The case between Appellants and the Government revolves around a dispute over premium payment in the Slum Rehabilitation Scheme. Appellant No. 2, in association with a society represented by Appellant No. 1, sought to develop a plot under the scheme. Despite a Letter of Intent issued, a demand by the Government led to legal action. The High Court’s decision, followed by a review petition, sets the stage for a complex legal battle over the premium issue.
Facts
- Appellant No. 2 was approached by Appellant No. 1 society to develop a plot and rehabilitate members under Slum Rehabilitation Scheme.
- A Letter of Intent (LOI) was issued in favor of Appellant No. 2 for the rehabilitation scheme, subject to clearance by Coastal Regulation Zone (CRZ) authorities.
- Government issued a notification demanding Rs. 8,47,69,029.69 towards premium, leading appellants to approach High Court through a writ petition.
- The High Court dismissed the writ petition challenging the demand and subsequent review petition.
- Directives by the Government required a 25% premium payment for the Slum Rehabilitation Scheme.
- Appellants sought directions for the issuance of Commencement Certificate from SRA.
- Civil appeals were filed by the original petitioners in response to the High Court’s orders.
- HPC rejected the appellants’ claim of not needing to pay the premium due to the LOI issued earlier.
- The writ petition filed by the appellants was dismissed by the High Court of Judicature at Bombay on 03.05.2012.
- The review petition filed by the appellants was also dismissed on 01.07.2015.
Also Read: Interpretation of Will Clauses in Property Dispute
Arguments
- The title of regulation No. 1.11 of Appendix IV of Regulation 33(10) is to be changed as “Premium for ownership and terms of lease”.
- A new provision is added stating that Developers/Co-op. Housing Society shall pay a premium of twenty-five percent in terms of Ready Reckoner for Slum Rehabilitation Schemes on lands owned by Government, Semi-Government Undertakings, and Local Bodies.
- The appellants cannot be prejudiced by the delay in clearance by the Coastal Zone Management Authority for payment of premium as per directions issued on 16th April 2008.
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Analysis
- The Letter of Intent dated 05.01.2005 was issued to the appellants under Development Control Regulation 33(10) for the scheme.
- The LOI is valid until completion of the estimated project period if obtained for any one building of the project.
- Confirmation from the Government regarding the imaginary line from CRZ point of view must be obtained before seeking approval of plans.
- If required, the scheme shall be revised accordingly based on the confirmation from the Government.
- The Letter of Intent was issued on 05.01.2005 and was valid for three months only.
- The validity of the Letter of Intent was not extended, and no representation was filed to keep it alive.
- Conditions notified in the GR dated 16.04.2008 will apply for the scheme.
- The delay in obtaining clearance from the Coastal Zone Management Authority does not excuse the appellants from keeping the Letter of Intent alive.
- The appellants could have made appropriate representations to maintain the validity of the Letter of Intent.
Also Read: Jurisdictional Limits and Statutory Compliance in Development Planning
Decision
- Developer/co-operative society required to pay premium @ 25% in terms of Ready Reckoner for Slum Rehabilitation Schemes on government-owned lands
- No illegality found in the demand made by the respondents
- Civil appeals dismissed due to lack of merit
- No order as to costs given
Case Title: UTTAR BHARTIYA RAJAK SAMAJ PANCHAYAT BANGANGA RAJAK SAMAJ CO-OPERATIVE HOUSING SOCIETY (PROPOSED) CH Vs. THE STATE OF MAHARASHTRA THROUGH SECRETARY (2020 INSC 122)
Case Number: C.A. No.-000887-000888 / 2020
