HC directs JDA to allot full 5.38 kanals or alternate land to auction purchaser; imposes Rs 50,000 costs

27/02/2026

JAMMU, Feb 26: The High Court of Jammu & Kashmir and Ladakh has directed the Jammu Development Authority (JDA) to hand over possession of 5.38 kanals of land to an auction purchaser, either by delivering the available 5.01 kanals and allotting alternate land for the remaining portion, while imposing Rs 50,000 costs on the authority for misleading the court and retaining the petitioner's money for over 15 years.
Justice Wasim Sadiq Nargal passed the judgment in OWP No. 1386/2016 titled Changa Ram vs State of J&K & Ors, holding that the JDA could not penalise the petitioner for withholding further payment when the auctioned land was under encroachment at the time of allotment.
The petitioner, Changa Ram, had participated in a 2011 auction conducted by the JDA for land measuring 5.38 kanals at Chinor Chowk, Bantalab, Jammu, and was declared the highest bidder at Rs 41 lakh per kanal. He deposited Rs 5 lakh as earnest money and Rs 20.50 lakh as the first instalment.
However, he later discovered that the land was not free from encumbrances and was allegedly under encroachment, including a pucca structure. The petitioner contended that despite repeated representations, the JDA neither cleared the encroachment in time nor handed over possession, and instead sought to modify the payment schedule and threatened cancellation.
The JDA, on the other hand, argued that the petitioner had defaulted in payment as per the revised schedule and that the Letter of Intent stood cancelled. It admitted that a portion of the land was encroached but maintained that 5.01 kanals were available and could have been delivered on proportionate cost.
After examining the record and internal notings, the court observed that the existence of encroachment was acknowledged by the authority and that the petitioner had raised the issue at an early stage. The court held that once the factum of encroachment came to the knowledge of the petitioner, he could not be compelled to deposit the remaining amount for an encroached plot.
The court further noted that the JDA had retained Rs 25.50 lakh deposited by the petitioner since 2011 without either handing over possession or refunding the amount, describing the conduct as arbitrary and unjustified. It ruled that a public authority cannot take advantage of its own lapses to forfeit earnest money.
Allowing the petition, the court directed the JDA to calculate the sale consideration at the 2011 rates and prepare separate calculations for 5.01 kanals found free from encumbrances and for the remaining approximately 0.37 kanals to be allotted in the same vicinity or nearest adjacent area. The balance amount is to be deposited by the petitioner within one month of communication, following which possession is to be handed over within four weeks.
The court imposed costs of Rs 25,000 for misleading the court and another Rs 25,000 for inordinate delay and unjust retention of the petitioner's money, directing that the total Rs 50,000 be deposited with the Advocates' Welfare Fund within four weeks.
The petition was accordingly disposed of.

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