Gurgaon Farmers Allege Land Grab by Real Estate Developers
Government-backed industrial township projects, developed in partnership with real estate developers, are being accused of dispossessing farmers of their land. The Chaudhary Devi Lal Industrial Model Township serves as a prime example of this alleged exploitation.
Farmers from Manesar, Lakhnoda, and Naurangpur villages in the Gurgaon district claim they were coerced into selling their land to real estate developers under the guise of government urbanization initiatives. These farmers, who allege they were forced to sell their land to these developers, are now questioning the true intentions behind the Chaudhary Devi Lal Industrial Model Township project. They contend that these plans are designed to benefit real estate developers at the expense of farmers. The ongoing dispute has led some farmers to seek legal recourse in the High Court, raising concerns about the future of Gurgaon's real estate landscape.
The Haryana government, under the leadership of Om Prakash Chautala, initiated the process to acquire approximately 912 acres of land across these three villages for the proposed township. The land was brought under Section 4 of the acquisition Act.
The government's offered acquisition rate was significantly low, valuing one acre at around 15 lakh rupees. Due to the low rate, many farmers opted to sell their land at a price between 15-16 lakhs per acre. Real estate developers quickly capitalized on this opportunity, purchasing significant portions of land at prices far below market value.
The township project was slated to be developed by the commerce and industries departments through HSIIDC (the Haryana State Industries and Infrastructure Development Corporation), which served as the nodal agency responsible for project execution and compensation to farmers.
Following the 2005 elections, Mr. Chautala lost power to Bhupinder Singh Hooda. Records from 2004 and 2005 indicate substantial land acquisition by real estate developers within these three villages during this period. These developers even secured CLU (Change of Land Use) licenses from the town and country planning department, enabling the conversion of agricultural land for commercial and residential development.
By 2006, a larger portion of the land had fallen into the hands of real estate developers. It was reported that about only 688 acres were left with the farmers. The Hooda government decided to advance with the project on August 26, 2006, and the district collector issued notices demanding a deposit of 285.7 crore rupees as compensation to farmers. The industrial department, in communication with HSIIDC, admitted that, due to various issues and pending government notification, the department could not proceed with the project.
The notification for land acquisition expired in August 2007, effectively ending the Chaudhary Devi Lal Industrial Model Township project, also known as the real estate urbanisation project. It goes without saying, sources suggest the lapse was intentional, benefiting developers who had by then procured licenses for residential and commercial projects. Prominent developers such as Ansals, Maxpolis, Omaxe, and DLF were among those holding licenses at the time.
The collector subsequently set a compensation rate of 1.4 crore rupees per acre, drastically lower than the estimated market value, which is at nearly 70 crore rupees.
Feeling unjustly treated, farmers from the affected villages have approached the Punjab and Haryana High Court seeking redress. The High Court issued an injunction, precluding any third-party agreements between the government and the developers.
Om Parkash, the former Sarpanch of Manesar village and leader of the villagers’ legal battle, expressed his belief that officials were aware of the eventual outcome yet allowed real estate developers to exploit the situation before the government abandoned the Chaudhary Devi Lal Industrial Model Township project.
"The officials were sure of the fate of the project. Yet they allowed the real estate developers to acquire land at very lower rate till 2007, the year the government lapsed the Chaudhary Devi Lal Industrial Model Township."