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Macrotech, a developer in Mumbai, has successfully obtained a Bombay High Court ruling that entitles them to a 50% premium rebate for the redevelopment of the Bradbury Mills plot in Byculla. The developer had sought a declaration stating their right to a 50% premium concession under a rebate scheme.
The court determined that if a party, whether it's the owner or developer, could not make their premium payment due to circumstances beyond their control, particularly when it's the fault of the planning authority (in this case, the BMC), they cannot be held responsible for the delay or be disqualified from benefiting from the rebate scheme.
The court highlighted that the applications for the scheme had to be submitted by December 31, 2021. It emphasized that the purpose of the rebate scheme, issued under a Government Resolution on January 14, 2021, was to address the economic and industrial stagnation that had occurred in the wake of the COVID-19 pandemic.
Representing the builder, senior counsel Nikhil Sakhardande and advocate Jeet Gandhi explained that there was a state scheme introduced in January 2021 that granted construction concessions, including a 50% reduction in the premium for development during the COVID period.
Macrotech sought a rebate concerning the 'E' ward property at Maulana Azad Road owned by Money Magnum Nest Pvt Ltd. The development agreement for this property was dated July 5, 2022. But BMC had rejected the builders' claim for a rebate using a state document dated February 8, 2023.
On behalf of the plot owner, senior counsel Atul Damle and advocate Amogh Singh stated that the owner had submitted an online request in 2021, seeking BMC's permission for a layout on the property. However, the BMC erroneously classified the application under a different regulation and incorrectly claimed that it was held in abeyance by the state. Consequently, the application was not processed.
As a result of this decision, Macrotech is now eligible for the 50% premium rebate, and the BMC is expected to process their application in accordance with the court's ruling.
This ruling sets an important precedent, underscoring the principle that entities should not be penalized when their inability to meet a deadline arises from circumstances beyond their control, especially if the planning authority is responsible for the delay. It also reaffirms the value of the rebate scheme in stimulating economic growth and development post-COVID-19.
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