Bombay High Court Upholds Lapsing of Land Reservation Under Section 127 of MRTP Act — Purchase Notice Served After 18 Years, No Acquisition Within 24 Months, Reservation Deemed Lapsed. The court held that the Director of Town Planning correctly declared the reservation lapsed as the statutory conditions under Section 127 of the Maharashtra Regional and Town Planning Act, 1966 were met.

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

The petitioner, Subhashchandra Hukumchand Khurana, owned agricultural land in Mouza Warud, District Amravati, within the limits of Municipal Council, Warud. The land was reserved for a public purpose under the development plan. After waiting for almost 18 years from the date the final development plan came into force, the petitioner served a purchase notice under Section 127(1) of the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act) on the planning authority, calling for acquisition of the land. The authorities failed to acquire the land or commence steps for acquisition within the statutory period of 24 months from the date of service of the notice. Consequently, the Director of Town Planning, Maharashtra State, Pune, issued a communication dated 17/10/2025 declaring that the reservation of the land had lapsed and the land stood released to the owner. The petitioner filed a writ petition challenging this communication, but the court found that the Director's action was in accordance with Section 127 of the MRTP Act. The court held that the conditions for lapsing were satisfied: the land was reserved, the owner served a valid purchase notice, and no acquisition or steps were taken within 24 months. Therefore, the reservation deemed to have lapsed, and the land became available to the owner for development as permissible. The court dismissed the petition, upholding the lapsing of reservation.

Headnote

A) Town Planning - Lapsing of Reservation - Section 127 Maharashtra Regional and Town Planning Act, 1966 - Purchase Notice - The petitioner, owner of land reserved for a public purpose, served a purchase notice under Section 127(1) after waiting 18 years. The authorities did not acquire the land or commence steps within 24 months. The Director of Town Planning declared the reservation lapsed. The court upheld the lapsing, holding that the statutory conditions were satisfied and the land stood released to the owner. (Paras 1-10)

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Issue of Consideration

Whether the reservation of the petitioner's land under the development plan lapsed under Section 127 of the Maharashtra Regional and Town Planning Act, 1966, after the petitioner served a purchase notice and the authorities failed to acquire the land within 24 months.

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Final Decision

The court dismissed the writ petition, upholding the communication dated 17/10/2025 declaring that the reservation of the petitioner's land had lapsed under Section 127 of the MRTP Act.

Law Points

  • Lapsing of reservation under Section 127 MRTP Act
  • Purchase notice
  • Deemed lapse
  • Release of land to owner
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Case Details

2026:BHC-NAG:6800-DB

Writ Petition No. 6726 of 2025

2026-04-29

Anil S. Kilor, Raj D. Wakode

2026:BHC-NAG:6800-DB

Shri Mohammad A. A. Mushtaque, Shri D. V. Chouhan, Shri N. S. Rao, Shri Abhay Sambre, Shri F. T. Mirza, Shri Sameer Khan

Subhashchandra Hukumchand Khurana

The State of Maharashtra, The Director, Town Planning, Maharashtra State, Pune, Nagar Parishad Warud, The Land Acquisition Officer/Deputy Collector, (Acquisition), Laghu Sinchan, Amravati, Umesh Atmaramji Yawalkar, Swapnil S/o Shashikant Belsare, Kiran S/o Nanarao Sawarkar

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Nature of Litigation

Writ petition challenging communication declaring lapsing of land reservation under Section 127 of MRTP Act.

Remedy Sought

Petitioner sought to challenge the communication dated 17/10/2025 issued by respondent No.1 and respondent No.2 declaring that the reservation of his land had lapsed.

Filing Reason

Petitioner claimed that the communication was illegal and sought to set it aside.

Issues

Whether the reservation of the petitioner's land lapsed under Section 127 of the MRTP Act after service of purchase notice and failure to acquire within 24 months.

Submissions/Arguments

Petitioner argued that the communication declaring lapsing was illegal. Respondents supported the lapsing as per statutory provisions.

Ratio Decidendi

Under Section 127 of the MRTP Act, if land reserved in a development plan is not acquired within ten years from the date the plan comes into force, the owner may serve a purchase notice. If within 24 months from the date of service of such notice the land is not acquired or steps for acquisition are not commenced, the reservation shall be deemed to have lapsed and the land shall be released to the owner. In this case, the petitioner served a valid purchase notice after 18 years, and the authorities failed to act within 24 months, resulting in deemed lapse.

Judgment Excerpts

If any land reserved, allotted or designated for any purpose specified in any plan under this Act is not acquired by agreement within ten years from the date on which a final Regional plan, or final Development plan comes into force for, if a declaration under sub-section (2) or (4) of section 126 is not published in the Official Gazette within such period, the owner or any person interested in the land may serve notice... and if within [twenty-four months] from the date of the service of such notice, the land is not acquired or no steps as aforesaid are commenced for its acquisition, the reservation, allotment or designation shall be deemed to have lapsed... The petitioner who is the owner of the aforesaid land has waited for almost 18 years before issuing the purchase notice under Section 127(1) of the aforesaid Act for acquisition of the aforesaid land.

Procedural History

The petitioner filed Writ Petition No. 6726 of 2025 before the Bombay High Court, Nagpur Bench, challenging the communication dated 17/10/2025. The court heard the parties and delivered judgment on 29/04/2026.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: 127
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