DEVENDER KANDHARI Vs. DDA

JUDGEMENT

(1.) Whenever a market is constructed by DDA certain percentage of shops is set aside for direct allotment, by draw of lots, at a fixed price to various reserved categories (SC/ST, physically handicapped persons, ex-servicemen etc.). Remaining are sold in the open market through tender and auction. Usually 57% of the shops are sold by auction or tender and 43% are put in the reserved category.

(2.) The price fixation committee of DDA determines the reserve price, i.e., the minimum price above which bids have to be made if shop is sold in the open market. It also determines the price at which shops are offered for sale by draw of lots in the reserved category. Needless to state, when sold in the open market, bids/quotations commence at the reserve price and go up if the bidders submit bids. Market forces come into play and consequently determine the final price. Per force, this price fluctuates from shop to shop. The intending purchaser is guided by the location of the shop, user prescribed, area of the shop, proximity to the residential houses etc. But in case of allotment in the reserved category all these factors are missing. There is no bidding. The reserve price is fixed. If there is only one applicant, he gets the shop. If there is plurality, he/she who is lucky at the draw of lots gets the shop at the reserved price.

(3.) Disposal of properties built up by DDA is governed by Delhi Development Authority (Management & Disposal of Housing Estates) Regulations 1968, framed under Section 57 of the Delhi Development Act 1957. Regulation 2(13) defines disposal price of a property to mean such price as may be fixed by the authority for said property.