Bombay High Court Allows Petitions Against Municipal Corporation for Issuance of TDR Certificates. Transfer of Development Rights must be granted in accordance with Development Control Regulations and cannot be arbitrarily denied.

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

The petitioners in these four writ petitions are owners of lands that were acquired by the Amravati Municipal Corporation for the construction of a road earmarked in the Development Plan. They surrendered their respective lands and executed sale deeds in favor of the Corporation. In consideration, the Corporation issued Transfer of Development Rights (TDR) certificates to them, which entitle the holders to utilize or transfer the Floor Space Index (FSI) as per the certificate. However, the Corporation either delayed or denied the issuance of further TDR certificates or failed to honor the certificates already issued. The petitioners approached the High Court seeking directions to the Corporation to issue the TDR certificates and allow them to utilize the FSI. The court examined the provisions of the Development Control Regulations and the Maharashtra Regional and Town Planning Act, 1966. It held that the petitioners are entitled to the TDR certificates as per the regulations and that the Corporation cannot arbitrarily withhold or deny the same. The court directed the Corporation to issue the TDR certificates within a specified period and to permit the petitioners to utilize the FSI as per the certificates. The petitions were allowed with costs.

Headnote

A) Municipal Law - Transfer of Development Rights - Entitlement to TDR Certificate - Petitioners surrendered land for road construction as per Development Plan and executed sale deeds - Corporation issued TDR certificates but later withheld or delayed further issuance - Held that petitioners are entitled to TDR certificates as per Development Control Regulations and the Corporation cannot deny the same without valid reason (Paras 2-5).

B) Property Law - Floor Space Index - Utilization of TDR - Holder of TDR certificate has authority over FSI and may utilize it himself or transfer to a third party - The certificate is a valuable right and must be issued promptly upon compliance with conditions (Paras 2-3).

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Issue of Consideration

Whether the petitioners are entitled to issuance of TDR certificates by the Amravati Municipal Corporation for the land surrendered for road construction, and whether the Corporation can deny or delay the issuance of such certificates.

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Final Decision

The court allowed the writ petitions and directed the Amravati Municipal Corporation to issue the TDR certificates to the petitioners within a specified period and permit them to utilize the FSI as per the certificates. The petitions were allowed with costs.

Law Points

  • Transfer of Development Rights
  • Development Control Regulations
  • Floor Space Index
  • Entitlement to TDR
  • Consideration for land acquisition
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Case Details

2019 LawText (BOM) (08) 163

Writ Petition No. 69 of 2018, Writ Petition No. 71 of 2018, Writ Petition No. 439 of 2018, Writ Petition No. 595 of 2018

2019-08-19

Sunil B. Shukre, S.M. Modak

Shri J.T. Gilda, Sr. Counsel with Shri A.J. Gilda for petitioners; Shri K.P. Mahalle and Shri J.J. Chandurkar for respondents

Kamalkishor Surajmal Khandelwal, Pravin Balkrushnaji Maloo, Ganesh Properties, Dilip Jaikumar Chandak & Vinod Jugalkishor Chandak

The Amravati Municipal Corporation through its Commissioner, The Assistant Director of Town Planning, Amravati Municipal Corporation

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Nature of Litigation

Writ petitions seeking directions to the Municipal Corporation to issue TDR certificates and allow utilization of FSI.

Remedy Sought

Petitioners sought issuance of TDR certificates and permission to utilize the FSI as per the certificates.

Filing Reason

The Municipal Corporation either delayed or denied the issuance of TDR certificates after the petitioners surrendered their lands for road construction.

Issues

Whether the petitioners are entitled to TDR certificates for the land surrendered for road construction? Whether the Corporation can deny or delay the issuance of TDR certificates arbitrarily?

Submissions/Arguments

Petitioners argued that they surrendered their lands and executed sale deeds, and are entitled to TDR certificates as per the Development Control Regulations. Respondents argued that the TDR certificates were issued but further issuance was withheld due to some procedural issues.

Ratio Decidendi

The holder of a TDR certificate is entitled to utilize or transfer the FSI as per the certificate, and the Municipal Corporation cannot arbitrarily deny or delay the issuance of such certificates when the land has been surrendered for public purpose as per the Development Plan.

Judgment Excerpts

Transfer of Development Rights (TDR) are granted towards consideration of land acquired by the Planning authority as per the Development Plan. The holder of such rights gets an authority over the Floor Space Index (FSI) certified by the Certificate. The holder may himself utilize the FSI or transfer it to some third person.

Procedural History

The petitioners filed writ petitions before the Bombay High Court, Nagpur Bench, challenging the denial/delay of TDR certificates by the Amravati Municipal Corporation. The court heard the matters and reserved judgment on 05-08-2019, pronouncing it on 19-08-2019.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966:
  • Development Control Regulations:
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High Court Bombay High Court Allows Petitions Against Municipal Corporation for Issuance of TDR Certificates. Transfer of Development Rights must be granted in accordance with Development Control Regulations and cannot be arbitrarily denied.
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