Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Royalty on Land Acquired by HUDA Haryana - Main Points and Insights
Policy on Allotment and Compensation:
The land acquired is for public purposes such as residential, commercial, institutional, and recreational development, with land vesting in the government or HUDA after acquisition ["Sandeep VS State of Haryana - Punjab and Haryana"], ["Vidya Devi VS State of Haryana - Punjab and Haryana"].
Scheme for Oustees and Co-owners:
The Supreme Court has dismissed HUDA's appeals, affirming that all co-owners are entitled to allotment of plots, emphasizing that the scheme applies collectively to co-owners ["HUDA & ANR. vs KESAR SINGH - Consumer National"], ["HUDA & ANR. vs KESAR SINGH - Consumer National"].
Land Valuation and Compensation:
Land acquired for development purposes is vested in the government or HUDA after the acquisition process, and compensation is paid accordingly ["Vidya Devi VS State of Haryana - Punjab and Haryana"], ["HUDA & ANR. vs KESAR SINGH - Consumer National"].
Legal and Procedural Aspects:
The courts have consistently upheld the rights of co-owners to receive plots, and HUDA's objections regarding ‘No Objection Certificates’ have been dismissed ["HUDA & ANR. vs KESAR SINGH - Consumer National"], ["HUDA & ANR. vs KESAR SINGH - Consumer National"].
Analysis and Conclusion
References:- ["Sandeep VS State of Haryana - Punjab and Haryana"]- ["Vidya Devi VS State of Haryana - Punjab and Haryana"]- ["HUDA & ANR. vs KESAR SINGH - Consumer National"]- ["HUDA & ANR. vs KESAR SINGH - Consumer National"]- ["HUDA & ANR. vs KESAR SINGH - Consumer National"]
In the bustling world of urban development in Haryana, the Haryana Urban Development Authority (HUDA), now known as Haryana Shehri Vikas Pradhikaran (HSVP), plays a pivotal role in acquiring land for sectors, housing, and infrastructure. But what happens when minerals like earth, rock, or spoil are extracted during this process? A common question arises: royalty on land acquired by HUDA Haryana—does HUDA owe royalties to the State for such extractions?
This blog delves into the legal nuances, drawing from key statutes and court precedents. While this provides general insights, consult a legal expert for advice tailored to your situation.
The cornerstone of mineral regulation in India is the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). Under this Act, the State holds ownership of all minerals within its territory. As clarified in relevant rulings, The State owns all minerals within its territory, and minerals vest with the State State Of Orissa VS Union Of India - 2000 7 Supreme 651.
Even government agencies like HUDA are not exempt. When land is acquired for development—such as laying out plots, roads, or infrastructure—and minerals are extracted, this typically qualifies as quarrying operations. Extraction for non-domestic purposes triggers royalty liability, irrespective of whether a lease or permit was obtained. The law states that extraction of minerals from land acquired by a government authority for development purposes triggers royalty liability, regardless of whether the authority holds a lease State Of Orissa VS Union Of India - 2000 7 Supreme 651.
Court precedents emphasize that entities like railways or urban development bodies cannot sidestep royalties. For instance, Railway could not escape from its liability from paying royalty chargeable by the State on the minerals when it utilized minerals from land acquired for laying railway lines State Of Orissa VS Union Of India - 2000 7 Supreme 651. By analogy, HUDA faces similar obligations when using extracted minerals for land leveling, boundary walls, or plot development.
The absence of a permit doesn't absolve liability: The absence of a lease or permit does not exempt the entity from paying royalties if minerals are extracted and utilized State Of Orissa VS Union Of India - 2000 7 Supreme 651. Unauthorized extraction may even invite penalties alongside royalties.
HUDA frequently acquires land under the Land Acquisition Act, 1894, for urban estates. During development, activities like leveling or constructing boundaries often involve mineral extraction. A Punjab and Haryana High Court case notes scenarios where contractors for HUDA handled construction of boundary wall around the land and levelling of the land THE ESTATE OFFICER HUDA FARIDABAD Vs SAMUNDER SINGH DECEASED AND ORS. - 2026 Supreme(Online)(P&H) 650. Such processes mirror quarrying, subjecting HUDA to royalties unless exempted.
In another context, land acquired vide notifications for HUDA sectors underscores that HUDA is merely an authority for use of which the land in question was acquired STATE OF HARYANA vs GRAM PANCHAYAT OF VILLAGE JHARSA ETC.. Minerals remain State property, reinforcing royalty duties during utilization.
Several High Court decisions provide context on HUDA's land dealings, indirectly highlighting development obligations:
These rulings, while focused on compensation and allotments, illustrate HUDA's role in systematic development, where mineral use incurs State dues. Co-owners' entitlements to plots were upheld without needing 'No Objection Certificates' in some consumer forums HUDA & ANR. vs KESAR SINGHHUDA & ANR. vs KESAR SINGH - Consumer National_NCDRC_RP_4236_2011).
Recent writs grant petitioners liberty to represent for oustee plots in sectors like Gurugram or Panchkula, directing authorities to decide expeditiously [Ram Chander VS State of Haryana - 2018 Supreme(P&H) 9 Reham Tula VS State of Haryana - 2018 Supreme(P&H) 33Sumit Singla VS State of Haryana - 2018 Supreme(P&H) 192Rajbal VS Haryana Urban Development Authority, Panchkula - 2018 Supreme(P&H) 185. This underscores procedural fairness but doesn't alter royalty rules for HUDA's operations.
Limited exemptions exist:- Bona fide domestic or agricultural use: Extraction for personal farming or home needs may be exempt State Of Orissa VS Union Of India - 2000 7 Supreme 651.- However, development activities—like laying tracks, roads, or plots—do not qualify. Minerals used for laying railway tracks, which are not for domestic or bona fide agricultural consumption, are considered quarrying operations State Of Orissa VS Union Of India - 2000 7 Supreme 651.
To navigate these obligations:- Obtain mining permits or leases before extraction.- Calculate royalties per MMDR Act rules and state concessions (e.g., Orissa Minor Mineral Concession Rules, 1990, as analogous State Of Orissa VS Union Of India - 2000 7 Supreme 651Haryana Urban Development Authority VS Sunita Rekhi: A. K. Jindal: Avtar Krishna Sood: D. R. Chadha: Gian Chand: Shalini Varshney - 1989 0 Supreme(SC) 253).- Document all extractions meticulously to avoid disputes.- Landowners (oustees) should pursue allotments via policies, while monitoring development for compliance.
In summary, HUDA typically must pay royalties for minerals extracted from acquired land used in development projects, per the MMDR Act. This ensures equitable resource management. For specific cases, especially involving recent acquisitions or policies, professional legal counsel is advisable.
Disclaimer: This article offers general information based on statutes and judgments like State Of Orissa VS Union Of India - 2000 7 Supreme 651 and Haryana Urban Development Authority VS Sunita Rekhi: A. K. Jindal: Avtar Krishna Sood: D. R. Chadha: Gian Chand: Shalini Varshney - 1989 0 Supreme(SC) 253. It is not legal advice; laws evolve, and outcomes depend on facts.
#HUDARoyalty #HaryanaLandLaw #MineralsRoyalty
In this policy, allotment of plots by Haryana Urban Development Authority and Haryana State Industrial Infrastructure Development Corporation Ltd. (HSIIDC) was also noted. Allotment was to be made to each co-sharer depending upon his share in the land acquired for HUDA and HSIIDC. ... On the basis of this policy issued by the State of Haryana, it was made applicable to the HUDA as well. The HUDA also issued separate instructions for framing a policy ....
Estate Officer-11, HUDA, Gurgaon reported that the possession of the land is taken by HUDA. 5. DTP, Gurgaon has reported that the planning of acquired land has been shown on Part Layout plan of sector-45, Gurgaon. ... The rate was fixed at Rs.3.5 lakhs per acre for chahi land for village Kanhai at that point of time and eventually compensation of Rs.12,27,47,937.60/- was assessed and the land was to vest in the ownership of the Haryana Governnment an....
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of decision: 20.01.2026 The Estate Officer, Haryana Urban Development Authority, now Haryana Sheri Vikas Pradhikaran, Sector 12, Faridabad ... When the plaintiffs contacted defendant No.7, he was informed that HUDA, Faridabad and defendants No.1 and 2 had given them contract for construction of boundary wall around the land and levelling of the land for construction of Christian Graveyard. ... It has been contended on behalf o....
land. ... The land in the present case was acquired vide notification dated 12.8.2003. ... R-1, vide which the market value of the land acquired out portion otherwise big chunk of land was acquired earlier and had even been span style="font-family:
HUDA is merely an authority for use of which the land in question was acquired. ... It pertains to four appeals which though were filed by the State of Haryana but by private counsels engaged at the cost of HUDA on the plea that interest of HUDA is to be watched as the land was acquired for use by HUDA. ... The land acquired earlier was also for the same purpose. ... The fact that interest o....
Learned counsel for HUDA submitted that there was no scheme introduced by HUDA to allot plots to the oustees in the wake of acquisition of their land by HUDA for its use for a public purpose during the days when this land was acquired. HUDA introduced scheme vide letter dated 10.9.87 Ex. ... Dl providing for the allotments of alternative sites to those whose land was acquired by HUDA for development. In CWP Nos. 34....
HUDA has taken an objection that the were applicable when the land was acquired . ... acquired. ... 'HUDA'). ... has been/is being acquired.
owned by land owners in that sector is acquired. ... ... (vi) Allotment of plots to the oustees will be made at the allotment rates advertised by the Haryana Urban Development Authority for that sector. Land owners will be given compensation for their land which is acquired. ... The HUDA is aggrieved of the decreetal of the suit, whereby, it has been directed to release the free-hold residential developed plot of 50 square yards in view of the fact that the #HL_START....
The issue as to whether each of the co-owners of the land acquired were entitled to allotment of a plot under the Scheme, is no longer res integra. In Haryana Urban Dev. Authority & Anr. vs. Bhagwan Singh & Ors. Etc. ... , on the ground that the Applicant had failed to furnish ‘No objection certificate’ from the other co-owners of the land acquired, the District Forum had directed HUDA not to insist on such ‘No-objection certificate’ and allot the said plot to the Applicant/Complaina....
HUDA, in lieu of the acquired lands belonging to the Complainant, on the ground that the Applicant had failed to furnish ‘No objection certificate’ from other co-owners of the land acquired by HUDA, the District Forum had directed HUDA not to insist on such ‘No objection certificate’ and issue an allotment ... The issue as to whether each of the co-owners of the land acquired were entitled to allotment of a plot under the Scheme, is no longer res in....
The factum of the potential location of the land as such or the in the neighbourhood the Haveli Tourist Complex was situated and there was a Mall constructed opposite was never denied. 6. As noticed the only defence was that the land is situated within the controlled area and the acquired area is to be used only for the public purpose for expansion and systematic development of Tourist Complex, OASIS at Uchana, Karnal. The plea was that as per the Haryana Government Policy, the petitioner was also entitled to get the royalty amount of the acquired land every year upto 33 years.#HL_....
The petitioner requested the respondents for the allotment of a plot under the oustees policy, but to no effect. The said land was acquired by the Government of Haryana for the development of Sectors 38, 39, 32 and 47, HUDA, Gurugram for residential purposes. State of Haryana framed the policies dated 10.9.1987, 9.5.1990, 18.3.1992, 7.12.2007 and 9.11.2010 for the allotment of plots to the landowners whose land was acquired by the Haryana Urban Development Authority (HUDA). 2. The petitioner was owner of the land measuring 12 kanal 5 marlas situated within the revenue estat....
2. The petitioner was owner of the land measuring 4 kanal 13 marlas situated at village Saketri, Panchkula. As per the certificate dated 10.7.2014 (Annexure P-2), the land of the petitioner fall in Sector 1, MDC Panchkula where the respondents had developed Gymkhana Club. The said land was acquired by the Haryana Urban Development Authority (HUDA) for the development of sectors 1 to 3, 5-B, 5-C and 6 for Panchkula Extension (MDC) as residential, commercial, institutional and recreational.
As per the certificate dated 24.4.2012 (Annexure P- 5), the land of the petitioner fall in Sector 1, MDC Panchkula where the respondents had developed Gymkhana Club. 2. The petitioner was owner of the land measuring 7 kanal situated at village Bhainsa Tibba, Panchkula. The said land was acquired by the Haryana Urban Development Authority (HUDA) for the development of sectors 1 to 3, 5-B, 5-C and 6 for Panchkula Extension (MDC) as residential, commercial, institutional and recreational.
2. The petitioner was owner in possession of the land measuring 1 kanal 7 marlas situated at Taraf Afghan, Tehsil and District Panipat. The said land was acquired by the Haryana Urban Development Authority (HUDA) for the development of residential sectors 11 and 12, HUDA, Panipat. The petitioner also applied for certification of acquisition of 75% land to the Tehsildar, Panipat vide application dated 24.2.2016 (Annexure P-1) which was duly certified by the concerned Patwari vide report dated 3.3.2016. The petitioner vide letter dated 27.2.2012 requested the Land Acquisition....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
