Case Note & Summary
The Bombay High Court held that reservation of land under the Development Plan lapses under Section 127 of the MRTP Act if the Planning Authority fails to take effective steps for acquisition within 24 months after receiving a purchase notice.
In the present case, the Petitioners’ land at Lonavala was reserved since 1978 for “Housing for Dishoused,” but the authorities failed to acquire it despite repeated opportunities and notices. The Municipal Council argued that the purchase notice was defective due to absence of title documents and detailed property particulars.
Rejecting these objections, the Court ruled that technical defects in the notice cannot defeat the statutory consequence of lapsing when authorities themselves failed to initiate acquisition proceedings within the prescribed time. Accordingly, the reservation was declared lapsed and the land released for permissible development.
Headnote
A. Maharashtra Regional and Town Planning Act, 1966 – Section 127 – Lapsing of Reservation – Purchase Notice – Failure to Acquire Land – Effect –
Where land reserved under Development Plan remained unacquired for decades and planning authority failed to take effective steps for acquisition within 24 months from service of purchase notice under Section 127 MRTP Act, reservation deemed to have lapsed by operation of law – Mere objection regarding alleged defects in purchase notice or non-submission of title documents cannot defeat statutory consequence of lapsing – Land becomes available to owner for permissible development.
B. Maharashtra Regional and Town Planning Act, 1966 – Sections 126 and 127 – Purchase Notice – Defective Notice – Scope –
Requirement of submitting title documents along with purchase notice intended to facilitate acquisition process and transfer of title – Planning authority cannot subsequently challenge validity of purchase notice on technical grounds after failing to initiate acquisition proceedings within statutory period – Effective acquisition steps contemplated under Section 127 mean actual commencement of acquisition proceedings and not mere administrative correspondence or resolutions.
Case Summary :
Issue of Consideration
Whether reservation of land under Section 127 of the Maharashtra Regional and Town Planning Act, 1966 lapses when the Planning Authority fails to take effective steps for acquisition within the statutory period after service of purchase notice.
Final Decision
The Court allowed the writ petition and declared that the reservation of the land had lapsed under Section 127 of the Maharashtra Regional and Town Planning Act, 1966, due to failure of the Planning Authority to take steps for acquisition within the statutory period. Consequently, the land stood de-reserved and became available to the Petitioners for permissible development.
Law Points
- Section 127 of Maharashtra Regional and Town Planning Act
- 1966 (MRTP Act) provides for lapsing of reservation if planning authority fails to take steps within prescribed period
- The deeming fiction under Section 127 operates automatically upon failure to comply with purchase notice
- The planning authority must take concrete steps for acquisition within statutory timeframe
- Mere revision of development plan does not extend or reset the statutory period under Section 127
- The burden lies on planning authority to demonstrate compliance with statutory requirements
Case Details
2026 LawText (BOM) (02) 92
Writ Petition No. 13965 of 2024
Ravindra V. Ghuge J. , Abhay J. Mantri J.
Mr. Ashutosh Kulkarni a/w Mr. Irfan Unwala i/b. Ms. Shaheen S. Kapadia for Petitioners, Mr. O.A. Chandurkar a/w Mr. S.P. Kamble for Respondent-State, Ms. Shakuntala Wadekar for Respondent No.3
Yakub Salebhai Contractor (Deceased), Zehra Yakub Contractor (Deceased) through legal heirs Mazahir Alias Al Azhar Yakub Contractor, Habib Yakub Contractor, Nasreen Yakub Contractor, Duriya Shabbir Presswala, Mazahir Alias Al Azhar Yakub Contractor, Hasina Al Azhar Yakub Contractor
State of Maharashtra, Director of Town Planning, State of Maharashtra, Lonavala Municipal Council
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Nature of Litigation
Writ Petition seeking declaration of lapse of land reservation under the Development Plan under Section 127 of the Maharashtra Regional and Town Planning Act, 1966.
Remedy Sought
The Petitioners sought a declaration that the reservation of their land had lapsed under Section 127 of the MRTP Act and that the land stood de-reserved and available for permissible development.
Filing Reason
The Petition was filed on the ground that Respondent No. 3 failed to take steps for acquisition of the reserved land despite service of a purchase notice under Section 127 of the MRTP Act.
Previous Decisions
The land was reserved under the Development Plan of 1978 and continued under the revised Development Plans of 2005–06. The Petitioners issued a purchase notice dated 02.08.2021 under Section 127 of the MRTP Act. Despite expiry of the statutory period, Respondent No. 3 failed to initiate acquisition proceedings.
Issues
Whether the reservation of land under the Development Plan had lapsed under Section 127 of the Maharashtra Regional and Town Planning Act, 1966 due to failure of the Planning Authority to take acquisition steps within the statutory period after service of purchase notice.
Submissions/Arguments
The Petitioners contended that the reservation had lapsed as Respondent No. 3 failed to take effective acquisition steps within the statutory period prescribed under Section 127 after receipt of the purchase notice.
The Respondents raised objections regarding alleged defects in the purchase notice and referred to revisions in the Development Plan; however, the Court found that no steps as contemplated under Sections 126 and 127 of the MRTP Act had been taken.
Ratio Decidendi
Under Section 127 of the Maharashtra Regional and Town Planning Act, 1966, if the Planning Authority fails to take effective steps for acquisition within the prescribed statutory period after receipt of a purchase notice, the reservation lapses by operation of law. Mere revision of the Development Plan or administrative correspondence does not extend the statutory period or amount to acquisition steps contemplated under the Act
Judgment Excerpts
“The Petitioners have invoked the deeming fiction of lapsing of reservation under Section 127 of the Maharashtra Regional and Town Planning Act, 1966.”
“Section 127 deals with the lapsing of reservations and prescribes the procedure.”
“The controversy between the Petitioners and the Council falls in a narrow compass, i.e. the Petitioners have issued a purchase notice under Section 127 of the MRTP Act.”
Procedural History
Writ Petition filed on 23.09.2024 – Admitted on 10.03.2025 – Heard finally and reserved on 09.02.2026 – Pronounced on 17.02.2026.
Acts & Sections
- Maharashtra Regional and Town Planning Act, 1966: Section 125, Section 126, Section 127
