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Supreme Court has ruled that once a flat’s cost has been fixed, the Delhi Development Agency (DDA) has no right to impose a surcharge on allotees by issuing a circular or executive order.

A bench comprising Justice SB Sinha and Justice HS Bedi set aside DDA’s order imposing 20% surcharge as additional cost on the allotees of flats in South Delhi.

The imposition of any surcharge would be unconstitutional and illegal, court said. The apex court set aside the orders of a Full Bench of the Delhi High Court which had ruled in favour of the DDA. In this case, the DDA had imposed a 20 per cent surcharge on the allotees of self-financing flats in South Delhi launched by the agency in 1992.

Though the allotees in the rest of the Capital were charged the price fixed at the time of allotment, allotees of South Delhi were asked to pay 20% as surcharge amount over and above the disposal cost fixed by the DDA.

The surcharge was fixed on the basis of a resolution passed on August 27, 1996 by the DDA.

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