Rakesh Kumar Jain, J.

This petition is filed for seeking a writ in the nature of certiorari to quash the demand notice dated 3.10.2012 and 12.12.2012 issued by the Punjab Urban Planning and Development Authority (for short, 'PUDA') by which the petitioner has been asked to pay a sum of Rs. 3,72,77,203/- on account of non-construction of the building within the prescribed period.

2. In short, the petitioner was allotted a Retail site(C-4) by the PUDA at Amritsar in an auction held on 26.8.2008 measuring 26791.20 Sq. Yds. for an amount of Rs. 1,79,50,10,400/-. The relevant conditions in the allotment letter in regard to possession and ownership, construction of building and extension fee are as under:-

"4. POSSESSION AND OWNERSHIP:-

(i) The possession of the site will be given within 90(ninety) days from the date of issue of allotment letter. In case the allottee fails to take possession of the site within the stipulated period. It shall be deemed to have been handed over on the due date. The allottee shall be allowed to undertake construction after the possession of site is given subject to the sanction of building plans by PUDA.

5. CONSTRUCTION OF BUILDING:-

(i) The allottee wi