 14 biswas of shamlat land for establishing educational institutions. (HT File)
According to the petition, the society was granted a 33-year lease by the Ballopur gram panchayat over 68 bighas and 14 biswas of shamlat land for establishing educational institutions. (HT File)

The case stems from a complaint alleging that nearly 68 bighas and 14 biswas of shamlat land (common land) in Dera Bassi’s Ballopur village, which was leased out to the UES, was mortgaged to raise loans in violation of lease conditions. Police have already booked UES president Gurpreet Singh, a former sarpanch and two former panchayat members for cheating and forgery. On July 6, a local court granted interim bail to Gurpreet Singh, observing that custodial interrogation was not required after a Punjab National Bank (PNB) official clarified that the bank had never created an encumbrance over the ownership of the gram panchayat land.

According to the petition, the society was granted a 33-year lease by the Ballopur gram panchayat over 68 bighas and 14 biswas of shamlat land for establishing educational institutions. The society submitted that it currently runs around 11 colleges on the leased land, along with 42 bighas owned by the society.

The petition states that on July 2, the directorate of rural development and panchayats directed the senior town planner of SAS Nagar to cancel the no-objection certificate (NOC) issued for the educational institution for the change of land use in respect of the leased land. Four days later, on July 6, the department wrote to the Punjab higher education director, recommending cancellation of the society’s recognition.

These administrative actions followed departmental proceedings initiated after the government decided to cancel the lease deed executed in favour of the society and commence proceedings under Section 10-A of the Punjab Village Common Lands (Regulation) Act, 1961.

The society argued before the HC that the department proceeded without issuing any notice or granting an opportunity to be heard, violating the principles of natural justice. It also relied on proceedings in the criminal case, where Punjab National Bank informed the court that it had never created any encumbrance over the ownership of the gram panchayat land, asserting that only leasehold rights existed and additional personal properties had been furnished as security for loans.

After hearing the matter on July 17, a division bench of Justice Jasgurpreet Singh Puri and Justice Sanjiv Berry issued notice to the Punjab government and observed that the petition raised a prima facie issue regarding compliance with natural justice. The bench granted interim relief, directing that no coercive steps be taken against the UES until the next date of hearing. The matter will be heard on Monday.