Bombay HC dismisses Sandeep Developers' plea, upholds NMRDA infrastructure charge

Nagpur, October 31: The Nagpur bench of the Bombay High Court has dismissed a petition by Sandeep Developers Pvt. Ltd. and members of the Agrawal family. The petition challenged the infrastructure charge imposed by the Nagpur Metropolitan Region Development Authority (NMRDA) for the development of land in Mouza Lava in Nagpur district.

A division bench of Justice Anil S. Kilor and Justice Rajnish R. Vyas said clearly that developers who accept the conditions set for layout approval, enter into an agreement and pay the prescribed charge cannot later challenge those conditions.

The petitioners said part of their land had earlier been reserved for affordable housing, but the reservation was later removed. They therefore argued that the NMRDA could not recover the cost of infrastructure from this property.

The NMRDA opposed the petition. It said the land falls in the R-4 residential zone and that an infrastructure charge is payable on it under the applicable development rules.

During the hearing, the court noted that the petitioners had accepted the conditions laid down by the NMRDA for layout approval. They had also signed an agreement to pay the cost of infrastructure. Moreover, they had deposited the amount and obtained approval for their project.

The bench said a party cannot take the benefit of an agreement and later challenge its terms. The court also said the petitioners had failed to prove that the agreement was entered into through fraud or coercion.

The High Court said the purpose of the infrastructure charge is to help develop essential civic amenities in developing areas. These include roads, water supply, electricity and drainage.

The court held that the charges are valid under the Maharashtra Regional and Town Planning (MRTP) Act and the applicable development rules. Finding no merit in the petition, it dismissed it.

Advocate Kartik Shukla appeared for the petitioners, assisted by Raghav Bhandarkar. Assistant Government Pleader (AGP) T.H. Khan appeared for the state government, and Advocate Girish Kunte appeared for the NMRDA.