Ansals get relief on development charge

Ansals get relief on development charge
Business Standard, February 16, 2009, page 11

Ansal Properties & Industries Ltd, which developed townships in Gurgaon, got substantial relief from the Supreme Court when it held that the demand of the Haryana government for Rs 61,000 per gross acre was “illegal, unjustified and unreasonable”. The director of town and country planning of the state had threatened to cancel the licence to the company if it did not pay the amount at the above rate towards external development charges, but actually on account of construction of internal community buildings.

There was a further stipulation that no such charge would be realised from the plot holders. The company challenged the demand in the Punjab and Haryana High Court, but it dismissed its writ petition. On appeal, the Supreme Court allowed the appeal and let the government adjust the refund towards the dues of the company.