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Supreme Court of India 2019-07-29 partly_allowed

CHENNAI METROPOLITAN DEVELOPMENT AUTHORITY REP. BY ITS MEMBER SECRETARY vs PRESTIGE ESTATES PROJECT LTD

Bench: 2 — Dhananjaya Y Chandrachud, Indira Banerjee

In Brief

The Chennai Metropolitan Development Authority sought to levy revised Infrastructure and Amenities (I&A) and Premium Floor Space Index (FSI) charges against a developer who had applied for planning permission and deposited charges under pre-revised rates. The High Court set aside both demands. The Supreme Court partly allowed the appeal. It held that the developer had no vested right to exemption from revised Premium FSI charges applicable after the revision date, even though it had paid earlier charges; Premium FSI charges are due on the date planning permission is actually granted. However, revised I&A charges could not be enforced because the government order mandating amendment to the underlying rules had not been formally completed, and the authority's own office order tied the revision to the date development charges advice was issued—which predated the revision here.

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