Case Note & Summary
The petitioner, Shree Vinayak Builders & Developers, owned land admeasuring 6377.12 Sq.Mts. in Nagpur, which was reserved for a 24-meter wide DP Road in the Final Development Plan that came into force on 01/03/2000. Since the respondent authorities failed to acquire the land for over ten years, the petitioner served a purchase notice under Section 127(1) of the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act) on 27/07/2016 to the Assistant Director, Urban Town Planning Department (Respondent No.3). In response, the respondent No.3 informed the petitioner on 16/09/2016 that compensation would be given in the form of Transferable Development Rights (TDR) and asked the petitioner to submit an application. The petitioner applied for TDR on 16/09/2016, and on 22/12/2017, the respondent No.3 informed that the TDR application was approved by the Commissioner. However, no TDR was actually granted, and no acquisition proceedings were initiated. The petitioner then filed a writ petition seeking a declaration that the reservation had lapsed due to non-acquisition within two years of the purchase notice. The respondents argued that the offer of TDR constituted steps for acquisition and that the period of two years should be counted from the date of the development plan coming into force. The court analyzed Section 127 of the MRTP Act and held that the limitation period of two years commences from the date of service of the purchase notice, not from the date of the development plan. The court further held that the offer of TDR does not amount to acquisition or steps for acquisition, as no actual acquisition or compensation was made. Since the respondents failed to acquire the land within two years from 27/07/2016, the reservation is deemed to have lapsed. The court allowed the petition, declaring the land free from reservation, and directed the respondents to issue a notification under Section 127(2) within three months.
Headnote
A) Town Planning - Deemed Lapsing of Reservation - Section 127 Maharashtra Regional and Town Planning Act, 1966 - Purchase Notice - The petitioner served a purchase notice under Section 127(1) on 27/07/2016 for land reserved for a DP Road. The respondent authorities failed to acquire the land within two years. The court held that the reservation is deemed to have lapsed and the land is free from reservation, directing the respondents to issue a notification under Section 127(2) within three months. (Paras 1-14) B) Town Planning - Acquisition - Offer of TDR - Section 127 Maharashtra Regional and Town Planning Act, 1966 - The respondent's offer of Transferable Development Rights (TDR) does not constitute acquisition or steps for acquisition within the meaning of Section 127. The court held that mere offer of TDR without actual grant or acquisition proceedings does not prevent the lapsing of reservation. (Paras 5-12)
Issue of Consideration
Whether the reservation of the petitioner's land for a DP Road is deemed to have lapsed under Section 127 of the Maharashtra Regional and Town Planning Act, 1966, due to the failure of the respondent authorities to acquire the land within two years from the date of service of the purchase notice.
Final Decision
The court allowed the writ petition, declaring that the reservation of the petitioner's land is deemed to have lapsed and the land is free from all reservations. The respondents were directed to issue a notification under Section 127(2) of the MRTP Act within three months.
Law Points
- Deemed lapsing of reservation under Section 127 of MRTP Act
- 1966
- Purchase notice under Section 127(1)
- Failure to acquire land within two years
- Commencement of limitation period from date of service of purchase notice
- Offer of TDR does not constitute acquisition or steps for acquisition




