CMDA demand for excess fee from developer quashed

Published: 23rd December 2012 09:14 AM  |   Last Updated: 23rd December 2012 09:14 AM   |  A+A-


The Madras High Court has set aside an order of the Chennai Metropolitan Development Authority (CMDA) demanding excess payment from a property developer even after the application process for planning permission was over and assessment made.

“Law is well settled that accrued rights cannot be taken away by subsequent amendment/orders of the authorities. The rates as on the date of application or even on the date of original demand is relevant for consideration. On the contrary, it cannot be contended that accrued rights can be taken away by subsequent orders and revised rates can be collected from the petitioner. It is preposterous for CMDA to apply the new law to the case of the petitioner,” said Justice Danapalan.

Bangalore-based Prestige Estates Projects entered into a joint development agreement in 2010 with Extra IT Parks (P) Ltd for construction of 33 multi-storied buildings of residential apartments on the property situated on Poonamallee High Road near Ayyappanthangal.

The company made an application for obtaining planning permission to CMDA. Upon receipt of the same, CMDA issued the notice on March 27 demanding payment of various charges for issuance of planning permission. By the Original Demand Notice, CMDA called upon the developer to pay `8.34 crore towards infrastructure and amenities  (I&A) charges and another `44.75 crore towards premium FSI charges for 78,690.55

Premium FSI Charges were demanded by the CMDA under Rule 36 of the Second Master Plan and also as per GO issued in 2009.

After paying the stipulated amount, the company requested issuance of the planning permission. However, CMDA, instead of granting the same, issued another notice on August 22,2012 demanding payment of Rs 4.17crore towards I&A charges and Rs 90.76 crore towards balance premium FSI charges. Hence, the present petition.


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