In Brief
The Supreme Court dismissed an appeal by a slum rehabilitation society and developer challenging a demand for premium of over Rs. 8.47 crores for a scheme on the Mumbai coast. A Letter of Intent (LOI) was issued in January 2005 with a three-month validity period. Pending regulatory clearance from Coastal Zone authorities, the Government issued new directives in April 2008 requiring 25% premium payment. The LOI expired and was not renewed. The Court held that once the LOI's three-month validity lapsed without being kept alive through representation, the developer became liable for premium under the updated Government Resolution, despite delays in external regulatory processes.
The lawyer headnote and full judgment text are available to registered users.