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2026 Supreme(Online)(Mad) 20493

IN THE HIGH COURT OF JUDICATURE AT MADRAS
S.M.SUBRAMANIAM, K.SURENDER, JJ
The Plot Owners Welfare Association of CLRI Nagar, Rep, by its Secretary, Mrs.R.Sridevi – Appellant
Versus
The Commissioner Greater Chennai Corporation – Respondent
W.P.No.20115 of 2021



Advocates:
For the Appellants/Petitioners: Mr.A.Muthukumar
For the Respondents: Mr.G.T.Subramanian, Dr.Suriya, J.Srinivasa Mohan

Common purpose areas in a real estate layout must not be converted for other uses, reinforcing regulatory authority responsibility in protecting public purpose land.

Headnote:(A) Tamil Nadu Cooperative Societies Act, 1983 - Sections 81 - Tamil Nadu Town and Country Planning Act, 1971 - Petition for Mandamus directed against unauthorized occupants and to establish a park in an unapproved layout - The court emphasizes that common purpose areas must be utilized as earmarked, and developers cannot convert such areas to housing plots. (Paras 6, 9)

(B) Responsibility of Authorities - The Registrar is mandated to investigate irregularities regarding the conversion and sale of public purpose areas.

Table of Content
1. development of layout and unauthorized encroachments. (Para 2 , 3 , 4)
2. opposition to claims of illegal converts by the 4th respondent. (Para 5)
3. public purpose land use and developer's rights. (Para 6 , 7 , 8)
4. directive for inquiry and development of park. (Para 9 , 10)

(Order of the Court was made by S.M.Subramaniam,J.)

Writ of Mandamus has been instituted, directing the respondents particularly the first respondent therein to evict the unauthorised occupants and establish a park in the area earmarked in the layout plan of CLRI Nagar in S.No.38/ 2A1A1A1 at 1st Main Road abutting 40 feet road (Vaithaialingam Salai) Neelankarai Chennai.

2. The petitioner is Plot Owners Welfare Association of CLRI Nagar (hereinafter referred as 'Petitioner Association'), represented by its Secretary. It is not in dispute that 4th respondent / CLRI Staff Co- Operative House Building Society, registered under the provisions of Tamil Nadu Cooperative Societies Act, 1983 (in short 'the Act, 1983')

developed a layout at Neelankarai Village, Saidapet Taluk, Chengai MGR District. It is an unapproved layout, wherein common purpose area, land for community hall as well as to establish school are earmarked in the layout.

3.The grievance of Petitioner Association is that the common purpose area as well as community hall area remain unutilized and some encroachments have also been made in the community hall area. As far as the area earmarked for construction of school and common purpose area are concerned, 4th respondent Society illegally converted the common purpose area as housing plots and sold it to its members in violation of the layout.

4. Learned counsel for the petitioner would submit that the only vacant land now available is the area earmarked for construction of community hall. The said area is to be converted as park for the benefit of residents, who are all members of Petitioner Association. As of now, there is no park or school building constructed nor the common purpose area has been utilized for the purpose for which it was earmarked. The 4th respondent since committed illegality, the remaining vacant land is to be allotted for developing a park.

5. Learned counsel for the 4th respondent would oppose, by stating that the layout was formed and in respect of only small area, the Society has proposed to construct a community hall and utilize the same for common purpose. Therefore, apprehension raised by the Petitioner Association is devoid of merits. In respect of public purpose area, 4th respondent has not denied the fact that it was converted as house site plots and sold it to its members by receiving sale consideration.

6. The Hon'ble Supreme Court of India in the case of Association of Vasanth Apartments’ Owners vs. V.Gopinath and others, reported in 2023 INSC 123 ruled that even in an unapproved layout, streets / roads, common purpose area, parks, school area and OSR lands are to be utilized only for the purpose for which it was earmarked. The Developer cannot claim any right over common purpose area, since, after forming layout, common purpose area becomes the area belonging to purchasers of the respective plots in the layout and therefore, developer has no locus or right to sell the common purpose area jointly at his choice. The Apex Court reiterated that public purpose area land in a layout is to be protected and the said portion of the land cannot be utilized or converted for any other purpose other than the purpose for which it was earmarked in view of the provisions of the Tamil Nadu Town and Country Planning Act, 1971.

7. In the present case, 4th respondent is a Staff Co-Operative House Building Society, registered under the provisions of the Act, 1983. Government of Tamil Nadu and the Registrar of Co-operative Society are the Controlling Authority in respect of the affairs of the Co-operative Housing Society. Therefore, approval of the Registrar for any such conversion of public purpose area or residential plot has

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