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2026 Supreme(Online)(Mad) 21866

IN THE HIGH COURT OF JUDICATURE AT MADRAS
V. Lakshminarayanan, J
Sakthi Vinayagar Nagar Residents Welfare Association – Appellant
Versus
State of Tamil Nadu – Respondent
WP No. 7070 of 2019 | WMP.No.7787 of 2019



Advocates:
For the Appellants/Petitioners: K. Govi Ganesan, S. Riram
For the Respondents: Naveen Kumar, C.R. Prasanan, P. Chinnadurai, A. Srijayanthi

Layout developers retain title to specific reservations (e.g., community halls) and may seek conversion to residential use if the site remains vacant for five years and similar facilities are available nearby, distinguishing such areas from non-alienable open space reservations and roads.

Headnote:The petitioner challenged proceedings passed by various respondents permitting the conversion of an area earmarked for a community hall in an approved layout into residential plots under the Town and Country Planning Act. The layout was approved in 1993, and the developers sought conversion after failing to alienate the site as a community hall. The court noted that while areas for roads and parks are non-alienable per Supreme Court precedent, the developer retains title over specific reservations like community halls. The primary issue was whether an area reserved for a community hall could be converted into residential plots after several years. The court held that based on the 30th Empowered Committee's decision dated 27.11.2015, the Director of Town and Country Planning is empowered to grant such conversion if the site remained undeveloped for five years and similar facilities exist within a 2-3 km vicinity. The court reasoned that the bar under Section 54(1)(b) of the Town and Country Planning Act did not apply as no unauthorized change of use had already occurred. Consequently, the writ petition is dismissed.

Table of Content
1. background of layout approval and the specific challenge regarding community hall conversion. (Para 1 , 2 , 3)
2. competing arguments regarding the permissibility of converting public purpose sites to residential plots. (Para 4 , 5)
3. distinction between non-alienable open spaces/roads and saleable reserved areas like community halls. (Para 6 , 7 , 8 , 9)
4. application of section 54 of the town and country planning act and the director's authority for conversion. (Para 10 , 11)
5. distinguishing the present case from precedents based on the competency of the approving authority. (Para 12 , 13 , 14)
6. final determination that the impugned orders are valid and the petition is dismissed. (Para 15)

Calling for the records relating to the impugned proceedings passed in Na.Ka.No.5470/2018/LA2 dated 26/03/2018 on the file of the 3rd respondent herein, Na.Ka.No.965/2018/Uthiku-I dated 30/04/2018 on the file of the 4th respondent herein, Na.Ka.No.212/2018/E dated 18/07/2018 on the file of the 7th respondent herein quash the same and consequently direct the respondents herein to preserve the area marked for public purpose of community Hall as per Lay out Approval granted in Ma.Va./Na.U.E.No.951/93 on the file of the 3rd respondent herein.

For Petitioner : M/s.K.Govi Ganesan

S.Sriram.

For Respondent : Mr.Naveen Kumar,

Government Advocate for R1 to R6 & R8

Mr.C.R.Prasanan for R9 and R10

Mr.P.Chinnadurai for

Mrs.A.Srijayanthi for R7

ORDER

I heard Mr.Govi Ganesan for the petitioner, Mr.Naveen Kumar for the respondents 1 to 6 and 8 and Mr.Chinnaduari for Mrs.A.Srijayanthi for the respondent 7 and Mr.C.R.Prasannan for the respondents 9 and 10.

The following facts are not in dispute:

2. The petitioner is an association of residents of a layout called “Sakthi Vinayagar Nagar”. The said layout was approved by the third respondent in the year 1993. Apart from housing plots, areas were earmarked for park, shops, schools, water tank and community hall. The writ petition pertains to the community hall.

3. This community hall was to an extent of 120 feet x 132 feet and has 30 feet road running on the front and rear sides. The layout promoters attempted to alienate the community hall, as it stood, but were not successful. Hence, they sought permission to convert the same into housing plots and alienate the same. To that end, the layout developers filed an application before the Empowered Committee functioning under the Directorate of Town and Country Planning for conversion of the said area into residential plots. The permission was granted permitting the division of the aforesaid area into six residential plots. The local authorities granted approval to the said proposal. On the basis of the said proposal, the seventh respondent also gave his approval on 18.07.2018. These proceedings have been put to challenge in the present writ petition.

4. It is the plea of Mr.Govi Ganesan that an area reserved for community hall purpose should be used only for that purpose and that conversion of the same for any other purpose is impermissible. He further adds that once the layout is developed and sold, the layout owners lose their right to alienate any portion thereof. He states that as the conversion into house sites, is at the instance of incompetent authorities, the same deserves to be interfered with by this Court.

5. Per contra, Mr.Naveen Kumar and Mr.P.Chinnadurai state that the Director of Town and Country Planning had issued a circular on 29.12.2015, pursuant to the minutes of the 30th Empowered Committee meeting held on 27.11.2015. In terms of the decision taken by the 30th Empowering Committee, the Committee decided that the Director of Town and Country Planning be empowered to issue orders for conversion of use from public purpose to residential or other purposes, if they fall within the saleable area of the layout developers. Before granting the permission, the Director had to ensure two conditions are complied with. The conditions are:

(i)

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