Supreme Court Hears Appeal Against Bombay High Court Order Directing Grant of Amenity TDR for Garden Development. High Court Allowed Writ Petition Challenging BMC's Denial of TDR and Directed Grant of Additional Amenity TDR Under Section 126 of MRTP Act.

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Case Note & Summary

The dispute centers on the entitlement to additional amenity Transferable Development Rights (TDR) for a garden developed on land reserved for a public purpose. The Brihanmumbai Municipal Corporation (Corporation) and the landowner, a partnership firm and its partner, entered into arrangements under Section 126(1)(b) of the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act). The land, measuring 98,369.1 sq. mts. in Chembur, Mumbai, was reserved as a garden in the Development Plan notified in 1994. The landowner applied for TDR in lieu of surrendering the land free of cost. The Corporation issued a Letter of Intent (LOI) on 13.12.2001, stipulating that the landowner would develop the garden as per Corporation specifications, maintain it for 20 years, and not claim any amenity TDR towards the garden's development. A formal undertaking to this effect was executed on 10.01.2002. The garden was developed and a completion certificate was issued. Subsequently, a dispute arose when the Corporation, via communication dated 05.11.2019, apparently denied additional amenity TDR. The landowner challenged this communication before the Bombay High Court and sought a direction for grant of amenity TDR. The High Court, in its judgment dated 03.04.2024, allowed the writ petition, quashed the communication, and directed the grant of amenity TDR. The Corporation appealed to the Supreme Court, which granted leave. The appeal raises the core legal issue of whether the undertaking precludes the landowner from claiming amenity TDR. No final decision is recorded in the available excerpt; the Court's analysis and holding are not provided.

Headnote

A) Town Planning - Transferable Development Rights - Amenity TDR - Maharashtra Regional and Town Planning Act, 1966, Section 126 - The landowner developed a garden on reserved land and executed an undertaking not to claim amenity TDR; the High Court directed grant of amenity TDR; the Supreme Court is to determine the binding effect of the undertaking (Paras 4-8).

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Issue of Consideration

Whether the High Court was correct in directing the Corporation to grant additional amenity TDR despite the landowner's undertaking not to claim amenity TDR?

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Law Points

  • Section 126 of MRTP Act provides for acquisition of land for public purposes by agreement
  • grant of TDR
  • or compulsory acquisition
  • Landowner's undertaking not to claim amenity TDR is binding
  • Additional amenity TDR may not be claimed if undertaking given.
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Case Details

2026 LawText (SC) (05) 54

Civil Appeal No (S) . Of 2026 (Arising out of SLP (C) No. 11541 of 2024)

J.K. Maheshwari

2026 INSC 517

Brihanmumbai Municipal Corporation and Ors.

Vijay Nagar Apartments and Ors.

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Nature of Litigation

Challenge to denial of additional amenity Transferable Development Rights (TDR) for development of a garden on reserved land.

Remedy Sought

Respondent Nos. 1 and 2 (Landowner) sought to challenge the communication dated 05.11.2019 and a direction to the Appellants to grant additional amenity TDR.

Filing Reason

The Corporation denied amenity TDR based on an undertaking given by the landowner not to claim such TDR.

Previous Decisions

The High Court of Judicature at Bombay allowed the writ petition on 03.04.2024, granting both reliefs. The Corporation appealed to the Supreme Court.

Issues

Whether the landowner is entitled to additional amenity TDR despite having given an undertaking not to claim such TDR? Whether the High Court erred in allowing the writ petition and directing grant of amenity TDR?

Judgment Excerpts

That you will develop the said Garden plots as per the Municipal Specifications & you will submit registered undertaking that you will develop the said Garden as per the Specifications laid down by the Corporation and maintain it for a further period of next 20 years, at your cost and will not claim any amenity TDR towards Development of Garden. That I will develop the said Garden as per the specification laid down by the Corporation and maintain it for a further period of next 20 years from the date of handing over the land to MCGM at my cost and I will not claim any amenity TDR towards the development of the Garden.

Procedural History

The landowner applied under Section 126(1)(b) of MRTP Act for TDR. The Corporation issued Letter of Intent dated 13.12.2001. Landowner signed undertaking dated 10.01.2002 not to claim amenity TDR. Garden was developed. Later, landowner challenged communication dated 05.11.2019 and sought additional amenity TDR. High Court allowed writ petition on 03.04.2024. Corporation filed SLP, which was granted leave, leading to this civil appeal.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: 126
  • Land Acquisition Act, 1894: 6
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Supreme Court Supreme Court Hears Appeal Against Bombay High Court Order Directing Grant of Amenity TDR for Garden Development. High Court Allowed Writ Petition Challenging BMC's Denial of TDR and Directed Grant of Additional Amenity TDR Under Section 126 of MRTP ...
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