Holding

All out‑of‑turn allotments not authorized by the rules are illegal; those identified in the Gupta Committee report must be evicted, pay enhanced licence fees, and the surplus fees must be used to compensate wrongly denied employees, while a 5% discretionary quota is to be created for special categories.

Summary

The Supreme Court entertained a public interest writ under Article 32 challenging large‑scale out‑of‑turn allotments of government residential quarters in Delhi, alleged to be made on a ‘Special Compassionate Ground’ and constituting a housing scam. A three‑member Gupta Committee examined the allotments and categorized the allottees, after which the Court ordered eviction of those in Categories IV, VI, IX, X, XI and certain Category VII who were not entitled to in‑turn allotment. The Court directed that out‑of‑turn occupants who were to be evicted must pay twice the licence fee for Type III quarters and three times for Type IV and above, while non‑evicted out‑of‑turn occupants would pay the same fees for the period of occupation. It ordered that the excess licence fees collected be placed in a separate fund to compensate employees who were denied lawful allotments. The Court fixed a 5% discretionary quota for each house type, to be used for freedom fighters, eminent artists, social workers and other defined categories, and laid down detailed guidelines for press pool, political parties, and high‑ranking officials. Finally, it directed the government to frame rules for future out‑of‑turn allotments, curb sub‑letting, and consider construction of additional quarters.

Issues considered

The legality of large‑scale out‑of‑turn allotments of government quarters under the Allotment of Government Residences Rules.
Whether eviction of out‑of‑turn occupants is required under Article 21 and natural justice principles.
The quantum of licence fee or damages payable by evicted and non‑evicted out‑of‑turn allottees.
Compensation for employees denied allotments despite eligibility.
The permissible extent of a discretionary quota and its allocation to special categories.
The applicability of guidelines for the Press Pool, including eligibility criteria for journalists.
The power of the government to waive licence fees or penalties under the Fundamental Rules and Article 73.
The disciplinary and eviction measures for sub‑letting of government quarters.

Legislation cited

Constitution of Indias. Article 21, s. Article 309, s. Article 32, s. Article 73
Fundamental Ruless. FR 45‑A, s. FR 45‑A(b), s. FR 5‑A
Public Premises (Eviction of Unauthorised Occupants) Act, 1971s. Section 7

Subjects

Housing scamGovernment residential quartersOut‑of‑turn allotmentEvictionLicence feeDiscretionary quotaNatural justiceArticle 21Article 32Administrative lawService lawPress poolSub‑letting

Judgment

SHIV SAGAR TIWARI A
v.
UNION OF INDIA AND ORS.

DECEMBER 23, 1996
B
[KULDIP SINGH AND B.L. HANSARIA, JJ.]

Constitution of India, 1950 : Articles 21 and 32.

Housing Scam-Government residential quarters-Arbitrary Allotment
of-Large-scale out-<?f-tum allotments on 'Special Compassionate Ground' C
category in Delhi-Three-member Committee-Headed by Shri D.P. Gupta
(the then Solicitor General for India) to 'further examine all the aspects of
the matter and look into complaints and suggestions received from any
/quarter-Constituted-Committee submitted report to Supreme Court after
hearing allottees concerned-Held : All persons whose names did not find D
place in Gupta Committee reports under Categories Iv, VI, IX, X, XI and
such of Category VII not entitled to in- tum allotment would face evic-
tion-IAS, JPS, IFS and other officers occupying General Pool quarters,
though eligible to quarters in Tenure Pool would be evicted-Out-of-tum
allottees in illegal occupation of Type III quarters would pay twice the licence
fee and those of Type IV and above thrice the licence fee-Those denied E
in-tum allotments to be suitably compensated out of the licence fee recovered
from out-of-tum allottees-Disctetionary quota to be 5% out of which allot-
ment could be made to freedom fighters, eminent artists, social workers and
organisation or institution or other defined category of persons-Allotm(!nt to
be made to journalists out of Press Pool as per guidelines framed--Political F
parties entitled to allotment as per policy framed-President, Vice-President
and Prime Minister to be accommodated in Government premises after;
demitting of office-Action to be taken against Government seniants who had
sub-let their premises-Earmarked quarters to be made available to high
Constitutional functionaries-Orders and directions issued in respect of the G
aforesaid aspects-Service Law-Fundamental Rules (framed under Art. 309
proviso), FRs. 5-A, 45-V(b), 45- A-Supplementary Rules (as permitted by
! FR 45), SRs. 317-B-11, 12, 20, 21, 22-Allotment of Government Residences
(General Pool in Delhi) Rules, 1963, R.15-A-Housing Scam.

Article 21-Right to shelter-Held : fell within the ambit of Art. 21. H
925
926 SUPREME COURTREPORTS[1996] SUPP.10 S.C.R.

A Administrative Law :

Discretionary Power-Held: To be exercised to advance the purpose to ,,
sub-serve which, the power existe<J.,.-Even a Minister, if he/she was the
repository of discretionary power, could not claim that the discretion was
unfettered.
B
Natural justic~Allotment of Government residential quarters in
Delhi-Large-scale out-of-tum allotment-Writ petition against-Filed in
Supreme Court-Public notice published in newspapers to enable such allot-
tees to represent be/ore Supreme Court why their allotments should not be
C cancelle<J.,.-Committee appointed to examine and report to Supreme
Court-Held : In the circumstances of the case, collective personal hearing
given by Supreme Court was sufficient compliance with the principles of
natural justic~Supreme Court was last f arum for redress al of grievance and
seized of the matter under Art. 32-Hence, it was not necessary to relegate the
allottees to the Estate Officer--<:onstitution of India, 1950, Art. 32. Natural
.D justice--Notic~Published in newspapers-To enable out-of-tum allottees of
Govemment residential quarters in Delhi to represent be/ore Supreme Court
against proposed cancellation of allotments-Sufficiency of-Held.: All allot-
tees being in Delhi and well educated, newspaper publication was definitely
sufficient.
E
Natural justic~Basic facets of-Held: Requirements of natural justice
could be moulded.

Service Law :

F ' Govemment residential quarters-Out-of-tum allottee-Payment of
damages-Held : liable to pay damages.

The petitioner filed a public interest petition, which represented the
scenario of what had come to be known as Housing Scam regarding
allotment of residential quarters. There were large-scale out-of-turn allot-
G ments on 'Special Compassionate Ground' category in Delhi. Public notice
was issued to such allottees to enable them to represent before this court
as to why their allotments should not be cancelled. A three-mP-mber
Committee headed by Shri D.P. Gupta (the then Solicitor General for
India) was constituted to "further examine all the aspects of the matter
H and look into the complaints and suggestions received from any quarter".
SHIV SAGAR TIWARiv. U.O.I. 927

After hearing the allottees and submissions of all concerned the said A
Committee submitted a report to this Court.

Disposing of the petition, this Court

HELD : 1. Various facets of allotment of residential quarters includ·
ing large-scale out-of-tum allotments on 'Special Compassionate Ground' B
category in Delhi were examined and orders and directions are issued as
follows :- [968-C]

(1) All the persons whose names find place in the two reports of the
Gupta Committee under Categories IV, VI, IX, X, XI and such of Category
VII who had not become actually entitled to in-turn allotment by the C
.date(s) the two reports were submitted, would face eviction. [968-D]

(2) Those IAS, IPS, IFS and· other officers who are occupying
General Pool quarters, despite being eligible to the quarters in the Tenure
Pool though not actually allotted, would also be evicted. [968-E] D
(3) A new list would accordingly be drawn up within two months
from the date of this judgment and the persons having become liable as
per this list for eviction would be served individual notice within 30 days
thereafter requiring them to vacate the quarters within 90 days of the
notice. [968-F] E
(4) The out-of-turn allottees who would become liable to eviction on
account of their illegal occupation of the quarters would pay twice the
licence fee insofar as Type III quarters are concerned; and three times the
licence fee for Type IV and above. [968-G]
F
(S) The Government employees who had occupied accommodation
on out-of-turn basis but who are not to be evicted would be required to pay
licence fee as stated above, for the period they were in out-of-turn occupa·
tion. [968-G-H]

(6) Those Government employees who were denied allotments, G
despite having become eligible, would be suitably compensated. To enable
this to be done, the additional licence fee (over and above the normal
licence fee) which would be collected in terms of this judgment from the
out-of-turn allottees, has to be used to compensate those employees who
were illegally and wrongly denied their allotments which had become due. H

•
928 SUPREME COURT REPORTS(l996) SUPP.10 S.C.R.

A The entire additional licence fee shall be kept in a separate fund which
would be used for the purpose of compensating those who were illegally
and unjustly denied allotments. To streamline this work a scheme shall be
framed by the Ministry within a period of three months and the illegally
denied employees would be paid as per the scheme within three months
thereafter. [968-H; 969-A]
B
(7) The extent of discretionary quota would be 5 per cent in each type
of houses which would fall vacant in the year. From this 5 per cent quota,
allotment could also be made, as per guidelines to be framed, to freedom
fighters, eminent artists, social workers and any organisation or institu-
C tion or other defined category of persons. The guidelines would be framed
within three months from the date of this judgment. [969-B]

(8) The guidelines would be duly notified and while making allotment
reasons would be given. List of such allottees shall be notified and circu-
lated to all the Government Departments. Further, a yearly statement of
D such allotments would be laid on the table of the each House of the
Parliament. [969-C]

(9) Even from the Press Pool, allotment would be made as follows if
the Government were to accept the same; and action for eviction, where
E required, would be taken by asking to vacate the premises latest by
31-3-1998:-

(i) The accommodation will be given by the government from the
Press Pool only to the accredited journalists and news cameramen. Ac-
credited journalists/news cameramen will mean journalists/news
F cameramen accredited by the Central Press Accreditation Committee.
They will not include: (i) those accredited journalists/news cameramen
whose total emoluments exclusive of the conveyance allowance exceed Rs.
15,000 p.m.: (ii) accredited editors or editors-cum-correspondents: (iii)
Freelance journalists: (iv) journalists engaged on contract basis: and (v)
G accredited correspondents who are not Indian Nationals and/or who do
not represent the Indian Media.

(ii) He/she does n_ot own a house or flat, either as an owner or as a
holder of power of attorney, in his/her own name or in the name of the
family member or dependent in the National Capital Territory of Delhi or
H Noida, at the time of the allotment of accommodation from the pool.

•
SHIV SAGAR TIWARiv. U.0.1. 929

(iii) The accommodation will be allotted by a Screening Committee A
according to seniority and pay limit as mentioned below :

(aa) The accredited journalists will be divided into two categories
namely: (i) those who are drawing in~ome upto Rs. 7,000 p.m.: and (ii)
those drawing income between Rs. 7,000 to Rs. 15,000 p.m.
B
(bb) The monthly income would mean all emoluments excluding
conveyance allowance.

(cc) 1\vo separate Lists namely, 'List I' and 'List II', of the above
categories (i) and (ii) of the journalists respectively would be prepared on
the basis of the aforesaid income criteria and according to the seniority C
on the basis of the date of application for the accommodation.

(dd) Depending upon the availability, the accommodation will first
be given to those in List I according to the seniority. If after satisfying the
needs of all the journalists in List I, more units of accommodation are D
available, they would be given according to seniority to the journalists in
List II. \

(ee) The journalists
. in List I. may occupy the accommodation so

-
given for a maximum period of five years but no longer.
E
Cm Those in List II may occupy the accommodation so given for a
maximum period of three years but no longer.

(gg) The allottee shall not be eligible for allotment of accommodation
from the pool more than once.
F
(hh) The allottee shall pay to the Government every month the
amount of HRA that the allottee receives froll1 his/her employer in addition
to the licence fee fixed under the Government of India Fundamental Rules,
Rule 45-A. It shall be his/her responsibility to pay all the sums due as
aforesaid to the government by the 10th of every month. Failure to pay the G
dues as aforesaid shall make him/her liable to be evicted forthwith.

(iv) Every allottee shall, by 31st March every y'!llr, intimate to the
Directorate of Estates, Ministry of U.A. & E the details of his emoluments
including basic pay, all allowances including the H.R.A. and also par-
ticulars of his/her family member/dependent or self having acquired as a H
930 SUPREME COURT REPORTS[1996] SUPP.10 S.C.R.

A holder of power of attorney or otherwise, any accommodation in the ·
National Capital Territory of Delhi as defined above.

(v) The allottee shall vacate the accommodation within 30 days of
the expiry of the period of allotment. (969-D; 960-D-F; 961-A·H; 962-A·B]

B (10) Freedom fighters, artists and social workers would not be
entitled to allotment from General Pool, but could be granted allotment
from the discretionary quota, if guidelines would permit. The present
occupants would be dealt with as follows :·

(i) So far as the freedom fighters are concerned, as there would be
C virtually none left by now to claim allotment of the Government quarters,
those quarters occupied by them presently, as and when would fall vacant
would enure to the General Pool. If any freedom fighter by any chance
would come forward even now, it would be open to the concerned Minis·
try/Department to accommodate him in the S per cent out-of· turn allot-
D ment.

(ii) As to artists, in future the allotment to be made to them would
be from the aforesaid S per cent discretionary quota. The quarters present·
ly being occupied by the artists would, therefore, be placed under General
Pool, as and when they would fall vacant on the possession by the present
E incumbent being handed over either because of his death or deciding not
to live personally in Delhi or on the termination of the allotment period.

(iii) So far as social workers are concerned, it is stated that it would
be permissible to allow occupation in future from the S per cent discre-
tionary quota; and so the present houses under their occupation would
F take under the General Pool, as and when they would fall vacant for
reasons similar to those mentioned in case of artists. (969-E; 958-C-G]

(11) (a) The political parties would be entitled to allotment of govern·
ment accommodation provided they are recognised as national parties by
G the Election Commission. The Directorate should abide regarding the
number of units to be allotted to each political party, by the advice to be
given by the Speaker of Lok Sabha and Vice-Chairman of Rajya Sabha.

(b) Those political parties who would be in occupation of greater
number of units or would not be eligible as per the revised policy would
H be given reasonable time to vacate the accommodation under their occupa·
SHIVSAGAR TIWARiv. U.O.I. 931

tion. [969-F -G] A
(12) Other organisation would not be entitled to allotment of quarters
from General Pool, but would be so adjusted from the discretionary quota
if guidelines would permit. That organisation which would not get allotment
from the discretionary quota shall have to vacate the premises under its
occupation within reasonable time in terms of the various interim orders B
passed concerning them from time to time. [969-H; 970-A]

(13) The President; Vice-President and Prime Minister of India
would be accommodated in government premises after demitting of office
by them according to the terms decided by the Government. [970-B]
c
(14) The unauthorised occupants of Government premises, who are
liable to pay damages, would do so as per the relevant rules. [970-B]

(15) The waiver orders as passed have no sanction of law; and while
undertaking recovery the same shall be ignored and the recovery proceed- D
ings would abide the order passed on 29-11-1996. [970-C]

(16)(a) Against those Government servants who have sub-let their
premises departmental proceedings would be initiated as stated in the
order 29-11-1996.
E
(b) The sub-lessees, being unauthorised occupants, would be evicted
most expeditiously. [970-D]

(17)(a) Apart from the General Pool, Tenure Pool and Press Pool,
other Pools would be created.
F
(b) Earmarked quarters would be made available to Speaker of Lok
Sabha, Vice-Chairman of Rajya Sabha, Judges of Supreme Court and High
Courts, Election Commissioners, Chairman, Law Commission of India,
Chairman, Press Council of India and Chairpersons or Members of
various other high statutory Bodies manned by retired Supreme Court or
High Court Judges. These quarter should become available subsequently G
to the concerned office holders only, and not to anybody !!lse. The pooling
of such accommodation may be necessary so far as the Judges of the
Supreme Court and the High Court are concerned, in view oflarge number
of quarters needed for them; and it would be appropriate if they are put
in charge of the Registrar General of the Supreme Court or the Registrar H
932 SUPREME COURT REPORTS[l996] SUPP. 10 S.C.R.

A of the Higlt Court, as the case may be. [967-A-C]
(18) The Central Government would examine the question of con·
stfuction of more accommodation. A high powered committee, which may
include one or two representatives of the Employees' Association to instill
confidence and inculcate a feeling of participation, be formed for this
.__B purpose and let the committee report within six months. It is also a matter
for consideration whether in the various residential colonies coming up in
different parts ot the city under the aegis of Delhi Development Authority
and such other bodies, some percentage of houses, say between 5-10,
should be reserved for Government employees. [967-F-H]
c (19) The concerned authorities shall examine the question as to
whether the persons owning houses in Gaziabad and Gurgaon should also
be debarred from getting the government accommodation in Delhi. [968-B]

Rai Sahib Ram Javaya Kapur v. State of Punjab, [1955] 2 SCR 225,
D referred to.
2.1. Life, livelihood and shelter are so mixed, mingled and fused that
it is difficult to separate them. To take away life, it would be enough to
take away livelihood; and to earn livelihood, which in urban areas is
ordinarily at places away from one's own home and hearth, shelter would
E be necessary • be it a house or even a pavement. [935-G-H]

Olga Tellis, [1985) 3 SCC 545 andAhmedabad Municipal Corporation
v. Nawab Khan Guiab Khan, JT (1996) 10 SC 485, relied on.

2.2. The administrative law has of late seen vast increase in discre-
F tionary powers. But then, discretion conferred has to be exercised to ad-
vance the purpose to sub-serve which, the power exists. Even the Minister,
if he/she were the repository of discretionary power, cannot claim that either
there is no discretion in the matter or the discretion is unfettered. [935·A·B]

G Padfield 1968 AC 997 and United States v. Wunderlish, 342 US 98,
referred to.

3.1. The arbitrary exercise of power by the authorities in a big way
had led almost to the collapse of the whole system of allotment. There was
a crisis like situation and this Court had to deal with an extra-ordinary
H situation and a special procedure had to be devised to do justice to all
SHIV SAGAR TIWARiv. U.O.I. 933

concerned. Natural justice being a flexible principle and this Court being A
concerned with the issue of out-of-turn allotment in thousands, it was felt
that a collective hearing would meet the requirements of natural justice to
those who appeared before it. Public notice was published in newspapers
to enable such allottees to represent before this Court as to why their
allotment should not be cancelled. In the circumstances of the case, B
collective personal hearing given by this Court was sufficient compliance
with the principles of natural justice. The last forum for redressal of
grievance being this Court, as it was seized with an Article 32 petition, it
was not necessary to relegate the allottees to the Estate Officer. [953·C·G]

Bihar School Examination Board v. Subhas Diandra, AIR (1970) SC C
1269 and S.C. Kapoor v. Jag Mohan, AIR (1981) SC 136, relied on.

3.2. All the allottees liable to be adversely affected being in Delhi and
being well educated, newspaper publication was definitely sufficient to
enable them to know what they must have been informed. Indeed, the
concerned employees were knowing much aliunde also. [954-C] D

3.3. Requirements of natural justice can be moulded in such a way as
to take care of two basic facets of this principle: (1) to make know the nature
of accusation: and (2) to give opportunity to state the case. Natural justice
is after all "no unruly horse, no lurking land mine". Its unnatural expansion E
without reference to the realities can be "exasperating". [954-A-B; D-E]

Harinath v. Rajinder Medical College, AIR (1973) SC and Board of
Mining Examination v. Ramjee, AIR (1977) SC 965, relied on.

4. An out-of-turn allottee is an ineligible person becaµse he has not F
become eligible as per the rules governing'the allotment. So strictly speak·
ing, an out-of-turn allottee is required to pay damages. [955-GJ

- S. This Court is conscious that some percentage of those who were
given/had obtained oat-of-turn allotments would be required to be evicted
pursuant to this judgment. It is also known that the would-be-evictees G
include those who are Type III allottees and are in lower rung of hierarchy.
It has not been possible to exclude them altogether from the purview of
this judgment. When grave illegality of great magnitude is required to be
cured, at times a sort of surgery becomes necessary, and then suffering
cannot be avoided altogether. [970-G-H; 971-A-B] H
934 SUPREME COURT REPORTS[1996] SUPP.10 S.C.R.

A 6. The hardship aspect has been taken care of to the extent deemed
permissible, keeping in view the call of law and equity. It has to be kept in
mind the injustice which had been caused to those who had been denied
allotment despite having become entitled to the same. There can be no
denial that equity leans heavily in their favour. [971-C-D]

B 7. Finally, it is hoped that the coming years would not see any scam
or misuse of power in making allotments of government quarters. The l
trust which is reposed in this context on high public functionaries would
be discharged only to advance the object of providing of suitable condition
of work to Government employees so that the Government is run on even
C keel; and shelter, which is a very pressing necessity of any human being,
would not come to be denied if the same is otherwise due to the incumbent.
A satisfied bureaucracy is as much necessary, as good political leadership,
to deliver the goods. The Government of free India have many promises to
keep after its tryst with destiny on the midnight of 14-8-1947. There is no
D doubt that all the public functionaries would so act that the meeting with
destiny really sees the dawn of an era of hope for all. [971-G-H; 972-A-B]
,-
CIVIL ORIGINAL JURISDICTION : Writ Petition (C) No. 585 of
1994.

E Under Article 32 of the Constitution of India.

In-Person for Petitioner, and Ranjit Kumar (AC.), M.L. Jain, G.L.
Sanghi, Altaf Ahmed, Additional Solicitor General, K.T.S. Tulsi, Raju
Ramchandran, G. Ramaswamy, Sr. Advs., T.C. Sharma, Hemant Sharma,
p V.K. Verma, Mrs. Sushma Suri, Sanjay Hegde, T. Raja, S.K. Mehta, Dhruv
Mehta, Fazlin Anam, Ms. Minakshi Vij, Balraj Dewan, C.N Sreekumar,
Irshad Ahmad, AK. Sanghi, Kailash Vasudev, Ms. Meenakshi Arora, Vijay
Panjwani, S.K. Bandyopadhyay, U.S. Prasad, Prem Malhotra, R.D. Upad-
hyay, G.G. Upadhyay,'Raj Kumar Gupta, H.P. Sharma, AN. Bardiyar, Ajit
Kumar Sinha, Goodwill Indeevar, P. Parmeswaran, P.H. Parekh, Amit
G Dhingra, Rahul P. Dave, Manoj Pillai, Mohd. Iqbal Butt, Piyush, Ved
Prakash, Ranbir Singh Dhillon, Manoj Goel, R.M. Tufail, Mukesh K. Giri,
I.B. Gaur, M.P. Singh, B.B. Singh, Ms. Arnita Gupta, R.S. Sharma, C.N.
Sreekumar and K.C. Bajaj for the appearing parties.

H The Judgment of the Court was delivered by
SHIV SAGAR TIWARI v. U.O.l. [ HANSARIA, J.] 935

HANSARIA, J. The administrative law has of late seen vast increase A
in discretionary powers. But then, the discretion conferred has to be
exercised to advance the purpose to suberve which the power exists. Even
the Minister, if he/she be the repository of discretionary power, cannot
claim that either there is no discretion in the matter or unfettered discre-
tion. This proposition was rejected emphatically by the House of Lords in B
landmark decision of Padfield, 1968 AC 997. This apart, as pointed out in
United States v. Wunderlish, 342 US 98 :

"Law has reached its finest moments, when it has freed man from
unlimited discretion of some ruler, some ... official, some
bureaucrat. ..Absolute discretion is a ruthless master. It is more C
destructive of freedom than any of man's other invention."

IA. These high principles of administrative law have been placed
at the forefront because, as would appear from what iS being stated
later, in the present case there was gross misuse of discretionary power D
relating to allotment of accommodation to government employees. As
against the discretionary quota of 10 per cent, it shot upto 70 per cent;
and on top of that 8, 768 houses were allotted by stating that the same
was being done on "Special Compassionate Ground". This naturally led
to uproar and serious objection from those who were denied accom-
modation as per rules. After the present petition was entertained and E
the Court went into the matter in depth, it was found that what had
taken place was a scam, and a big scam at that. In the present case, we
do not propose to say anything regarding the allegation that the allot-
ments were· made for extraneous consideration, as investigation relating
to that is under progress. What we propose to examine rather is how
1
F
best we can take care of illegality which had described following out-of-
turn allotments a galore.
\
2. May we also observe that life, livelihood and shelter are so
mixed, mingled and fused that it is difficult to separate them. To take
away life, it would be enough to take away livelihood; and to earn G
livelihood, which in urban areas is ordinarily at places away from one's
own home and hearth, shelter would be necessary - be it a house or even
a payment. This Court has dealt with cases of payment dwellers. The
locus classicus in Olga Tellis, [1985] 3 SCC 545 and the latest rendering is
in Ahmedabad Municipal Corporation v. Nawab Khan Guiab Khan, JT H
936 SUPREME COURT REPORTS[1996] SUPP. 10 S.C.R.

A (1996) (10) SC 485. In the case at hand, we are however, not concerned
with those who per force occupy pavements near the places of their work.
The primary subject matter of the present petition is providing of residen-
tial accommodation in quarters built by the Government for its employees
- highly or lowly paid. There are rules as to who would be entitled to which
B type of residence, which have been classified as Types I to IV, V(A), V(B),
VI(A), VI(B), VII(A), VII(B) and VIII. The basis of entitlement is monthly
emoluments of the employees. These are to be found in the Fundamental
Rules (FR) which have been framed under the proviso to Article 309 of
the Constitution; and Supplementary Rules (SR) made as permitted by FR
C 45. Having felt that the operation of these Rules may cause undue hardship,
FR 5-A was inserted with effect from 6th February, 1971 stating that where
any Ministry or Department of Government is of opinion that the operation
of any of these rules may cause undue hardship to any person, that Ministry
or Department, as the case may be, may by order, for reasons to be
recorded in writing, relax the requirement of that rule to such extent and
D subject to such condition as it may consider necessary for dealing with the
case in a just and equitable manner. The proviso to the Rule states that no
such order shall be made except with the concurrence of the Ministry of
Finance. Being concerned with the allotment of Government. quarter
situate in Delhi, it may be pointed out that the same is further subject to
E Allotment of Government Residences (General Pool in Delhi) Rules, 1968
which had come into force on 15th May, 1968.

2A. Delhi being the capital of the country is the seat of the Central
Government and, as is known, it employs a very large number of
p persons. As per the figures given in "Delhi at Glance: 1996", the number
of Central Government employees in 1994-95 was around 2,15,000. As
against this, the number of Government quarters in Delhi is about
65,000. The paucity of Government accommodation is thus apparent
and speaks for itself when it is noted that the waiting period for Type
III and IV quarters by July '96 (when the position was said to have
G eased) was about 20 and 15 years respectively. This is not all. If one
were to take a private accommodation rent, as an employee would be
compelled to do if Government accommodation would not be come .
available, the rent to be paid in city like Delhi would eat away a large
chunk of the carry-home pay. This explains the mad rush to get a
H Government quarter allotted anyhow, by hook or by crook. The persons
SHIV SAGAR TIWARI v. U.0.1. [ HANSARIA, J.] '137

empowered and authorised to make allotments, being aware of the pressing A
need tend to misuse their powers. When the misuse is within tolerable
limits, no uproar is' heard, no media publication is seen. But when the
magnitude of misuse assumes a menacing proportion, outburst of various
types become notii::eable and then a scam surfaces.

3. The writ petition represents the scenario of what has come to be B
known as Housing Scam. A practising advocate of this Court, Shri Shiv
Sagar Tiwari, claiming himself as a vigilant citizen, thought it fit to file this
petition under Article 32 of the· Constitution, having read a news item
published in Indian Express of 5.9.1994 under the caption "Chirag Tale
Andhera" (Darkness under the lamp). That news was about a son dying as C
his father was forced to vacate a government quarter. According to the
petitioner, the news item made it crystal clear that tautism was prevalent
in the Ministry of Urban Development, because of which money was said
to prevail over the cause of needy employees. In the petition Shri Tiwari
mentioned about various other anomalies relating to sub-letting and favour- D
tism. He prayed that the respondents be directed not to allot quarters of
Type V to VIII to anyone during the pendency of the petition and to order
investigation about the corruption in allotment.

4. The petition came up for preliminary hearing before a Bench
presided by one of us (Kuldip Singh J.) on 4.10.1994 when, after hearing E
Shri Tiwari in pers(m, notice was ordered making it returnable within 8
weeks. The process which thus started more than two years back is seeing
its winding up today. The journey has been long. We shall mention about
some milestones only. The first is the imprint left by the order passed on
27.4.1995, which states about taking suo motu cognizance of the news item
appearing in the Indian Express of 24th April, 1995 under the heading F
"CAG finds Govt allotment of houses arbitrary". Notice was issued to the
Urban Development Ministry (the Ministry for short) through its Secretary
requiring filing of an affidavit within 6 weeks. The Court also took notice
of the fact that number of government houses were under the occupation
of unauthorised allottees. The Ministry was directed to file lis! of all those G
houses along with the names of the occupants, the period and the authority
under which they werl occupying the accommodation. the Director of
Estates (the Director) did so.

5. He has since then filed other affidavits as well in compliance with
various orders passed by the Court from time.to time. Having known from H
938 SUPREME COURT REPORTS[1996) SUPP.10 S.C.R.

A one of such affidavits of the Director that there were out-of-turn allottees
in abundance in Type ID and above, this Court required the Director by
its order dated 14.2.1996 to publish the names of those who may become
liable to be evicted, so that they might, if so wished, file objections. This
was confined to those who, as per prima facie view of the Court, may
B become so liable out of 8768 (8778 ?) allottees in the 'Special Compas-
sionate Ground' category. The number of allottees who could become
liable for eviction if those high up in waiting list i.e. likely to get allotment
on in-turn basis within five years, was given as 4672 by the Director, after
leaving out those regarding whom payment of special licence fee only was .
contemplated. The order of 19.7.1996 required giving of public notice to
C all these 4672 allottees to enable them to represent as to why their allot-
ments should not be cancelled.

6. For better appreciation of the various representations which had
been received from these allottees, who came to be categorised in eleven
D categories by the Director, and bearing in mind the submissions of the
learned counsel assisting the Court that categorisation made by the Direc-
tor was not exhaustive and knowing of the complaints by many that they
had not been categorised correctly, the Court decided on 31.7.1996 to
constitute a three-member Co.mmittee headed by Shri D.P. Gupta (the then
Solicitor General for India) to "further examine all the aspects of the matter
E and look into the complaints and suggestions received from any quarter"
and place before this Court their final recommendations within four weeks.
Shri M.S. srinivasan, Joint Secretary in the Ministry of Urban Affairs and
Employment and Shri K.T. S. Tulsi, learned additional Solicitor General,
were requested to be the other members of the Committee. This three-
F member Committee submitted its report relating to Type IV and above on
26.9.1996, whereafter a need for giving hearing by the Court to those
recommended to be evicted by the Committee having been felt, they were
so noticed and were heard on 9.10.1996. The report relating to Type III
was placed before tl).e Court on 4.11.1996. The incumbents recommended
to be evicted in this category were heard on 9.12.1996. which was the date
G notified for their appearance in person or through counsel. By that date,
submission of all concerned had also been heard on various facets involved
in the case.

7. Before the points involved are noted and dealt with, it would be
H appropriate to mention about another milestone of the case which relates
SHIVSAGARTIWARlv. U.0.1.[HANSARIA,J.) 939

to issuance of notice on Shrimati Shiela Kaul, who was the Minister of A
Urban Development in the Central Government at the relevant time, as to
why she should not be asked to pay such damages as this Court may deem
just and proper for the illegal .;ilotments made by her concerning 58
shops/stalls. This order is dated October 11, 1996. After cause was shown
by Shrimati Kaul and after all concerned were heard, she was asked to pay B
a sum of Rs. 60 lacs (on all counts) as exemplary damages by order dated
November 8, 1996. The final milestone is this date on which this.judgment
is being delivered.

8. Let us revert back to the main theme, which is relatable to the
facets require to be examined in the case. The same are : c
(1) who should face eviction ?

(2) (a) How much licence fee should be charged from those out-of-
turn allottees who would become liable to eviction on account of their
illegal occupation of the quarter in question ?
D

(b) What should be done in case of those Government employees
who had occupied quarters on out-of-turn basis, but who are not required
to be evicted by now? To put it differently, if they are not required to be
evicted, how much licence fee they should be asked to pay? E
(3) How should those who were denied allotment, despite the same
having become due as per the Rules, be compensated?

(4) Should there by any out-of-turn allotment? If the answer be in
affirmative, how should it be regulated and what should be its limit? F
(5) Should private citizens (to with, journalists, freedom- fighters,
artists and social workers) bi accommodated in Government quarters? If
so, on what terms.

(6) Should political parties and other organisations be given allot- G
ment of Government quarters? If so, which of them and on what terms?
•
(7) Should high holders of political office, like President, Vice-Presi-
dent and Prime Minister be accommodated in Government quarters after
demitting of office by them? If so, on what terms? H
940 SUPREME COURTREPORTS(1996] SUPP.10 S.C.R.

A (8) At what rate penalty has to be realised from those who were
unauthorisedly occupying the Government quarters?

(9) Has the Government any power to waive charges which have
become payable as per the Rules in vogue?

B (10) What should be done regarding those Government employees
who had sub-let their premises; and what should be done as regards the
occupants of these premises?

(11) Whether apart from the general pool and tenure pool, if re-
C quired to be retained, there should be other pools; and, if so, for whom
and how the same should be regulated?

(12) How to prevent in future the scam of the type at hand?

We propose to deal with those questions seriatim.
D
Who should face eviction ?

9. This is most important question to be decided in the case and it,
therefore,. merits to be taken as first. The two Gupta Committee reports
(one relating to Types IV and above and the other concerning Type III)
E would be taken by us as the basic framework within which this issue would
be decided. A perusal of the two Reports shows that the out-of-turn
allottees have come to be pigeon-holed in eleven categories because of the
special features relating to them. These categories are :

F "Category-I Vacated list.

Category -II Error list.

Category -III Change from same type.

G Category - IV Change to Higher type.

Category-V Medical cases within the existing policy.

Category-VI Medical cases outside the existing policy.

H Category-VII Five Year category.
SHIV SAGAR TIWARI v. U.0.1. [ HANSARIA, J.) 941

Category-VIll · Infructuous cases. A
Category-IX Out-of-turn and above entitlement.

Category-X Functional grounds.

Category-XI · Eviction cases." ·
B
10. The Committee, has gone·through the case of each of the out-
of-turn allottees whose names are to be found along with other details in
the two reports which are dated 26.9.1996 (supplemented on 10.10.1996)
and 31.7.1996. Its unanimous recommendation relating to the placement of
the allottees in the different categori~ as regards Types IV and above was C
initially as below :

Category of No. of allottees No. of allottees
allottees included by the included by the
Dte. of Estates Committee
D
Category-I 236 347

Category-II 90 151

Category-Ill 18 5
E
Category-IV 285 97
Category-V 29 28

Category-VI 334 34

Category-VII 276 371
F

Category-VIII 386 518

Category-IX 60 58

Category-X 159 87 G
Category-XI 218 65

Total 2091 1761

11. The aforesaid recommendation came to be modified in the H
942 SUPREME COURTREPORTS[1996) SUPP.10 S.C.R.

A supplementary report dated 10.10.1996 as under :
Category of No. of allottees No. of allottees
. allottees included by the included by the
Committee in its Committee after
report dated talcing into
B 26.9.1996. account the
corrigendum

Category-I 347 347

Category-II 151 154
c ...
Category-III 5 5

Category-IV 97 82

Category-V 28 28
D
Category-VI 34 36

Category-VII 371 371

Category-VIII 518-1 * 526
E Category-IX 58 58

Category-X 87 89

Category-XI 65 64

F Total 1761 1760

* Double Entry."
12. The following is the Committee's view regarding Type III out-
of-turn allottees :-
G
Affidavit of Commottee's
Dte. of Estates recommenda-
tions
Category-I 28 347

H Category-II 223 578
SHNSAGAR TIWARlv. U.0.1.[HANSARIA,J.) 943

Category-ID 112 136 A
Category-IV 221 90

Category-V 28 95

Category-VI 407 179
B
Category-VII 170 636

Category-VIII 157 176

Category-IX 29 50
c
Category-X 100 156

Category-XI 898 599

2373
No. of persons who D
did not represent before
the director and/or were
not categor ised in his
affidavit 538

Total 2911 2911 E'
13. The Committee's recommendation is that apart from those who
are in Category I, namely those who had already vacated whose number
347 and 217 respectively, those allottees placed only in Categories IV, IX
and XI should be asked to vacate the·-Oovernment quarters presently,
under their possession. These categories are: (1) who were earlier occupy- F
ing a lower type of accommodation and were allotted the present higher
type on out-of-turn basis (Category IV); (2) those to whom allotments were
made not only on out-of-turn basis but higher type of a house above to
their entitlement (Category-IX); and (3) those who have not been included
in any other category (Category XI). If we were to go by the recommen- G
dation of the Committee, the number of these allottees would be 220 in so
far as Types IV and above are concerned, and 739 for Type m. Here
again, it deserves to be pointed out that the Committee has stated that
these allottees may be ordered to be evicted "subject to the condition that
if they are entitled to any lower type of accommodation on in-turn basis or
if they were previously occupying any lower type of accommodation, the H
944 SUPREME COURTREPORTS[l996] SUPP.10 S.C.R.

A eviction will not take place for four weeks from the date on which the
entitled in-turn accommodation or the lower type which was previously
occupied is offered to the allottees". This is what finds place in para 6.1 of
the report dated 26.9.1996.

14. The recommendations of the. Committee have been severely
B criticised, not only by large number of allottees, who appeared in person,
but by Shri Sibal, learned senior Advocate and Shri Ranjit Kumar, learned
Advocate, as well, both of whom were requested to assist the Court. It
would be appropriate to first deal with the written submissions of S/Shri
Sibal and Ranjit Kumar. According to Shri Sibal the unauthorised oc-
C cupants could be one of three classes : (1) those occupying a public
premises without any entitlement; (2) those occupying a quarter higher
than their entitlement; and (3) those who jumped the queue. The learned
counsel has put in writing as to how cases of those employees who came
to be allotted quarters on death or retirement of the previous incumbents,
on medical ground including physically handicapped and special compas-
D sionate ground, occupants of Departmental Pool on transfer, personal staff
of Ministers, Judges of the Supreme Court, Speaker of Lok Sabha Chair-
man of Rajya Sabha should be dealt with. Shri Sibal has opined that
because of the dearth in accommodation, persons belonging to so called
special categories like journalists, frnedom fighters, artists etc., who are not
on the pay roll of the Government, should not be allowed government
[
E quarters. As to sub-letting Shri Sibal's views are that those Government
servants who had sub-let the premises should be made liable to major
penalties, apart from forfeiture of the allotment debarring them from
future allotment and charging of penal rent at the market rent from the
date of allotment.
F
15. Shri Ranjit Kumar has opened his written submission by referring
to the brief background relating to out-of-turn allotment and has stated
that these have been made on "Special Compassionate Ground" and has
submitted that SR 317-B-25, which is on the subject of relaxation of rules
G stating that the Government may "for reason to be recorded in writing relax
all or any of the provisions of the rules in the Division in the case of any
officer or residence or class of officers or type of residences" has not
provided any upper limit or ceiling as regards the number of cases for
which rules may be relaxed. He has, however, referred to Office Memoran-
dum No. 12029/(1)/90 POI.II dated 24.1.1990 of the Directorate of Estates
H which has stated that the maximum number of out-of-turn allotments shall
SHIV SAGAR TIWARiv. U.0.1. [HANSARIA,J.) 945

be "one cut of five". It has been pointed out that actual percentage of ad A
. hoc allotment over the years has exceeded this limit. The learned counsel
has observed that an important feature relating to the report of the
Committee is that no IAS or IFS officer has been recommended to be
evicted. He has thereafter commented in general (in his exhausted written
,'
submissions) on each of the categories. We shall refer to the same at
appropriate stage. The submission has also dealt with the quantum of B
licence fee to be charged. I
I
\I
16. It may be pointed out that the aforesaid statements really find
place in the affidavit of 23.10.1996 filed on behalf of the Union of India
through the Ministry of Urban Affairs and Employment. In this affidavit if
has been further stated that despite attempts to keep the number of ad hoc C
allotments to 20 per cent, the efforts did not succeed and the result was
that "even persons who would have normally got the allotment who were
entitled for one below) types of residences after a very short period in the
normal course, had also to approach the Minister for getting the allotment
of such accommodation to them". In other words, the situation was that D
almost everybody had to approach the Minister for getting allotment of
houses to him/her or else to choose the option of waiting of allotment of
accommodation in-turn for indefinitely long periods of time." And this give
rise to the SCAM.

17. The allottees who appeared in person had made four submissions
E
in the main. the first was relating to wrong categorisation by the Commit-
tee. The second was to allow to continue in the allotted quarters due to
serious illness of one or the other near relative living with the allohee. The
third contention was to include them in Category-X which would
hereinafter refer to as "Functional Category''. Finally, they pleaded for F
non-charging of any amount beyond the normal licence fee.

18. There was one general suhmission on behalf of out-of-turn allot-
tees appertaining to Type III quarters. The same was to exclude all of them
from the purview of our consideration. A strong plea for such exclusion G
was advanced by S/Shri G. Ramaswamy and S. Ray, learned senior Advo-
cates, appearing for Central Government Employees (Allottees of Govern-
ment residences) Welfare Association.

19. We propose to deal with the written submissions of Shri Ramas-
wamy first. It has been stated therein that the economic conditions of these H
946 SUPREME COURT REPORTS[l996] SUPP. 10 S.C.R.

A allottees, whose basic pay is less than Rs. 2,800 per month (the majority
drawing less than 2,500 per month) is not much better. than the condition
of Type I and II allottees whose cases are not being considered by us; and
so, we should exclude Type -III allottees also. As to this submission, it may
be pointed that Types I and II accommodation are meant for those drawing
B basic monthly salary of less than Rs. 950 and between Rs. 950 to 1500
respectively. Type III is for the next slab namely, drawing monthly salary
between Rs. 1500 to 2,800. Then comes Type IV for those drawing salary
between 2,800 to 3,600 and so on. It is thus clear that a line has to be drawn
somewhere. If Type III allottees have to be left out as contended, Type IV
allottees could also urge to exclude them as well. Similar argument can be
C advanced by others. Therefore, it was thought fit by us from the beginning
that we would leave out of consideration the two lowest rank of employees.
To extend the economic criterion argument for Type III allottees would
require us to consider whether Type IV should also be left out. We do not
think it necessary to retrace from the decision taken earlier, which was
D based on financial status of the employees.

20. Another argument advanced by Shri Ramaswamy is that when
eviction would take place from types IV and above, most of those evicted
will be eligible for some sort of lower type of government accommodation
(including hostels), which facility will not be available to Type III allottees.
E We do not think if this submission is factually correct because Type III
allottees could get Type II, if they were entitled to get government accom-
modation, on these quarters failing vacant in normal course. It may be
pointed out that Type II quarters have two-rooms (each being of 10' x 10').
Similar is the position in Type III, except that their location is better.
F
21. Shri Ramaswamy's final submission in this regard is that even if
Type IV and above allottees are evicted without alternative accommoda-
tion, they will get in-turn allotment within a few years, which will be denied
to Type III evictee where the waiting list is "impossibly long". This again is
not quite so. because insofar as Type III is concerned the waiting period
G by now is of 20 years, whereas for Type IV it is 15 years.

22. We now propose to record our views on the categorisation made
by the Committee, bearing in mind the criticism also made in this regard,
to which we have already adverted. We shall do so qua each category
H separately.
SHIV SAGAR TIWARI v. tJ.o.I. [ HANSARIA, J.) 947

Category-I (Vacated list) IA
23. The number of this category of allottees which was given as nd
(for Type IV and above) and 2B (for Type III) by the Directorate of
Estates has been mentioned as 347 and 817 respectively in the Committee's
two Reports. It seems this might be due to the fact that the out-of-turn
allottees got accommodation elsewhere on in-turn basis and so they moved B
out from their earlier quarters. Be that as it may, all that has to be done
with regard to this category of allottees is to realise from them such amount
as would become payable by them because of their having been in out-of-
turn accommodation. The amount to be realised would be calculated on
the basis of what we would be saying regarding this later. c
24. It would be appropriate to note the commend made by the
Ministry of Urban Affairs and Employment (the Ministry) in the affidavit
referred above which is that the 347 cases mentioned in the first report of
the Committee include a whole variety of cases from those of junior officers
who never have got "in-turn" allotments for many years to those of from D
senior ones who had not the allotments in normal course within few
weeks/months of their applications. The Ministry, therefore, feels that all
the cases cannot be clubed together and each of them needs to be con-
.. sidered individually. We have not felt inclined to accept this suggestion
inasmuch as what we have ordered is to pay only extra licence fee qua these E
allottees which amount apparently would depend upon the period during
which the incumbent has been occupation of out-of-turn allotment.

Category-II (Error list)

25. As the persons in this category are those to whom allotments had F
merely been made in accordance with the existing policy but whose names
had been erroneously included in the list of out-turn allottees as submitted
by the Directorate, it is apparent that nothing is required to be done as to
them.

Category-III (Change from same type) G

26. In this category are the allottees who were in occupation of a type
of accommodation on out-of-turn basis, before the present allotment on
in-turn basis in a different area/floor. So there is not much to be stated
about this category.
948 SUPREME COURTREPORTS(1996) SUPP.10 S.C.R.

A Category-W (Change to higher type)
I I
27. These allottees came to occupy higher type of accommodation on
out-of-turn basis, having been earlier occupying a lower type on in-turn
basis. These allottees shall have to move to the type to which they are
entitled. This apart, they would have to pay such amount of licence fee
B which would become chargeable from them by force of this judgment
because of their having occupied higher type of accommodation though not
entitled.

Category-V (Medical cases within the exi,sting policy)

28. In this category the only infirmity had been that the proper
procedure for allotment was not adopted, namely, examination of the case
by the Special Accommodation Committee. This infirmity deserves to be
ignored. Therefore, the only observation we propose to make is that if the
Government servant had been allotted a higher type of accommodation
D than due to him, the same shall be dealt as ordered qua Category-IV. This
is also the stand taken by the Ministry in its aforesaid affidavit.

Category-VI (Medical cases outside the exi,sting policy)

29. We find no justification to accept this category, because this
' _,.
E includes medical cases outside the existing policy. Nobody, not even a
Minister, can be allowed to depart from the policy; and so, despite the fact
that some of the persons belonging to this category might be suffering from
"serious cases of life threatening diseases", as put by the Committee in its
Report, we feel constrained to state that these incumbents have to be dealt
with like those falling in Category-XI. We, however, give liberty to the
F Government to get their cases examined by a high-powered Medical Board
to ascertain its views whether out-of-turn allotment to them was justified.
This would be done within two months. Follow up action would be taken
as per the views of the Board. In future, no allotment, even on medical
ground, would be made dehors the policy.
G
Category-VII (Five-year category)

30. In his written submissions, Shri Ranjit Kumar has stated that •
"5-year Policy'' which is the basis of including allottees in this category
causes 'double jeopardy". This has been explained by mentioning about r.vo
H persons who came to Delhi in 1991, one of whom got out-of-turn allotment
SHN SAGAR TIWARI v. U.0.I. [ HANSARIA, J.] 949

in 1992 and another iii 1995. Shri Ranjit Kumar has contended that the first A
person may not get an in-turn allotment by 1997 and would, therefore, be
required to vacate: whereas the second incumbent may be covered {be-
cause of easing of the position ?) by the year 2000 on in-turn allotment
basis and would, therefore, be permitted to continue till 2000 despite being
an out-turn allottee. The result would be, stated Shri Ranjit Kumar, that a B
person who had been given out-of-turn allotment later and in that since
being junior to the other, would continue to occupy the quarter whereas
the former senior will have to vacate. This submission is based on some
hypothesis which may be correct or may not be. We would rather state that
the employees included in this category by the Committee have to be those
who by the date of the concerned report had in fact become entitled to C
allotment on in-turn basis, if that would not be so, their names would be
taken out of this category and included in category-XI. We cannot allow
an out-turn allottee, say of 1995, to continue till 2000 on the supposition·
that he would in that year become entitled to in-turn allotment.

Category-VIII (Infructuous cases) D

31. Shri Ranjit Kumar has submitted as to this category that these
allottees mostly belong to IAS, IPS and IFS, who have come on deputation
from States and adjusted in the Tenure Pool. The learned cbunsel has
submitted that this Pool be abolished, being discriminatory. We would deal E
with this submission while expressing our view on Point No. 11. to foretell
our conclusion, there is a rational basis, according to us, for creation of a
Tenure Pool. So, we would accept what has been stated by the Committee
as regards this category. We would, however, state that the officers who
are entitled to accommodation from Tenure Pool would not be allowed to
draw from the General Pool. F
32. We further state that we find no necessity to divide this category
in two (SA and SB) as requested in the Ministry's aforesaid affidavit,
because the basis on which this classification is desired, namely becoming
entitled on the date of application or thereafter, but on or before 30.6.1996, G
.. has not much significance for the case at hand .

Category-IX (Out-of-turn and above entitlement)

33. It is apparent that allottees of this category shall have not only to
vacate but pay such amount towards licence fee because of getting allot- H
950 SUPREME COURT REPORTS[1996) SUPP. 10 S.C.R.

A ment of a higher type as would be indicated later.

Category-X (Functional grounds)

B 34. This is the most controversial part of the Committee's recommen-
dation. We have said so because, as mentioned by Shri Ranjit Kumar in
his written submissions, the persons who have been included in this
category, inter alia, belong to CPWD and two persons of the Directorate
of Estates. This has led to the criticism that the Committee had gone soft
to the personnel of the Directorate. This apart, it has been submitted that
C there is no rational basis on which some selected type of persons have been
included in this category. This would be apparent from what has been
stated in para 6.4 of the first report of the Committee in which the persons
to be included in this category have been specified. They are : (1) Doctors
working Government Hospitals and Dispensaries but not those in ad-
D ministrative departments; (2) Police officers engaged in maintenance of law
and order duties; (3) CPWD Officials upto the level of Executive Engineer
in sensitive areas/postings; (4) Key officials dealing with allotment of
government accommodation; and (5) officers of sensitive organisations like
Customs, Central Excise and Directorate of Enforcement as well as All -,
E India Radio and Doordarshan. There is no gain saying that if deep thought
is given some other category of persons could be said to be similarly
situated. It is because of this that the view taken by the Ministry itself in
the aforesaid affidavit is different. According to that, the types of persons
to be included in this category should be : (1) Ministers/Judges/Secretaries
F to Government of India and senior functionaries of equivalent/higher level
in the Central Government; (2) medical and police personnel; (3) officials
working in the personnel establishments of the Ministers of the Union
Government/dignitaries of equivalent level under the Central Government.
Judges of the Supreme Court/High Court, and those working in the Prime
Minister's Office, Cabinet Secretariat and personnel establishments of the
G Secretaries to the Government of India; (4) CPWD officials upto the level
of Executive Engineers working in Maintenance Divisions and Addl.
DGs/Chief Engineers/Superintendent Engineers/Executive Engineers/As-
sistant Executive Engineers and other technical staff etc.; (5) officials
working in the Doordarshan and All India Radio; and (6) Law Officers of
H the Government of India.
SHIV SAGAR TIWARiv. U.O.I.[HANSARIA,J.] 951

35. This is not all. Many of the allottees who had appeared in person A
before us had staked their claims to get included in this category. Those
who so claimed are, among others, Under-Secretary to Taxation and
Legislative Department; Deputy Director of Estates; Assistant Director to
some Departments; Under-Secretary, Finance; Assistant Director, Inves-
tigation; Officer of RAW.
B
36. Having given our considered thought to this aspect of the case,
we are of the opinion that endorsement of allotment to this category of
persons by not treating them as out-of-turn allottees, despite their having
so as per the extent Rule/policy, would constitute departure from the same,
so, we do not accept this recommendation and would require eviction of C
persons included in this category as well.

Category-XI (Eviction cases)

37. We accept the Committee's recommendations relating to the
category and state that the case of these persons all that is required to be D
decided by us is the quantum of licence fee they should be asked to pay
for the period of their intervening "irregular period of occupation" as put
by the Committee in its report. We shall indicate this quantum while
dealing with Point No. 2.

38. The star question as to who should face eviction is, therefore, E
answered by stating that it would be all those whose names find place in
Categories IV, VI, IX, X, XI and such of VII who had not become actually
entitled to in-turn allotment by the date(s) the respective reports were
submitted. Those IAS, IPS and IFS and other officers who are occupying
General Pool quarters, despite being eligible for quarters in the Tenure F
Poo~ would also to be evicted.

39. A new list would be drawn up in accordance with this judgment
within one month from today and the persons having become liable as per
this list for eviction would be served individual notices within 30 days
thereafter requirmg them to vacate the quarters within 90 days of the G
receipt of the notice.

Procedure for eviction :

40. It is required to be stated as to how eviction should take place.
The need for expressing views on this aspect has arisen because in the first H
952 SUPREME COURT REPORTS(1996) SUPP.10 S.C.R.

A report of Gupta Committee some observations have been made in this
regard in paras 6.1 to 6.3. In the written submission filed by Shri G.
Ramaswamy it has been prayed on behalf of the aforesaid Association that
recommendation in paras 6.2 and 6.3 may be directed to be complied with.
We have considered this, and the recommendation made in para 6.1
B reading as below :

"6.1 Allottees in Categories - IV, IX and XI may be ordered to be
evicted subject to the condition that if they are entitled to any lower
type of accommodation on in-turn basis of if they were previously
occupying any lower type of accommodation, the eviction will not
c take place for four weeks from the date on which the entitled
in-turn accommodation or the lower type which was previously
occupied is offered to the allottees entitled to an alternate accom-
modation will be offered the same, until the arrears on the basis
of enhanced licence fee recommended herein are deposited within
two months. In case the allottee does not deposit the dues within
D two months, the Directorate should take action for eviction against
such persons and for the period beyond two months, the allottees
should be liable to pay at the "damages rate".

has our approval. This would apply to those others also who have become
E liable for eviction by the force of this judgment. We state the same
regarding the following recommendation in para 6.3 :

"6.3 The Committee recommends that in case any allottee in
Categories-IV, IX ad XI is due for retirement in the next one year
from 27.9.1996, he may be exempted from eviction in view of the
F exceptional hardship that is likely to be faced by him and his
family."

41. This would apply to others also as stated above. It is, however,
made clear that they would have to pay enhanced licence fee for the period
G of their occupation as per this judgment.

42. It may be added that the aforesaid would apply to all those who
would become liable to eviction because of this judgment of ours. As to
what has been recommended in para 6.2 which is to the effect that the
eligibility for in-turn allotment as on the date on which the eviction order
H would be passed, instead of the cut- off date of 1.10.1993,may be re-deter-
SHIV SAGAR TIWARI V. U.O.I. [ HANSARIA, J.) 953 I

mined by the Estate Office, we have have no objection; but this re-deter- A
mination has to take place within six weeks from today.

43. Before closing our discussion on this facet of the case, something
is merited to be. said about the procedure adosted by us. The need for this
exists because of the submission of Shri G. Ramaswamy that the allottees
may be left to be dealt by the Estate Officer because in that case against B
the order of the Estate Officer, a right of appeal is available, and also
because the Estate Officer is required to give an. individual hearing before
passing any adverse order.

44. The arbitrary exercise of power by the authorities in a big way C
had led almost to thi: collapse of the whole system of allotment. There was
a crisis like situation and this Court had to deal with an extra-ordinary
situation and a special procedure had to be devised to do justice to all
concerned. Natural justice being a flexible principle and we being con-
cerned with the issue of out-of-turn allotment in thousands, it was felt by
us that a collective hearing would meet the requirement of natural justice . D
as the Committee had given individual hearing to those who appeared
before it. This view was taken because the basic question to be determined
was whether the allotment given to an employee was on out-of-turn basis
or not. In case it were to be so, it is apparent that unless an exception is
made, the allottee has no right to stay, no right to occupy the premises. E
The hearing given by us on two occasions brought eloquently to us that the
out-of-turn allottees were notified and had appeared, had two principal
contentions to advance-the same being the plea not to evict either on the
ground of serious illness pf one or the other close relatives, or to include
them in the functional Category. Nothing else could have really been
pleaded not to evict them. These two aspects have been adequately borne F
in mind by us as would appear from the aforesaid discussion.

45. It is because of this that we did not think it necessary to relegate
the allottees to the Estate Officer for the reasons advanced by Shri Ramas-
wamy. The last forum for redressal of grievance being this Court, and this G
case being required to be decided by this Court as it was seized with arr
Article 32 pe~ition, the argument relating to availability of right of appeal
against the order of Estate Officer is not such which would have required
undoing of the labour undertaken for more tan t:Wo years.

46. May it also be stated that it is well settled that requirements of H
954 SUPREME COURT REPORTS[1996) SUPP. 10 S.C.R.

A natural justice can be moulded in such a way as to take care of two basic
facets of this principle : (1) to make known the nature of accusation; and
(2) to give opportunity to state the case, as accepted by this Court in
Harinath v. Rajinder Medical College, AIR (1973) SC 1260. In Subhash
Chandra's case, AIR (1970) SC 1269, it has been even held that no hearing
B is required to be given to the candidates before cancelling the examination
where mass copying was indulged, if a case for the same was otherwise
made out. Present is also a case of large scale out-of-turn allotments, !ind
so, on principle no hearing at all might have been given. But we did not go
to that extent and gave even personal hearing to many among those who
chose to appear pursuant to the notice published in the newspaper, which
C alone was feasible. All the allottees liable to be adversely affected being in
Delhi and being well educated. Newspaper publication was definitely suf-
ficient to enable them to know what they must have been informed. Indeed,
the concerned employees were knowing much aliunde also.

47. Natural justice is after all "no unruly horse, no lurking land mine",
D as characteristically stated by Krishna Iyer, J. in Board of Mining Examina-
tion v. Ramjee, AIR (1977) SC 965. Its unnatural expansion without refer-
ence to this realities can be "exasperating" as observed by the learned
Judge. It is also worth while to remember, as stated in para 24 of S.C.
Kapoor v. Jag Mohan, AIR (1981) SC 136, that where on admitted or
E indisputable facts only one conclusion is possible, the Court may not
compel the observance of natural justice, as it would be futile to do so. The
real point for determination for us has been whether the incumbent got the
allotment as per his turn or he jumped the queue, on the face of rejection
to depart from the existing policy requiring eviction of those also included
F in Categories VI and X. This we got examined well and have felt satisfied
at the work undertaken by the Committee in this regard.

'2(a). How much licence fee should be charged from those out-of-
turn allottees who would become liable to eviction, on account
of their illegal occupation of the quarters in question ?
G
43. SIR 317-B-12 has visualised that after accommodation has been
accepted, liability to pay licence fee commences from the date of occupa-
tion or the eighth day from the date of receipt of allotment whichever is
earlier. As per SIR 317-B-22 where, after an allotment has been cancelled
H or is deemed to be cancelled under any provision of the rules, the con-
SHN SAGAR TIWARI v. U.0.1. [ HANSARIA, J.] 955 I

cemed officer becomes liable to pay damages for house on occupation for A
residence etc. as determined by the Government from time to time, or
twice the licence fee he was paying whichever is higher, SIR 317-B-11 deals
with the period during which allotment subsists and the concessional
period for further retention. Sub-rule (2) has mentioned the period for
which residence can be retained on the happening of the events mentioned B
under Column I. and for the period mentioned in Column II, Sub-rule (3)
has stated that where residence is retained under sub-rule {2), the allot-
ment shall be deemed to be cancelled on the expiry of admissible conces-
sional period. unless immediately on the expiry thereof the officer resumes
duty in an eligible office in Delhi.
c
44. It would be appropriate to refer in this connection to FR 45- A,
sub-rule (III) on the subject of calculation of standard licence fee. Sub-rule
(V) has visualised that in special circumstances for reasons to be recorded,
the Central Government may, inter alia,by special order waive or reduce
the amount of licence fee to be recovered from an officer. Then FR 45-A D
(12) has dealt with charging of damages from unauthorised occupants and
recovery of licence fee where general pool accommodation is allotted to
ine~gible person/organisation. Under FR 45-A(3) in case of allotment of
higher accommodation at request, the incumbent can be charged three
times the flat rate of licence fee, or under FR 45-A, whichever is higher. E

45. A combined reading of the aforesaid provisions finding place in
the Fundamental Rules and Supplementary Rules would permit charging
of even damages, where allotment is made to an ineligible person. The rate
of damages was earlier double the standard licence fee, as per the decision
taken in 1970: but from 1.9.1987 the rate is required to be calculated per F
sq. metre depending upon the type of accommodation. From 1.4.1991 this
rate has to be Rs. 40 per sq. metre for Types I to IV and Rs. 45 for Types
V- and above.

46. An out-of-turn allottee is an ineligible person because he has not G
become eligible as per the rules governing the allotment. So, strictly
speaking, an out-of-turn, allottee is required to pay damages; and as in
these cases we are concerned with allotments ~ade after 1.4.1991, the rate
of damages could be either Rs. 40 or Rs. 45 per sq. metre, as the case may
be. We are, however, desisting from doing so and would rather require H
956 SUPREME COURTREPORTS(l996] SUPP.10 S.C.R.

A treating the cases at hartd as over-stay after cancellation of allotment. As
already noted, in cases of over-stay, twice of licence fee becomes payable.
We would like to make a distinction regarding the licence fee to be charged
depending upon the fype of quarter allotted. For Type III we would require
this to be twice of the licence fee : for Type IV and above three times of
B the licence fee.

2(b). What should be done in case of those Government employees
who had occupied quarters on out-of-turn basis, but who are
not required to be evicted by now? To put it differently, if
they are not required to be evicted, how much licence fee
C they should be asked to pay?

47. According to us, these allottees should also be treated for the
purpose of charging of licence fee in the same way as those who would be
required to be evicted by the force of this judgment, i.e., as per what has
D been stated under Point 2(a) above., /

3. How should those who were denied allotment, despite the
same having due as per the Rules, be compensated?

48. There can be no denial that those Government employees did
E suffer great injustice who were denied allotments, despite the same having
become due as per the rules, because of the out-of- turn allotments. The
result was that this category of employees had to take such premises on
rent for residential purpose which they could not afford. There can also be
no denial that taking of private accommodation on rent in city like Delhi
p must have hit hard these Government employees. We are,therefore, of the
firm view that these employees have to be suitably compensated. To enable
this to be done, the additional licence fee (over and above the normal
licence fee) which would be collected in terms of this judgment from the
out-of-turn allottees, has to be used to compensate those employees who
were illegally and wrongly denied their allotments which had become due.
G The entire additional licence fee shall be kept in a separate fund which
would be used for the purpose of compensating those who were illegally
and unjustly denied allotments. To streamline this work a scheme shall be
framed by the Ministry within a period of three months and the illegally
denied employees would be paid as per the scheme within three months
H thereafter.
SHIV SAGAR TIWARI v. U.0.1. [ HANSARIA, J.] 957

4. Should thee be any out-of-turn allotment? If the answer be A
in affirmative, how should it be regulated and what should be
its limit ?

49. The decision of the present Central Government on this aspect
as finding place in the letter of the Cabinet Secretary dated July 18, 1996 B
bearing DO No. 1/44/1/96-CAV is that "where it is considered absofotely
necessary" small number of out-of- turn allotments would be made, for
which purpose also the Ministries/Departments would formulate clear
rules and guidelines. During the course of hearing, on being desired to
know as to why out-of-turn allotment is at all required, the submission
advanced on behalf of the Union of India was that there are a few officers, C
who _by virtue of the duties discharged, have to be accommodated in
government quarters to facilitate smooth functioning of the Government.
'These persons are who are attached to Prime Minister's office and person-
nel of Cabinet Secretariat. It was also submitted that personal staff of the
Chief Justice of India and Judges of the Supreme Court, so also of Union D
Ministers. Chief Election Commissioner and Election Commissioners are'
required to be similarly dealt with.

50. The aforesaid does make out a case to permit JI\inimal out-of-
turn allotment. But then there can be no denial that this has to be regulated
and transparency has to be maintained in such allotments also. Indeed, the E
aforesaid letter of the Cabinet Secretary itself mentions about the framing
of rules in this regard. We would, therefore, state that the concern Mini-
stries/Departments would frame appropriate rules relating to out-of-turn
allotment and duly notify the same. This would be done within three
months from today. The allotments to be made shall have to be as per the F
rules as framed.

51. Coming to the question of limit of the out-cif-turn allotment, we
were informed by the Directorate that roughly 7,000 quarters, out of about
65,000 fall vacant every year. Though the submission on behalf of the Union G
of India was that 10 per cent of the quarters which become vacant every
year should be allowed to be allotted on out-of-turn basis, according to us,
10 per cent would be on the higher side. There is almost consensus that 5
per cent would meet the ends of justice. This would be so for each type of
house, that is, 5 per cent for those Type III quarters which fall vacant in a
year, 5 per cent for Type IV quarters and so on. H
958 SUPREMECOURTREPORTS[1996] SUPP. lOS.C.R'.

A 52. The above apart, while making the out-of-turn allotment speaking
order would be passed giving the reasons. List of allottees shall be notified
and circulated to all the Government Departments. Further, a yearly
statement of such allotments would be laid on the table of the each House
of the Parliament.

B 5. Should private citizens (to wit, journalists, freedom-fighters,
artists and social workers) be accommodated in Government
quarters ? If so, on what terms ?

53. We have been apprised that presently 120 _quarters have been
C earmarked for journalists; 55 are occupied by freedom-fighters : 45 by
artists and 20 by social workers. Of these, all quarters except 30 meant for
journalists are in occupation. So far as the freedom-fighters are concerned,
as there would be virtually none left by now to claim allotment of the
government quarters, those quarters occupied by them presently as and
when would fall vacant would enure to the General Pool. If any freedom-
D fighter by an chance would come forward even now, it would be open to
the concerned Ministry/Department to accommodate him in the 5 per cent
out-of-turn allotment which we have permitted.

54. As to artists, in future the allotment to be made to them would
E be from the aforesaid 5 per cent discretionary quota. The quarters present-
ly being occupied by the•artists would, therefore, be placed under General
Pool, as and when they would fall vacant on the possession by the .present
incumbent being handed over either because of his death or deciding not
to· live personally in Delhi or on the termination of the allotment period.

F 55. So far as social workers are concerned, we state that it would be
permissible to allow occupation in future from the 5 per cent discretionary
quota; and so the present houses under their occupation would take under
the General Pool, as and when they would fall vacant for reasons similar
to those mentioned in case of artists.
G 56. This leaves us for consideration the case of journalists. They are
of two broad types : (1) working journalists as they are called; and (2) free
lancer~. Being concerned with journalists, it would be quite appropriate to
refer first to the views of Pres~ Council of India on the subject. It would
be enough if we note two coiPmunications of the Council. The first is a
H letter dated 10.7.1996 addressed by its Secretary to Shri Tulsi. This com-
SHIV SAGAR TIWARI v. U.0.1. [ HANSARIA, J.] 959

munication was taken note of by this Court in its order passed on 19. 7.1996. A
A need was felt by the Court requiring a fresh examination of the issue as
various questions were involved, to wit, whether the journalists occupying
government accommodation for a long period be permitted to continue
indefinitely or some period is to be fixed; whether the existing eligibility
and criteria/conditions need modification; if so, in what manner. The Press B
Council made its views known accordingly through letter of its Secretary
dated 6.8.1996 addressed to the Registrar General of this Court. This
communication is styled "Guidelines on allotment of General Pool accom-
modation to the accredited press correspondents and news cameramen in
print and electronic media". The perusal of the same shows that different
aspects of the matter were examined and deep thought was bestowed to C
the subject, as the guidelines cover 10 printed pages of full size.

57. The Press Council is of the view that government accommodation
from the Press Pool should be given only to the accredited journalists and
news cameramen, which would cover journalists/news cameramen ac- D
credited by the Central Press Accredition Committee. This will not include,
among others the free lancer.

58. The free lancers' view point, as represented before us by their
learned counsel, was that it would not be fair and just to deny them a share
in the Press Pool because they .are as much a part of the media and E
discharge the same type of public duty which the accredited journalists do.
It was also contended that many of the free lancers stationed in Delhi are
economically not well of to enable them to take on rent private premises.
It was submitted that the earning of the most of the free lancers would not
be more than what is being paid to the accredited journalists. p

59. There are also available to us, the comments of the Central
Government. The learned Addi. Solicitor General has requested for
Court's view which the Government would adopt. In our opinion, there
does not seem any justification to depart from the views of the Press
Council, which have been arrived at after great deliberation. We have also G
borne in mind in this context the basic idea of creating a Press Pool as
made known by the Communication of the Press Council dated 16.9.1996.
·The same was to provide accommodation to journalists, who are compul-
soril)' transferred from outstation to Delhi by their newspapers, to enable
them to get a breathing time to find out accommodation for themselves. It H
960 SUPREME COURT REPORTS(1996] SUPP. 10 S.C.R.

A is apparent that free lancers do not belong to that category as they come
to Delhi on their own will.

60. Free lancers being those who work on contractual basis for
different newspapers have to be treated differently. From other journalists
who have virtually fixed income and have to budget their expenditure
B accordingly. It is know that there are free lancers whose monthly income
is substantial. This apart, as some financial criterion would be required to
be fixed even if a free lancer were allowed to draw on Press Pool, the same
may break down because it would not be possible to know for certain the
real income of as free lancer.
c 61. For these reasons, we have thought it fit to prefer the views of
theiPress Council. It would be convenient to highlight the views of the Press
Council on the subject at hand as approved by us. The same are :-

(1) The accommodation will be given by the government from the
D Press Pool only to the accredited journalists and news cameramen. Ac-
credited journalists/news cameramen will mean journalists/news
cameramen accredited by the Central Press Accreditation Committee.
They will not include : (i) those accredited journalists/news cameramen
whose total emoluments exclusive of the conveyance allowance exceed Rs.
15,000 p.m.; (ii) accredited editors or editors-cum-correspondents; (iii)
E Freelance journalists; (iv) journalists engaged on contract basis; and (v)
accredited correspondents who are not Indian Nationals and/or who do
not represent the Indian Media.

(2) He/She does not own a house or flat, either as an owner or as a
F holder of power of attorney, in his/her own name or in the name of the
family member or dependent in the National Capital Territory of Delhi or
Noida, at the time of the allotment of accommodation from the pool.

Notes:

(i) The term 'family' in this context shall have the same meaning as
G
defined in Government of India Supplementary Rule 2.

(ii) The transfer of ownership to spouse/sons/daughter and/or its sale
to third party within a period of five years prior to the date of applica-
tion/allotment, shall render the applicant ineligible for pool accommoda-
H tion.
SHIV SAGAR TIWARI v. U.0.1. [ HANSARIA, J.) 961

(3) The accommodation will be allotted by a Screening Committee A
(Composition of which is given in paia 17) according to seniority and pay
limit as mentioned below :

The accredited journalists will be divided into two categories namely;
(i) those who are drawing income upto Rs. 7,000 p.m.; and (ii) those
drawing income between Rs. 7,001 to Rs. 15,000 p.m. B
The monthly income would mean all emoluments excluding con-
veyance allowance.

Two separate Lists namely, 'List I' and 'List II', of the above
categories (i) and (ii) of the journalists respectively would be prepared on C
the basis of the aforesaid income criteria and according to the seniority on
the basis of the date of application for the accommodation.

(4) Depending upon the availability, the accommodation will first be
given to those in List I according to the seniority. If after satisfying the D
needs of all the journalists in List I, more units of accommodation are
available, they would be given according to seniority to the journalists in
List II.

(5) The journalists in List I may occupy the accommodation so given
for a maximum period of five years but no longer. E
Those in List II may occupy the accommodation so given for a
maximum period of three years but no longer.

The allottee shall not be eligible for allotment of accommodation
from the pool more than once. F

(6) The allottee shall pay to the Government every month the amount
of HRA that the allottees receives from his/her employer in addition to the
licence fee fixed under the Government of India Fundamental Rule Rule
45A. It shall be his/her responsibility to pay all the sums due as aforesaid G
to the government by the 10th of every month. Failure to pay the dues as
aforesaid shall make him/her liable to be evicted forthwith.

(7) Every allottee shall, by 31st March every year, intimate to the
Directorate of Estates,Ministry of U.A. & E. the details of his emoluments
including basic pay, all allowances including the H.R.A. and also par- H
962 SUPREME COURT REPORTS[l996) SUPP.10 S.C.R.

A ticulars of hist.her family member/dependent or self having acquired as a
holder of power of attorney or otherwise, any acco=odation in the
National Capital Territory of Delhi as defined above.

(8) The allottee shall vacate the acco=odation within 30 days of
the expiry of the period of allotment.
B
The guidelines referred above also contain the views of the Press
Council relating to (i) disqualification to remaining in occupation; (ii)
procedure for allotment of accommodation; and (iii) saying provision,
which shall also be borne in mind by the Government while making
C allotment from the Press Pool.

6. Should political parties and other organisations be given
allotment of Government quarters ? If so, which of them and
on what terms ?

D 62. The present allotment to the political parties is subject to the /
guidelines framed in 1985, and 34 quarters are presently in their occupa-
tion. It was made known to us on behalf of the Directorate that the present
thinking is to allow occupation of government acco=odation by those
parties only which are recognised as national parties by the Election
E Co=ission. As to the number of units to be allotted to each political
party, it seems that presently there is a great variance inasmuch as the
Congress (I) has been allotted as many as 10 premises. We are of the
opinion that the Directorate should abide regarding the number, by the
advice to be given by the Speaker of Lok Sabha and Vice-Chairman of
Rajya Sabha.
F
63. Coming to allotment of government quarters to "other organisa-
tions", we find no justification for the same in view of great necessity of
acco=odation prevailing even presently. It would, however, be open to
the Ministry/Department to allot quarter(s) to such 'an organisation from
G the discretionary quota, if the rules to be framed in this regard would
permit the same. The organisation which would not get such allotment
within three months from today would be required in vacate the premises·
under its occupation within one year.

7. Should high holders of political office, like President, Vice-
H President and Prime Minister be acco=odated in Govern-
SHIV SAGAR TIWARI v. U.O.I. [ HANSARIA, J.] %3

ment quarters after demitting of office by them ? If so, on A
what terms?

64. Keeping in view the very high constitutional position occupied by
the President, Vice-President and Prime Minister, we feel no difficulty in
stating that they should be accommodated in government premises after
demitting of office by them, so that problem of suitable residence does not B
trouble them in the evening of life. What should be the terms of the same
is a matter to be decided by the Government.

-· 8. At what rate penalty has to be realised from those who were
unauthorisedly occupying the Government quarters ? C

65. The penalty which becomes payable by those who have either
continued to occupy premises beyond the permitted period or have not
vacated the premises despite cancellation of allotment, has to be as per the
rules holding the field to which we have already referred. We may refer in
this connection to section 7 of the Public Premises (Eviction of Un- D
authorised Occupants) Act, 1971 also, which deals with payment of rent or
damages in respect of public premises. Its sub-section (2) has provided that
where any person is, or has at any time been in unauthorised occupation
of any public premises, the Estate Officer may, having regard to such
principle of assessment of damages as may be prescribed, assess the E
damages on account of the use of the occupation. Rule 8 of the Public
Premises (Eviction of Unauthorised Occupants) Rules, 1971 has men-
tioned about the factors to be taken into consideration in assessing the
damage.

66. The aforesaid being the position, the subject matter regarding the F
rate of penalty is governed by statute and we have nothing to add.

9. Has the Government any power to waive charges which have
become payable as per the Rules in vogue ?

67. This question has its importance because there are material on G
recor.ds to show that the Government has waived charges which have
become payable as per the Rules in vogue. The amount waived being
substantial in some cases it is required to be examim~d whether the Govern-
ment has such a power; and, if so, is there any limit to the same? On -tliis
aspect, we have been addressed, inter alia by Shri Altaf Ahmad, Adell. H
964 SUPREME COURT REPORTS[1996) SUPP. 10 S.C.R.

A Solicitor General and some other learned counsel appearing for those in
whose favour. waiver has been ordered by the Government. These counsel
amongst wh~m were Shri Kailash Vasdev Shri M.L. Jain relied on FR
45-A-V(b). 1he only other provision to which reference was made is FR
5-A. '

'
B 68. Learned Additional Solicitor General took a different view as
according to him the power of waiver qua those allottees who are not
. Government employees flows from Article 73 of the Constitution of India,
which deals with the extent of the executive power of the Union. He
submitted that power of waiver exercised with the aid by invoking Article
c 73 is not in conflict with the rules referred us to Rai Saheb Ram Javava
Kapoor v. State of Punjab, [1955) 2 SCR 225, in this regard.

69. We will first deal with the reliance on FR 45-A-V(b) which permit
waiver or reduction of the amount of "licence fee" to be recovered from
any officer. This apparently would not take within its fold "penal-
D ty/damages" reliable which becomes liable under the rules because of
unauthorised occupation. When the aforesaid rule speaks of "licence fee",
it refers to that fee which become chargeable on allotment of a government
quarter during the period of its valid occupation; and after deeming
-
cancellation of the allotmen:t-what becomes payable is damages/penalty. FR
E 45/V(b) does not, therefore, permit waiver of penalty, according to us,
despite strenuous submissions made by Shri Jain to the contrary.

70. FR 5-A, inter alia, requires concurrence of the Ministry of
Finance for any order made with the aid of that rule. This apart, the power
under that rule becomes available in cases of "undue hardship" and relaxa-
F tion is permissible to such extent and subject to such conditions as the
Ministry/Department may consider necessary for dealing with the case in
just and equitable manner. The Government of India's order relating to
that rule, of which mention has been made in Swamy's Compilation of
FRSR (Part-I General Rules) 12th Edn. Reprint 1995 at page 3 has stated
that this power is intended to be invoked only in "rare and exceptional
G
cases". It is the admitted case that the Government did not resort to the
provisions of FR SA in any case at hand.

71. This requires us to consider the submission of the Addi. Solicitor
General that the power of waiver is available untler Article 73. On being
H questioned by the Court, Shri Ahmad had stated that this is a subjective
SHIV SAGAR TIWARI v. U.0.1. [ HANSARIA, J.] 965

power, which of course, must be exercised in just and fair manner. As A
assistance was sought to be derived from the decision in Rai Saheb Ram
Javava's case, let tis first see what the Constitution Bench had stated in that
case, Mukherjee, 0, speaking for the Bench, had opined that it might not_
be possible to frame an exhaustive definition of what executive function
except that the same ordinarily connotes the residue of governmental B
functions that remain after legislative and judicial functions are taken away.
The further observation of the learned Chief Justice was,and it is this which
the learned Additional Solicitor General sought to rely, that the executive
.. government can never no against the provisions of the Constitution or of
any law. According to Shri Ahmad there being no statutory provision
dealing with, or prohibiting waiver penalty qua non-government employees, C
it would be open to do so in exercise of the executive power recognised by
Article 73.

72. It is also mentioned that this Court had earlier approved grant of
waiver in some cases. As to this, we may say that that had been done
without going into the question of power to waive, and so, the same cannot D
be used to submit that this Court has accepted the power of waiver. ' ·

73. We do not agree with the learned Addi. Solicitor General that
granting of waiver would not conflict with any statutory provision, because,
as already pointed out; there are rules which require payment of specified E
amount of licence fee or damages, which by implication rules out power to
waive the same, unless specifically conferred.

74. Al; to recovery exercise presently being undertaken, we have
expressed our dissatisfaction in the order passed on 29.11.1996 and would
reiterate our concern at the slow pace at which this work is progressing. F
We require strenuous efforts in this regard as mentioned in that order. The
progress made would be made know to this Court by the Director on
affidavit to be filed in the second week of April, 1997.

10. What should be done regarding those Government employees G
who had sublet their premises; and what should be done as
• regards the occupants of these let premises ?

75. Sub-Jetting has become very rampant. This would be apparent
from the fact that on an inquiry being made in this regard after inspection
of 40,928 quarters, subletting was suspected in 4,194. On action being taken· H
966 SUPREME COURT REPORTS[l996] SUPP.10 S.C.R,

A and after considering representations made, allotment of 1,085 quarters
were cancelled.

76. Sub-letting has been made a gross misconduct under rule 15-A
of the Central Civil Services (Conduct) Rules, 1965, as amended by
notification dated August 16, 1996, which was published in the Government
B Gazette of August 19, 1996. By our order of 29.11.196 we had desired
drawing of disciplinary proceedings against the concerned employees,
being of the view that subletting of government accommodation for
pecuniary gain is a grave misconduct. Some further directions were also
given in this behalf. The concerned authorities would see that those direc-
C tions are complied with fully.

77. As SRs. 317-B-20 and 21 have exhaustively dealt with sub-letting
and consequences thereof and as sub-letters become unauthorised oc-
cupants, all that we require is that the Director would do the needful in
this regard _most expeditiously; more particularly, urgent steps would be
D taken to evict the unauthorised occupants whosoever they may be.

11. Whether apart from the general pool and tenure pool, if
required to be retained, there should be other pools; and, if
so,· for whom and how the same should be regulated ?

E 78. Apart from the General Pool, at present there are a Tenure Pool
and Press Po'ol. Though it has been the submission of Shri Ranjit Kumar
that Tenure Pool should be abolished, we do not agree with the learned
counsel because the same is principally meant for those officers who come
on deputation for a fixed period, because of which the incumbent is said
p to hold a tenure post. The deputationists who so come to Delhi mainly
belong to All India Services and their problems being of different kind have
to be taken care of in a different way. As this pool has been existence for
long and exigency of service does require taking care of the State Cadre
Officers who come to Delhi on deputation, no case really exists to order
for abolition of Tenure Pool Of course, the officers who are entitled to
G claim accommodation from the pool should not be allowed to seek allot-
ment from the General Pool. If at present there is any such officer,
Concerned Ministry/Department would see that after the same falls vacant
on the deputation of the present occupant coming to end, that quarter
would become available only to a person eligible to draw from the General
H Pool.
SHIV SAGAR TIWARiv. U.O.I. [HANSARIA,J.] %7

79. It seems to us that apart from these three pools, the quarters A
which are presently occupied by the Speaker of Lok Sabha, Vice- Chair-
man of Rajya Sabha, Judges of Supreme Court and High Court, Election
Commissioners, Chairman, Law Commission of India, Chairman, Press
Council of India and Chairpersons or Members of various other high
statutory today manned by retired Supreme Court or High Court Judges B
should be earmarked for them and should become available subsequently
to the concerned office holders only, and not to anybody else. The pooling
of such accommodation may be necessary so far as the Judges of the
Supreme Court and the High Court are concerned, in view of large number
of quarters needed for them; and it would be appropriate if they are put
.. incharge of the Registrar General of the Supreme Court or the Registrar C
of the High Court, as the case may be.

12. How to prevent in future the scam of the type at hand ?

80. It seems no scam can be avaided howsoever rigid rules may be D
framed or guidelines laid down. Scams are creatures of moribund mind
and low moral character. With various types of scams all around, it is too
much to expect that we can provide any formula by which any scam can
be prevented. Even so, we do hope .that what we have stated above
regarding the rules to be framed for regulating allotment from discretion-
ary quota would take care of foul play of the present type to a great extent. E
The construction of more government quarters is urgently called for to put
a check on misuse of power in this regard, because after all it is dearth of
accommodation and resultant long waiting period which makes employees
move around the power corridor for out-of-turn allotments. The shortage
speaks for itself, as, for about 2.15 lakhs Central Government employees, F
approximately 65,000 quarters only are available. The concerned
authorities have, therefore, to seriously consider the need for building more
accommodation. Let a high powered committee, which may include one or
two representative of the :t;lmployees' Association to instill confidence and
inculcate a feeling of participation, be formed for this purpose and let the
committee report within six months. We do hope the Government would G
definitely act as per the recommendations of the committee. It is also a
matter for consideration whether in the various residential colonies coming
·. up in different parts of the city under the aegis of Delhi Development
Authority and such other bodies, some percentage of houses, say between
5-10, should be reserved for government employees. H
968 SUPREME COURT REPORTS[1996] SUPP. 10 S.C.R.

A 81. Another way to ease the pressure on government accommodation
is to re-examine the question as to who among the house ·owners should
be debarred from getting the same. We understand that at present those
employees who have their own houses within the territory of the National
Capital and Noida alone are debarred. A submission was advanced before
B us on behalf of the above named Association and some others that those
who have houses in town like Gaziabad and Gurgaoil must also be
debarred because there are a number of persons who reside there and
commute daily. This is a matter for the Government to consider and
decide.

C Conclusions
82. For the sake of convenience and comprehension we propose to
sum up our general conclusions. These are :

(1) All the persons whose names find place in the two reports of the
D Gupta Committee (as supplemented) under Categories IV, VI, IX, X, XI
and such of VII who had not become actually entitled to in-turn allotment
by the date (s) the two reports were submitted, would face eviction.

(2) Those IAS, JPS, IFS and other officers who are. occupying
General Pool quarters, despite being eligible to the qllarters in the Tenure
E Pool though not actually allotted, would also be evicted.

(3) A new list would accordingly be drawn up within two months
from today and the persons having become liable as per this list for eviction
would be served individual notices within 30 days thereafter requiring them
F to vacate the quarters within 90 days of the notice.

(4) The out-of-turn allottees who would become liable to eviction on
account of their illegal occupation of the quarters would pay twice of the
licence fee in so far as Type III quarters are concerned; and three times
of the licence fee for Type IV and above. •
G
(5) The Government employees who .had occupied accommodation
on out-of-turn basis but who are not to be evicted would be required to
pay licence fee as stated above, for the period they were in out-of-turn
occupation..

H (6) Those Government employees who were denied allotments,

'
,._
SHIV SAGAR TIWARiv. U.0.1.(HANSARIA,J.] %9

despite having become eligible on in-turn basis, would receive compensa- A
-1) tion as indicated in para 48 of the judgment.

(7) The extent of discretionary quota would be 5 per cent in each
type of houses which would fall vacant in one year. From this 5 per cent
quota, allotment could also be made, if the guidelines to be framed as
directed in para 52 would permit, to freedom fighters, eminent artists, B
social workers and any organisation or institution or other defined category
of persons. The guidelines would be framed within three months from
today.

{8) The guidelines would be duly notified and while making allotment C
reasons would be given. List of such allottees shall be notified and circu-
lated to all the Government Departments. Further, a yearly statement of
such ·allotments would be laid on the table of the each House of the
Parliament.

{9) From the Press Pool, ~otment would be made in terms of what D
has been stated in para 61 if the Government were to accept the same; and
action for eviction, wherever required, would be taken by asking to vacate
the premises latest by 31st March, 1998.

{10) Freedom fiiltters, artists and social workers would not be en-
titled to allotment from General Pool, but could be granted allotment from E
the discretionary quota, if guidelines would permit. The present occupants
would be dealt with according to what has been stated quo them in paras
53, 54 and 55 respectively.

{ll){a) The political parties would be entitled to allotment as per the
policy to be framed, regarding which mention has been made in para 61 F
of the judgment.

(b) After policy has been framed and the other steps have been taken
as indicated in that para, those political parties who would be in occupation
of greater number of units or would not be eligible as per the revised policy G
would be given reasonable time to vacate the accommodation under their
occupation.

(12) Other organisation would not be entitled to allotment of
quarters from General Pool, but could be so adjusted from discretionary
quota if guidelines would permit. That organisation which would not get H
970 SUPREME COURT REPORTS(1996] SUPP. 10 S.C.R.

A allotment from the discretionary quota shall have to vacate the premises
under its occupation within reasonable time in terms of various interim
orders passed concerning them from time to time.
(t.

(13) The President, Vice-President and Prime Minister of India
would be accommodated in government premises after demitting of office
B by them as stated in para 64.

(14) The unauthorised occupants of government premises, who are
liable to pay damages, would do so as per the relevant rules.

(15) The waiver orders as passed have no sanction oflaw; and while
c undertaking recovery the same shall be ignored and the recovery proceed-
ings would abide the order passed on 29.11.1996.

(16)(a) Against those Government servants who have sub~let their
premises departmental proceedings would be. initiated as stated in the
order of 29.11.1996.
D
(b) The sub-letees, being unauthorised occupants, would be evicted .,
most expeditiously.

(17)(a) Apart from the General Poo~ Tenure Pool and Press Poo~
another Pools would be created as mentioned in para 78 of the jud~ent.
E
(b) Earmarked quarters would be made available to the holders of
post mentioned in para 79.

(18) The Central Government would examine the question of under-
tal&g construction work as indicated in para 80 of the judgment.
F
(19) The concerned authorities shall examine the question as to
whether the persons owning houses in Gaziabad and Gurgaon should also
be debarred from getting the government accommodation in Delhi.

Epiloque
G
83. We would first say that we are conscious that some percentage
of those who were given/had obtained out-of-turn allotments would be
required to be evicted pursuant to this judgment. We also know that the
would-be-evictees include those who are Type III allottees and are in lower
H rung of the hierarchy. It has not been possible to exclude them altogether
SHIV SAGAR TIWARiv. U.O.I. [HANSARIA,J.] 971

from the purview of our consideration for reasons given. We have made A

- them available such benefit regarded reasonable by us.

84. When grave illegality of great magnitude is required to be cured,
at times a sort of surgery becomes necessary, and then suffering cannot be
avoided altogether. In out attempt to cause the minimum suffering, we
softened the painful process by reducing the number of those who would B
have to be evicted from 3768 (8778?) to 4672 first and now to around 2000.
Of them, some may get excluded if the Medical Board required to be set
up so recommends.

85. So, we have taken care of the hardship aspect to the extent C
deemed permissible, keeping in view the call of law and equity. Let it be
.said that we have to keep well in mind the injustice which had been caused
to those who·had been denied allotment despite having become entitled to
the same. There can be no denial that equity leans heavily in their favour.
To state shortly, what we have finally ordered is what we must have, to be
true to our conscience and to the cause this Court had undertaken to serve. D

86. Before closing the proceedings, we put on record our great
appreciation for the very laborious work undertaken by the members of the
Gupta Committee. There is no doubt th:at but for the meticulous examina-
tion of each case by the Committee and consideration of objections filed E
before it, we would not have been able· to deal with the problem of this
magnitude to our satisfaction. Secondly, we express our gratitude for the
very useful assistance rendered by S/Shri Ashok Desai, Kapil Sibal and
Ranjit Kumar; so also by S/Shri KTS. Tulsi and Altaf Ahmad, learned Addi.
Solicitors General. But for this, we could not have wade through the sea,
,~ as the case ultimately came to be. Then, the knowledgeability and F
availability of the Director Shri Harcharan Jit Singh had proved very useful
to us. It was this, which had led us to require this retention here. Needless
to say, it is the initiative taken by Shri Shiv Sagar Tiwari which set the ball
rolling. He deserves commendation for the same.

87. Finally, we hope that coming years would not see any scam or G
misuse of power in making allotments of government quarters. The trust
which is reposed in this context on high public functionaries would be
discharged, we are sure, only to advance the object of providing of suitable
condition of work to Government employees so that the Government is run
on even keel; and shelter, which is a very pressing necessity of any human H
972 SUPREME COURTREPORTS[1996] SUPP. 10 S.C.R.

A being, would not come to be denied if the same if otherwise due to. the
incumbent. A satisfied bureaucracy is as much necessary, as good political
leadership, to deliver goods. The Government of free India have many
promises to keep after its tryst with destiny on the midnight of 14th August,
1947. We have no doubt that all the public functionaries would so act that
B the meeting with destiny really sees the dawn of an era of hope for all.

88. We say no more. Adieu.

v.s.s. .Petition disposed of.

-