Shobha Choudhary Vs State of Chhattisgarh (Chhattisgarh High Court)
The case was decided by the Chhattisgarh High Court in a petition filed under Article 226 of the Constitution of India. The petitioners sought directions for refund of ₹2,73,14,000 deposited with the Raipur Development Authority (RDA) under a commercial development scheme, along with interest at 12% per annum and other consequential reliefs.
The dispute arose from a scheme launched by the RDA known as the “Devendra Nagar Commercial Complex Scheme” at Cloth Market, Pandri, Raipur. The scheme was advertised in newspapers on 1 March 2018, representing that the land was free from encumbrances, properly planned, and suitable for commercial development. Based on these representations, members of the public, including the petitioners, applied for allotment of commercial plots. The petitioners were allotted three plots measuring 750 sq. ft. each. In accordance with the tender conditions requiring 25% of the tender amount as earnest money, the petitioners deposited ₹24,38,000 for each plot, totaling ₹73,14,000.
The petitioners stated that they deposited the amounts in good faith believing that the authority had complied with all statutory requirements, including approval of a valid layout plan under the Chhattisgarh Nagar Tatha Gram Nivesh Adhiniyam, 1973. After the allotment and deposits were made, the petitioners received a notice dated 2 May 2018 demanding payment of 18% GST by 7 May 2018. The petitioners contended that the tender document and advertisement did not mention GST and therefore objected to the demand. Their representations were rejected and they were directed to deposit 50% of the tender amount. The petitioners challenged the notice before the High Court in earlier writ petitions, which were dismissed by a Single Judge on 26 July 2023.
