Bombay HC overturns Thane civic body's ruling on Sheth Developers
Real Estate

Bombay HC overturns Thane civic body's ruling on Sheth Developers

Recently, the Bombay High Court declared that Thane Municipal Corporation could not avail itself of the "considerable financial benefit" of receiving Rs 420 million from a builder, along with the builder's development of a public amenity (a fire brigade station), without honouring its commitment under a buy-back policy.

The High Court deemed the Corporation's refusal in July 2023 to grant the builder development permission, including additional developable space as per a 2020 regulation for its free-sale building, as "manifestly arbitrary." The rejection was based on the Corporation's claim that the buy-back policy (BBP) was temporarily suspended due to an inquiry initiated after a question was raised in the State legislative assembly regarding the policy in May.

Sheth Developers, the builder, contested the rejection in the High Court, asserting that it was arbitrary and violated principles of legitimate expectations and the doctrine of promissory estoppel (a legal principle ensuring the enforceability of a promise by law).

On November 1, the bench of Justices Gautam Patel and Kamal Khata stated that the rejection contravenes established legal principles concerning unreasonableness and the doctrine of proportionality in administrative action. It also fails to meet the "test of non-arbitrariness in administrative action mandated by Article 14 (right to equality)."

Recently, the Bombay High Court declared that Thane Municipal Corporation could not avail itself of the considerable financial benefit of receiving Rs 420 million from a builder, along with the builder's development of a public amenity (a fire brigade station), without honouring its commitment under a buy-back policy. The High Court deemed the Corporation's refusal in July 2023 to grant the builder development permission, including additional developable space as per a 2020 regulation for its free-sale building, as manifestly arbitrary. The rejection was based on the Corporation's claim that the buy-back policy (BBP) was temporarily suspended due to an inquiry initiated after a question was raised in the State legislative assembly regarding the policy in May. Sheth Developers, the builder, contested the rejection in the High Court, asserting that it was arbitrary and violated principles of legitimate expectations and the doctrine of promissory estoppel (a legal principle ensuring the enforceability of a promise by law). On November 1, the bench of Justices Gautam Patel and Kamal Khata stated that the rejection contravenes established legal principles concerning unreasonableness and the doctrine of proportionality in administrative action. It also fails to meet the test of non-arbitrariness in administrative action mandated by Article 14 (right to equality).

Next Story
Infrastructure Transport

BMC Gets CRZ Nod For Rs 40 Million Gorai Bridge Rebuild

The Brihanmumbai Municipal Corporation (BMC) has secured Coastal Regulation Zone (CRZ) clearance for the reconstruction of the Poisar River bridge in Gorai, located in Mumbai’s western suburbs. However, the proposed demolition of the existing 100-metre bridge has sparked opposition from local residents, who claim it serves as the only direct access route between the Lower and Upper Koliwada areas. The three-decade-old bridge, situated within the CRZ buffer zone, was recently declared structurally unsafe following a civic audit. The BMC has sanctioned its reconstruction at an estimated cost ..

Next Story
Infrastructure Transport

NHAI Completes Rs 15.9 Billion Four-Lane Stretch On ECR

The National Highways Authority of India (NHAI) has completed the four-laning of the 38 km Puducherry–Poondiyankuppam stretch, ending near Cuddalore, in a development that will cut travel time by up to two hours, according to a report by The New Indian Express. The upgraded section, built at a cost of Rs 15.9 billion under the Bharatmala Pariyojana Phase I, marks a major milestone in the ongoing East Coast Road (ECR) widening programme. The project promises a smoother, faster drive for motorists travelling towards Cuddalore, Chidambaram, Sirkazhi, and Nagapattinam. With this completion, 22..

Next Story
Infrastructure Transport

Encroachments Delay Rs 1 Billion Ghatkopar Bridge Project

The construction of a new cable-stayed rail overbridge at Ghatkopar and the widening of the Andheri–Ghatkopar Link Road (AGLR) have been delayed due to the presence of nearly 250 encroached structures on both sides of the road. In response, Municipal Commissioner Bhushan Gagrani has directed officials to carry out a structural audit of the existing bridge over the railway line and enforce temporary restrictions on heavy vehicles to ensure public safety. The bridge, which starts at the Golibar Road junction near LBS Marg and extends up to the Eastern Express Highway (EEH), serves as a critic..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?