High Court Dismisses PIL in Land Reservation Lapse Case Under MRTP Act Due to Automatic Statutory Lapse and Revised Development Plan. Petitioners Lacked Locus Standi as Grievance Was Private Interest, and Municipal Council's Inaction After Purchase Notice Led to Deemed Lapse Under Section 127 of Maharashtra Regional and Town Planning Act, 1966, With New Plan Safeguarding Public Amenities.

High Court: Bombay High Court Bench: AURANGABAD
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Case Note & Summary

The dispute originated as a Public Interest Litigation filed in 2017 before the High Court of Judicature at Bombay, Bench at Aurangabad, challenging a communication dated 21 September 2015 from the Urban Development Department, Maharashtra, which stated that reservations on certain lands in Hingoli had lapsed under Section 127 of the Maharashtra Regional and Town Planning Act, 1966. The petitioners, two agriculturists, sought to quash this communication and direct the authorities to maintain reservations for public amenities such as stadium, school, health centre, and open space on the subject lands, or alternatively, decide their representation. The lands, originally owned by Usmanshahi Mills and later National Textile Corporation, were sold to Respondent No. 5, M/s. Nidhi Mercantile Limited, and were reserved under the Revised Development Plan of 1994. The core legal issues involved the maintainability of the PIL, the validity of the purchase notice under Section 127, whether steps towards acquisition were taken, the impact of the municipal council's conduct, and the effect of a subsequent revised development plan. The petitioners argued that the communication was illegal as the purchase notice was not served, and public interest demanded protection of the reservations. In contrast, Respondent No. 5 contended that a valid notice was issued and the municipal council failed to acquire the land within the statutory period, leading to automatic lapse, supported by Supreme Court precedents. The State and municipal council presented mixed positions, initially denying notice receipt but later acknowledging it and resolving not to acquire due to cost. The court analyzed that Section 127 provides for a deemed lapse upon inaction, not requiring a de-reservation order, and emphasized that once the notice was brought to the municipal council's knowledge and acted upon, the statutory clock commenced. It found that the municipal council did not initiate acquisition steps, and the subsequent second revised development plan, effective from 10 February 2019, provided for public amenities elsewhere, addressing the public interest concern. The court concluded that the PIL was not maintainable as it served private interests, the lapse occurred by operation of law, and the revised plan made the reliefs infructuous, thereby dismissing the petition.

Headnote

A) Administrative Law - Public Interest Litigation - Maintainability - Maharashtra Regional and Town Planning Act, 1966, Section 127 - Petitioners sought writ of certiorari to quash communication declaring lapse of land reservation and directions to maintain reservation for public amenities - Court held PIL not maintainable as petitioners lacked locus standi and grievance was private interest disguised as public interest, with subsequent revised development plan addressing public amenities (Paras 10, 13).

B) Land Law - Town Planning - Reservation Lapse - Maharashtra Regional and Town Planning Act, 1966, Section 127 - Dispute pertained to lapse of reservation for public amenities on lands after purchase notice and inaction by municipal council - Court held that lapse under Section 127 is automatic and deemed upon failure to acquire within statutory period after valid notice, not requiring de-reservation order, relying on Girnar Traders v. State of Maharashtra (Paras 11, 12).

C) Land Law - Town Planning - Purchase Notice Service - Maharashtra Regional and Town Planning Act, 1966, Section 127 - Petitioner contended notice was not served on municipal council, thus lapse period never commenced - Court held notice requirement satisfied as notice was forwarded by State Government and placed before municipal council's general body, with subsequent conduct acknowledging it, citing Perfect Machine Tools Company Limited v. State of Maharashtra (Paras 12, 14).

D) Land Law - Town Planning - Steps Towards Acquisition - Maharashtra Regional and Town Planning Act, 1966, Section 127 - Issue was whether municipal council initiated acquisition steps within statutory period after purchase notice - Court held no steps were taken as municipal council resolved inability to acquire due to cost and did not move acquisition proposal, leading to deemed lapse (Paras 7, 15).

E) Land Law - Town Planning - Revised Development Plan - Maharashtra Regional and Town Planning Act, 1966 - Municipal council and town planning authority indicated second revised development plan came into force, providing reservations elsewhere - Court held this rendered PIL infructuous as public amenities were safeguarded in new plan, making reliefs inequitable (Paras 9, 16).

Issue of Consideration: Whether the petitioner can maintain a PIL to compel continuance of reservation on subject lands notwithstanding statutory lapse under Section 127 of MRTP Act and subsequent planning measures; whether purchase notice requirement under Section 127 is satisfied; whether steps towards acquisition were commenced within statutory period; impact of municipal council's resolutions and conduct; whether subsequent second revised development plan renders reliefs infructuous or inequitable

Final Decision

The High Court dismissed the Public Interest Litigation, holding that the petition is not maintainable as petitioners lack locus standi and the grievance is private interest disguised as public interest. The court found that the purchase notice requirement under Section 127 was satisfied as it was brought to municipal council's knowledge and acted upon, no steps towards acquisition were taken within statutory period leading to deemed lapse, and the subsequent second revised development plan effective from 10.02.2019 provides for public amenities elsewhere, rendering reliefs infructuous.

2026 LawText (BOM) (03) 65

PUBLIC INTEREST LITIGATION NO.30 OF 2017 WITH CIVIL APPLICATION NO. 1034 OF 2018 IN PIL/30/2017

2026-03-09

Smt. Vibha Kankanwadi J. , Hiten S. Venegavkar J.

2026:BHC-AUG:9908-DB

Mr. D.S. Bagul, Advocate h/f Mr. P .D. Bachate, Advocate for Petitioners, Mr. S.B. Narwade, AGP for Respondents No.1 to 3, Mr. Vivek Bhavthankar, Advocate for Respondent No.4, Mr. Anil S. Bajaj, Advocate for Respondent No.5

Shri Panjab S/o. Prakashrao Patil, Shri Santosh S/o. Shriram Bhise

The State of Maharashtra, The Under Secretary, Urban Development Department, The Collector, Hingoli, The Chief Officer, Hingoli Municipal Council, M/s. Nidhi Mercantile Limited

Nature of Litigation: Public Interest Litigation challenging communication declaring lapse of land reservations under town planning law

Remedy Sought

Petitioners seek issuance of writ of certiorari to quash communication dated 21.09.2015 and directions to maintain reservation for public amenities or decide representation

Filing Reason

Alleged illegal de-reservation of land reserved for public amenities and creation of third-party interests by Respondent No. 5

Previous Decisions

Respondent No. 5 filed Writ Petition No. 2083 of 2014 challenging rejection of building permission and seeking declaration of lapse, which was withdrawn with liberty to pursue alternate remedies

Issues

Whether the petitioner can maintain a PIL to compel continuance of reservation only on the subject lands notwithstanding the statutory regime of lapse under Section 127 of the MRTP Act and subsequent planning measures Whether, on facts, the purchase notice requirement under Section 127 of the MRTP Act can be treated as satisfied in the present case Whether steps towards acquisition were commenced within the statutory period What is the impact of the municipal council's resolutions, statements and subsequent conduct Whether the subsequent second revised development plan safeguarding public amenities elsewhere renders the reliefs infructuous or inequitable

Submissions/Arguments

Petitioner argued impugned communication is illegal as purchase notice was not served on municipal council, and public interest demands protection of reservations Respondent No. 5 argued petition is meritless, purchase notice was issued and municipal council failed to acquire, leading to automatic lapse under Section 127 State AGP supported communication, stating State acted on representation and lapse follows statutory consequence Municipal council's position varied, initially denying notice receipt but later acknowledging and resolving not to acquire

Ratio Decidendi

Lapse under Section 127 of the Maharashtra Regional and Town Planning Act, 1966 is automatic and deemed upon failure to acquire within statutory period after valid purchase notice, not requiring a de-reservation order; once notice is brought to planning authority's knowledge and acted upon, service requirement is satisfied; PIL is not maintainable if it serves private interests and public amenities are addressed in revised development plan.

Judgment Excerpts

This Public Interest Litigation is instituted in the year 2017 seeking issuance of writ of certiorari and allied directions to quash and set aside the communication dated 21.09.2015 Section 127 of the MRTP Act does not speak of 'de-reservation by order'. It provides a deeming consequence The law is settled that a valid notice under Section 127 of the MRTP Act is a condition precedent for lapse

Procedural History

PIL filed in 2017; hearing held; judgment reserved on 18 February 2026 and pronounced on 09 March 2026; previously, Respondent No. 5 filed Writ Petition No. 2083 of 2014 which was withdrawn with liberty to pursue alternate remedies

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