In Brief
Delhi Development Authority leased a commercial plot in Delhi to Jindal Strips Limited. Following a court-approved demerger, the property transferred to Jindal Stainless Limited, a related company with the same directors and shareholders. The DDA demanded 50% unearned increase (UEI) on the property's market value as per the lease clause. The High Court's Division Bench quashed the demand, holding the demerger was a business reorganisation not triggering UEI. The Supreme Court reversed this, holding that demerger constitutes a transfer under the lease deed clause 6(a), making respondents liable to pay UEI regardless of common ownership or lack of consideration, as they were not covered by policy exceptions.
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