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2013 Supreme(All) 2790

ALLAHABAD HIGH COURT
BEFORE : ARUN TANDON AND ANJANI KUMAR MISHRA, JJ.
Smt. REKHA RANI ….Petitioner
Versus
STATE OF U.P. AND OTHERS ….Respondents
(Civil Misc. Writ Petition Nos. 56485, 53710, 54482, 57531, 55784, 56837 of 2013, 19095 of 2009, 59969 of 2012, 60468 of 2013, 38066 of 2012, 62690, 54466, 60841, 64151, 63362, 67155 of 2013, 63173 of 2010, 67381, 67155, 20280 and 67153 of 2013, decided on 12th December, 2013)

Advocates:
Counsel :
R.K. Sharma, Anoop Trivedi, Rajeev Kumar Saini, K.D. Tripathi, Pankaj Kumar Shukla, Neeraj Kumar Srivastava, Arvind Srivastava, Bheem Singh, Saurabh Tiwari, Sushil Singh, Vinay Khare, Satish Chaturvedi, Ajit Ray, Jamal Khan and Pramod Kumar Srivastava for the Petitioner; C.S.C., A.P. Paul, Satyam Yadav, R.K. Pandey, S.K. Misra, J.N. Maurya, M.C. Chaturvedi, Alpana Dwivedi, Akhilesh Kumar Singh, Nilamber Tripathi, R.M. Upadhyay, Anil Tiwari, Dhananjay Awasthi, Prem Prakash Yadav, Dharmendra Shukla, Satyam Singh, Shiv Nath Singh, Q.H. Siddiqui, Keshav Kumar Srivastava and B. Dayal for the Respondents.

Headnote:U.P. Urban Planning and Development Act, 1973—Sections 15 (2-A), 38-A, 14, 4, 56 (2), 7, 8, 33, 34, 35 and 55—U.P. Urban Planning and Development (Fee on Application for Permission and on Appeal) Rules, 1983—Rule 3—Development Authorities—Levy of development fees/impact fees, etc.—Competent to levy and demand—Petitioners challenged the aforesaid demands on the ground that so far as the development fee is concerned, the same can be levied only by framing rules under Section 54 of 1973 Act—City development charges, betterment charges and land conversion charges as provided for under Sections 35 and 36 or under Section 38-A of 1973 Act, have a different meaning under the Act itself, vis-a-vis, the development fee chargeable under Section 15 (2-A) of 1973 Act—Admittedly, rules as contemplated by Section 15 (2-A) and Section 38-A have not been framed by State Government so as to entitle the Development Authority to levy development fees, etc.—Development Authority has no competence to levy or realise any development fee, impact fee, etc., which are required to be prescribed under Section 15(2A) as well as city development charges and land use conversion charges, as are to be prescribed under Section 38-A of 1973 Act—Demand of sub-division charges wholly illegal—Development Authorities must insist for open space being left in accordance with Building Bye-Laws—Demand of permit fee, supervision fee, inspection fee, park fee, labour cess also illegal—Development fee both external and internal held cannot be levied so long as statutory rules are not framed in this regard—Petition Allowed and Directions issued. [Paras 38 to 114]

       Result; Petitions Allowed.

JUDGMENT

By the Court.—The above mentioned writ petitions have been filed challenging the orders of the various Development Authorities constituted under Section 4 of the U.P. Urban Planning and Development Act, 1973 (hereinafter referred to as the “Act, 1973”) demanding (a) External development fee (b) Internal development fee (c )Sub-division charges (d) park fee (e) compounding fee in respect of sub-division charges, (f) inspection/supervision charges, (g) labour cess, (h) bank guarantee for the value of the cost of the land and the constructions which are required to be raised by a developer of more than 3000 sq. meters of land and above, under the Government Order dated 26.9.2011 (k) bank guarantee for rain water harvesting system to be installed in the buildings and lastly (l) Impact fee, which is being demanded by the Gorakhpur Development Authority only.

2. We have heard Sri H.N. Singh, Senior Advocate, Sri Anoop Trivedi, Sri Rajeev Kumar Saini, Sri R.K. Saini, Sri R.K. Sharma, Sri K.D. Tripathi, Sri Pankaj Kumar Shukla, Sri Neeraj Kumar Srivastava, Sri Arvind Srivastava, Sri Bheem Singh, Sri Sauraubh Tiwari, Sri Sushil Singh, Sri Vinay Khare, Sri Satish Chaturvedi, Sri Ajit Ray, Sri Jamal Khan and Sri Promod Kumar Srivastava advocates on behalf of petitioners, we have also heard Sri Ramesh Upadhay Chief Standing Counsel on behalf of the State, and Sri Ashwani Mishra, Senior Advocate assisted by Sri A.B. Paul Advocate on behalf of Allahabad Development Authority, Sri H.N. Singh Advocate on behalf of Aligarh Development Authority, Sri B.D. Pandey on Advocate behalf of Gorakhpur Development Authority, Sri Dhamendra Shukla Advocate on behalf of Bareilly Development Authority, Sri Rajesh Kumar Pandey Advocate on behalf of Muzaffar Nagar Development Authority, Sri J.N. Maurya Advocate on behalf of Agra Development Authority and Sri Prem Prakash Yadav Advocate on behalf of Bulandshahar Development Authority.

3. These writ petitions raise common question of facts and law with regard to the competence of the Development Authorities constituted under Act 1973 to levy and demand the aforesaid fees before sanctioning the building plan as per the application submitted under Section 14 of the 1973.

4. The petitioners have been clubbed together and are being decided under this common judgment.

5. It may be recorded that the demand under the following heads: i.e. (a) permit fees (b) malwa fee (c) water fees (d) Triveni Mahotsav fee, has not been challenged before us. The petitioners have no objection to the payment thereof.

6. The petitioners question the levy of external development fee, internal development fee, referable to Section 15(2-A) of Act, 1973.

7. The other fees, which are questioned in the present writ petitions, namely, the Sub-Division charges, the compounding fees in respect of the sub-division, supervision fee and inspection fees, are not covered by Section 15(2-A) of the Act, 1973.

8. In addition to the above, there is a challenge to the demand of bank guarantee for the value of the land and the constructions required to be raised qua the houses for the economically weaker Section and lower income group persons as also to the demand of bank guarantee for the rain water harvesting system which is to be provided in terms of and under the Government Order issued on the subject, in new buildings to be constructed.

9. When the petitioners before this Court had filed plans for grant of sanction under Section 14 of the Act, 1973, demand has been made by respondent-Development Authorities to deposit the fees under various heads including those detailed herein above before grant of such sanction.

10. At the very outset it may be recorded that the Apex Court in the case of State of U.P. and others v. Malti Kaul (Smt.) and another, (1996) 10 SCC 425, had upheld the power to demand the development fee by the Development Authorities having regard to language of Sections 33, 41 read with Section 14 and Section 56 (2) of Act, 1973
































































































































































































































































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