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Urban Land Ceiling Act – One time premium for Development of exempted Surplus land

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The petitioner has sought order to direct the Respondent no.2 to refund Rs.2,66,75,750/- which was illegally taken for obtaining NOC for development / sale of their land at Malad Taluka Borivali.

After repeal of the Urban Ceiling Act and the litigation, the Government had issued Resolution dated 1.8.2009 to close all pending issues in respect of surplus and retained land (under ULC Act) by accepting one time premium.  By another Resolution dated 23.6.2021, the implementation process was streamlined and the basis for computation of premium was provided.

By the Application dated 15.3.2021, the petitioner had applied for NOC for development / sale of the entire exempted surplus vacant land and for premium.

By the letter dated 22.4.2021, the respondent no.2 informed the petitioner that one time premium is to be paid for the entire land of 4163 sq meters at 15% of the market value and not exempted surplus vacant land of 2227.45 sq.mts.

On 2.6.2021, the petitioner paid the one time premium for the entire land.

On 23.3.2023, the High Court in the case of Salim Alimahomed Porbanderwalla (W.P.No4849 of 2022) decided that the premium could be charged only for the surplus vacant land exempted under Section 20 of the ULC Act.

By the letter dated 26.5.2023, the petitioner requested for refund of excess amount of Rs.2,66,75,750/-.   This was refused on the ground that the said judgment is applicable to the facts of the said case and after the said judgment, there was no change in earlier Resolutions.

HELD, considering the earlier judgments, that the Government can only charge one time premium on the exempted surplus vacant land and not the entire land belonging to the petitioners. Once this is the interpretation of the Government Resolutions of 2019 and 2021, the Government has no authority in law to exact premium on the entire land.  If it has no authority, it cannot wrongly hold on to the money that was deposited by the petitioners for one time premium under protest or otherwise.

Judgment dated 7.8.2024 of the Bombay High Court in W.P.No.1125 of 2024 of Riyaz Ismail Machhiwala and another  Vs.  The State of Maharashtra and another

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