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Bombay High Court Rules Reservation on Land Lapsed Under Section 127 of MRTP Act, Directs Government to Publish Gazette Notification and Grants Landowners Right to Develop Property

Bombay High Court Rules Reservation on Land Lapsed Under Section 127 of MRTP Act, Directs Government to Publish Gazette Notification and Grants Landowners Right to Develop Property

Bombay High Court Rules Reservation on Land Lapsed Under Section 127 of MRTP Act, Directs Government to Publish Gazette Notification and Grants Landowners Right to Develop Property

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1. Court’s Decision:


2. Facts of the Case:


3. Issues Before the Court:

  1. Did the reservation lapse under Section 127 of the MRTP Act due to the failure of authorities to take acquisition steps within the statutory time limit?
  2. Does offering Transferable Development Rights (TDR) or Floor Space Index (FSI) constitute an effective acquisition step under the law?
  3. Can the petitioners develop the land without further legal obstacles?

4. Petitioner’s Arguments:


5. Respondent’s Arguments (Municipal Corporation & State):


6. Analysis of the Law:


7. Precedent Analysis:


8. Court’s Reasoning:


9. Conclusion:


10. Implications of the Judgment:

Strengthens landowners’ rights: Ensures that authorities cannot indefinitely reserve land without compensation.
Encourages timely action: Planning authorities must act within statutory timeframes to avoid losing control over reserved land.
Clarifies the limits of TDR/FSI: This ruling reinforces that offering TDR or FSI does not count as a step toward land acquisition.
Reduces administrative delays: Once reservation lapses, landowners should not face unnecessary delays in obtaining permissions.
Influences future town planning decisions: Encourages better planning and accountability in land reservation policies.

Also Read – Karnataka High Court Upholds ITAT’s Decision, Dismissing Revenue’s Appeal and Ruling That No Penalty Under Section 271C of the Income Tax Act Is Warranted for Bona Fide Non-Deduction of TDS Based on Professional Advice and Absence of Mala Fide Intent

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