Case Note & Summary
The petitioner, a company owning land in Solapur reserved for a playground under the development plan, sought a declaration that the reservation lapsed under Section 127(1) of the Maharashtra Regional and Town Planning Act, 1966. The land was originally not reserved in the first development plan for 1977-97. After a revision process spanning from 1992 to 2008, the land was designated as a playground. The petitioner served a purchase notice on 4th February 2015 under Section 127(1), and the Solapur Municipal Corporation passed a resolution on 16th February 2015 stating it lacked financial resources to acquire the land. When the petitioner applied for building permission in 2018, it was rejected on 21st April 2019, leading to the filing of this writ petition in February 2021 seeking de-reservation and permission to develop. The High Court, in an earlier order dated 28th July 2025, noted that while the petitioner's case on lapsing was strong, accepting the Corporation's stand of financial inability could render all development plan reservations meaningless, causing grave public harm by permanently denying public amenities like playgrounds. The Court therefore directed the Municipal Commissioner to file an affidavit explaining the Corporation's financial constraints, possible funding sources, and its position on preserving reservations. The learned Advocate General was requested to assist the Court. The matter was adjourned to 11th August 2025 for further consideration. The Court observed that the petitioner's case on Section 127 would be tested later, but the larger public interest required the Corporation to explain its stance. No final decision on lapsing was made at this stage.
Headnote
A) Town Planning - Lapsing of Reservation - Section 127, Maharashtra Regional and Town Planning Act, 1966 - Financial Inability of Municipal Corporation - Public Interest - Petitioner issued purchase notice under Section 127(1) after reserved playground land was not acquired; Municipal Corporation resolved lack of financial resources to acquire, leading to contention of lapsing - Court, while acknowledging that non-acquisition could lead to lapsing by operation of law, emphasized larger public interest that if such financial inability pleas are accepted, development plan reservations would become otiose, depriving the public of amenities - Directed Municipal Commissioner to file affidavit explaining financial constraints, possible funding sources, and stance on preserving reservations, and adjourned proceedings (Paras 2-3).
Issue of Consideration
Whether the reservation on the petitioner's land lapsed under Section 127(1) of the Maharashtra Regional and Town Planning Act, 1966 due to the Municipal Corporation's failure to acquire it within the stipulated period after the purchase notice, and the larger issue of the corporation's financial inability to acquire reserved lands affecting the development plan and public interest.
Final Decision
The Court directed the Solapur Municipal Commissioner to file an affidavit within 10 days explaining the Corporation's financial constraints, possible sources of funding, and the impact of its inability to acquire lands on the development plan reservations. The learned Advocate General was requested to appear for the State. The proceedings were adjourned to 11th August 2025. The Court observed that after the affidavit, appropriate orders would be passed, while acknowledging the petitioner's case on Section 127.
Law Points
- Lapsing of reservation under Section 127 of Maharashtra Regional and Town Planning Act
- 1966 on failure to acquire land within stipulated period after purchase notice
- public interest in preserving development plan reservations
- municipal corporation's financial inability cannot be allowed to defeat statutory purpose of providing public amenities
Case Details
2026 LawText (BOM) (07) 249
WRIT PETITION NO. 9166 OF 2023
Milind N. Jadhav, Nandesh S. Deshpande
Mr. Ashutosh Kumbhakoni, Mr. Vaibhav Jaglekar, Dr. Milind Sathe, Mr. Dilip Bodake, Mr. Sharad Bhosale, Mr. Amar Dhumal, Mr. Mohan Khan, Mr. A. P. Vanarase
M/s. Ganesh Ramchandra Apte Infrastructure
The State of Maharashtra and Others
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Nature of Litigation
Writ petition seeking declaration that reservation of land for playground has lapsed under Section 127(1) of the MRTP Act and for permission to develop the land.
Remedy Sought
Petitioner seeks a declaration that the reservation has lapsed, a direction to publish a notification of de-reservation, and setting aside of the rejection of building permission.
Filing Reason
Failure of the Municipal Corporation to acquire the land within the stipulated period after the purchase notice, and rejection of building permission application.
Previous Decisions
Solapur Municipal Corporation passed Resolution No.58 on 16th February 2015 stating inability to acquire the land. The building permission was rejected on 21st April 2019. The High Court passed an interim order on 28th July 2025 directing the Municipal Commissioner to file an affidavit.
Issues
Whether the reservation on the petitioner's land lapsed under Section 127(1) of the MRTP Act due to non-acquisition within the statutory period after the purchase notice.
Whether the Municipal Corporation's financial inability to acquire reserved lands can defeat the development plan and public interest.
Submissions/Arguments
Petitioner argued that the reservation lapsed by operation of law under Section 127(1) as the land was not acquired within the stipulated period after the purchase notice, and the Municipal Corporation's resolution admitting financial inability supports this.
The Court raised the issue that if the Corporation's stand of financial inability is accepted generally, it would render all development plan reservations otiose, harming public interest.
Ratio Decidendi
Where a municipal corporation pleads financial inability to acquire land under a development plan reservation, and a purchase notice has been issued under Section 127 of the MRTP Act, the court must examine the larger public interest to ensure that development plan reservations providing public amenities are not rendered meaningless. The corporation is required to explain its financial constraints and the steps taken to acquire or preserve such reservations.
Judgment Excerpts
If the land is not acquired as ordained by the said provision, certainly by operation of law, the reservation would be required to be held to be lapsed.
This is a serious situation and of a larger public harm and damage, as such public amenities subject matter of the reservations would never be available to the public at large, and more particularly open spaces in the nature of the Playgrounds, Gardens, Hospitals and other similar amenities.
the development plan reservations would be rendered otiose.
Procedural History
The petitioner purchased the land in 2010 and 2012. The land was not reserved in the first development plan for 1977-97. In 1992, intention to revise the plan was published. In 1999, draft plan reserved the land for a cultural centre. In 2004, the revised plan was sanctioned, excluding the land but later re-designating it as a playground. In 2008, the exclusion was sanctioned. On 4th February 2015, petitioner served a purchase notice under Section 127(1). On 16th February 2015, the Municipal Corporation resolved it lacked financial capacity to acquire. In 2018, petitioner sought building permission, which was rejected on 21st April 2019. The writ petition was filed in February 2021. On 28th July 2025, a division bench passed an order directing the Municipal Commissioner to file an affidavit and adjourned the matter. The matter was listed before this bench on 3rd July 2026.
Acts & Sections
- Maharashtra Regional and Town Planning Act, 1966: 23(1), 26(1), 127(1), 127(2)
