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Bombay High Court

J. K. REALITIESversusTHE CHIEF EXECUTIVE OFFICER, SATARA MUNICIPAL COUNCIL AND ORS

Disposal
Disposed Off

Holding

The reservation under the Final Development Plan has lapsed due to non‑acquisition within the statutory period, and the land is released from reservation.

Summary

The petitioner, J.K. Realities, owned CTS No.226 (645 sq. m.) which was reserved in the 2001 Final Development Plan for a vegetable market and shopping centre. After ten years of no acquisition steps, the petitioner served a notice under Section 127 of the Maharashtra Regional and Town Planning Act, 1966, on 15 July 2015 demanding acquisition. The Satara Municipal Council replied offering TDR/FSI but failed to proceed with acquisition, and no further action was taken within the two‑year period prescribed by Section 127(1). The petitioner sought a declaration that the reservation had lapsed, allowing development of the land. The court held that the statutory period had indeed expired, the reservation lapsed, and directed the State Government to publish a notification of de‑reservation. Consequently, the petition was allowed and the land released from reservation.

Issues considered

  • What is the effect of the failure to acquire land within the period prescribed under Section 127 of the MRTP Act on a reservation made in a Final Development Plan?

Legislation cited

Subjects

  • reservation
  • land acquisition
  • Section 127
  • MRTP Act
  • de‑reservation
  • Final Development Plan
  • municipal council
  • TDR
  • FSI
  • writ petition

Judgment

                                                        22-WP-13192-2024.doc


              IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                       CIRCUIT BENCH AT KOLHAPUR
                      CIVIL APPELLATE JURISDICTION

                     WRIT PETITION NO. 13192 OF 2024

J. K. Realities                     ...Petitioner.
         Versus
The Chief Oicer,
Satara Municipal Council and Others ...Respondents.
                             ——————
Mr. Vaibhav Gaikwad with Mr. Kapil Indapurkar, for the Petitioner.
Mr. Sarang S. Aradhye with Ms. Dnyaneshwari Utpat & Mr. Shantanu Gurav, for
the Respondent No.1.
Ms. Tejas J. Kapre, AGP for the Respondent No.2 & 3-State.
                                ——————
                                  Coram :     Sharmila U. Deshmukh &
                                              Neeraj P. Dhote, JJ.
                                  Date      : September 08, 2026.
P. C. :

1.        By the present petition, the Petitioner seeks a declaration that

the reservation by the Respondent No.1 in respect of the property

being CTS No.226 admeasuring 645 Sq. Mtrs. out of total of 1424.8 Sq.

Mtrs. reserved under Reservation No.55 for the purpose of ‘Vegetable

Market and Shopping Center’ under the Final Development Plan dated

15th September 2001 has lapsed and to permit the Petitioner to develop

the property in question in accordance with law.

2.        The facts are mostly undisputed. The Petitioner’s land bearing

CTS No.226 admeasuring 645 Sq. Mtrs. out of the total land of CTS

No.226 was reserved in the Final Development Plan of the year 2001 for



Gaikwad RD                         1 of 4
                                                      22-WP-13192-2024.doc


vegetable market and shopping center. There is no dispute about the

Petitioner’s ownership of the land. Within a period of ten years, no

steps were taken for acquisition of the land and on 15 th July 2015, the

Petitioner served a statutory notice to the Respondent No.1 under

Section 127 of the Maharashtra Regional and Town Planning Act, 1966

(‘MRTP Act’), calling upon the Respondent No.1 to acquire the property.

After receiving the notice, the Satara Municipal Council, by reply dated

10th August 2015, ofered TDR/FSI in lieu of the reserved land. Despite

the issuance of the notice under Section 127 of the MRPT Act, no steps

were taken as contemplated under Section 127 of MRTP Act. Hence the

present petition came to be iled.

3.      The learned counsel appearing for the Petitioner would point out

the notice dated 15th July 2015, calling upon the Respondent No.1 to

acquire the land. He would further point out that by the reply notice,

TDR/FSI was ofered, however, no steps were taken towards acquisition

of the land. He would submit that as no steps of acquisition were taken,

despite the service of the purchase notice upon the Respondent No.1,

the reservation has lapsed under Section 127 of MRTP Act.

4.      He would further point out the reply Aidavit of the Respondent

No.1, whereby a proposal has been forwarded to the State Government

for de-reserving the Petitioner’s land. He submits that an appropriate

Notiication is required to be issued by the State Government of lapsing


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of the reservation and the land be made available for development as

permissible to the adjacent lands.

5.      The learned counsel appearing for the Respondent No.1 would

not dispute the service of the purchase notice and the failure to take

any steps of acquisition after the receipt of purchase notice. He would

point out that the Respondent No.1, on 20 th July 2026, has forwarded

proposal to the Town Planning Department of Maharashtra State

seeking de-reservation of the land, being conscious of the fact that

after the service of the purchase notice, no steps of acquisition were

taken within the statutory period.

6.      Considering the undisputed facts of the land being reserved in

the Final Development Plan of the year 2001 and no steps having been

taken for a period of ten years after the sanction of the plan and despite

the service of notice in the year 2015, letting the period of two years

under Section 127(1) of the MRTP Act lapse from the date of the service

of the purchase notice, the inevitable conclusion is that the reservation

has lapsed and the land is deemed to be ‘released’ from such

reservation. The Respondent No.1 has itself forwarded the proposal on

20th July 2026 to the Town Planning Department seeking de-reservation

of the land.

7.      As there are no steps taken of acquisition, the Petitioner is

entitled to the relief of declaration of lapsing of reservation on the suit


Gaikwad RD                       3 of 4
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                        property bearing CTS No.226 admeasuring 645 Sq. Mtrs., which was

                        reserved under Reservation No.55 for vegetable market and shopping

                        center.

                        8.      The State Government is directed to notify the lapsing of

                        reservation by an order published in the Oicial Gazette within a period

                        of two weeks from today.

                        9.      The petition is allowed in above terms.



                         [Neeraj P. Dhote, J.]                       [Sharmila U. Deshmukh, J.]


           Digitally
           signed by
           RAJU
RAJU       DATTATRAYA
DATTATRAYA GAIKWAD
GAIKWAD    Date:
           2026.09.09
           12:46:14
           +0530




                        Gaikwad RD                        4 of 4


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