The Punjab and Haryana High Court has ordered temporary electricity connections for residents of the Sushma Valencia housing project in Zirakpur, bringing immediate relief to hundreds of families living in a project allegedly abandoned by its developer. The court passed the interim direction while hearing a plea filed by the apartment owners' association seeking electricity connections for residents.
Background of the Case
The petition was filed by the Sushma Valencia Apartment Owners Association, representing residents of the housing project. According to the association, more than 500 families are residing in the project and have been facing difficulties because the developer has allegedly abandoned the project. The residents approached the court seeking directions to the authorities and the Punjab State Power Corporation Limited (PSPCL) to release electricity connections.
An earlier order of the High Court had noted that the builder's licence had expired in August 2023 and that PSPCL had issued guidelines permitting electricity connections in abandoned projects under certain circumstances. The court had also directed PSPCL to consider requests from residents willing to deposit the required charges.
Dispute Over Charges
During the hearing, counsel appearing for PSPCL informed the court that electricity connections could be provided if members of the association collectively paid more than ₹4.44 crore, excluding an additional penalty liability of over ₹43 lakh.
The residents opposed the demand. Their counsel argued that the liability to pay such a large amount rested with the developer and not with homebuyers who had already invested their savings in the project. It was further submitted that collecting ordinary connection charges from residents would not satisfy the amount demanded by PSPCL.
Court's Observations
Justice Sanjay Vashisth expressed concern over the hardship being faced by residents, particularly during the summer season.
The court observed,
“The citizen of this country are residing in a welfare state and they cannot be left in lurch due to failure of the system/administration.”
The judge noted that children, elderly persons and women living in the project could not be left without a practical remedy while legal and administrative issues remained unresolved. The court also remarked that many homebuyers had invested their hard-earned money with the expectation of securing a home and should not suffer because of circumstances beyond their control.
The court further emphasized the need for authorities to develop mechanisms to protect consumers in situations where builders abandon projects after collecting money from purchasers.
Court's Decision
The High Court directed the Superintending Engineer of PSPCL, or another senior officer, to convene a meeting with concerned government authorities, including GMADA, to find a solution to the dispute and report the outcome before the court. Representatives of the residents' association may also participate in the meeting.
As an interim measure, the court ordered PSPCL to provide temporary electricity connections to residents who pay the usual connection charges along with ₹20,000. The court clarified that the arrangement is purely temporary and will not automatically entitle residents to permanent electricity connections. Consumers will also remain liable to pay charges based on their actual electricity consumption.
Case Details
Case Title: Sushma Valencia Apartment Owners Association v. State of Punjab and Others
Case Number: CM-9761-CWP-2026 in CWP-15651-2026
Judge: Justice Sanjay Vashisth
Decision Date: June 5, 2026
