WRIT PETITION No. 4045 OF 2005

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The matter arises from a writ petition under Article 226 of the Constitution of India filed by the Ahmednagar Municipal Corporation, a local authority constituted under the Bombay (Maharashtra) Provincial Municipal Corporations Act, 1949. The petitioner challenged the actions of the State of Maharashtra, a public trust known as the Zilla Krida Sankul Karyakari Samiti (District Sports Complex Committee), the Collector, its chairman, and a developer, M/s. M.R. Mutha, in relation to final plot no. 194 at Scheme 3, known as Wadia Park. The plot was reserved under the Development Plan for a stadium and sports complex (site 165) and a park (site 166). The petitioner had earlier resolved to construct a sports complex through the trust, and an agreement was executed in 1999. The trust obtained building permission on 1.10.2001 with conditions, and a revised plan was sanctioned on 10.11.2001. Subsequently, the State issued a Government Resolution dated 8.2.2002 permitting the trust to develop through Finance-Build-Transfer (FBT) and Build-Operate-Transfer (BOT) schemes and allowing commercial user contrary to the development plan, subject to an MOU which was never executed. The trust and developer proceeded with construction, including two shopping plazas (A and B), additional shops, a basement, and other structures, allegedly deviating from the sanctioned plans. The petitioner issued stop-work notices, demanded development charges, and its general body resolved to take back possession. On 12.9.2007, the High Court directed status quo. The developer’s application to vacate that order was rejected, leading to an SLP where the Supreme Court directed expeditious disposal. The petitioner argued that the commercial constructions violated the statutory reservations and required prior modification under Sections 22A or 37 of the Maharashtra Regional & Town Planning Act, 1966; that the only valid sanctions were the plans of 2001, and all deviations were unauthorized, not compoundable, and lacked occupancy certificate; that the demand for development charges did not imply sanction; and that the trust could not invoke deemed sanction under Section 58(2)(i) of the same Act. The petition sought directions to restrain further development, restore possession to the petitioner, demolish unauthorized structures, and enforce building regulations. The judgment text does not include the court’s final analysis and decision, as it is truncated after the petitioner’s submissions. Thus, the court’s reasoning and the ultimate outcome remain unknown.

Issue of Consideration

Whether the construction of commercial plazas A & B on final plot no. 194 reserved for stadium/sports complex and park is in violation of the Development Plan and the Maharashtra Regional & Town Planning Act, 1966; whether the respondents can claim deemed sanction or regularization; whether the petitioner is entitled to restoration of possession and demolition of unauthorized structures.

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Law Points

  • Modification of development plan
  • deemed sanction
  • building plan approval
  • occupancy certificate
  • commercial exploitation in sports complex
  • amenity definition
  • S. 22A
  • S. 37
  • S. 58(2)(i) of MRTP Act
  • S. 263 of BPMC Act
  • status quo order
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Case Details

2013 LawText (BOM) (12) 43

Writ Petition No. 4045 of 2005

2013-12-10

B.P. Dharmadhikari, Ravindra V. Ghuge

P.M. Shah, Senior Advocate with Mukul Kulkarni for petitioner; S.K. Tambe, Assistant Government Pleader for respondent nos. 1 and 3; A.P. Bhandari for respondent nos. 2 and 4; R.R. Mantri for respondent no. 5

Ahmednagar Municipal Corporation

The State of Maharashtra, The Zilla Krida Sankul Karyakari Samiti, The Collector Ahmednagar, The Chairman of Zilla Krida Sankul Karyakari Samiti, M/s. M.R. Mutha

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Nature of Litigation

Writ petition under Article 226 of the Constitution of India challenging the construction of commercial complexes on a plot reserved for a sports complex and park, alleging violations of the Maharashtra Regional & Town Planning Act, 1966 and the Bombay Provincial Municipal Corporation Act, 1949.

Remedy Sought

Petitioner sought directions to restrain further development, restore possession of the plot, demolish unauthorized constructions (shopping plazas, extra shops, basement, office space), ensure compliance with building plans and occupancy certificate, and recover possession.

Filing Reason

The petitioner municipal corporation alleged that the respondents were constructing unauthorized commercial structures in violation of the development plan reservation, approved building plans, and statutory provisions, and that the state government and trust were acting without proper sanction or modification of the plan.

Previous Decisions

The court had earlier passed interim orders on 12.9.2007 directing status quo. The Supreme Court in SLP (civil) 9466/2011 refused to interfere and directed expeditious disposal.

Issues

Whether the construction of commercial plazas A & B on final plot no. 194 reserved for stadium/sports complex and park is in violation of the Development Plan and the Maharashtra Regional & Town Planning Act, 1966. Whether the respondents can claim deemed sanction or regularization. Whether the petitioner is entitled to restoration of possession and demolition of unauthorized structures.

Submissions/Arguments

Petitioner argued that plot no. 194 had DP reservations for stadium/sports complex (site 165) and park (site 166), and commercial exploitation was totally prohibited unless modified through S. 22A or S. 37 of the MRTP Act; no such modification occurred. The only sanctioned building plans were dated 1.10.2001 and 10.11.2001, and any construction beyond those, including the shopping plazas A & B, additional shops, basement, and office space, was illegal and must be demolished. The place where commercial buildings were built was earmarked for parking; other uses could not be condoned. The buildings were occupied and put to commercial use without an occupancy certificate, which was rejected by the petitioner on 30.9.2005, and an appeal under S. 47 was filed but not resolved. The demand for development charges or payment thereof did not imply sanction of unauthorized structures. Respondent 2 being a public trust could not invoke deemed sanction under S. 58(2)(i) of the MRTP Act, and the trust had already resorted to S. 44 and S. 47 proceedings. The state’s GR dated 8.2.2002 allowed commercial user and FBT/BOT schemes but required an MOU which was never executed, and therefore the respondents had no authority to proceed. The concession agreement between respondent 2 and developer was not binding on the petitioner. The respondents inconsistently sought sanctions even in 2004 and 2005, negating any deemed sanction defence. The deviations were beyond regularization and not compoundable.

Judgment Excerpts

Petitioner Municipal Corporation – a local authority constituted & functioning under the Bombay (Maharashtra) Provincial Municipal Corporations Act, 1949, (hereafter 1949 Act & earlier known as Bombay Provincial Municipal Corporation Act) in this petition under Art. 226 of the Constitution of India has sought the following reliefs... Thus. Commercial exploitation is totally prohibited. S. 2(2) of 1966 Act defines Amenity & it covers the sports complex. Hence, without proper modification either through S. 22A or S. 37 thereof, the shopping plazas can not be erected. The defence of “ deemed sanction ” is erroneous.

Procedural History

Writ petition filed on 6.6.2005. Interim status quo order passed on 12.9.2007. Respondent 5 filed civil application to vacate, rejected on 21.12.2010. SLP (civil) 9466/2011 filed; Supreme Court refused to interfere and directed expeditious disposal. Petition amended on 4.7.2012 to add prayers B1 to B6. Final arguments heard; judgment reserved on 25.10.2013 and pronounced on 10.12.2013. The judgment text is truncated and does not include the court’s analysis or final decision.

Acts & Sections

  • Maharashtra Regional & Town Planning Act, 1966: S. 2(2), S. 22A, S. 37, S. 44, S. 45(5), S. 46, S. 47, S. 58(2)(i), S. 124
  • Bombay Provincial Municipal Corporation's Act, 1949 (now Bombay (Maharashtra) Provincial Municipal Corporations Act, 1949): S. 263
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