Supreme Court Rejects Plea Against Mumbai’s Transferable Development Rights Policy

The Supreme Court of India, in its ruling on Janhit Manch Through its President Bhagvanji Raiyani & Anr. vs. The State of Maharashtra & Ors., dismissed a challenge against Mumbai’s Transferable Development Rights (TDR) policy. The Court upheld the legality of the Maharashtra Regional and Town Planning Act, 1966, and its associated regulations, reaffirming the government’s power to grant development rights in response to urban expansion and slum rehabilitation.

Background of the Case

The case arose from concerns over rapid urbanization and its impact on Mumbai’s civic infrastructure. Mumbai has seen extensive population growth, leading to significant encroachment on public lands. In response, the Maharashtra government introduced the TDR policy as a tool to compensate landowners for providing land for public utilities.

The appellants, Janhit Manch, an NGO, and its president Bhagvanji Raiyani, filed a petition arguing that the TDR policy disproportionately favored builders, led to increased congestion, and lacked adequate oversight. They sought judicial intervention to review and restrict the use of TDR in specific areas of Mumbai.

Petitioners’ Arguments

The petitioners raised multiple concerns regarding the impact of TDR on Mumbai’s infrastructure and urban planning:

• The expansion of FSI (Floor Space Index) from 1 to 2 under the TDR policy had led to overcrowding, environmental degradation, and inadequate civic amenities.
• The discretionary powers granted to the Municipal Commissioner under the Development Control Regulations (DCR) lacked transparency and led to arbitrary decision-making.
• The use of TDR had resulted in the monetization of development rights by builders, rather than serving the intended purpose of infrastructure enhancement.
• The unregulated increase in construction density had aggravated congestion on roads, railways, and other public spaces.
• There was a need to establish a regulatory framework involving experts from various fields to oversee and limit the application of TDR.

Respondents’ Arguments

The Maharashtra government and municipal authorities defended the TDR policy, highlighting its role in urban development:

• TDR had facilitated slum rehabilitation and provided an effective mechanism for acquiring land for public utilities without significant financial burden on the state.
• The policy was enacted under the Maharashtra Regional and Town Planning Act, 1966, and had undergone due legislative process.
• Granting additional FSI was a necessary measure to accommodate Mumbai’s growing population.
• The petitioners had delayed their challenge, as TDR had been in use since 1991, with the current framework implemented in 1997.
• Petitioner No. 2, Bhagvanji Raiyani, had a conflict of interest, as he was a builder who had benefited from the TDR policy and had previously filed a separate case challenging TDR allocations.

Supreme Court’s Ruling

The Supreme Court upheld the Bombay High Court’s earlier ruling, which had extensively examined the legality and impact of the TDR policy. The bench, comprising Chief Justice Ranjan Gogoi, Justice Sanjay Kishan Kaul, and Justice K.M. Joseph, rejected the petitioners’ claims, emphasizing the need for judicial restraint in policy matters.

Key observations from the Court’s ruling included:

“Local problems must be attended to locally. The High Court is a Constitutional Court. The State Court is best equipped to look into local matters, especially where the area development and zoning regulations of the state or the city are in question.”

“Perspective of individuals may vary, but if the elected bodies which have policy formulation powers are to be superseded by the ideals of each individual, the situation would be chaotic.”

The Court further noted that the petitioners failed to establish any constitutional violations. The judgment reaffirmed that urban planning falls within the domain of the elected government and cannot be dictated by individual preferences.

Final Judgment

In its conclusive remarks, the Court stated:

“We are unequivocally of the view that the High Court has already examined, in detail, the issues that were raised in the present lis, and has issued whatever directions were feasible, keeping in mind the enormity of the problem. Nothing more is required. We, thus, dismiss the appeal leaving it open to the parties to bear their own costs.”

Implications of the Judgment

This ruling reinforces the judiciary’s stance on deferring to legislative and executive authorities in policy matters. The decision has several implications:

• Urban Development Policies Remain Intact: The ruling supports the government’s authority to continue using TDR as a tool for managing urban growth.
• Judicial Restraint in Policy Matters: The judgment underscores that courts should not intervene in policy decisions unless there is a clear constitutional violation.
• Regulatory Improvements May Follow: While the petition was dismissed, the ruling acknowledges concerns about infrastructure strain, which may prompt future policy refinements.

Conclusion

The Supreme Court’s decision in Janhit Manch vs. State of Maharashtra solidifies the legal foundation of Mumbai’s TDR policy. By upholding the government’s approach to urban planning, the ruling balances the needs of development with regulatory oversight. While the petitioners’ concerns were noted, the Court reaffirmed that policy formulation must remain within the purview of the elected government, barring constitutional violations.

Petitioner Name: Janhit Manch Through its President Bhagvanji Raiyani & Anr..
Respondent Name: The State of Maharashtra & Ors..
Judgment By: Justice Ranjan Gogoi, Justice Sanjay Kishan Kaul, Justice K. M. Joseph.
Place Of Incident: Mumbai, Maharashtra.
Judgment Date: 14-12-2018.

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