Important judgment on the issue of “relevant date” for market value for charges for change of user from industrial to residential.
Judgment dated 22.12.2023 in W.P. (L) No.38563 of 2022 of Ratilal Madan Waja Vs. The Collector, Mumbai Suburban District
On 28.12.2007, the Respondent no.2 State Government had executed lease agreement for the plot admeasuring 232.44 sq.mts of G tenure at Vile Parle for 30 years from 1.8.2005 in favour of the petitioner.
On 19.3.2012, the petitioner with other lessees of adjacent plots made representation to the respondent no.1 Collector for user change of plot to residential from industrial.
In the meanwhile, the State Government declared policy for renewal of leases and annual lease rent on conversion of leasehold rights into occupancy Class I ownership and levy of conversion premium charges. By the Notification dated 8.3.2019 the Rules of 2019 were published for conversion of lands under lease hold rights.
On 27.5.2019, the respondent no.2 converted the use of “service industrial” use of the plot to the “residential”.
On 2.11.2019 and 23.11.2019, the petitioner applied to the Collector for conversion of his lease hold interest / right in free hold.
By the letter dated 21.6.2022, the Collector determined the premium of Rs.67,85,505/- for change of user to residential @ 25% of market value of 2019 and thereafter, to consider the application for free hold rights.
According to the petitioner, the market value should be at 3% on the date of making application on 19.3.2012.
However, the request of the petitioner was rejected by the impugned letter dated 10.10.2022.
HELD that the market value on the date of the application ( 2012 ) is liable to be determined and paid for conversion of user of land from industrial to residential. The writ petition is allowed.
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