Case Note & Summary
The dispute involved Shree Ram Urban Infrastructure Ltd. (SRUIL) challenging the legality of construction permissions and actions taken by the Municipal Corporation of Greater Mumbai (MCGM) regarding a residential building and a public parking lot (PPL). SRUIL had obtained a commencement certificate for construction in 2005 under the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act) and subsequently modified plans for the PPL. However, the MCGM issued a stop work notice in 2011, leading to litigation. The City Civil Court ruled in favor of SRUIL, declaring the stop work notice illegal, which was later appealed by the MCGM. The High Court upheld the civil court's decision but also directed a re-evaluation of FSI calculations and the legality of the construction above the plinth level. The Supreme Court ultimately found that the construction of the upper floors and PPL was illegal due to the absence of valid commencement certificates, directing SRUIL to seek regularization or face demolition. The court emphasized the need for compliance with the MRTP Act and DCR regulations while recognizing the public interest in the completed PPL. The court also addressed the issue of deemed permissions and the necessity for the Municipal Commissioner to reassess FSI computations, particularly concerning refuge areas and structural columns. The decision underscored the balance between regulatory compliance and public interest in urban development.
Headnote
A) Urban Planning - Commencement Certificate Validity - Construction beyond plinth level without valid commencement certificate - Maharashtra Regional and Town Planning Act, 1966, Section 48 - The court held that the construction of upper floors without the requisite commencement certificate was illegal, necessitating regularization or demolition. (Paras 15-15) B) Urban Planning - Deemed Permission - Applicability of deemed permission for construction - Maharashtra Regional and Town Planning Act, 1966, Section 51 - The court found that deemed permission could apply if construction had substantially progressed, thus impacting the validity of the stop work notice. (Paras 7-7) C) Urban Planning - FSI Computation - Calculation of FSI concerning refuge areas and structural columns - Development Control Regulations, 1991 - The court directed the Municipal Commissioner to reconsider FSI computations, particularly regarding excessive refuge areas and structural columns. (Paras 12-12) D) Urban Planning - Public Interest - Impact of construction on public interest - The court noted that the completed public parking lot was in the public interest, despite legal challenges. (Paras 19-19)
Issue of Consideration
Whether the construction of the upper floors and public parking lot was legal without the requisite commencement certificates.
Final Decision
The Supreme Court upheld the High Court's decision that the construction of the upper floors and PPL was illegal due to the absence of valid commencement certificates. SRUIL was directed to seek regularization or face demolition of the unauthorized construction. The court also mandated a reassessment of FSI calculations by the Municipal Commissioner.
Law Points
- Deemed permission
- FSI computation
- construction legality
- public interest
- MRTP Act
- DCR regulations



