2012 Supreme(Bom) 392
2012 (3) ALL MR 104
High Court of Judicature at Bombay
THE HONOURABLE CHIEF JUSTICE MR. MOHIT S. SHAH & THE HONOURABLE MRS. JUSTICE ROSHAN DALVI
Kamlakar Motiram Satve & Others
Versus
State of Maharashtra & Others
PUBLIC INTEREST LITIGATION NO. 131 OF 2008 WITH PUBLIC INTEREST LITIGATION NO. 91 OF 2008 WITH PUBLIC INTEREST LITIGATION NO. 21 OF 2010
Decided on: 22-02-2012
For the Petitioners:S.G. Deshmukh, Ms. Sumedha Rao, Kiran Bhalerao, Advocates. For the Respondents:R9 & R10, S.G. Aney with D.D. Madon with Pradip Sancheti, Sr. Advocates with Suryakant Jadhav, K.K. Singhvi, Sr. Counsel for BMC, Ms. Kiran Bagalia, Ravi Kadam, Advocate General with D.A. Nalavade, GP, Advocates.
Headnote:A) Constitution of India, Arts.226, 227:- In the public interest litigation with regard to violation of the provision in the tripartite agreement stipulating under clause 7(iii) 50% of Units constructed shall not exceed 40 sq.mtrs and 50% shall not exceed 80 sq.mtrs in terms of FSJ and Clause 8(i) in agreement to leave open space for schools, parks, hospitals, service industries, directions issued for corrective action to the developer and aspect of corruption by the officers of the State was left to the petitioner for perusing through criminal investigation. (Paras 42, 52)
ROSHAN DALVI, J.
1. The aforesaid three PILs are largely similar arising out of the same set of facts. The petitioners have challenged the construction put up on 230 acres of Villages Powai and Tirandaz by respondents 9 and 10 (the developers). The conditions of grant for development of the said lands are contained in a tripartite agreement dated 19 November 1986 executed by and between the State of Maharashtra, Mumbai Metropolitan Regional Development Authority (MMRDA) and the developer on behalf of the initial landholders as their constituted attorney. The said grant was made for planning the development of the said two villages by MMRDA as the Planning Authority. Six agreements of lease also dated 19 November 1986 have been executed between MMRDA and the developers as the Constituted Attorney of the landholders. An order of exemption under Section 20 of the Urban Land (Ceiling and Regulations) Act (ULC Act) was made on 12 February 1987. The petitioners claim that the conditions mentioned in the tripartite agreement have been grossly breached and violated by the developer. The petitioners claim that consequently the exemption order under the ULC Act is required to be cancelled and the land is required to be resumed by MMRDA.
2. The petitioners have accordingly applied for a writ of mandamus directing inquiry in respect of the tripartite agreement and to restrain the developer from carrying on any further construction in
contravention of the tripartite agreement and the conditions imposed in the exemption order granted under U.L.C Act. The petitioners have also prayed for appropriate civil and criminal action against the officers and employees of MMRDA upon the case of collusion with the developer.
3. The transactions between the parties are admitted. The nature of the transactions must be first understood. Respondents 5 to 8 were the initial landholders. Their land came to be acquired by MMRDA for development of affordable housing. The MMRDA in turn granted six separate leases to the landholders, including respondents 5 to 8, for 80 years upon the premium of Re.1/- per hectare i.e., Rs.15/- in all. The leases were executed on 18 November 1986 for development to be carried on in accordance with the relevant permissions under sanctioned plans of Mumbai Municipal Corporation (MMC) in accordance with the provisions of the Bombay Municipal Corporation Act (BMC Act) and the Maharashtra Regional Town Planning Act 1966 (MRTP Act). The leases were signed on behalf of the landholders by the developer as their constituted attorney.
4. Contemporaneously with the said agreements to lease the developer, the MMRDA as the Planning Authority and the State entered into a tripartite agreement setting out the terms and conditions for the development of the entire area under a scheme called the Powai Area Development Scheme (Powai ADS).
5. The relevant and important provisions of the tripartite agreement which have been stated to be breached and violated are essentially under clauses 6, 7(iii), 8(i), 8(ii)(iii), 9(b), 12 & 13, the relevant portions of which run thus:
Clause 6 : The Authority shall immediately after the execution of these presents in accordance with and in exercise of the powers contained under the Urban Land (Ceiling and Regulations) Act, 1976 (Act No.33 of 1976), (hereinafter referred to as “the said U.L.C.R. Act” exempt or cause to be exempted the lands agreed to be demised from the provisions of Chapter III of the said U.L.C.R. Act in the hands of the land-holders to enable the landholders to hold the lands agreed to be demised and more particularly described in the Third Schedule hereunder written in excess of the Ceiling Limit on leasehold basis and to develop the same on the terms and conditions herein contained.
Clause 7(iii): The land-holders further agree and undertake that in respect of flats, apartments, tenements, units, premises, houses, bungalows, buildings, by whatever name called and entitled to be ere