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2022 Supreme(Bom) 762

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
Dipankar Datta, G.S. Kulkarni, JJ.
Nishant Karsan Bhagat – Petitioner
Versus
The City and Industrial Development Corporation of Maharashtra Ltd. & Ors. – Respondents
PIL Petition No. 22, 37 of 2021
Decided On : 30-08-2022

Advocates:
Advocate Appeared:
For the Petitioner: Mr. Prasad K. Dhakephalkar, Mr. Rajesh Datar, Mr. Akshay Kandarkar
For the Respondent: Mr. Arshad Shaikh, Mr. Rohan Cama, Mr. Aditya Udeshi, Mr. Netaji Gawade, Sanjay Udeshi & Co., Mr. Girish Godbole, Ms. Shivani Samel, Mr. Aditya Shirke

Headnote:(A) Maharashtra Regional and Town Planning Act, 1966 - Sections 23, 26, 43, and 154 - Jurisdiction of Planning Authorities - Two PIL petitions concerning reservation of land for public purpose by the Municipal Corporation and alleged illegal auction of plots by the Development Corporation - Court finds that both authorities have distinct and overlapping powers, and State Government directives under Section 154 to exempt CIDCO from such reservations are lawful - NMMC failed to publish a draft development plan within the statutory period, thus CADCO's actions not impeded by reservations. (Paras 55-92)

(B) Petitioners' claims of public interest and legislative provisions discussed - NMMC's authority to create reservations cannot override CIDCO's vested rights as New Town Development Authority - Directions by State Government clarifying authority designed to remove conflicts. (Paras 92-94)

Facts of the case:
Petitioners challenge CIDCO's auction of land scheduled for development by arguing NMMC's proposed reservations for public amenities - CIDCO asserts entitlement as New Town Development Authority.

Findings of Court:
No reservations applicable to CIDCO plots as the Draft Development Plan not published - NMMC's jurisdiction restricted in relation to CIDCO lands.

Issues: Nature of powers between NMMC and CIDCO and implications of State directives.

Ratio Decidendi: Directions under Section 154 are valid and do not alter existing planning authority allocations - CIDCO retains rights to develop lands even amid pending development plans.

Result: Petitions dismissed, CIDCO to proceed with auction.

Judgement Key Points

Key Points: - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!) - (!)

What are the questions for determination regarding CIDCO vs NMMC powers and reservations in Navi Mumbai?

What is the legality of State Government directions under Section 154 of MRTP Act affecting CIDCO and NMMC interplay?

What is the validity of CIDCO auctions in light of pending Draft Development Plan and alleged reservations by NMMC?


Table of Content
1. public interest petitions addressing land reservations by nmmc. (Para 1 , 2 , 3)
2. establishment and powers of cidco as new town development authority. (Para 4 , 5 , 6)
3. legal requirements for revising development plans under mrtp act. (Para 10 , 13 , 14)
4. procedural requirements and statutory obligations of nmmc regarding development plans. (Para 15 , 24)
5. authority of state government to clarify roles of cidco and nmmc. (Para 35 , 36)
6. powers of planning authority vs. new town development authority under mrtp act. (Para 57 , 58 , 60)
7. legal determination of rights and duties between cidco and nmmc. (Para 70 , 79)
8. court’s ruling on cidco's auction rights upheld. (Para 80 , 91)

JUDGEMENT :

G. S. Kulkarni, J.

A

Prelude

1-3

B

Factual Matrix

4-30

C

Prayers in PIL No.22 of 2022 & PIL No.37 of 2022

31

D

Respondent’s Pleadings:

32-49

E

Submissions on behalf of the Petitioners

50

F

Submissions on behalf of Respondents

51-54

G

Questions for Determination

55

H

Relevant Provisions of the MRTP Act

56

I

Analysis and Conclusion

57-94

A) Prelude

1. These are two public interest petitions, which raise common issues of fact and law. The petitioners in both these proceedings claiming to be public spirited citizens, are before the Court, raising issues in regard to the proposed reservation of certain plots lands, by respondent No.2 - Navi Mumbai Municipal Corporation (for short “NMMC”), for public purpose, in a proposed Draft Development Plan, to be notified by the NMMC under the provisions of the MAHARASHTRA REGIONAL AND TOWN PLANNING ACT , 1966 (for short “the MRTP Act”). These plots of land are vested with respondent No.1- City and Industrial Development Corporation of Maharashtra (for short “CIDCO”) as a New Town Development Authority as constituted for the Navi Mumbai Area. The petitioners contend that in view of the proposed reservation, these lands cannot be subjected to allotment by the CIDCO for residential/commercial purposes.

2. The opposition to such contentions of the petitioners is by the CIDCO and its allottee’s who are private respondents (respondents no.4 to 13 ). It is also by the State Government. The case of CIDCO is that the lands, which are proposed to be reserved by the Municipal Corporation, in fact, are lands which are vested with CIDCO, conferring on it an entitlement in law, namely under the provisions of MRTP Act, to develop and auction these lands. CIDCO contends that by a public notice issued sometime in January 2021, CIDCO had invited bids to auction these lands for commercial and residential purposes. Consequent thereto, an auction was held between February 2021 and March 2021, which culminated into allotments of these plots in favour of respondent Nos.4 to 14, which have stood finalised. After such allotments were made in favour of these allottees (the private respondents), the present petitions were filed in or about 21 May 2021.

3. It is CIDCO’s case that it was set up as a New Town Development Authority for designated sites to form new town area, namely, Navi Mumbai, which was by a notification dated 20 March 1971. This was much prior to the formation of the NMMC in the year 1991. CIDCO says that such plots cannot be subjected to reservation in any proposed development plan, and the authority and power vested in it to auction these lands for commercial and residential purposes, for which these lands were developed has remained undisturbed, even on the formation of the Municipal Corporation for the Navi Mumbai area namely the NMMC. CIDCO, thus, says that the recent action of the NMMC, to pass a resolution in its General Body Meeting held on dated 13 December 2019, by virtue of which under the garb of publishing a revised draft development plan, to include these plots/land vested with the CIDCO under such plan, and s

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