Punjab and Haryana High Court
Administrative and Public LawProperty and Real Estate Law

Twenty per cent industrial-policy rebate extends to additional cost arising from enhanced land compensation.

Ms Challen International India Private Limited vs The Haryana State Industrial And Infrstructure Development Corporation

Punjab and Haryana High CourtJUDGMENT: September 17, 20262 MIN READSOURCE JUDGMENT
Twenty per cent industrial-policy rebate extends to additional cost arising from enhanced land compensation.. Ms Challen International India Private Limited vs The Haryana State Industrial And Infrstructure Development Corporation. Punjab and Haryana High Court. LawLens
THE ORIGINAL LAWLENS SUMMARY
01

Facts

The petitioner sought a writ directing the Haryana State Industrial and Infrastructure Development Corporation (“HSIIDC”) to release subsidy under the Haryana Industrial Policy, 1999, including a 20% rebate on the additional/enhanced cost of land and interest on the subsidy amount.

Source reference: p.1, para. 1

The petitioner contended that the issue was settled by the Supreme Court in Hamdard Laboratories v. Haryana State Industrial and Infrastructure Development Corporation, (2017) 2 SCC 536, which held that additional cost forming part of enhanced land compensation is eligible for the rebate.

Source reference: p.2, paras. 2–3

HSIIDC stated that, by letter dated 17 July 2019, the petitioner had been asked to furnish a no-dues certificate from the Estate Division and proof of having remained in production for one year; it undertook to release the applicable rebate within six weeks after receipt of those documents.

Source reference: p.3, para. 3

The petitioner agreed to submit the documents and sought an order binding HSIIDC to its undertaking.

Source reference: p.3, para. 4
02

Issues

Whether the petitioner was entitled to a 20% rebate on the additional/enhanced cost of land paid towards proportionate enhanced compensation under the applicable industrial policy.

Source reference: pp. 1–2, paras. 1–2

Whether release of the rebate could be made subject to the petitioner furnishing a no-dues certificate and proof of having been in production for one year.

Source reference: pp. 3–4, paras. 3–5
03

Law Applied

The Court applied the Haryana Industrial Policy, 1999, under which the eligible rebate was to be calculated with reference to the cost of land.

Source reference: p.1, para. 1

Relying on Hamdard Laboratories v. Haryana State Industrial and Infrastructure Development Corporation, (2017) 2 SCC 536, the Court held that additional cost of land forming part of enhanced land compensation is included in the enhanced cost of land and attracts the 20% rebate.

Source reference: p.2, para. 2

The Court also followed the Coordinate Bench decision in Elite Equipment India Private Limited v. State of Haryana, CWP-32391-2019, which applied the same principle.

Source reference: p.2, para. 2
04

Reasoning

The Supreme Court’s rule in Hamdard Laboratories directly governed the petitioner’s claim because the additional amount had been paid towards proportionate enhanced compensation for the land.

Source reference: pp. 2–4, paras. 2 and 5(i)

Accordingly, the Court held that the rebate was not confined to the original price of the plot but extended to the total price paid, including the additional/enhanced amount.

Source reference: pp. 2–4, paras. 2 and 5(i)

At the same time, the Court took note of HSIIDC’s assertion that two requisite documents remained outstanding.

Source reference: pp. 3–4, paras. 3–5

Since the petitioner agreed to furnish them and HSIIDC undertook to process the rebate thereafter, the Court incorporated that undertaking into its directions.

Source reference: pp. 3–4, paras. 3–5
05

Holding

The petitioner was held entitled to a 20% rebate on the total price paid for the land, including the additional price paid on account of proportionate enhanced compensation.

The petitioner was directed to submit the no-dues certificate from the Estate Division and proof of having been in production for one year.

Source reference: p.4, para. 5(ii)

HSIIDC was directed, in accordance with its undertaking, to release the amount payable towards the 20% rebate within six weeks of receipt of those documents.

Source reference: p.4, para. 5(ii)

The writ petition was disposed of.

Source reference: p.4, para. 5
Punjab and Haryana High Court

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Ms Challen International India Private LimitedvsThe Haryana State Industrial And Infrstructure Development Corporation

Punjab and Haryana High Court · September 17, 2026

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