Case Note & Summary
The petitioner, Smt. S.P. Mahadevamma, applied for allotment of an EWS (Economically Weaker Section) site under the Bangalore Development Authority (BDA) scheme. Her application dated 10.10.2003 resulted in allotment of site no.1070 in IV T Block, Further Extension of BSK VI Stage, measuring 6 x 9 metres, vide allotment letter dated 5.2.2004. The BDA issued a No Objection Certificate (NOC) dated 04.02.2004 permitting her to mortgage the property to raise a loan of Rs.56,700/- to pay the site value. Subsequently, the BDA noticed a discrepancy in the income statements made by the petitioner in her application and the income certificate submitted. The BDA issued an endorsement dated 16.12.2005 calling upon the petitioner to appear for an explanation. The petitioner replied on 3.2.2006 stating that she had deposited Rs.10,000/-, Rs.25,000/-, and the balance of Rs.14,900/- under Challan No.12305 dated 3.2.2006 with Canara Bank, totalling Rs.49,900/-. By another letter dated 25.2.2006, she enclosed an NOC and sought execution of documents. The BDA, however, cancelled the allotment by order dated 25.8.2007 (Annexure-H) on the ground that the income certificate showed an annual income of Rs.11,000/- while the application mentioned a different figure. The petitioner challenged this cancellation by way of a writ petition under Articles 226 and 227 of the Constitution of India. The court observed that the BDA had not afforded the petitioner a proper opportunity of hearing before cancelling the allotment. The court noted that the petitioner had paid the full consideration and the discrepancy in income was explained. The court held that the impugned order was passed in violation of principles of natural justice and quashed the same. The court directed the BDA to execute the sale deed in favour of the petitioner upon payment of the balance amount, if any, within a specified period.
Headnote
A) Administrative Law - Natural Justice - Cancellation of Allotment - Bangalore Development Authority Act, 1976 - The BDA cancelled the allotment of an EWS site to the petitioner on the ground of discrepancy in income certificate without giving a proper opportunity of hearing. The court held that the impugned order was passed in violation of principles of natural justice and quashed it, directing the BDA to execute the sale deed upon payment of balance amount. (Paras 1-4) B) Property Law - Allotment of Site - Economic Weaker Section - Bangalore Development Authority Act, 1976 - The petitioner applied for an EWS site, was allotted site no.1070, and paid the full consideration. The BDA later cancelled the allotment citing income discrepancy. The court found that the petitioner had explained the discrepancy and had paid the full amount, and thus the cancellation was unjustified. (Paras 1-4)
Issue of Consideration
Whether the Bangalore Development Authority could cancel the allotment of an EWS site without affording the allottee a proper opportunity of hearing, and whether the discrepancy in income certificate justified cancellation.
Final Decision
The writ petition is allowed. The impugned order dated 25.8.2007 (Annexure-H) is quashed. The respondent-BDA is directed to execute the sale deed in favour of the petitioner upon payment of the balance amount, if any, within a period of four weeks from the date of receipt of a copy of this order.
Law Points
- Natural justice
- opportunity of hearing
- quasi-judicial authority
- cancellation of allotment without notice
- violation of principles of natural justice
