The Punjab and Haryana High Court has issued notice of motion on a writ petition challenging the constitutional validity of Regulation 5(2) of the Housing Board Haryana (Allotment, Management and Sale of Tenements) Regulations, 1972, which governs payment of interest on amounts deposited by applicants under housing schemes. The matter has been listed for further hearing on September 23, 2026.

The petition has been filed by Pratap Singh, a 73-year-old applicant under a 2014 Housing Board scheme for ex-servicemen and paramilitary personnel, who claims he deposited ₹5.82 lakh towards allotment of a flat. According to the petition, although the project was never completed and possession was never handed over, the Housing Board refunded the principal amount only in February 2024 with what the petitioner describes as nominal interest after retaining the money for nearly a decade. He has sought a declaration that Regulation 5(2) is ultra vires, arbitrary and unconstitutional, and has also sought directions for payment of a higher rate of interest on the refunded amount.