Mohit S. Shah, J.

1. Rule was issued in this matter on 2 April 2014.

2. The Petitioner co-operative housing society challenges the stop work notice dated 1 February 2012 issued by Respondent no.3 Maharashtra Coastal Zone Management Authority (`MCZMA'). The petition raises question about applicability of Coastal Regulation Zone (`CRZ') Notification dated 6 January 2011 read with Development Control Regulations for Greater Mumbai, 1991 (`DC Regulations, 1991').

3. The facts leading to filing of this writ petition, briefly stated, are as under.

(a) The Petitioner is the lessee of land admeasuring approximately 1,672 sq. mtrs. (equivalent to 2,000 sq.yards) in Worli, Mumbai. The Petitioner co-op. society with 18 members constructed a building in the year 1959-60. The land in question falls under Coastal Regulatory Zone-II within 500 meters from high tide line on landward side.

(b) On 13 November 2000, the Petitioner submitted plans for redevelopment of the building to Respondent no.4 Municipal Corporation of Greater Mumbai (`Municipal Corporation') for construction of area of 2,224.09 sq. mtrs. and free of Floor Space Index (`FSI') area of 234.37 sq. mtrs.. The plans were approved and sanctioned in the form of Intimation of Disapproval (`IOD') dated 1 October 2001 issued by the Municipal Corporation for the building comprising lower stilt + podium + first to sixth floors. Thereafter, on 30 October 2004, the Petitioner society through its Architects submitted amended plans for construction of building comprising of lower stilt + upper stilt + first floor stilt + first to thirteen floors with construction area of 2,205.87 sq. mtrs. at 1.33 FSI and free FSI area of 882.91 sq. mtrs. On 14 December 2005, a Memorandum of Understanding was entered into between the Petitioner society and Respondent nos.5 to 8. Respondent nos.5 to 8, who are developers, agreed to construct eighteen flats admeasuring 16,993 sq. ft. carpet area at their own costs plus four additional flats for themselves.

(c) On 1 August 2006, the State of Maharashtra (Urban Development Department) informed the Municipal Corporation that plans were already sanctioned in 2001 and IOD was issued pursuant to payment of premium. Therefore, the areas of staircase, lift and lift lobby were to be permitted free of FSI in view of past commitment. The Petitioner society through eighteen members entered into an agreement with Respondent nos.5 to 8 on 23 September 2006 to redevelop the building of the Petitioner society. On 28 November 2006, the Municipal Corporation approved the revised plans by allowing areas of staircase, lift and lift lobby free of FSI by charging premium. Upon the Petitioner society making payment of premium of Rs.1,08,03,290/-, the Municipal Corporation issued commencement certificate dated 5 January 2007. The Petitioner society then demolished the building in January 2007 and shifted its 18 members to temporary accommodation elsewhere.

(d) The Petitioner society thereafter also submitted further amended plans in 2009 and 2010. The Municipal Corporation approved the amended plans on 28 April 2009 without increasing the height/floors of the proposed building. The Petitioner society submitted amended plans for building comprising of lower stilt + upper stilt + first floor stilt + first to fourteen floors with construction area of 2,224.09 sq. mtrs. The Municipal Corporation sanctioned the amended plans on 9 August 2010. Areas of staircase, lift and lift lobby, which were already approved free of FSI in the year 2006 plans, remained the same. It appears that the Petitioner sought for approval of some additional staircase and lift area which was counted for FSI in the latest amended plans. On 24 September 2010, the Municipal Corporation granted full commencement certificate.

(e) MCZMA issued the impugned stop work notice on 1 February 2011. According to the Petitioner, by that time, more than 98% construction work of the new building was already complete. The devel