Are Developers Exempt From Payment Of Development Charges For Redevelopment Of Government Owned Land?

In this article, we focus on the recent judgment of the Bombay High Court¹ in several writ petitions, on whether development charges are payable under the Maharashtra Regional Town Planning Act, 1966 ("MRTP Act") for the redevelopment of land or buildings owned by the Central or State Government or local authorities and the interpretation of Section 124F of the MRTP Act.

Background:

The subject matter of the writ petitions were various land parcels owned by the Municipal Corporation of Greater Mumbai ("MCGM") or the Mumbai Housing and Area Development Authority ("MHADA"). In some cases, these land parcels were leased to certain tenants or societies who had constructed structures thereon. In other cases, buildings constructed by the MCGM/MHADA on such land parcels were now dilapidated.