Punjab & Haryana High Court: Arbitrary Cancellation of Affordable Housing Plots by HSVP Violates Article 21
Court directs restoration of allotments, says housing is part of Right to Life under Constitution
HSVP fined ₹1 lakh per case for unjustified cancellation; judgment strengthens protection for homebuyers
By Our Legal Reporter
New Delhi: December 03, 2025:
In a landmark ruling, the Punjab and Haryana High Court have come down heavily on the Haryana Shahari Vikas Pradhikaran (HSVP) for arbitrarily cancelling affordable housing plot allotments made through e-auctions. The Court held that depriving citizens of housing without notice or reason violates the fundamental Right to Life under Article 21 of the Constitution of India.
The judgment, delivered by Justices Deepak Manchanda and Anupinder Singh Grewal, directed HSVP to restore the cancelled allotments and imposed costs of ₹1 lakh in each petition on the authority.
Background of the Case
- Petitioners had participated in HSVP’s e-auction scheme and were allotted residential plots.
- Symbolic possession was handed over, and payments were made in full.
- Without any notice, reason, or speaking order, HSVP cancelled the allotments and refunded the money.
- Aggrieved buyers approached the High Court, arguing that the cancellation was arbitrary and violated their constitutional rights.
Court’s Observations
The High Court strongly criticized HSVP’s conduct:
- Unjustified and arbitrary: Cancelling allotments without notice or reason is mala fide.
- Violation of Article 21: Affordable housing is integral to the Right to Life. Depriving citizens of homes infringes this right.
- Lifetime savings at stake: Petitioners had invested their entire savings, expecting to build homes. Arbitrary cancellation shattered their legitimate expectations.
- Administrative accountability: Public authorities must act fairly, transparently, and within the bounds of law.
The Court emphasized that housing is not a luxury, but a basic human need protected under the Constitution.
Importance of Article 21 in Housing Rights
Article 21 guarantees the Right to Life and Personal Liberty. Over the years, courts have expanded its scope to include:
- Right to shelter and housing.
- Right to live with dignity.
- Right to livelihood and health.
By linking affordable housing to Article 21, the High Court reinforced that citizens cannot be deprived of homes through arbitrary state action.
Implications of the Ruling
- For HSVP: The authority must restore allotments and pay costs. It cannot cancel plots without due process.
- For homebuyers: The ruling strengthens protection against arbitrary actions by housing authorities.
- For governance: The judgment sets a precedent that housing schemes must be implemented fairly and transparently.
Expert Opinions
Legal experts hailed the ruling as a milestone. “The Court has rightly recognized housing as part of the Right to Life. Arbitrary cancellations undermine trust in public institutions,” said a Chandigarh-based lawyer.
Urban policy analysts noted that the judgment will push housing authorities to adopt transparent and accountable practices.
Similar Cases
Also Read: Preity Zinta Wins ₹10 Crore Tax Battle: ITAT Mumbai Flags Major Reassessment Flaw
This ruling aligns with earlier judgments:
- Supreme Court (2010): Recognized shelter as a fundamental right under Article 21.
- Delhi High Court (2019): Quashed arbitrary cancellation of DDA allotments.
- Bombay High Court (2022): Held that housing authorities must provide reasons before cancelling allotments.
Together, these cases strengthen the constitutional protection of housing rights.
Practical Guidance for Homebuyers
To safeguard their rights, homebuyers should:
- Keep records of allotment letters, payment receipts, and possession documents.
- Challenge arbitrary cancellations in court.
- Demand speaking orders and transparency from housing authorities.
Conclusion
The Punjab and Haryana High Court’s ruling is a landmark in affordable housing jurisprudence. By quashing HSVP’s arbitrary cancellations and linking housing to Article 21, the Court has reinforced the principle that the state must protect, not deprive, citizens of their right to shelter.
This judgment not only restores justice to affected homebuyers but also sets a precedent for housing authorities across India. It underscores that housing is a constitutional right, not a privilege, and arbitrary state action will not be tolerated.
Also Read: Income Tax Department Cracks Down on Third-Party Credit Card Payments: Notices Issued Across India
Keywords for Faster Searches (Google + ChatGPT)
- Punjab Haryana High Court HSVP plot cancellation
- Affordable housing Article 21 India
- HSVP arbitrary cancellation quashed High Court
- Housing rights under Article 21 India
- Punjab Haryana HC housing judgment 2025
- HSVP fined ₹1 lakh plot cancellation
- Right to shelter constitutional law India
- High Court housing rights ruling India
- HSVP e-auction plot cancellation case
- Affordable housing protection India judiciary
Also Read: BookMyShow Wins Major Tax Relief: CESTAT Rules It Only Facilitates Ticketing, Not Trading