2012 (9) TMI 1232 - HC - Indian Laws

Summary

Issues Involved:
1. Whether OSR land was in fact handed over to the local body or not.
2. Whether the first respondent is entitled to demand OSR charges in addition to the OSR land already handed over to the local body or not.

Summary:

Issue 1: Whether OSR land was in fact handed over to the local body or not.

The petitioner challenged a communication rejecting the waiver of Open Space Reservation Charges (OSR Charges) for planning permission. The petitioner, his wife, and son had purchased property and applied for planning permission for a multi-storeyed building. The first respondent demanded various charges, including OSR charges of Rs.58,50,000/-, which the petitioner contested, claiming that 10% of the layout had already been handed over to the Corporation of Chennai. The Corporation confirmed that the land had been handed over by the original owner and developed into a park, maintained by the Corporation. Despite the lack of a formal deed of conveyance, the land had been in public use for 36 years. Thus, it was held that OSR land had already been handed over to the local body.

Issue 2: Whether the first respondent is entitled to demand OSR charges in addition to the OSR land already handed over to the local body or not.

The first respondent contended that OSR charges are payable if the layout is unapproved. The petitioner conceded that the land falls in an unapproved layout. The liability to reserve open space arose from Rule 19 of the Development Control Rules. The rules consistently required 10% of the area to be reserved for layouts above 10,000 sq. meters, with no charges accepted in lieu. The first respondent confirmed that the land belonged to a layout originally above 10,000 sq. meters, obligating the promoter to reserve 10% of the area. The Supreme Court had doubted the legitimacy of demanding conveyance of OSR land by a registered deed. Therefore, the demand for OSR charges was deemed unsustainable for three reasons: the land had been handed over 36 years ago, no charges could be accepted in lieu of OSR land for layouts above 10,000 sq. meters, and the Supreme Court's stance on the conveyance demand. Consequently, the writ petition was allowed, and the impugned order was set aside, with no order as to costs.