Case Note & Summary
The appellant, Chennai Metropolitan Development Authority (CMDA), challenged the judgment of the Division Bench of the Madras High Court which directed CMDA to calculate Premium FSI charges at the rate prevalent on the date of filing of the application by the first respondent, D. Rajan Dev, a developer. The first respondent had submitted an application on 04.05.2011 for additional FSI under the Premium FSI Scheme introduced by the Government of Tamil Nadu on 09.09.2009. The application was returned on 10.02.2012 for rectification of defects and resubmitted on 24.02.2012. Meanwhile, the guideline value of the land was revised w.e.f. 01.04.2012 from Rs.1,650/- per sq.ft. to Rs.5,000/- per sq.ft. The Government granted approval for Premium FSI on 29.05.2012, and CMDA demanded charges based on the revised guideline value. The first respondent objected, seeking application of the pre-revised rate. The Single Judge dismissed the writ petition, holding that the builder's right accrues only on approval. The Division Bench reversed, relying on Union of India v. Mahajan Industries Ltd. and Union of India v. Dev Raj Gupta, holding that the rate should be as on the date of application. The Supreme Court allowed the appeal, setting aside the Division Bench's judgment. The Court held that the crucial date for determining Premium FSI charges is the date of grant of planning permission, not the date of application. The Court distinguished the precedents relied upon by the High Court as they pertained to conversion of land, not building permission. The Court noted that the application was defective and returned, and there was no undue delay by CMDA. The builder had no vested right until sanction was granted. The appeal was allowed, and the judgment of the Single Judge was restored.
Headnote
A) Town Planning - Premium FSI Charges - Date for Determining Rate - The crucial date for determining the applicable rate for Premium FSI charges is the date on which the authority grants planning permission, not the date of application. The builder does not acquire any right merely by submitting an application; right accrues only after approval of the plan. (Paras 11-13) B) Town Planning - Delay in Processing Application - Effect on Rate - Mere delay in processing the application by the authority does not entitle the applicant to the rate prevailing on the date of application, especially when the application was defective and returned for rectification. (Paras 12-14) C) Town Planning - Applicability of Precedents - Conversion Cases Distinguished - The judgments in Union of India v. Dev Raj Gupta and Union of India v. Mahajan Industries Ltd., which deal with conversion of land, are not applicable to building permission cases. The principle for building permission is that the rate is determined as on the date of sanction. (Paras 9, 13)
Issue of Consideration
Whether the Premium FSI charges are payable as per the guideline value prevailing on the date of filing of the application or on the date of approval of the plan?
Final Decision
The Supreme Court allowed the appeal, set aside the impugned judgment of the Division Bench of the Madras High Court, and restored the order of the Single Judge dismissing the writ petition. The Court held that the Premium FSI charges are payable as per the guideline value prevailing on the date of approval of the plan, not on the date of application.
Law Points
- Premium FSI charges
- guideline value
- date of approval
- planning permission
- right accrues on sanction
- no vested right on application
