Bombay High Court Directs Issuance of Occupation Certificate for Committed Development Under UDCPR Regulation 5.1.3. Development Permission Granted Before Draft Regional Plan Publication Protects Builder's Right to Occupation Certificate Despite Subsequent Agricultural Reservation in Regional Plan.

High Court: Bombay High Court In Favour of Accused
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Case Note & Summary

The petitioner, Raj Realtors, a partnership firm, constructed ten buildings comprising 446 residential and 20 commercial units on land at Mouje Pashane, Taluka Karjat, District Raigad, under the project name Tulsi Vivaan. The land admeasuring 7 Hectares, 90.2 Ares, was originally agricultural. On March 7, 2014, the Gram Panchayat issued a No-Objection Certificate. On December 19, 2016, the petitioner applied to the Collector for permission to classify the land as non-agricultural and for development permission. On April 4, 2017, the Collector granted both permissions after considering reports from various authorities. On April 5, 2017, the Draft Regional Plan (DRP) for Thane-Palghar-Raigad regions was published in the Official Gazette. The DRP was sanctioned on January 6, 2018, and came into force on March 6, 2018. On April 21, 2018, the Collector granted revised development permission. The petitioner completed construction and sold 381 residential and 20 commercial units. On May 10, 2023, the petitioner applied for an Occupation Certificate (OC). The Tahsildar sought an opinion from the Divisional Office regarding applicability of Regulation 5.1.3 of the Unified Development Control and Promotional Regulations (UDCPR), and on October 18, 2023, disposed of the application without issuing the OC, citing no opinion received. The petitioner filed a writ petition seeking a declaration that the refusal was illegal and a direction to issue the OC. The court examined Section 18 of the Maharashtra Regional Town Planning Act, 1966 (MRTP Act), which restricts change of use and development after publication of the DRP. Since the permission was granted on April 4, 2017, one day before the DRP publication, the court held that the restriction under Section 18 had not yet commenced. The court also considered Regulation 5.1.3 of the UDCPR, which protects 'committed development' for which valid permissions existed prior to the Regional Plan. The court found that the development was a committed development and that the OC could not be withheld merely because the Regional Plan later earmarked the land for agriculture. The court allowed the petition, quashed the communication refusing the OC, and directed the respondents to issue the OC within four weeks, subject to compliance with other statutory requirements.

Headnote

A) Town Planning - Occupation Certificate - Committed Development - Maharashtra Regional Town Planning Act, 1966, Section 18; Unified Development Control and Promotional Regulations, Regulation 5.1.3 - The petitioner obtained development permission and change of land use from the Collector one day before the publication of the Draft Regional Plan. The court held that the development was a 'committed development' under Regulation 5.1.3 of the UDCPR, as the permissions were validly granted prior to the DRP. The refusal to issue the Occupation Certificate on the ground that the land was earmarked for agriculture in the Regional Plan was illegal. The court directed the respondents to issue the Occupation Certificate within four weeks. (Paras 1-16)

B) Town Planning - Restriction on Change of Use - Section 18 MRTP Act - The restriction under Section 18 commences only upon publication of the notice of the Draft Regional Plan. Since the permission was granted before such publication, the development was not in violation of Section 18. (Paras 8-12)

C) Town Planning - Unified Development Control and Promotional Regulations - Regulation 5.1.3 - Committed Development - Regulation 5.1.3 protects developments for which valid permissions were granted prior to the coming into force of the Regional Plan. The court held that the petitioner's development fell within this saving clause, and the Occupation Certificate could not be withheld. (Paras 13-16)

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Issue of Consideration

Whether the refusal to issue an Occupation Certificate for buildings constructed pursuant to valid development permissions granted before the publication of the Draft Regional Plan is illegal, and whether Regulation 5.1.3 of the UDCPR applies to such development as 'committed development'.

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Final Decision

The court allowed the petition, quashed the communication dated October 18, 2023 refusing the Occupation Certificate, and directed the respondents to issue the Occupation Certificate within four weeks from the date of the order, subject to compliance with all other statutory requirements.

Law Points

  • Occupation Certificate
  • Committed Development
  • Regional Plan
  • MRTP Act Section 18
  • UDCPR Regulation 5.1.3
  • Development Permission
  • Change of Land Use
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Case Details

2024 LawText (BOM) (12) 2134

Writ Petition No.2693 of 2024

2024-12-09

B. P. Colabawalla, Somasekhar Sundaresan

2024:BHC-AS:47560-DB

Mr. Suresh Sabrad, Mr. Jeetendra Sachhdev, Abubakar Patel, Pournima Sawant i/b. JS Legal for Petitioners; Ms A.I. Patel, Ms P.M.J. Deshpande for Respondent Nos.1 to 4-State

Raj Realtors

The State of Maharashtra, The Collector at Raigad Alibaug, The Divisional Commissioner Town Planning Department, The Tahsildar (NA Department) at Raigad Alibaug

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Nature of Litigation

Writ petition challenging refusal to issue Occupation Certificate for buildings constructed pursuant to development permissions granted before publication of Draft Regional Plan.

Remedy Sought

Declaration that refusal to issue Occupation Certificate is illegal and direction to issue Occupation Certificate.

Filing Reason

The Tahsildar refused to issue Occupation Certificate on the ground that the land was earmarked for agricultural purposes in the Regional Plan and sought opinion on applicability of Regulation 5.1.3 of UDCPR.

Previous Decisions

The Tahsildar disposed of the application for Occupation Certificate on October 18, 2023 without issuing it, citing no opinion received from Divisional Office.

Issues

Whether the refusal to issue Occupation Certificate is illegal when development permissions were granted before publication of Draft Regional Plan? Whether the development qualifies as 'committed development' under Regulation 5.1.3 of UDCPR?

Submissions/Arguments

Petitioner argued that the entire development was based on valid permissions granted by the Collector before the DRP, and withholding OC is unfair. Respondents argued that the land falls within agricultural reservation in the Regional Plan, and applicability of Regulation 5.1.3 needed clarification.

Ratio Decidendi

The restriction under Section 18 of MRTP Act commences only upon publication of the notice of the Draft Regional Plan. Since the development permission was granted before such publication, the development is a 'committed development' under Regulation 5.1.3 of UDCPR, and the Occupation Certificate cannot be withheld merely because the Regional Plan later earmarks the land for agriculture.

Judgment Excerpts

The key reason for the non-issuance of the OC by the Tahsildar, and which motivated his request for an opinion from the Divisional Office, is that the Subject Land falls within land earmarked for agricultural purposes in the Regional Plan. From a plain reading of the foregoing, it would be evident that the restriction on change of use and on development of land would commence upon publication of a notice that the DRP has been prepared. Consequently, the framework for the change of use and the development of the land as set out in Section 18(1) had been complied with, and that too before the publication of the DRP i.e. on April 5, 2017.

Procedural History

The petitioner applied for Occupation Certificate on May 10, 2023. The Collector sought opinion from Divisional Office on August 21, 2023. The Tahsildar disposed of the application without issuing OC on October 18, 2023. The petitioner filed Writ Petition No.2693 of 2024 before the Bombay High Court. The court reserved judgment on November 26, 2024 and pronounced on December 9, 2024.

Acts & Sections

  • Maharashtra Regional Town Planning Act, 1966: Section 14, Section 15, Section 16, Section 18
  • Unified Development Control and Promotional Regulations: Regulation 5.1.3
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