Eviction, demolition of shops without rehabilitation violation of rights: Allahabad High Court to UP health dept

The Lucknow bench of Allahabad High Court has condemned the eviction and demolition of legally allotted shops for construction of a super-speciality hospital in Ayodhya, while seeking a reply from the UP Medical and Health Department.

A division bench of Justices Shekhar B Saraf and Amitabh Kumar Rai, in its order dated October 12, stated, “It is surprising that despite the petitioners having been allotted the shops and having acquired the status of lessees in accordance with the rules governing such allotments, they have been asked to vacate the premises without determination of their leases or any proposal to rehabilitate or compensate them for their eviction from the premises.”

It added, “Such conduct on the part of the respondents (the health department and Ayodhya DM among others) is highly condemnable and cannot be appreciated as the action of the respondents adversely affects the right of the petitioners towards their livelihood and is violative of Articles 19 and 21 of the Constitution of India.”

Showing a serious concern, the bench further stated, “We are conscious of the fact that the construction of a 300-bed super-specialty hospital is in the public interest, but it is also equally important that the petitioners, who were carrying on the business earning their livelihood, cannot be thrown out without making any alternative arrangement for their rehabilitation or compensating them for the loss.”

The case

Six affected shopkeepers had approached the High Court, praying to quash the order issued by the Ayodhya District Magistrate on July 31 this year, asking them to vacate the shops for construction of the hospital.

The petitioners informed the court that they are small shopkeepers who were allotted shops by the Sitapur Eye Hospital Society, Faizabad, on a lease basis for a term of 30 years in 2000. The shops were allotted to them as per the terms under Sitapur Netra Chikitsalaya Complex Niyamawali (rules). As per the rules, the shopkeepers paid a registration fee of Rs 500 and Rs 25,000 towards security for the allotment after the construction of the shops by the Sitapur Eye Hospital, Faizabad. The premium of minimum reserved price of Rs 80,000 was fixed and the allotment of shops was made on the basis of auction.

The counsel for the petitioners further submitted that the petitioners were handed over the possession of the shops as they completed all formalities vide possession letter dated February 28, 2000.

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The order mentioned that the possession letter indicates that the rent was payable with effect from March 1, 2000, and other conditions had to be governed by the Niyamawali (rules). The Niyamawali, in turn, provided that the allotment of shops would be considered to be a leasehold for 30 years, renewable after every 30 years.

HC order

The court stated, it is surprising that without determining the leases of the petitioners, the Ayodhya DM issued a notice dated June 26, 2025 stating that the land in question at Sitapur Eye Hospital, Faizabad, along with the shops allotted to the petitioners had been transferred to the Department of Health and Family Welfare, and the shopkeepers had to vacate the shops within a period of 15 days.

The concerned shopkeepers then filed a writ petition in the High Court, which was disposed of with a direction for deciding the representation of the petitioners and for maintaining the status quo till a decision is taken by the District Magistrate, who is also the President of the Sitapur Netra Chikitsalaya Samiti.

The District Magistrate decided the representation, issuing an order dated July 31 this year, in which it has been admitted that the leasehold shops were allotted to the petitioners as per the Niyamawali. But, per a government order dated April 10, 2024, the land was transferred to the Department of Health and Family Welfare.

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Taking a serious note of the move, the bench directed the Medical and Health Department to file a counter affidavit within a period of three weeks, indicating the steps proposed to be taken for the rehabilitation of the petitioners or for compensating them in lieu of the shops allotted to them from which they have been arbitrarily evicted and the shops demolished.

Listing the matter for hearing on November 16 as a fresh case, the court directed the counter affidavit be filed by an officer not below the rank of Secretary.