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Bombay HC questioned the State’s power to cancel the proposal after the issuance of Letter of intent

1 Comment Sub Category:Court Orders,Municipality Posted On: Jul 07, 2011

Bombay high court set aside an order passed by the Brihanmumbai Municipal Corporation (BMC) cancelling a sanctioned proposal for the construction of a multi-storeyed public parking lot at Kalachowkie in central Mumbai.

A division bench of Justice D K Deshmukh and Justice R G Ketkar was hearing a petition filed by Byramjee Jeejeebhoy Pvt Ltd and its director M B Vakharia challenging the BMC’s order dated May 13, 2011. The Bombay high court on Wednesday set aside an order passed by the Brihanmumbai Municipal Corporation (BMC) cancelling a sanctioned proposal for the construction of a multi-storeyed public parking lot at Kalachowkie in central Mumbai.

In its letter, the BMC said it had been directed by the state government to cancel all sanctioned proposals under the Development Control (DC) Regulation 33 (24) where commencement certificates were yet to be given.

On May 13, the BMC told them that their proposal has been cancelled in keeping with the state government’s directive issued on March 13, 2011. Government pleader D A Nalavade told the court the action was taken because the government was contemplating changes in the DC rules.

According to the petitioners, they had complied with all the requisitions made by the state government, the BMC and the experts committee, following which they were issued a letter of intent (LoI) for the development of the public parking lot on December 16, 2010.

Pointing out that a policy cannot have retrospective effect; the judges questioned the state’s power to cancel the proposal after the issuance of LoI. “Merely because the state government wants to incorporate changes in the DC regulations, it cannot direct the planning authority to cancel LoI which has already been issued,” they stated in their order. The court has directed the executive engineer of the building proposals department to consider afresh a proposal submitted by the petitioner according to approved plan.

Times of India

One Response to “Bombay HC questioned the State’s power to cancel the proposal after the issuance of Letter of intent”

  1. Vincent Brodin says:

    To know wisdom and instruction, to perceive the words of understanding

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