The High Court of Delhi has directed the Government of National Capital Territory (GNCTD) to pay costs of ₹1,00,000 for its persistent failure to process a long-pending application for an alternative industrial plot under the Relocation Scheme of 1996 . Expressing deep frustration with the state’s repeated inaction, the Court ordered that the costs be recovered directly from the salaries of the officers responsible for the administrative stagnation . This latest development marks the fourth round of litigation for the petitioner , Central Footwear Company , which has been seeking an alternative site for its industrial unit for nearly two decades.

The genesis of the dispute lies in the petitioner 's initial application under the Relocation Scheme, a policy designed to move industrial units from non-conforming residential or commercial areas to designated industrial zones . In 2004 , the authorities rejected the application on the contention that the factory was situated in a conforming area , Udyog Nagar. However, the petitioner successfully challenged this decision, leading to a 2009 order where the court noted that the government itself had re-examined the matter and admitted the factory indeed fell within a non- conforming area . At that juncture, the authorities committed to processing the request, and the court directed a decision to be reached within two months. That order, which set the tone for the petitioner ’s expectations of relief, was never challenged by the government and therefore attained finality .

Despite the 2009 mandate, years passed without any significant action from the authorities. This forced the petitioner to approach the High Court again in 2015 . During the 2017 proceedings, it emerged that the government had misplaced the original files related to the application. Faced with this administrative failure, the court held that the absence of records could not absolve the state of its duty to comply with the 2009 order. The court then permitted the petitioner to prove the existence of its factory using alternative documentation, such as Sales Tax Registration certificates, which were subsequently verified as legitimate. Even after this evidentiary threshold was met, the government continued to stall, prompting a third petition in 2024 , in which the court directed the authorities to treat the plea as a formal representation and conduct a personal hearing. Instead of resolving the impasse, the government issued another rejection in August 2024 , citing the same grounds that had been previously invalidated by judicial scrutiny .

A Two-Decade Quest For Relocation

The history of this litigation illustrates the systemic difficulties faced by small-scale industrial units when engaging with government departments tasked with land relocation. For Central Footwear Company , the journey from an initial application filed in 1996 has been one of constant administrative pivots and reversals. The government’s shifting stance—initially acknowledging the eligibility of the unit and later reverting to claims that the unit was in a conforming area without providing fresh, substantiated evidence—has created a climate of uncertainty that the court found entirely unacceptable.

The government’s primary defense in the latest hearing was an attempt to backtrack on the earlier submission made before the court, suggesting that the initial admission regarding the factory’s location in a non- conforming area might have been incorrect. However, the court found this justification insufficient, particularly given the government’s failure to produce any contemporaneous records or evidence that would support such a reversal. Without the original files or any new material, the government’s attempt to relitigate settled facts was viewed by the bench as an obstructionist tactic rather than a genuine administrative exercise.

Judicial Finality And Administrative Indifference

In its detailed order, the court did not mince words regarding the institutional behavior of the respondents . Justice Amit Mahajan observed, "The conduct of the respondents in handling the present matter has been deplorable." The court underscored that the state machinery is expected to operate with diligence, especially when it has been explicitly directed by judicial authority to perform a specific function within a set timeframe. By allowing an application to languish for over fifteen years despite clear court orders, the respondents not only ignored the legal rights of the petitioner but also placed an undue burden on the judicial docket .

The court highlighted that administrative apathy has direct consequences on the functioning of the legal system. "The manner in which the matter has been dealt with reflects a complete disregard for the orders passed by this Court and has resulted in an avoidable wastage of valuable judicial time," the order noted. By choosing to impose costs , the court aimed to establish a measure of accountability that moves beyond standard notices and moves toward personal responsibility for the civil servants involved in the decision-making process.

Directives For Accountability And Financial Recovery

The directive to recover the ₹1,00,000 cost from the salaries of specific officers marks a shift toward enforcing accountability at the individual level within the GNCTD and the relevant industrial department. This measure is intended to ensure that the burden of the state's inefficiency does not fall solely on the public exchequer but also reflects the failures of those tasked with processing applications. The funds are to be paid to the Delhi High Court Legal Services Committee, ensuring the penalty serves the broader interest of legal accessibility.

The matter is now listed for February 2027 , by which time the court expects a resolution or a demonstrable step forward in the processing of the allotment. For the petitioner , the court's intervention provides a necessary shield against further administrative delay, yet the case stands as a reminder of the complex hurdles often faced in the implementation of state-led relocation policies. The outcome remains a significant assertion of the court’s authority to demand compliance and penalize those who prioritize procedural inertia over the rule of law . With the government now under strict instruction to finalize its position, the focus shifts toward whether the concerned departments will move to provide the promised industrial plot or whether further legal intervention will be required to settle the dispute once and for all.