Case Note & Summary
The petitioner, Sir Gangadharrao Chitnavis Memorial Medical Research Trust, a charitable trust, owned Plot No. 56 at Temple Road, Civil Lines, Nagpur. Four houses were constructed on the said plot prior to 1992. In 2007, the petitioner applied to the Nagpur Municipal Corporation for permission to reconstruct a building on the plot. The respondent issued a demand notice dated 17.07.2019 levying various charges including development charge on the building and land, heritage fees, workers' welfare construction cess, security deposit for earth removal, and plinth area check fee. The petitioner challenged the demand notice, primarily contending that the development charge on land was illegal because the land was already developed prior to 1992. The court examined the provisions of the Maharashtra Regional and Town Planning Act, 1966, particularly Section 124 which empowers the municipal corporation to levy development charge. The court noted that development charge can be levied only on land which is not already developed. Since the land in question was already developed into a plot prior to 1992, the levy of development charge on land was without authority of law. The court quashed the impugned demand notice and order to the extent they levied development charge on land and directed the respondent to recalculate the charges excluding development charge on land. The petition was partly allowed.
Headnote
A) Municipal Law - Development Charge - Levy on Already Developed Land - Section 124 of the Maharashtra Regional and Town Planning Act, 1966 - The petitioner, owner of a plot with houses constructed prior to 1992, sought permission for reconstruction. The respondent levied development charge on the land. The court held that development charge can be levied only on land which is not already developed. Since the land was already developed into a plot prior to 1992, the levy of development charge on land was illegal and without authority of law. (Paras 3-10) B) Municipal Law - Development Charge - Interpretation of 'Development' - Section 2(7) and 124 of the Maharashtra Regional and Town Planning Act, 1966 - The court interpreted 'development' to include the making of a plot for building purposes. Once the land was already developed into a plot, subsequent reconstruction of a building does not amount to development of land. Therefore, development charge cannot be levied on land for reconstruction. (Paras 7-10) C) Municipal Law - Demand Notice - Quashing - The impugned demand notice dated 17.07.2019 and order dated 19.03.2020 were quashed to the extent they levied development charge on land. The respondent was directed to recalculate the charges excluding development charge on land. (Para 10)
Issue of Consideration
Whether the Nagpur Municipal Corporation can levy development charge on land which was already developed prior to 1992, when the petitioner sought permission for reconstruction of a building on such land.
Final Decision
The petition is partly allowed. The impugned demand notice dated 17.07.2019 and order dated 19.03.2020 are quashed to the extent they levy development charge on land. The respondent is directed to recalculate the charges excluding development charge on land. Rule is made absolute accordingly.
Law Points
- Development charge can be levied only on land which is not already developed
- Development charge cannot be levied on land already developed prior to the relevant date
- The expression 'development' in Section 124 of MRTP Act includes making of a plot for building purposes
- Once land is developed
- subsequent reconstruction of building does not attract development charge on land
