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The Bombay High Court recently issued a directive to the Brihanmumbai Municipal Corporation (BMC), instructing them to provide compensation to the developer, Runwal Township, for the acquisition of setback land that took place 54 years ago. The compensation could be in the form of floor space index (FSI), transfer of development rights (TDR), or monetary compensation, and this needs to be completed within an eight-week period.
The setback land in question, which is located on LLJ Road, Nepean sea Road, was acquired by the BMC back in 1969. The setback area is essentially a minimum open space surrounding a building to ensure that it is at a safe distance from roads, water bodies, or other structures.
In 1976, the original landowners, Meghji Gopalji and his wife, sought compensation from the BMC in the form of FSI for the setback area. They diligently followed up on this request over the years. Eventually, in 2011, the couple sold the plot to Runwal Township, who also continued to pursue the matter. However, in 2018, the BMC informed the developer that they could not honor the request for monetary compensation or FSI as the acquisition was done way back in 1969.
Runwal Township then took their case to the Bombay High Court in 2019-20. The BMC's argument in court was that the claim was rejected due to significant delays and the lack of documentary evidence proving that compensation had not been paid. The BMC also contended that in 2011, the land was already part of a public street, meaning that the petitioners had no right, title, or interest in the setback land and, therefore, no right to claim compensation. The BMC had even extended an offer to the property's original owners to accept compensation determined by the civic body, but this offer received no response.
The court, however, emphasized that since 1976, when the original owners made their claim, and subsequently, when Runwal Township took over, there had been a persistent demand for compensation. The court noted that even though the setback land had become part of a public street, the right to compensation, which had accrued to the former owners, remained intact due to the extensive correspondence between them and the BMC, as well as between the developer and the BMC.
In its ruling, the court highlighted the importance of the right to property under Article 300-A of the Indian Constitution, considering it a constitutional and human right. The court stressed that no individual should be deprived of their property except as per the provisions of the law. Whenever land is acquired by the state or its authorities, reasonable compensation must be provided to the landowner. The court concluded that the BMC's rejection of the claim was unwarranted, and the petitioners are indeed entitled to compensation in accordance with the applicable laws under the Development Control Rules.
This significant judgment could potentially open the floodgates for compensation claims from various stakeholders, including plot owners, developers, housing and commercial societies, schools, charitable trusts, and others who have experienced similar setbacks in land acquisition. This case sets a valuable precedent for future disputes related to land acquisition for public purposes in India.
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