The court upheld the legality of increased land costs under the Relocation of Industries Scheme, emphasizing the consequences of delay and the contractual obligation to comply with revised pricing terms.

JUDGMENT

Subramonium Prasad, J. The present LPA arises out of the Impugned Order dated 12.10.2020 passed by the Ld. Single Judge in W.P. (C) 7748/2020.

2. The facts leading to the filing of the instant LPA are that the Appellant is the proprietor of M/s Surjeet Printers, established in 1989 at the address 7K, Kolhapur Road, Delhi. The Hon'ble Supreme Court in 1996 had issued directions to relocate industries in non-conforming and residential areas to areas earmarked for industrial purposes. For the purpose of allotting new land, the industrial areas were earmarked for development including Bawana-II (Bhorgarh)

3. In compliance with the aforesaid directions, Respondent No.1/Government of NCT of Delhi through the Department of Industries floated the Scheme of Relocation of Industries (hereinafter referred to as "the Scheme") and appointed Respondent No. 2/Delhi State Industrial & Infrastructure Development Corporation Limited as the implementing agency for purposes of the Scheme.

4. The Appellant accordingly applied for allotment of land under the Scheme, through application number 51937, on 20.12.1996. In compliance with the conditions stipulated in the application, M/s Surjeet Printers deposited the earnest money of Rs.1,20,000/-. They also submitted the requisite documents annexed to the application form to meet the requisite conditions of the application process.

5. The Appellant was declared eligible as per the provisions of the Scheme. The Appellant, therefore, was allotted land admeasuring 250 square metres at the rate of Rs.4,200/- per square meter, as per terms of the confirmation letter dated 28.07.2006.

6. The Relocation Division of Respondent No. 2/DSIIDC provisionally allotted land measuring 250 square meters, to the Appellant on 28.07.2006. Paragraph No.2 of the provisional allotment letter indicates the tentative cost of said land was to be Rs.4200/- per square meter, and is subject to revision taking into consideration the developmental costs of land in other industrial areas. Subsequently, vide a letter dated 19.01.2007, the Appellant was finally allotted the land under the Scheme, albeit by this date, the Respondent authorities revised the cost of land to Rs.5,150/- per square meter. Paragraph 3(i) of this letter directs the allottee (the Appellant) to deposit 50% of the total cost of land at the rate of Rs.5150/- per square meter, while the rest of the 50% cost was left to be recovered through a subsequent intimation. The Appellant duly complied with the aforesaid direction, depositing Rs.5,23,750/- (being 50% of the total cost calculated at Rs.5,150/- per square meter) through a voucher of Respondent No. 1, dated 16.03.2007. Thereafter, the Respondent No. 1/GNCTD through a circular dated 17.08.2010 notified the revised cost of land situated in Bawana-II industrial areas to be Rs.15,566/- per square meter.

7. After one month from the date of issuance of the above Circular, Respondent No. 2 vide a letter dated 17.09.2010 raised a demand on M/s Surjeet Publications to recover the remaining 50% of cost of land at a no profit no loss rate of Rs.15,566/- per square meter. The letter provides a break-up of costs adding up to the revised amount, which is stated as follows: