In a significant decision, a Division Bench of the Kerala High Court has overturned a provision that unfairly excluded some apartment owners at the Chander Kunj Army towers from receiving monthly rent during their period of displacement.
The Bench, composed of Justices Amit Rawal and P.V. Balakrishnan, noted in an order dated September 10, 2025, that the earlier Single Bench had failed to consider the unique circumstances of defense personnel. Many of these individuals, having been provided government accommodation, might be planning to move into their apartments upon retirement.
Moreover, it’s highly probable that these officers are servicing home loans with monthly EMIs. In recognition of these situations, the court ruled that these individuals are entitled to rental compensation. This will be subject to a decision by the district committee, based on documentation proving their retirement or current rental agreements.
The court also dismissed the Army Welfare Housing Organisation’s (AWHO) argument challenging claims from apartment owners who had already approached statutory bodies such as the Real Estate Regulatory Authority.
It clarified that it cannot adjudicate monetary damages, as such determinations require thorough evidence and supporting materials. The bench, therefore, rejected AWHO’s appeal on this point, observing that the writ petition did not extensively cover monetary claims.
Significantly, the Bench also rejected the possibility of AWHO constructing additional floors or areas to generate extra income. This was based on assurances from AWHO’s counsel that the organization had no such intention. The AWHO has been explicitly directed to cover all expenses incurred during the reconstruction period, including any cost escalations.
Initially, AWHO had set aside ₹175 crore for the reconstruction. However, the district committee deemed this insufficient, revising the estimate to ₹211 crore with input from the Public Works department and a structural expert. The court firmly stated that apartment owners should not be burdened with the process of filing statutory applications for reconstruction approvals. Instead, it is AWHO’s primary responsibility to submit these applications, and all competent authorities are expected to process them promptly and without objection.
To prevent owners from incurring unnecessary municipal tax liabilities, the occupancy certificates for Towers ‘B’ and ‘C’ will be held in abeyance until the reconstruction is complete and the towers are ready for reoccupation.