HSVP should complete development work before selling plots: HRSC

The Haryana Right to Service Commission ordered HSVP to complete development works before e-auctioning plots, ensuring timely construction for buyers.

The Haryana Right to Service Commission (HRSC) on Friday directed the Haryana Shahri Vikas Pradhikaran (HSVP) to complete development works before selling plots through e-auction.

The commission said that necessary development works in the area must be completed before any plot is placed for e-auction so that allottees can start construction timely.

It stated that selling plots without carrying out development works was akin to lapse of service. The commission was hearing a petition filed by a Faridabad plot buyer, Keshav Sharma, who said that an offer of possession was made for a plot purchased through e-auction despite incomplete development works.

The commission said that necessary development works in the area must be completed before any plot is placed for e-auction so that allottees can start construction timely.

An HRSC spokesperson in a statement issued on Friday said that HSVP conducted e-auction without completing required development works and later issued an offer of possession, which was not in accordance with proper procedure.

Over the past few years, HSVP has earned thousands of crores of rupees through e-auctions and delay in development works not only cause financial losses but also creates dissatisfaction among allottees, it said.

The commission also advised HSVP to review its policy on payment of interest in cases where plots are purchased through e-auction. At present, such allottees receive only 5.5 percent annual simple interest, while those allotted plots through draw of lots receive 9 percent interest after three years. The commission said that a balanced and fair policy was needed in this regard.

The commission said the amount may initially be paid from HSVP’s funds and later recovered from the officials responsible.

It also observed that as per the allotment letter, HSVP must pay interest to the allottee if possession is not given within 30 days of receiving the application. However, in several cases in Faridabad such interest was not being paid and it was only after the commission’s intervention that HSVP started paying the interest.

HSVP officials did not respond on the matter by the time of going being uploaded online.