Thursday, January 18, 2018
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A very important judgement of Allahabad High Court  must have come  as a big jolt to all the Development Authorities in Uttar Pradesh. Since ADA is one of them and citizens of Allahabad have mostly to deal with it,  I consider it most urgent and important top alert all property  developers to stop paying any development charge till there is necessary provision for the same in the relevant law.

The Bench of Mr Justice Arun Tandon and Mr Justice Anjani Kumar Mishra has  declared illegal  the City Development Charge, the Impact Charge, the Sub-Divisional Charge. the Compounding Fees, the Supervision Fees, the Park fees, the Inspection fees, the Permit Fees, the Labour cess. If you are in the building business and are property developer,   you will not have to pay bank guarantee for (a) any construction  on land above 3000 square metres and (b) for Rain Water Harvesting for constructing a building in a plot of over 300 square metres. The Court  has said that at the time of passing the map the ADA (and other Development authorities) could include  Rain Water Harvesting as a compulsory condition.
 The Court has said that these charges cannot be realized by ADA and other Development authorities of the State because   Section  15(2) of  the UP Urban Planning Act, 1973,  does refer to the right of the ADA and others to the  realization of Development fees but only after rules to this effect have been framed.  Since no rule, no law has been framed, these charges cannot be realized.
The court does not say anything about the charges already realized illegally. Apparently the new rules , whenever made, would be effective with retrospective effect or else fresh litigation on a large scale might be forthcoming in case all the people, who have been making these payments,  were to demand the reimbursement of the money already paid.
We have been maintaining for long that the development authorities should release the rules on the basis of which they keep on imposing levies. Any person approaching the ADA should first be told to study the rules before taking a  plunge into the building business. I am told vested  interests ensure that the people do not get these sets of rules because that will enable them to catch the builders and their conniving officials.
The tragedy with our bureaucracy is that it fails to read the writing on the wall. It doesn’t realize that someone can go to the court to expose their acts of omission and commission. They presume that the people will rather choose the easier line of getting the work done through the payment of Suvidha Shulk. 




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