Supreme Court has held that a condition imposed by the Government that the land owner should handover a part of land free of cost for public utility purposes in return of the permission granted for converting the nature of the use of the land cannot be held illegal.
The top court remark came while setting aside a Bombay High Court judgement.
«It can be noticed that this Court in the case of Narayanrao Jagobaji Gowande Public Trust vs State of Maharashtra and others7 has held that if a Government gives the benefit of development of land concerned with permission to sub-divide the same and uses it for commercial purpose and it, in turn, requires the landowner to handover part of land free of cost for public utility purpose, such a clause cannot be held to be illegal. As such, we find that the High Court has grossly erred in allowing the writ petitions,» the top court said citing its earlier judgement.
«We, therefore, allow the appeals and quash and set aside the impugned common judgment and order dated 4th July 2019 passed by the High Court.
The writ petition filed by the plot holders also shall stand dismissed,» a bench of justices BR Gavai and SVN Bhatti said in its September 22 order.
The top court was hearing a set of appeals challenging the common judgment and order passed by the Division Bench of the High Court of Bombay at Aurangabad, dated July 4, 2019. The appellant in both appeals was Shirdi Nagar Panchayat.
On December 15, 1992, a Development Plan for the Municipal Council was approved.