Supreme Court Allows LDA Appeal in Land Restoration Case — Development Charges Upheld for Entire Acquired Area. The Court held that development charges under Section 17 of the Uttar Pradesh Urban Planning and Development Act, 1973 are payable if development has been carried out on the acquired land as a whole, not merely on the specific plot, but the quantification must be after giving an opportunity of hearing.

Civil appeal against High Court judgment quashing demand for development charges on restoration of land under Section 17 of the Uttar Pradesh Urban Planning and Development Act, 1973.

Appellant LDA sought setting aside of the High Court judgment and restoration of the demand for development charges.

The High Court set aside LDA's order demanding development charges of Rs.1,57,22,056/- from the respondents upon restoration of their land, holding that no development was carried out on their specific plot.

The High Court (Lucknow Bench of Allahabad High Court) on January 15, 2014 quashed the order dated July 29, 2011 passed by LDA and imposed costs of Rs.1,00,000/-.

Whether development charges under Section 17 of the Uttar Pradesh Urban Planning and Development Act, 1973 can be levied on restoration of land if development has been carried out on the acquired land as a whole, not merely on the specific plot? Whether the demand for development charges was valid without giving an opportunity of hearing to the respondents?

Appellant LDA argued that the land in question is part of a planned scheme where 97.1% of the acquired land has been developed with roads, electricity, water, and sewer lines. Development under the Act means development of the entire area, not piecemeal. Respondents argued that no development work was done on their specific land or its vicinity, and they have not benefited from any development. They also claimed discrimination as some other land from the same acquisition was released under Section 24 of the 2013 Act.

Development charges under Section 17 of the Uttar Pradesh Urban Planning and Development Act, 1973 are payable on restoration of land if development has been carried out on the acquired land as a whole, not merely on the specific plot. However, the quantification of such charges must be done after giving an opportunity of hearing to the affected party, in compliance with principles of natural justice.

The development is to be examined in respect of the land acquired. It is categorical stand of the appellants that they have constructed road, provided electricity, water and laid sewer lines and, therefore, the respondents cannot avoid payment of development charges while seeking restoration of land in terms of Section 17 of the Act. We find that the order quantifying the development charges of Rs.1,57,22,056/- was raised without giving any opportunity of hearing to the respondents. Consequently, the demand letter/order dated July 29, 2011 is set aside with liberty to the appellants to communicate the amount incurred on acquisition and development charges in accordance with law.

The LDA acquired land in 1981. In 2011, the State Government restored the land to the respondents under Section 17 of the Uttar Pradesh Urban Planning and Development Act, 1973, subject to payment of development charges. The respondents challenged the demand before the Allahabad High Court (Lucknow Bench), which quashed the demand on January 15, 2014. LDA appealed to the Supreme Court, which granted leave and heard the appeal.

• Uttar Pradesh Urban Planning and Development Act, 1973: Section 17, Section 8, Section 9
• Land Acquisition Act, 1894: Section 4, Section 6, Section 17
• Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013: Section 24