Cryptic show-cause notices violate natural justice; zoning-affected licensees are entitled to alternate site consideration.

The Petitioner was allotted SKO/LDO Depot site no. 2, Vasant Vihar, New Delhi, for storing petroleum products.

Following the ban on kerosene in Delhi, the Petitioner sought to establish a CNG facility and obtained a Letter of Intent from Indraprastha Gas Limited and a No-Objection Certificate (NOC) from the Respondent (DDA) in 2016.

On 14.11.2018, the DDA issued a show-cause notice (SCN) alleging illegal construction and encroachment on public land.

Although the Petitioner replied on 24.01.2019 stating the unauthorized construction was removed, the DDA passed a cancellation order on 06.02.2019/07.02.2019, claiming no reply was filed.

In 2022, the Court directed DDA to consider the Petitioner’s representation for an alternative site.

DDA rejected this on 19.01.2023, asserting the site fell within a "District Park" (where CNG stations are prohibited under MPD-2021) and that the Petitioner did not meet policy criteria for relocation.

1. Whether the show-cause notice and subsequent cancellation order were void for violating the principles of natural justice and being cryptic in nature.

2. Whether the Petitioner is entitled to the allotment of an alternative site under the extant policy following the classification of the original site as a District Park.

Principles of natural justice regarding the adequacy of a show-cause notice, relying on Gorkha Security Services v. Govt. (NCT of Delhi) (2014) 9 SCC 105, which mandates that a noticee must be informed of precise allegations and the proposed penalty to ensure a meaningful opportunity to respond.

Clause 12.13 of the Master Plan for Delhi (MPD-2021), which prohibits CNG stations in developed district parks.

The Court found that the Respondent’s cancellation order was procedurally flawed as it claimed no reply was received, whereas the DDA’s own counter-affidavit and a physical receipt confirmed the Petitioner had filed a reply on 24.01.2019.

The Court characterized the SCN as "cryptic" and "devoid of any detail," failing to specify the nature or extent of the alleged encroachment, thus rendering it a mere "empty formality."

Regarding the alternative site, the Court rejected DDA's contention that the Petitioner did not meet the policy criteria (which required the applicant to be an operational licensee); the Court reasoned that since the initial license termination was illegal, the Petitioner must be deemed a valid licensee and the site considered operational.

The Court allowed both writ petitions and quashed the show-cause notice dated 14.11.2018, the cancellation order dated 06.02.2019/07.02.2019, and the speaking order dated 19.01.2023.

The interim stay on dispossession was extended until the fresh order is passed and for one week thereafter; additionally, the DDA was directed to file an affidavit regarding its responsibility to maintain the park once possession is retrieved.