Housing Schemes, Price Fixation of Houses and Other Related Issues: A Study

Abstract

In various housing scheme launched by State through its instrumentality like ‘Housing Boards’, the issues relating to allotment, price fixation and other connected matters often arise, quite frequently resulting in litigation. Courts are called upon to decide these issues in accordance with rules and procedures formulated by the appropriate State Governments or the Boards authorised to frame rules. The recent instance of such a case is M.P. Griha Nirman Mandal Adhiniyam established under M.P. Griha Nirman Mandal Adhiniyam Act, 1972. The Board floated the “Housing Scheme” for allotment of (36) residential houses for the employees of the State Government and of public sector undertakings. The scheme was named as “Riviera Towne” in Bhopal. An advertisement was published in newspaper by the Board specifying the terms and conditions for allotment to the applicants. The Board fixed an ‘enhanced’ estimated cost, after the tentative cost and revised calculations and price determined, which was informed to the allottees to give their consent or dissent within (15) days from the date of issuance of the said communication. In the case of allottees failing to do so, they will not be allotted and amount already paid will be refunded to them with interest as per provisions of the Act. The enhanced rate was more than 30% of the original price. Apart from this, notified the price of the land for registration and the stamp duty in contravention of the law laid down by the courts. All then issues were the subject-matter of litigation in courts on various grounds.