BMC needs to give TDR worth Rs 5 Bn: Lawyers
Real Estate

BMC needs to give TDR worth Rs 5 Bn: Lawyers

In 2018, the Bombay High Court had rejected several builders' pleas for compensation from the BMC for land surrendered for public amenities, citing "delay and laches." However, the Supreme Court bench, consisting of Justices B. V. Nagarathna and N. K. Singh, held that the High Court was incorrect in dismissing the writ petitions on these grounds. The Supreme Court invoked principles established in its 2009 decision related to Godrej & Boyce and state land acquisition schemes. The Supreme Court allowed more than half a dozen appeals filed by Kukreja Constructions and others against part of the High Court’s order from 18 December 2018. The court directed the BMC to expeditiously review the cases and, within a maximum of three months, release the additional buildable space and Transferable Development Rights (TDR) to the builders. In one instance, the TDR to be allocated to a builder exceeded 6,000 sq m.

Lawyers estimated that the Supreme Court’s verdict would require the BMC to extend transferable development rights worth approximately Rs 5 billion cumulatively. The BMC had previously filed three appeals against a portion of the 2018 High Court judgment, which had instructed it to compensate several landowners and builders with additional TDR ranging from 75% to 100%. The Supreme Court found no merit in the BMC's appeals and dismissed them, affirming that the High Court’s decision was "just and proper."

Petitioners before both the High Court and the Supreme Court included prominent landholders such as Byramjee Jeejeebhoy, an HUF, Jitendra Sheth, and others. The landowners, represented by leading law firms and top counsel including Pravin Samdani, Amar Dave, Samit Shukla, Mahesh Agarwal, and Shikhil Suri, argued that they had constructed the roads at their own expense and surrendered the land to the BMC. They contended that despite being legally entitled to fair compensation, they had received nothing in return, a right guaranteed under Article 300-A of the Constitution.

The landowners also argued that denying compensation would amount to "usurping citizens' property" without legal authority and in violation of constitutional rights. They pointed out that regulations stipulated that if a landowner also developed the amenity, they were eligible for additional compensatory TDR. The state had cited a November 2016 notification that amended the law to deny such compensation. Samdani argued that an amendment could not strip the owner of their constitutionally guaranteed right to compensation, particularly when a previous law had conferred such entitlement.

In 2018, the Bombay High Court had rejected several builders' pleas for compensation from the BMC for land surrendered for public amenities, citing delay and laches. However, the Supreme Court bench, consisting of Justices B. V. Nagarathna and N. K. Singh, held that the High Court was incorrect in dismissing the writ petitions on these grounds. The Supreme Court invoked principles established in its 2009 decision related to Godrej & Boyce and state land acquisition schemes. The Supreme Court allowed more than half a dozen appeals filed by Kukreja Constructions and others against part of the High Court’s order from 18 December 2018. The court directed the BMC to expeditiously review the cases and, within a maximum of three months, release the additional buildable space and Transferable Development Rights (TDR) to the builders. In one instance, the TDR to be allocated to a builder exceeded 6,000 sq m. Lawyers estimated that the Supreme Court’s verdict would require the BMC to extend transferable development rights worth approximately Rs 5 billion cumulatively. The BMC had previously filed three appeals against a portion of the 2018 High Court judgment, which had instructed it to compensate several landowners and builders with additional TDR ranging from 75% to 100%. The Supreme Court found no merit in the BMC's appeals and dismissed them, affirming that the High Court’s decision was just and proper. Petitioners before both the High Court and the Supreme Court included prominent landholders such as Byramjee Jeejeebhoy, an HUF, Jitendra Sheth, and others. The landowners, represented by leading law firms and top counsel including Pravin Samdani, Amar Dave, Samit Shukla, Mahesh Agarwal, and Shikhil Suri, argued that they had constructed the roads at their own expense and surrendered the land to the BMC. They contended that despite being legally entitled to fair compensation, they had received nothing in return, a right guaranteed under Article 300-A of the Constitution. The landowners also argued that denying compensation would amount to usurping citizens' property without legal authority and in violation of constitutional rights. They pointed out that regulations stipulated that if a landowner also developed the amenity, they were eligible for additional compensatory TDR. The state had cited a November 2016 notification that amended the law to deny such compensation. Samdani argued that an amendment could not strip the owner of their constitutionally guaranteed right to compensation, particularly when a previous law had conferred such entitlement.

Next Story
Building Material

Suraj Estate Wins Euromoney Award for India’s Best Residential Developer

"Suraj Estate Developers Limited has received the Euromoney Real Estate Award 2025 for ‘India’s Best Residential Developer’, positioning the company among globally benchmarked leaders in the sector. The recognition reflects its four-decade legacy in delivering high-quality residential and redevelopment-led projects across South Central Mumbai. The Euromoney Real Estate Awards, presented by the London-based Euromoney magazine, are widely regarded as one of the most credible global assessments of performance in real estate, banking and finance. Winners are selected through surveys of inte..

Next Story
Building Material

Lloyds Metals, Tata Steel Sign MoU to Explore Strategic Collaboration

"Lloyds Metals and Energy Limited has signed a non-binding Memorandum of Understanding with Tata Steel Limited to evaluate potential areas of strategic cooperation across mining, logistics, pelletisation and steelmaking. The MoU was signed by B Prabhakaran, Managing Director of Lloyds Metals, and Mr T V Narendran, CEO and Managing Director of Tata Steel. The partnership framework aims to leverage the natural operational synergies between both companies and assess opportunities in greenfield steel projects, iron ore mining, slurry pipeline infrastructure, pellet manufacturing in iron ore–ric..

Next Story
Building Material

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi. The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching th..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App