+
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).

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code