Bombay HC Provides Relief to Construction Company Against Hefty BMC Charges

Bombay HC Provides Relief to Construction Company Against Hefty BMC Charges

The Bombay High Court has provided relief to Macrotech Developers Ltd after the construction company moved to the High Court against the BMC (Brihanmumbai Municipal Corporation). The original petition was filed on July 1 after Macrotech was asked to pay Rs 26.30 crore as development charges to acquire the Occupation Certificate necessary for people to start residing at the location. The building in question is World Towers at Worli.

The High Court bench division bench consisting of Justice KK Tated and Justice Milind Jadhav went through arguments from both parties and concluded that the BMC should provide an Occupation Certificate for the 26 habitable floors on the building. However, the court also noted that this is to be done only after Macrotech has paid Rs 13.15 crore, half of what the BMC originally asked the developer to pay.

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Counsel for the plaintiff, Adv. Sharan Jagtiani said that 78% of the establishments in the building belong to the residential category. Thus, the developer is only liable to pay development charges at 4% for residential buildings as the law indicates. 8% development charges are only applicable to commercial establishments.

Jagtiani also specified that the development charges were in direct contradiction to Sections 124A and 124B of the Maharashtra Regional and Town Planning (MRTP) Act, 1966.

Meanwhile, the counsel representing the BMC, Adv. Anil Sakhare opposed the plaintiff’s request for interim relief on development charges, adding that the developer may finish construction and disappear without paying the dues. 

This didn’t have any impact on the Court, with the bench noting “On a careful perusal and consideration of the provisions of section 124A read with section 124B of MRTP Act, the petitioner has, prima facie, made out a case for seeking interim relief.” 

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