In Brief
The Belgaum Urban Development Authority (BUDA) sought to recover additional charges from residential plot allottees, claiming enhanced land compensation. BUDA had allotted plots under a lease-cum-sale agreement dated 10 May 1991, later demanding extra payment. The Supreme Court held that without an express clause in the allotment letter or agreement explicitly authorizing such charges, the demand was unjustified. The Court emphasized that clauses permitting enhanced compensation demands must be explicit and cannot extend beyond seven years from allotment. The negotiated price in the allotment letter forms the binding consideration. The appeals were dismissed.
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