REPLY AND REPRESENTATION AGAINST A SHOW CAUSE NOTICE FOR ALLEGED MISUSE OF A SITE OR BUILDING
(Filed in answer to a notice issued under Rule 10 of the Chandigarh Estate Rules, 2007)
To
The Estate Officer, Union Territory, Chandigarh
Town Hall Building, Sector 17-C, Chandigarh 160017
Date: 9 April 2026
Place: Chandigarh
SUBJECT: Reply and representation on behalf of Harpreet Singh Bedi to Show Cause Notice No. EO/SDM(C)/Misuse/2026/4417 dated 6 April 2026, issued under Rule 10 of the Chandigarh Estate Rules, 2007, in respect of House No. 1234, Sector 21-B, Chandigarh
Sir / Madam,
The Noticee respectfully submits this reply and representation to the show cause notice described above, which was received on 7 April 2026, and states as follows. This reply is filed without prejudice. Nothing in it is to be read as an admission that any misuse of the Property has occurred or subsists, and every allegation contained in the notice which is not expressly admitted below is denied.
PART I — THE NOTICEE AND THE PROPERTY
1. The Noticee. Harpreet Singh Bedi, son of Sardar Gurbachan Singh Bedi, resident of House No. 1234, Sector 21-B, Chandigarh 160022, telephone +91 XXXXX XXXXX, e-mail harpreet.bedi@example.com, who is the allottee of the Property; and Jasleen Kaur Bedi, son of Harpreet Singh Bedi, resident of House No. 1234, Sector 21-B, Chandigarh 160022, who is the allottee of the Property (together, the Noticee, whether one person or more).
2. Appearance and service. The Noticee appears and will continue to appear in these proceedings, in person or through a duly authorised representative. The Noticee is represented in this matter by Neha Arora, Advocate, of Chamber No. 214, District Courts, Sector 43, Chandigarh, whose authority in writing accompanies this reply. Every notice, summons, order and communication in this matter may be served on the Noticee at the address given in paragraph 1 above, and service at that address shall be good service. The Noticee requests that a copy of every order passed in this matter be supplied, so that the thirty days allowed for an appeal under section 10 of the Capital of Punjab (Development and Regulation) Act, 1952 and under Rule 18 of the Chandigarh Estate Rules, 2007 run from an order actually communicated.
3. The Property. House No. 1234, Sector 21-B, Chandigarh, being a residential site, carried on the record of this Office under Property ID CHD/EO/21B/1234, held on freehold tenure, measuring 500 square yards (10 marla), with a covered area of 2,400 square feet (the Property), described more fully in the Schedule at the end of this reply.
4. How the Property is held. The Property came to the Noticee by way of original allotment by the Estate Office, the original allotment having been made vide Allotment Letter No. EO/AL/1972/8891 dated 1 April 2026, possession having been delivered on 3 April 2026. The allotment letter, and every document evidencing the Noticee's title to the Property, already forms part of the record of this Office, and copies are produced with this reply for convenience.
5. The purpose for which the Property was allotted. The purpose recorded in the allotment letter is residential purposes, and it is that record, and not any assumption about the character of the sector, which fixes the permitted use for the purposes of Rule 9(i) of the Chandigarh Estate Rules, 2007. The trade category recorded for the Property, in the words used in the allotment letter or in the terms and conditions of auction, is General Trade. The Noticee relies on Rule 9(ii) and Rule 9(iii) of the said Rules, under which the Estate Officer may, instead of specifying a particular trade or industry, specify only that the transferee shall not carry on any trade or industry other than General Trade or Special Trade as the case may be, those expressions meaning one or more of the trades respectively listed in Parts A and B of the Schedule appended to those Rules. Where a site has been allotted for a trade category and not for a single named trade, any trade falling within that category is a permitted use and its carrying on is not a misuse; and where the allotment predates the 2007 Rules, the corresponding category in the rules then in force governs. The Noticee also relies on a decision of the Punjab and Haryana High Court dated 2 July 2024 in the writ petition of Aneet Gill and another against the Union Territory of Chandigarh, in which misuse charges levied on a shop-cum-office allotted for general trade were set aside on the footing that the site had been allotted for a trade category and not for any single specified trade. The Noticee does not at the date of this reply have the writ petition number or the neutral citation of that decision, does not rely on any particular direction said to have been made in it, and undertakes to place an authenticated copy on the file at or before the hearing; until then this Office is asked to treat the reference as a submission to be verified rather than as an authority already proved. The building standing on the Property was erected on plans sanctioned as follows: Building plan No. BP/21B/1234 sanctioned on 12 March 1998. The occupation certificate in respect of the building bears No. OC/EO/2001/3378, and a copy of it is enclosed.
PART II — THE NOTICE TO WHICH THIS IS A REPLY
6. The notice. Show Cause Notice No. EO/SDM(C)/Misuse/2026/4417 dated 6 April 2026, issued under Rule 10 of the Chandigarh Estate Rules, 2007, was received by the Noticee on 7 April 2026. The notice calls upon the Noticee to show cause on or before 8 April 2026. Rule 10(i) of the Chandigarh Estate Rules, 2007 requires a notice of a period of not less than fifteen days; and if the period between the date the notice bears and that date is less than fifteen days, the Noticee objects to the notice on that ground and asks that the objection be recorded. The notice fixes 10 April 2026 for hearing. This reply is filed within the period allowed by the notice, and the Noticee prays that it be taken on the record of the file and considered before any order is made.
7. What the notice alleges. The substance of the allegation, as the Noticee understands it from the notice, is this: That the ground floor of the said house is being used for running a commercial coaching institute under the name and style of a tuition centre, in violation of the residential purpose for which the site was allotted, and that misuse charges are accordingly leviable. The area said to be under misuse is stated in the notice as 450 square feet (as stated in the notice; no measurement plan accompanies it). The period over which the alleged misuse is said to have continued is stated as from January 2025 to the date of the notice. The notice quantifies the charges said to be payable at ₹31,50,000 (Rupees Thirty One Lakh Fifty Thousand only). The notice proceeds upon an inspection of the Property said to have been carried out on 2 April 2026.
8. The Noticee's answer, in one sentence. The case of the Noticee is that there is no misuse of the Property at all and the allegation in the notice is factually incorrect.
PART III — PRELIMINARY SUBMISSIONS
9. What Rule 10 requires this Office to do. Rule 10(i) of the Chandigarh Estate Rules, 2007 provides that when a misuse of a site or building under Rule 9 is reported or comes to the notice of the Estate Officer, a notice of a period of not less than fifteen days shall be served on the allottee or lessee and on the occupier requiring that they shall, within a period of two months, remove the said misuse and pay monthly charges at Rs. 500 per square foot of the area under misuse, jointly and severally, for every month or part of a month during which the misuse occurs. Rule 10(ii) requires this Office, after affording an opportunity of being heard to the allottee or lessee and to the occupier, to determine whether or not the misuse has been removed. Rule 10(iii) permits recourse to section 8-A of the Act only if, after the expiry of two months from the notice, and after a further opportunity of being heard, the Estate Officer is satisfied that the misuse continues. Rule 10(iv) allows the period for removal to be extended beyond two months and up to six months where the misuse is on the part of the occupier, or where it cannot be removed unless certain acts are done by the occupier. Rule 10(v) makes established misuse charges payable within fifteen days of the order, with interest at one and a half per cent for each month of delay or part of it. The Noticee respectfully submits that each of those steps is a condition of a valid order, and that the opportunity of being heard which Rules 10(ii) and 10(iii) require is a hearing on the question whether misuse exists at all, and not merely on the amount.
10. Resumption and forfeiture under section 8-A of the Act. The Noticee notes that the notice in terms invokes section 8-A of the Capital of Punjab (Development and Regulation) Act, 1952. Section 8-A(1) of the Capital of Punjab (Development and Regulation) Act, 1952, inserted by the Capital of Punjab (Development and Regulation) (Chandigarh Amendment) Act, 1973 (Central Act No. 17 of 1973), empowers the Estate Officer to call upon a transferee who has failed to pay the consideration money or an instalment of it, or who has committed a breach of any other condition of the sale, to show cause why an order of resumption of the site or building, and forfeiture of the whole or part of the money paid, should not be made — the forfeiture in no case exceeding ten per cent of the total amount of the consideration money, interest and other dues. Section 8-A(2) requires the Estate Officer, before making such an order, to consider the cause shown and any evidence produced, to give a reasonable opportunity of being heard, and to record reasons in writing. What section 8-A authorises, therefore, is resumption and a capped forfeiture; it does not by itself authorise the levy of a monthly charge for misuse. The Noticee respectfully submits that a notice which invokes section 8-A cannot be used to impose a monthly charge, and prays that this Office record in its order the provision under which any charge is levied. Whatever else the notice invokes, resumption is a last resort. Rule 10(iii) of the Chandigarh Estate Rules, 2007 permits recourse to section 8-A only after the expiry of two months from the notice, only after a further opportunity of being heard, and only on recorded satisfaction that the misuse continues. Should this Office at any stage propose to proceed to the resumption of the Property or to the forfeiture of any money, the Noticee asks to be told so distinctly and to be heard separately on that question.