Litigation Update: Surrender Of Reserved Land In Exchange For Development Rights Constitutes Valid Acquisition Under The MRTP Act

The Bombay High Court, in Milan CHSL v. Pune Municipal Corporation & Ors. held that surrender of land reserved under a sanctioned development plan in exchange for development benefits such as waiver of compulsory open space requirements and grant of higher FSI constitutes a valid acquisition by agreement under Section 126(1)(a) and (b) of the Maharashtra Regional and Town Planning Act, 1966 ("MRTP"). Such development rights and FSI have measurable monetary value and amount to valid consideration, even if no monetary compensation is paid. Once possession is handed over pursuant to a concluded agreement and the landowner has availed the benefits of the sanctioned layout, title validly vests in the planning authority, and the landowner is estopped from challenging the acquisition or seeking declaratory and injunctive relief after an inordinate delay. Click here to read the Order of the Hon'ble High Court of Bombay.