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2024 Supreme(Bom) 702

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
M.S. SONAK, KAMAL KHATA, JJ.
Shri Sunil Vishwanath Madavi and Anr. – Petitioners
Versus
The Chief Secretary, State of Maharashtra, Mantralaya Mumbai and Ors. – Respondents
Writ Petition No. 833 Of 2019
Decided On : 25-07-2024

Advocates Appeared:
For the Petitioners: Mr Amit Ashok Gharte.
For the Respondents: Mr Chintan Shah, i/b Mr Prithviraj S. Gole, Mr Pramod Bhosle, i/b Mr. Anil D. Joshi.

Unauthorized construction without proper permissions violates statutory laws; authorities must enforce demolition orders while compensating affected purchasers.

Headnote:(A) Maharashtra Regional and Town Planning Act, 1966 - Section 40(1) - Maharashtra Village Panchayats Act, 1959 - Unauthorized construction - Five buildings constructed without proper permission from planning authority - Orders dated 23 December 2013 for demolition unchallenged and enforceable - Authorities failed to act, displaying indifference towards illegalities. (Paras 28-30, 59, 88)

(B) Fraud in construction - Builders sold apartments based on fraudulent permissions, defrauding buyers as well as statutory authorities - Court mandates deposit of compensation and directs recovery of ill-gotten gains from developers. (Paras 75-78, 87)

Facts of the case:
Petitioners alleged that respondents illegally constructed buildings on government land, disregarding orders to demolish issued earlier, and transferred apartments fraudulently to third parties without legal permission.

Findings of Court:
Orders for immediate demolition of unauthorized buildings affirmed; respondents directed to deposit compensation for affected flat purchasers.

Issues: The legality of the permissions obtained, the responsibility of the planning authority, and compliance with previous demolition orders were central questions in the case.

Ratio Decidendi: The court established that construction without necessary permissions from the designated planning authority constituted clear illegality and emphasized the need for enforcement of existing demolition orders, underscoring the court's role in protecting public interest and lawful conduct in land use.

Result: Writ Petition allowed; respondents 8, 9, and 10 directed to deposit Rs. 8 Crores within two months.

Table of Content
1. the need for thorough legal procedures in construction. (Para 1 , 2 , 12)
2. encroachment on government land and the implications of unauthorized construction. (Para 58 , 60 , 69)
3. compensation for victims of illegal constructions. (Para 75 , 78 , 80)

JUDGMENT :

(M.S. Sonak J) :

1. Heard learned counsel for the parties.

PRELIMINARIES:-

2. On 09 June 2023, an adjournment was applied for by Mr Bhosle on the ground that the senior counsel engaged to appear in this matter was in some difficulty. Accordingly, this matter was adjourned to 23 June 2023 by clarifying that this petition would be taken for final disposal.

3. The parties have already completed their pleadings. Accordingly, we issue Rule. Given the order made on 09 June 2023, learned counsel for the parties were heard finally and at length.

4. However, it is necessary to record that Mr Chintan Shah and Mr Bhosle did apply for adjournment because the senior advocate was unavailable. After this Court expressed its disinclination to adjourn this matter given its history, Mr Bhosle, on behalf of the 10th respondent, made extensive submissions in the matter. Mr Shah, despite the opportunity, refused to make any arguments on behalf of the 8th and 9th respondents. Since there was no significant difference in the stances of the 8th and 9th respondents on the one hand and the 10th respondent on the other, we did not deem it appropriate to adjourn the matter any further.

5. This is a gross case where respondents 8, 9 and 10 have constructed five buildings unauthorisedly on the property, which is, at least partly, Government land. Despite five separate orders dated 23 December 2013 made by the Tahsildar of Bhiwandi, after following the due course of law, respondents 8, 9 and 10 did not demolish the unauthorised construction put up by them. Instead, these respondents transferred some of the apartments in these buildings to create 3rd party rights and defraud such purchasers.

6. Admittedly, the orders dated 23 December 2013 were not challenged by respondents 8, 9 and 10 by instituting any proceeding before the competent Court of law. Still, respondents 8, 9 and 10 did not comply with the directions issued in this order. Even the authorities tasked with taking action in such matters appeared interested in passing the buck to one another and thereby avoiding action. Hence, the petitioners have instituted this petition seeking several reliefs, including immediate demolition of these grossly unauthorised buildings brazenly put up by respondents 8, 9 and 10 in the property surveyed under No. 12 in the village- Kalher, Taluka- Bhiwandi, District- Thane which is a subject matter of this petition.

7. On 25 March 2021, the co-ordinate bench of this Court comprising S.J. Kathawalla & Milind N. Jadhav, JJ., made the following order:-

    “Respondent Nos. 8 and 9 in collusion with Respondent No. 10 have constructed five buildings which are completely unauthorized and have sold flats to innocent flat purchasers thereby perpetrating a fraud on them and also on the statutory authorities.

    2. Respondent No. 8 - Mr. Sharad Vasant Madhavi who is present in Court admits that he has not only constructed buildings which are unauthorized on the subject plots but has also constructed building on the adjoining Plot Nos. 201(5), 203(11/1) and 203(11/2) through M/s. P.R. Developers, whose partners are Shri Rakesh Khasane and Shri Pankaj. He has stated that the construction on Plot No. 201(5) is completed.

    3. Before we direct action against Respondent Nos. 8, 9 and 10, we direct Respondent No. 9 - Shekhar Vasant Madhavi and Respondent No. 10 – Shri Chandrakant Mahadeo Kherade, Proprietor of M/s. Saidharm Developers to remain present before this Court on 30th March, 2021 at 11.00 a.m. We make it clear that if Respondent Nos. 9 and 10 fail to appear before us on that day, we shall proceed to issue a warrant of arrest against them. Respondent No.8 who is today present before us shall also be present in Court on 3

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