Punjab & Haryana High Court Refuses Reclassification Of Punjab Kesari Group Hotel As Commercial Building Amid Setback Violations

The Punjab and Haryana High Court has dismissed a writ petition filed by Chopra Hotels Pvt. Ltd., Jalandhar owner by Punjab Kesari Newspaper Group, seeking permission to treat its hotel building as a commercial building under the Punjab Unified Building Rules, 2025, holding that such a request cannot be entertained after completion of construction and submission of a completion certificate application.

A Single Judge Bench of Justice Harsh Bunger ruled that allowing such a change would effectively permit the petitioners to benefit from their own violations and would also indirectly interfere with ongoing environmental proceedings.

Justice Harsh Bunger said, "In my considered opinion, once the hotel building of petitioners already stands fully constructed and they have not only applied for completion certificate on 31.07.2024 alongwith permissions i.e. consent to establish (CTE) and consent to operate (CTO) for the hotel building, but had also made the hotel operational (as per report of team of officers of Board-PPCB), the petitioners' case would not fall for consideration of change of usage from a 'hotel building' to a 'commercial building' either under Rule 15 or Rule 16 of 2025 Rules."

The petition was filed by Chopra Hotels Pvt. Ltd., part of the Punjab Kesari Group, along with other petitioners who own a plot located at Police Lines, GT Road in Jalandhar. The land had been granted Change of Land Use (CLU) from residential to commercial in 2006.

A building plan for a nine-storey hotel building (including three basements) was approved by the Municipal Corporation, Jalandhar in April 2011. The sanctioned plan required a 20% front setback.

However, when the petitioners submitted a completion plan in July 2024, the authorities found that the building had a front setback of only 15.37%, which was below the permissible limit.

The petitioners sought relaxation of the setback requirement, but the Director, Local Government, Punjab rejected the request in November 2025 and directed removal of the non-conforming construction.

Pollution Control Action

In January 2026, officials of the Punjab Pollution Control Board inspected the hotel premises and reported several environmental violations, including Non-operation of the Sewage Treatment Plant (STP), Untreated effluent being discharged into the municipal sewer and Non-operation of the Effluent Treatment Plant (ETP).

The Board subsequently issued directions restraining the hotel from discharging effluents and ordered authorities to disconnect electricity supply, which was done on January 14, 2026.

Proceedings Before Courts and Tribunal

The petitioners challenged the action before the High Court and later approached the Supreme Court of India.

While permitting the Punjab Kesari newspaper printing press to continue functioning, the Supreme Court directed that the hotel would remain non-functional until further orders and allowed the petitioners to approach the National Green Tribunal. The NGT was also asked to consider inspection reports from an expert committee.

Separately, the Municipal Corporation passed a demolition order on February 6, 2026 for removal of the non-compliant construction.

Senior Advocates for petitioners Chetan Mittal, Gaurav Chopra contended that under the Punjab Unified Building Rules, 2025, the front setback requirement for commercial buildings had been reduced from 20% to 10%.

They argued that since their building had a front setback of over 15%, they should be allowed to use the building as a commercial building instead of a hotel, in accordance with the new rules.

The Punjab Government represented by the Advocate General Senior Advocate Maninderjit Singh Bedi, opposed the plea on multiple grounds including that the 2025 Rules are currently under challenge, and the High Court has already kept inconsistent provisions in abeyance.

The building was approved specifically as a hotel, and its construction had already been completed. Under earlier building bye-laws, front setback violations cannot be compounded.

The petitioners had already approached various forums regarding environmental violations and the building's legality.

Justice Bunger dismissed the petition, observing that since the environmental compliance of the hotel is already under examination pursuant to the Supreme Court's directions, entertaining the request for change of building usage would amount to indirect interference in those proceedings.

It also noted that a  Division Bench of the High Court has already stayed the operation of provisions of the Punjab Unified Building Rules, 2025 that conflict with earlier rules. Therefore, the petitioners cannot rely on them at this stage.

Even assuming the 2025 Rules apply, Rules 15 and 16 allow revision of building plans only during construction or for uncommenced projects, not after the building is completed and a completion certificate has been sought, added the Court.

The court observed that the building plan was approved based on a representation that the front setback complied with the required 20% limit. Since the completed building violated that condition, permitting reclassification would effectively allow the petitioners to benefit from their own violation.

Holding that there was no merit in the writ petition, the Court dismissed it.

Mr. Chetan Mittal, Senior Advocate, Mr. Gaurav Chopra Senior Advocate assisted by Mr. Mayank Aggarwal, Mr. Prateek Gupta, Mr. Pranshu Goyal, Mr. Anmol Rai Garg,

Mr. Swapnil Gupta, Mr. Harshit Gupta, Advocates for applicant-petitioners.

Mr. Navneet Singh, Additional A.G. Punjab Mr. Nirmaljit Singh Diwana, Senior DAG Punjab.

Mr. Maninderjit Singh Bedi, Senior Advocate, Advocate General, Punjab assisted by Ms. Kavita Joshi, Mr. Sangam Garg, Advocates for respondents No. 3 and 4.

Title: Chopra Hotels Pvt. Ltd. Jalandhar through its Authorized  Signatory Mr. Vivek Prakash Pandey and others

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