IN THE HIGH COURT OF ALLAHABAD
R. A. SHARMA, N. L. GANGULY
MALTI KAUL - Appellant
Versus
ALLAHABAD DEVELOPMENT AUTHORITY - Respondents
C. M. W. P. 35662 Of 1993
Decided On : 04/21/1995
URBAN PLANNING AND DEVELOPMENT - DEVELOPMENT FEE, MALVA FEE, WATER CHARGES, AND COMPOSITION FEE - LEVY BY DEVELOPMENT AUTHORITIES - LEGALITY - ACT AND SECTIONS REFERRED: U. P. Urban Planning and Development Act, 1973 (Act), Sections 14, 15, 20, 33, 35, 39a, 41; U. P. Nagar Mahapalika Adhiniyam, 1959, Section 302; U. P. Water Supply and Severage Act, 1975, Sections 59, 67; U. P. Nagar Mahapalika Water Supply Rules, 1968, Rule 49.
Fact of the Case:
Petitioners challenged the levy of development fee, Malva fee, water charges, and composition/compounding fee by Development Authorities constituted under the U. P. Urban Planning and Development Act, 1973 (Act).
Finding of the Court:
1. Development fee is not authorized by any provision of the Act or the Rules framed thereunder. 2. Malva fee (stacking fee) can only be imposed when the building material is placed or will be placed on any street or land vested in the Mahapalika. 3. Water charges can be imposed on a person who uses water for the construction of the building from a nearby standpost. 4. Composition fee is specifically provided for under Section 32 of the Act.
Issues: 1. Whether the Development Authorities can levy development fee, Malva fee, water charges, and composition fee? 2. If so, under what circumstances can these fees be imposed?
Ratio Decidendi: 1. The levy of development fee is not authorized by any provision of the Act or the Rules framed thereunder. The Government order dated 12-8-1986, which authorized the Development Authorities to impose and collect development fee, is also quashed. 2. Malva fee (stacking fee) can only be imposed when the building material is placed or will be placed on any street or land vested in the Mahapalika. The Development Authorities cannot levy the stacking charges (Malva fee) if a person neither applies for such permission nor is using any property or the land of the Mahapalika for depositing the building material. 3. Water charges can be imposed on a person who uses water for the construction of the building from a nearby standpost. The Development Authorities cannot levy water charges if the person concerned does not use the water from the nearby standposts and has a supply of water from his own sources. 4. Composition fee is specifically provided for under Section 32 of the Act. No exception can be taken to the imposition of composition fee.
Final Decision: The writ petitions are partly allowed. The levy of development fee and the Government order dated 12-8-1986, so far as it has authorized the Development Authority to impose and collect development fee, are quashed. The levy of Malva fee and water charges are also quashed. The respondents, Development Authorities, are directed to determine the imposition of Malva fee and water charges afresh after giving a reasonable opportunity of being heard to the petitioners. As regards the composition fee, the writ petitions are dismissed.
( 1 ) BY these writ petitions levy of development fee, Malva fee, water charges and composition/ compounding fee by Development Authorities constituted under U. P. Urban Planning and Development Act, 1973 (hereinafter referred to as the Act) has been challenged. Most of the writ petitioners are directed against Gorakhpur Development Authority, Gorakhpur and few writ petitions have been filed against imposition of such charges by the Allahabad Development, Allahabad. With the consent of the learned counsel for the parties Writ Petition No. 35662 of 1994, Smt. Malti Kaul v. Allahabad Development Authority has been made the leading case.
( 2 ) PETITIONERs application for amending the writ petition so as to enable him to challenge the Government order dated 12-8-1986 has already been allowed by this Court. Consequently the State of U. P. has now been impleaded as one of the respondents.
( 3 ) WE have heard learned counsel for the petitioner, Sri R. N. Singh, learned counsel for Allahabad Development Authority, Sri. U. N. Sharma, learned counsel for Gorakhpur Development Authority and the learned Standing counsel for the State of U. P.
( 4 ) SECTION 14 of the Act prohibits development of land which includes construction of building in development area without permission in writing from the Vice-Chairman of the Development Authority. Application for such permission has to be made under Section 15 and the Vice-Chairman can either grant the permission or refuse to grant it by a reasoned order after giving an opportunity to show cause to the applicant. Petitioners had applied for permission under Section 15 before the respective Development Authorities. They have either been granted permission subject to payment of development fee, Malva fee and water charges for they have been required to deposit the above charges the permission is granted. The impunged fee and the charges are thus being levied and collected from those, who applied for permission under the Act for construction of building.
( 5 ) SECTION 14 and 15 of the Act, which provide for development of land with the permission of the Vice-Chairman, do not provide for levy of development fee on those, who had applied for permission. On provisions, which deal with fee are Sections 20, 33, 35 and 39a of the Act. But these sections do not provide for development fee. They provide for different kinds of levy. Section 20 lays down that the Authority shall have and maintain its own fund to which shall be credited all fees, tolls and charges, received by it under the Act. Section 33 empowers the Authority two provide amenity or carry out development at the cost of the owner of the land, in the event of his default and recover all expenses incurred by it in providing the amenity or carrying out the development together with interest. Section 33 is reproduced below: "33. Power of the Authority to provide amenity or carry out development at cost of owner in the event of his default and to levy cess in certain cases.- (1) If the Authority, after holding a local inquiry or upon report from any of its officers or other information in its possession, is satisfied that any amenity in relation to any land in development area has not been provided in relation to that land which, in the opinion of the Authority, ought to have been or ought to be provided or that any development of the land for which permission approval or sanction had been obtained under this act of or under any law in force before the coming into force of this Act has not been carried out, it may, after affording the owner of the land or the person providing or responsible for providing the amenity a reasonable opportunity to show cause, by order require him to provide the amenity or carry out the development within such time as may be specified in the order. (2) If any amenity is not provided or any such development is not carried out within the time specified in the order, then the Authority may itself provide t
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