Quark City developer’s super mega project: HC asks Punjab to maintain status quo

HC acted on firm’s plea challenging Punjab govt’s July 29 bid to take possession of its 1,047-acre land in Mohali’s Chotti Badi Naggal village

The Punjab and Haryana high court on Wednesday directed the Punjab government to maintain status quo on the possession of 1,047-acre land in Mohali’s Majri block where an international firm’s super mega project is planned.

After a dispute raised by the village panchayat in 2010, the Punjab govt had decided in its favour in 2021 and tried to take possession of the land on July 29 this year. Taking serious view of the matter, HC ordered status quo on the possession of the land and sought a response from the Punjab government by August 22. (Getty Images/iStockphoto)

The project belongs to M/s Fauja Singh Infrastructure Pvt Ltd. The firm is a subsidiary of M/s FE Holdings Mauritius Limited, which came in Punjab in 1999 and developed Quark City, an information technology special economic zone, in Phase 8, Industrial Area, Mohali.

The high court bench of justice AG Masih and justice Sandeep Moudgil acted on the firm’s plea, challenging the government’s July 29 attempt to take possession of the Majri block land.

In the plea, the firm submitted that it had invested ₹10, 000 crore in Punjab and provided 35,000 jobs in just 51 acres of development. It said Quark City project alone had resulted in ₹1,000-crore investment, with overall exports of ₹2,500 crore in the past over 20 years.

The plea stated that the firm had purchased the 1,047-acre land in Majri block’s Chotti Badi Naggal village for a super mega project through a memorandum of understanding (MoU) with the Punjab government.

Under the MoU, they were to develop the project in two phases between 1999 and 2005. Industrial parks, integrated townships, and eco and agro tourism projects, among others, were planned as part of the project.

The land was bought as per market value and the state earned huge revenue from the stamp duty, etc, firm’s lawyers, senior advocate Chetan Mittal and Kunal Mulwani told reporters.

After verification of the revenue record back then, no objections were raised by any authority and thereafter the firm was recorded as the owner.

However, the village panchayat raised a dispute in 2010. After 11 years, the state government decided in the panchayat’s favour in 2021 and notified the decision in June 2022.

On July 29, 2022, the state authorities suddenly tried to take forcible possession of the land pursuant to the decision, but without the 60-day notice, as per lawyers.

If at all, the state had to take possession, it should follow the due process of law and forcible possession cannot be taken by misusing state machinery, Mittal argued in court, further adding that the July development occurred due to the change of government in the state.

The firm’s lawyers informed the court further that it had a valid agreement under the super mega project category, and it cannot be penalised for no fault and particularly in the manner that the state authorities were acting.

The state’s counsel told the court that when declaration of ownership order was passed on June 8, 2022, the same day itself, warrants of possession were issued by the authority. However, the firm’s lawyers pointed out that without issuing a notice of eviction, the process could not have been initiated.

Taking serious view of the matter, the high court ordered status quo on the possession of the land and sought a response from the state government by August 22. The court also told the state’s advocate general to remain present on the adjourned date.