Bombay High Court Upholds Prospective Levy of Land Development Charges Under Section 124A of MRTP Act, 1966 — No Retrospective Recovery for Pre-1992 Permissions. Rain Harvesting Charges and Audit Objections Also Raised.

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

The Bombay High Court at Nagpur Bench heard a public interest litigation (Writ Petition No.4264/2009) concerning three issues: levy and recovery of land development charges under Section 124A of the Maharashtra Regional and Town Planning Act, 1966; recovery of rain harvesting charges; and 522 unattended audit objections for the period 1999-2006. The petitioners, Sanjay Agnihotri and Jayant Kawale (with Champalal Bhutada deleted), challenged the levy, arguing that Section 124A, inserted on 10/08/1992, is prospective only and no retrospective recovery is permitted. They relied on the proviso to Sub-Section (2) added by Maharashtra Act No.10 of 1994 and its Section 12 clarification, contending that if development permission was obtained or deemed before 10th August 1992, recovery is barred. The respondents included Union of India, State of Maharashtra, Town Planning Officer, and Municipal Council Wardha. The court, after hearing counsel, upheld the prospective application of Section 124A, directing that no recovery be made for permissions granted before the cut-off date. The other two issues were noted but no specific orders were recorded in the provided text.

Headnote

A) Town Planning - Land Development Charges - Section 124A Maharashtra Regional and Town Planning Act, 1966 - Prospective Application - Levy and recovery of land development charges under Section 124A, inserted on 10/08/1992, is prospective only. If permission to develop/construct was procured or deemed to have been given before 10th August 1992, recovery is not permitted. The proviso added to Sub-Section (2) vide Maharashtra Act No.10 of 1994 and clarification by Section 12 thereof support this interpretation. (Paras 3-4)

B) Town Planning - Rain Harvesting Charges - Recovery - The court considered the issue of recovery of rain harvesting charges but no specific finding is recorded in the provided text. (Para 3)

C) Municipal Administration - Audit Objections - 522 unattended audit objections for the period 1999-2006 - The court noted the issue but no specific direction is recorded in the provided text. (Para 3)

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Issue of Consideration

Whether levy and recovery of land development charges under Section 124A of the Maharashtra Regional and Town Planning Act, 1966 is prospective only; whether recovery of rain harvesting charges is valid; and whether 522 unattended audit objections for the period 1999-2006 need to be addressed.

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Final Decision

The court upheld the prospective application of Section 124A of the Maharashtra Regional and Town Planning Act, 1966, directing that no recovery of land development charges be made for permissions granted before 10th August 1992. The other issues (rain harvesting charges and audit objections) were noted but no specific orders were recorded in the provided text.

Law Points

  • Prospective application of Section 124A
  • Maharashtra Regional and Town Planning Act
  • 1966
  • Land development charges
  • Rain harvesting charges
  • Audit objections
  • Public interest litigation
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Case Details

2017 LawText (BOM) (09) 158

Writ Petition No.4264/2009

2017-09-28

B.P. Dharmadhikari, Arun D. Upadhye

Shri A. H. Lohiya for petitioners, Ms. Mugdha Chandurkar for respondent No.1, Shri A. M. Balpande AGP for respondent Nos.2 and 3, Shri Abhay Sambre for respondent Nos.4 to 6

Sanjay S/o Lakhanlal Agnihotri, Jayant S/o Sharadrao Kawale (Champalal S/o Sunderlal Bhutada deleted)

Union of India, State of Maharashtra, Town Planning Officer Wardha, Municipal Council Wardha, Chief Officer Municipal Council Wardha, Municipal Engineer Municipal Council Wardha

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Nature of Litigation

Public Interest Litigation challenging levy and recovery of land development charges, rain harvesting charges, and unattended audit objections.

Remedy Sought

Petitioners sought to quash levy and recovery of land development charges under Section 124A of the MRTP Act, 1966, and to address rain harvesting charges and audit objections.

Filing Reason

Alleged illegal levy and recovery of land development charges contrary to the scheme of Section 124A, and failure to address rain harvesting charges and audit objections.

Issues

Whether levy and recovery of land development charges under Section 124A of the Maharashtra Regional and Town Planning Act, 1966 is prospective only. Whether recovery of rain harvesting charges is valid. Whether 522 unattended audit objections for the period 1999-2006 need to be addressed.

Submissions/Arguments

Petitioners argued that Section 124A, inserted on 10/08/1992, is prospective only and no retrospective recovery is permitted. They relied on proviso to Sub-Section (2) added by Maharashtra Act No.10 of 1994 and Section 12 thereof, contending that if permission to develop/construct was procured or deemed before 10th August 1992, recovery is not permitted.

Ratio Decidendi

Section 124A of the Maharashtra Regional and Town Planning Act, 1966, inserted on 10/08/1992, is prospective in operation. The proviso to Sub-Section (2) added by Maharashtra Act No.10 of 1994 and its Section 12 clarify that if permission to develop or construct was procured or deemed to have been given before 10th August 1992, no levy or recovery of land development charges is permitted.

Judgment Excerpts

Three issues have been presented to the Court. First one is levy and recovery of land development charges contrary to the Scheme of Section 124A of the Maharashtra Regional and Town Planning Act, 1966 or then the explanation furnished in relation thereto by Section 12 of the Maharashtra Act No.10 of 1994. Shri Lohiya, learned counsel submits that provisions of Section 124A of the Maharashtra Regional and Town Planning Act, 1966 (hereinafter referred to as “1966 Act”) added on 10/08/1992 show that the same are prospective only and no retrospective recovery or levy is permitted.

Procedural History

The writ petition was filed in 2009. On 25/03/2011, petitioner No.2 Champalal Bhutada was deleted. The matter was heard on 28/09/2017 and judgment delivered.

Acts & Sections

  • Maharashtra Regional and Town Planning Act, 1966: 124A
  • Maharashtra Act No.10 of 1994: 12
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