Judgment

G.S. SINGHVI, J.

1. Leave granted.

2. These appeals are directed against order dated 12.4.2012 by which the Division Bench of the Bombay High Court allowed the writ petition filed by respondent No.1-Hindustan Petroleum Corporation Ltd. (HPCL) and quashed the sanction accorded by the competent authority of the Municipal Corporation of Greater Mumbai (for short, 'the Corporation') for change of user and construction of residential and commercial complex on land bearing CTS Nos.381 and 381/1 to 22, Village Anik, Taluk Chembur, MSD, Mumbai and directed the Municipal Commissioner to reconsider the application made by Oswal Agro Mills Ltd. (hereinafter described as "the appellant") keeping in view the objections raised by the Police Department, Ministry of Petroleum, Ministry of Environment and Intelligence Bureau and the Security Control Regulations issued by the State of Maharashtra under Section 37 (1AA) of the Maharashtra Regional and Town Planning Act, 1966 (for short, 'the 1966Act').

3. The appellant purchased the land in question from Union Carbide Ltd. in 1989 with the permission of the State Government. In the development plan of the area, the land was shown as included in Special Industrial Zone(I-3 Zone). In 2005, respondent No.1 acquired land bearing CTS Nos. 382 and 382/1 to 66 of Village Anik, which is located at a distance of 430-450meters from the appellant's land from Ahmadabad Printing and Calico Mills Company Ltd. for construction of storage tanks.

4. On 17.3.2006, the appellant made an application to the Industries Department of the State Government for change of land use. The State Government informed the appellant that the Industries Department can give NOC for industrial purpose keeping in view the locational policy, which did not contain any provision for change of land use and that change of user was within the jurisdiction of the Planning Authority.

5. The appellant also made an application to the Maharashtra Pollution Control Board (MPCB) for grant of environmental clearance. Thereupon, MPCB issued notice dated 19.6.2006 and invited objections against the proposed grant of environmental clearance to the appellant's project. RespondentNo.1 filed objections dated 11.7.2006 and pleaded that permission sought by the appellant should be rejected because its refinery was very close to the appellant's land and construction of building would be a security threat to the large tanks proposed to be installed for storage of crude oil and finished petroleum products on the plot purchased from Calico Mills Company Ltd.

Another plea taken by respondent No.1 was that there were several major industrial units in the industrial zone and setting up residential or commercial complex in that zone next to the refineries was risky and hazardous and was not in public interest. Respondent No.1 sent similar communication dated 17.7.2006 to the Corporation. The latter sent communication dated 26.10.2006 to the Under Secretary, Urban Development Department informing him about the objections raised by respondent No.1 and pointed out that proposal of the appellant cannot be withheld under the existing rules and regulations because issues of safety and security were not within its jurisdiction.

The Corporation also suggested that a strip of land could be left around the premises as buffer for additional safety of the installation of the refinery and surveillance could be kept by installing CCTV cameras, etc. The Labour Commissioner, to whom a copy of application dated 17.3.2006 had been forwarded, sent communication dated18.11.2006 to the Corporation that he had no objection to the issue of NOC to the appellant. He also mentioned that dues of workers had already been paid.

6. After one year and one month of the submission of application by the appellant, the Corporation addressed letter dated 21.4.2007 to the Under Secretary, Urban Develop