LALITHAMMA P. THIPPESWAMY Vs. BELGAUM URBAN DEVELOPMENT AUTHORITY

JUDGEMENT

(1.) On 17/9/1993, the petitioner was allotted a site bearing No.286 measuring 40 feet X 60 feet under Scheme No.40 in R.S.No.9 of Belagavi. On 4/7/1994, a lease-cum-sale-agreement was executed and registered by the respondent in favour of petitioner.

(2.) Rule 19(6) of the Karnataka Urban Development Authorities (Allotment of Sites) Rules, 1991 (for short, 'the Rules') mandate that the allottee should construct a building within a period of five years from the date of execution of the agreement or such extended period as the authority may be specified case by way of written order. The Rule stipulates that, if the building is not constructed within a period of five years, the allotment may be cancelled after reasonable notice to the allottee and also the agreement can also be revoked and the lease be determined and the allotted be evicted from the site. The Rule also stipulates that thereafter the authority can forfeit 12.5 % of the value of the site paid by the allottee and refund the balance to the allottee.

(3.) Thus, sub rule 6 of Rule 19 of Rules confers power on the authority to revoke the lease-cum-sale- agreement if the building is not constructed within a period of five years, with a stipulation that on said revocation 12.5% of the value of the site paid by the allottee would be forfeited and balance be refunded to the alltotee.