IN THE HIGH COURT OF JUDICATURE AT BOMBAY
A.S.Chandurkar, Anil Laxman Pansare, JJ.
Sunil – Appellant
Versus
State of Maharashtra – Respondent
Writ Petition No. 64 of 2022
Decided On : 01-02-2023
development charges - Land Revenue Code - Sec. 37A - Summary: The court considered the demand for development charges raised by the Respondent No.3 and the authority of law to levy such charges. The court analyzed the provisions of Sec. 37A of the Code of 1966 and the Government Resolutions (GRs) dtd. 13/4/2017 and 23/2/2018. It held that the demand for development charges was unsustainable in law as the authority to levy such charges came into existence only after the rates were prescribed in April 2017. The court quashed and set aside the impugned demand and communication.
Fact of the Case:
The Petitioner sought to quash the demand for development charges raised by the Respondent No.3 in relation to the construction of a multi-storied building on nazul land. The Petitioner argued that the demand was without authority of law and had been raised at the discretion of the Respondent No.2-Collector.
Finding of the Court:
The court found that the demand for development charges was unsustainable in law as the authority to levy such charges came into existence only after the rates were prescribed in April 2017. The court quashed and set aside the impugned demand and communication.
Issues: The main issue was the authority of law to levy development charges and the applicability of the Government Resolutions (GRs) dtd. 13/4/2017 and 23/2/2018 in relation to the demand raised by the Respondent No.3.
Ratio Decidendi: The court held that the authority to levy development charges came into existence only after the rates were prescribed in April 2017. It further emphasized that the recovery of the amount of premium or charge had to be ascertained while granting permission, and the imposition of charges could not be vague or made subject to further conditions.
Final Decision: The court partly allowed the Writ Petition, quashing and setting aside the impugned demand and communication issued by the Respondent No.3. The Petitioner's request for a declaration that no development charges are recoverable was not granted, leaving the Respondents at liberty to demand such development charges as were existing at the time of granting permission.
JUDGMENT
ANIL L.PANSARE, J. - Rule. Rule is made returnable forthwith. Heard finally with the consent of the parties.
2. The Petitioner has put forth the following substantive prayer:-
"(i) Quash and set aside the impugned demand dtd. 15/1/2021 (Annexure-7) and communication dtd. 11/11/2021 (Annexure-12) issued by the Respondent No.3 and hold and declare that no development charges are recoverable from the Petitioner."
3. By the impugned communication, the Respondent No.3 - Nazul Tahildar, raised a demand for a sum of Rs.34,05, 806.00 in order to grant No Objection Certificate ('NOC' in short) to sell the flats developed by the Petitioner, on the premise that the same has been done by using Transfer of Development Rights ('TDR' in short) in a multistoried building by name and style as "La Regalia" constructed on nazul Plot No.94 admeasuring 1114.8 sq.mts. in Mouza Lendra, Ramdaspeth, Nagpur.
4. The Petitioner states that he is the owner of the said plot. He entered into an agreement of development with M/s. Raghav Life Spaces, through its partner, Sharad Mor on 22/7/2015. The Petitioner has also executed power of attorney in favour of Mr. Mor on the same day. The parties decided to develop a multi storied residential building on the said plot in accordance with law. Since the said plot is/ was on nazul lease, the Petitioner applied to the Respondents vide application dtd. 18/1/2016 for grant of NOC for the proposed construction of multi-storied residential building by using Floor Space Index ('FSI' in short) and TDR. The Petitioner on 18/1/2016 had also applied to the Nagpur Municipal Corporation (NMC) for sanction of the building plan. The NMC was pleased to sanction the building plan and issued commencement certificate on 7/5/2016. The Respondents also granted NOC on 25/1/2017 for construction of a multistoried building.
5. The Petitioner states that after completion of construction, the Petitioner wanted to execute deed of conveyance in favour of the flat purchasers. The Petitioner therefore required NOC for transfer/ sale of the flats from the Respondents. Accordingly, the Petitioner applied to the Respondents on 25/6/2020 and 12/11/2020 for grant of NOC for sale of flats.
6. The Petitioner further states that the Respondents vide impugned communication (Annexure 7) raised a demand of Rs.34,05,806.00 as development charges. The Petitioner states that the said demand is without authority of law and has been raised at ipse dixit of Respondent No.2-Collector. The Petitioner, therefore, addressed a representation to the Collector to provide Government Resolution or any other decision on the basis of which the impugned demand has been raised. Despite the representation, the Respondents have neither recalled demand nor supplied the required information or any justification.
7. The Petitioner, however, came across a Government Resolution ('GR' in short) dtd. 13/4/2017 which was amended by GR dtd. 23/2/2018 which mentions about levy of development charges. However, according to the Petitioner, the same are not applicable to his case. Accordingly, the Petitioner by way of another representation expressed that the GR dtd. 23/2/2018 is not applicable to his case and requested to recall the demand notice dtd. 15/1/2021. The Respondent No.2, however, issued the impugned communication (Annexure-12) dtd. 11/11/2021 reiterating the demand for the development charges, with a caution that nonpayment of said charges would result into rejection of Petitioner's application seeking NOC. Hence the present Petition.
8. The Respondents state that as per the Government Gazette notification issued by the Revenue and Forest Department on 4/1/2017, it is provided that any newly amended provisions of Sec. 37A (i) & (ii) in the Maharashtra Land Revenue Code ('Code of 1966' in short), the concerned Collector shall exercise his powers for grant of permission in respect of nazul land regarding FSI/TDR. According to Respondents, considering the aforesaid noti
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The main legal point established in the judgment is that the authority to levy development charges must be in existence at the time of granting permission, and the recovery of the amount of premium o....
Development charges for nazul land must be assessed and determined at the time of granting permission, and any subsequent demand based on later government resolutions is not legally valid.
Development charges cannot be levied on land that is already developed and in use prior to the enactment of relevant provisions in the Maharashtra Regional and Town Planning Act, 1966.
Only charges specified in Section 15(2-A) can be levied.
Authority must adhere to applicable regulatory frameworks when determining development charges and project timelines, ensuring compliance with statutory periods defined in the HMDA Act.
The main legal point established in the judgment is that the respondent corporation has the authority to suspend development permission and must provide both parties with an opportunity to present th....
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