The case involves Trishul Construction Co. (Petitioner) against CIDCO (Respondent No.1) and the State of Maharashtra (Respondent No.2), centered on the cancellation of plot allotments due to delayed lease premium payments. The petitioner was allotted three plots in Navi Mumbai, but failed to make timely payments. Despite the global recession affecting the real estate market, CIDCO sought re-tendering of the plots, while Trishul Construction sought regularization. The Court analyzed the directives issued under Section 154 of the Maharashtra Regional and Town Planning (MRTP) Act, 1966, and Section 5 and 15 of the New Bombay Disposal of Lands Regulations, 1975. The Court referred the matter back to the State Government to clarify the decision communicated in 2018 regarding regularization of the allotments.

1. Allotment and Payment Delays:

• Trishul Construction Co. was allotted three plots in Navi Mumbai by CIDCO in 2007, but failed to make timely payments due to the global recession.
• The petitioner sought extensions, which CIDCO granted, but payments were still delayed.

2. Cancellation of Allotments:

• In January 2024, CIDCO canceled the allotments and forfeited part of the lease premium, prompting Trishul to file a writ petition challenging this decision.
• Trishul contended that CIDCO's decision violated the directives issued by the State Government in 2018, which permitted regularization of such delays.

3. Government Intervention:

• The State Government had instructed CIDCO in 2018 to regularize the payments and condone the delays, considering financial benefits for CIDCO rather than retendering the plots.

4. Legal Provisions:

• The case involved discussions of Section 154 of the MRTP Act, 1966, which mandates that planning authorities follow directives issued by the State Government.
• Regulation 5 and 15 of the 1975 Regulations, which govern payment extensions and relaxation of regulations, were also analyzed.

Ratio Decidendi:

The Court held that CIDCO's decision to cancel the allotment was contrary to the 2018 State Government directive. Under Section 154 of the MRTP Act, CIDCO was bound to follow the State’s instructions. The matter was referred back to the State Government to clarify its 2018 decision on whether CIDCO should regularize the payment delay or proceed with cancellation and retendering.

Acts and Sections Discussed:

1. Maharashtra Regional and Town Planning Act, 1966:

   • Section 154: Grants the State Government power to issue binding directives to planning authorities.

2. New Bombay Disposal of Lands Regulations, 1975:

   • Regulation 5: Governs the payment of lease premiums in installments and allows limited extensions.
   • Regulation 15: Allows CIDCO, with State approval, to relax regulations in special cases.

Subject:

Land allotment cancellation due to delayed lease premium payments and the legal implications of government directives under the MRTP Act.

CIDCO, Land Allotment, Lease Premiums, Maharashtra Regional and Town Planning Act, 1975 Land Disposal Regulations