Supreme Court directs re-scrutiny and fresh demarcation in long-pending Okhla Enclave allotment matter; allows limited relaxation for general-category allottees

A bench of Justices Vikram Nath and Prasanna B. Varale heard a batch of interlocutory applications arising out of Writ Petition (Civil) No. 876 of 1996 concerning allotments in the Okhla Enclave residential project, Faridabad. The Court considered applications for impleadment, clarification and directions after acceptance of the Special Committee’s report dated 16.01.2023 and addressed requests that the Special Committee chaired by Justice Vikramjit Sen should continue further scrutiny.

The Court modified earlier directions to permit certain general-category allottees, who were earlier found ineligible on account of multiple family claims, to participate in the second round of scrutiny. It directed the Special Committee to reopen and scrutinise specified applications (including the remaining 480 of the 492 allottees represented by an association) and asked the State of Haryana to prepare a fresh layout and demarcate plots so as to maximise the number of eligible allottees. The Court recorded several administrative directions — including that the State treat 65% of the land share as available for plotted development, remove encroachments, initiate scrutiny of commercial claimants within two weeks, and that the colonizer pay amounts due under the Court’s 03.10.2019 order within six weeks. The Court also requested the Special Committee to commence the second phase of scrutiny and to fix its terms of engagement. The Court, in its reasoning, observed: "The criterion laid by the Special Committee, which has been accepted by the Hon'ble Supreme Court, is that persons who have paid the land costs and development charges on or before the cut-off dates and have only one claim from one family will be allotted a plot."

Background The dispute arose after M/s Durga Builders sold plots in a Faridabad colony under licences from the Haryana Town and Country Planning authority, with mandated allotment categories for EWS (20%), NPNL (25%) and the balance for the open market (with profit cap). Allottees alleged breach of allotment terms and initiated litigation before this Court in 1996. In 2016 the Court appointed a Special Committee under retired Justice Vikramjit Sen, assisted by a Scrutiny Committee, to resolve thousands of claims. The Special Committee submitted its report in January 2023, which this Court accepted in July 2023; the Committee later tendered resignation, but agreed to continue to consider further applications on the Court’s request.

Numerous interlocutory applications were filed by various plot-holders’ associations and individual allottees seeking intervention, impleadment, correction of lists and directions. The Court examined categories of applications: (i) those by general-category allottees who had paid market rates but had been disqualified for multiple family claims; (ii) cases where allottees had not submitted to the Special Committee’s scrutiny; and (iii) miscellaneous commercial and third-party disputes. The Court accepted the Special Committee’s core principle that it could not adjudicate claims of persons who had not submitted to its jurisdiction and affirmed the requirement of payment by cut-off dates and single-family claims for eligibility, noting that "The Special Committee cannot grant or refuse relief to persons who have not submitted to the jurisdiction of the Special Committee." The Court allowed modification of its 03.10.2019 order to permit affected general-category allottees to participate in the second scrutiny round, directed absent allottees to appear before the Scrutiny Committee within four weeks, and provided liberty to parties with third-party commercial disputes to seek relief in appropriate fora. The Court disposed of multiple IAs as infructuous or granted limited relief where warranted, and issued timelines for demarcation, layout revision (10 weeks), and payments by the colonizer (6 weeks). The Special Committee was requested to finalise lists and commence the second-phase scrutiny.

Case Details: Case No.: 2025 INSC 573 (Misc. Application No.1290 of 2022 in W.P.(C) No. 876 of 1996) Case Title: Okhla Enclave Plot Holders Welfare Association v. Union of India through Secretary & Ors. Appearances: For the Petitioner(s): Ms. Rashmi Nandakumar (Amicus Curiae); Ram Lal Roy; Ranbir Singh Yadav; Kaushal Yadav; Vikas Upadhyay; Gautam Narayan; Piyush Sharma; Sanjay Jain; Aftab Ali Khan; Varun Mishra; Jinendra Jain; Manisha Ambwani. For the Respondent(s): Counsel for the State of Haryana / Director, Town & Country Planning (DTCP) and Central respondents (names as recorded in the judgment).