Judgement of the Supreme Court of India regarding a public-private partnership project for the development of an area of 14.3 hectares of land at Tehkhand in South Delhi, 29/06/2016

Judgement of the Supreme Court of India in the matter of Delhi Development Authority Versus Kenneth Builders & Developers Ltd. & Others regarding a public-private partnership project for the development of an area of 14.3 hectares of prime land at Tehkhand in South Delhi for the construction of 750 premium residential flats in a self contained community to be sold by private real estate development on free sale basis. The appellant (Delhi Development Authority) is aggrieved by the judgment and order dated 30th July, 2010 passed by a Division Bench of the High Court of Delhi in W.P.(C) No. 10647 of 2009. The grievance of the DDA is that even though the High Court held that the project land was “Residential” as contended by the DDA, yet the High Court held that in the event construction activity thereon is not permitted by the Delhi Pollution Control Committee the developer (Kenneth Builders) would be entitled to a refund of the entire amount deposited with the DDA pursuant to the acceptance of the developer’s bid in an auction, along with interest thereon.

The appeal filed by the DDA is dismissed. The DDA should now refund the deposit made by Kenneth Builders with interest at 6% per annum calculated from 11th September, 2006 till realization.

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