By the Court.—The Kanpur Development Authority, Kanpur (in brief the Authority) in the year 1975 launched a scheme known as Halwa Khanda Scheme for construction of some flats for persons belonging to economically weaker sections. It was also mentioned in the scheme that the cost of flats including the land had been fixed by the Authority to Rs. 5,675/- and allotment would be made by lottery. It was proposed in the scheme to construct 380 flats out of which 228 flats were to be allotted to general category, 76 flats were reserved and 76 flats were to be auctioned. It was also provided in the Scheme that subsidy of Rs. 1,000/- would be provided by the Authority towards each house/land which would be recovered by it from auction of commercial plots. The petitioners who were poor persons and belonged to economically weaker sections of society applied for allotment of one flat each under the aforesaid Halwa Khanda Scheme. Some of the petitioners had applied for allotment in the year 1980. The construction of the flats in Halwa Khanda scheme was completed in the year 1980 and 115 flats were allotted to different persons in the year 1980 at the price of Rs. 6,000/- for each flat. The remaining flats could not be allotted because immediately after completion of the flats they were occupied by unauthorised persons and anti social elements. However, these flats were got vacated by the Authority in the year 1985. Since the petitioners had already applied for allotment of flats, they moved an application for allotment of flats without any further delay. The flats were allotted to the petitioners in the year 1985 and in the allotment letter it was mentioned that now cost of each flat would be Rs. 12,200/- instead of Rs. 6,000/- for each flat. Further, the respondents demanded interest from the petitioners and total amount of Rs. 23,825/- demanded by letter dated 31-5-1995 was Rs. 6,220/- towards the balance cost of the flat and Rs. 17,525/- towards interest. The petitioners have filed this writ petition challenging the enhanced cost of the flats and demand of interest by the respondents.

2. We have heard Sri Sanjay Kumar Om, learned Counsel for the petitioners. Sri Pankaj Bhatia learned Counsel for the respondents has filed counter-affidavit on behalf of the respondents. Neither Sri Pankaj Bhatia nor Sri J.N. Sharma appeared though the matter has been taken up in the revised list.

3. In the counter-affidavit it has not been disputed by the Authority that under the Halwa Khanda Scheme for weaker sections of the society the flats were to be allotted at the price of Rs. 5,675/- and 115 flats were allotted for a sum of Rs. 6,000/- each in the year 1980. It has also not been disputed that other flats could not be allotted to the petitioners as they were in illegal occupation of unauthorised persons and the flats were got vacated in the year 1985 and thereafter they had been allotted to the petitioners. It is also not disputed in the counter-affidavit that the Vice Chairman of the Authority had appointed an assessment committee for assessing the cost of the flats on 23-3-1985. The assessment committee found that earlier the cost of the flat was Rs. 5,675/- which was estimated price of each flat. Each flat consists of one room, verandah, kitchen, back courtyard flush latrine and bathroom and thus final cost of each flat comes to Rs. 6,098/-. The committee also found that finishing works, such as construction of railing, plaster of walls, fittings of doors, window panes and toilet seats etc. had not been done which also involved expenditure of an amount equal to 20% to 25% of the total cost of each flat which is to be done in the flats. If the cost of finishing expenditure is calculated and deducted from the cost of each flat then final cost of each flat; would come to Rs. 4,880/-. The committee further found that the area on which the flats were constructed had not been properly developed as water and electricity supply was not available in