Holding

Section 57 requires prior State approval; no deemed approval of bye‑laws exists, and legitimate expectation does not confer an enforceable right, so the colonisers cannot claim permission, and the appeals are allowed.

Summary

The Uttar Pradesh master plan of 1986 earmarked certain lands of private colonisers Delhi Auto and Maha Maya for recreational use. Both applied to the Ghaziabad Development Authority (GDA) for permission to develop their lands under Section 15 of the Uttar Pradesh Urban Planning and Development Act. After a conditional permission was granted to Maha Maya, the State Government altered the land‑use to residential, which the National Capital Region (NCR) Planning Board refused to approve; the State then restored the original recreational use and directed GDA not to sanction any layout plans. The High Court held that the draft bye‑laws were deemed approved under Section 57 and that the colonisers had a legitimate expectation to obtain permission, allowing their writ petitions. The Supreme Court reversed, ruling that Section 57 requires prior State approval and no deemed approval exists, that legitimate expectation does not create an enforceable right, and that the NCR Act’s overriding effect precludes any right to develop the land. Consequently, the appeals were allowed, the High Court judgments set aside, and the writ petitions dismissed.

Issues considered

Whether Section 57 of the Uttar Pradesh Urban Planning and Development Act, 1971/1973 permits deemed approval of draft bye‑laws in the absence of prior State Government approval.
Whether the private colonisers acquire a legally enforceable legitimate expectation to obtain development permission after a temporary change in land‑use.
Whether the change and subsequent restoration of land‑use in the master plan affect the right to develop the land under the Act.
Whether there is discrimination between the development authority and private colonisers in granting permission.
Whether the provisions of the National Capital Region Planning Board Act, 1985 override the master‑plan amendment and bar the colonisers' claim.

Legislation cited

National Capital Region Planning Board Act, 1985s. 13, s. 15, s. 17, s. 19, s. 20, s. 27, s. 29
Uttar Pradesh Urban Planning and Development Act, 1971/1973s. 13, s. 14, s. 15, s. 56, s. 57

Subjects

Urban planningLand useBye‑lawsLegitimate expectationAdministrative lawSection 57NCR Planning BoardDiscriminationSection 13Section 15Master planRegional planOverriding effect

Judgment

A GHAZIABAD DEVELOPMENT AUTHORITY ETC.
l'.

DELHI AUTO AND GENERAL FINANCE PVT. LTD. AND ORS.

MARCH 31, 1994

B (J.S. VERMA AND R.M. SAHA!, JJ.)

U.P. Urban Planning and Developmem Act, 1971-Section 57-Under
the said prot·ision, Atttho1ity is en1po1vered to nzake bye- laivs but only after
getting previous approval of the State Govt.-Deemed previous approval of
C such bye-laws-If the Auth01ity choses to follow celtain procedures which
col1'e.1ponds to draft bye-laws awaiting approval, do they become bye-laws
framed under Sec. 57 of the Act?-He/d No.

U.P. Urban Planning and Development Act, 1971-National Capital
Region Planning Board Act, 1985 Ss. 13 & 15- Ss. 27 and 21)--(;hange of
D Land use from recreational to residential and again from residential to
recreational--Pennission sought to develop and constn1ct on Land refused by
the Authority-Validity of

Administrative Law-Legitimate expectation-It is not meant to confer
an independent legally enforceable right.
E
The master plan prepared in 1986 under U.P. Urban Planning and
Development Act, 1973 showed certain lands in certian areas for use for
recreational purposes. This area indicated for recreational use in the
master plan included certain lands of two private colonisers namely, Delhi
F Auto and Maha Maya who applied to the Ghaziabad Development
Authority for permission to develop and construct on their lands accord-
ing to their layout plans. The plan submitted by Maha Maya was granted
conditional permission on 22.6.91/11.7.91. The application of the Delhi •
Auto for grant of permission was submitted only on 20.7.91. In the mean-
time the Govt. of U.P. had amended the land use of the area from
G recreational to residential in the master plan but the National Capital
Region Planning Board constituted under N.C.R.P. Board Act, 1985,
declined to approve the said change of land use by the State Govt. Accord-
ingly the State Govt. reviewed its earlier order and by order dated 24.9.91
directed the Authority not to sanction any layout plan of any person and
H also restored the original land use i.e. "recreational" in the master plan.
248
G.DA v. DELHIAUTOANDGEN.FINANCELTD. 249

In these circumstances the permission was refused to Delhi Auto and the A
conditional permission already granted in case of Maha Maya was
revoked.

The two colonisers filed seperate writ petitions in the High Court
challenging the refusal of permissions sought by them under Sec. 15 of
the Act. The High Court allowed their Writ petitions by holding inter alia B
that as per the draft bye-law followed by the Authority, their plans stood
sanctioned eveu if such bye-laws had not been approved by the State Govt.
because Sec. 57 of the UP Act contemplates deemed approval. It was also
held that legitimate expectations of the petitioners cannot be defeated by
an arbitrary amendment in the master plan under Sec. 13 of the UP Act.
c
• Allowing the appeals, this Court

HELD : 1. Sec. 57 of the U.P. Urban Planning and Development
Act, 1973 (U.P.Act.) empowers the Authority to make bye-laws only with
the previous approval of the State Govt. Merely because the Authority D
choses to follow certain procedures which correspond 57 of the Act, in the
absence of approved bye-laws, the question of deemed sanction under the
bye-laws does not arise. [254-E-F]

2. The change of land use of the area in the master plan from
recreational to residential did not give rise to a legitimate expectation in E
a private coloniser owning land in that area that he could develop a
housing colony merely because he had submitted plan for approval when
grant of permission under Sec. 15 of the U.P. Act is not automatic, more
so in view of Sec. 13 which permits change of land use in the master plan.
[pp. 255-G-H; 256-A]
3. The plea of the legitimate expectation relates to procedural fairness
F
in decision making and forms a part of the rule of non-arbitrariness, and it
is not meant to confer an.independent right enforceable by itself. [255-C]

FCJ v. Kumdhenu Cattle Feed lndusllies, [1993] 1 SCC 71, relied on.

4. Sec. 27 read ,.;th Sec. 29 of the National Capital Region Planning
G
Board Act, 1985 (NCR Act) totally excludes the land use of that area for
any purpose inconsistent with that shown in the published regional plan.
The permissible land use according to the published regional plan in

- operation throughout the area in question was only recreational and not
residential and no change was ever made in the published regional plan H
I
-I
250 SUPREME COURT REPORTS [1994] 3 S.C.R.

A of the original land use. This being the stuation by virtue of the overriding
effect of the provisions of NCR Act, the amendment of land nse in the
master plan under U.P. Act from 'recreational' to 'residential' at an
intermediate stage, cannot confer any enforceable right in the respondent
private colonisers having lands in the area. However, if the first amend-
ment in the master plan under the U.P. Act altering the land use for the
B area from 'recreational' to 'residential' be valid, so also is the next
amendment reverting to the original land use, i.e. 'recreational'. Interven-
ing facts relating to the private colonisers decribed as planning commit·
ments, investments, and legitimate expectations do not have the effect of
inhibiting the exercise of statutory power under the U.P. Act which is in
consonance with the provisions of the NCR Act, which also has overriding
c effect and lays down the obligation of each participating State to prepare
a Sub-Regional Plan to elaborate the Regional Plan at the Sub-Regional
level and holds the concerned State responsible for the implementation of
the Sub-Regional plan. The original land use of the area shown as
'recreational' at the time of approval and publication of the Regional Plan
D under the NCR Act having remained unaltered thereafter, that alone is
sufficient to negative the claim of private colonisers for permission to
make an inconsistent land user within that area. [pp. 259-D-H; 260-A-B)

5. In the absence of any challenge to the approval of the Board to
conversion of land use of a smaller area in respect of the Authority, which
E resulted in this consequence, the question of discrimination does not merit
any serious consideration. Further more the point of discrimination was
neither urged before the High Court nor any direct challenge made even
before this Court. Moreover, assailing the approval of conversion of land
use of a part of that area by the Board under the N.C.R Act would not
F benefit the respondent by giving them the same approval. [262-B-C]

CIVIL APPELLATE JURISDICTION : Civil Appeal No. 4384 of ~.
1993.

From the Judgment and Order dated 22.12.92 of the Allahabad High
G Corut in C.Misc. W.P. No. 16382 of 1992.

U.N. Bhachawat, D.V. Sehgal, Yogeshwar Prasad, Devendra Singh
and R.B. Misra for the Appellants.

Dipankar Gupta, Dhruv Agarwal and P.P. Singh for the Respondent
H in RR 7 in C.A. Nos. 4384-85/93.
G.D.A. v. DELHI AUTO AND GEN. FINANCE (P) LTD. [VERMA, J.] 251

Soli J. Sorabjee, S.P. Gupta, Sunil Gupta and K.J. John for lhe A
Respondent in RR 1-5 in C.A. No. 4384-85/93.

C.S. Vaidyanathan, Ms. Indu Malhotra and Ms. Ayasha Khatri for
the Respondent in CA No. 634/94.

The Judgment of the Court was delivered by B

VERMA, J. These appeals are' disposed of by this common judgment
since the points for decision are common. Writ petition No. 16382 of 1992
.. - Delhi Auto & General Finance Pvt. Ltd. v. State of U.P. & Anr. - filed in
the Allahabad High Court was allowed by the judgment dated 22.12.1992 C
and for the same reasons Writ Petition no. 25461 of 1992 Maha Maya
General Finance (:o. Ltd. v. State of U.P. & Anr., was allowed by the High
Court by its judgment dated 21.5.1993. Civil Appeal Nos. 4384 and 4385 of
1993 are separate appeals by special leave by the two respondents in the
Writ Petition No. 16382 of 1992 while similar Civil Appeal No. 634 of 1994 D
is by one of the respondents in Writ Petition No. 25461 of 1992. The
material facts may now be briefly stated.

.. The Master Plan (Annexure I) was prepared under Section 8 of The
Uttar pradesh Urban Planning and Development Act, 1973 (hereinafter
referred as 'U.P. Act') for development of the area shown therein on E
1.6.1986 for the period upto 2001 AD. In this Master Plan certain lands
in Villages Makanpur, Mohiuddinpur Kanauni, Chhajarasi and Lalpur
were set apart and shown for use for 'recreational' purposes. This area
indicated for recreational use in the Master Plan included certain lands of
two private colonisers, namely, Delhi Auto & General Finance Pvt. Ltd. F
(hereinafter referred as 'Delhi Auto') and Maha Maya General Finance
Co. Ltd. (hereinafter referred as 'Maha Maya'). Maha Maya as well as
Delhi Auto applied tu the Ghaziabad Development Authority constituted
under the U.P. Act, for permission to develop and construct on their lands
according to their lay-out plan, in accordance with Section' 15 of the U.P.
Act. The plan submitted by Maha Maya was granted conditional permis- G
sion on 22.6.1991/11.7.1991. The application of Delhi Auto being found to

-- be defective was returned for correction and was then presented again after
removal of the defects on 20.7.1991. It appears that by a Notification dated
22.4.1991 the Government of Uttar Pradesh had amended the land use of
the area indicated originally in the Master Plan for 'recreational' use and H
252 SUPREME COURT REPORTS [1994] 3 S.C.R.

A converted it to 'residential' use. On 3.7.1991 the National Capital Region
Planning Board constituted under the National Capital Region Planning
Board Act, 1985 declined to approve the change of land use of that area
from 'recreational' to 'residential' made by the State Government, on the
ground that it was not in conformity with the policy decision of the State
B Government. Accordingly the Government of Uttar Pradesh reviewed its
. earlier decision and by order· elated 24.9.1991 directed the Ghaziabad
Development Authority not to sanction the lay-out plan of any person or
any coloniser in respect of that area which was originally meant for
recreational use. This action was taken to effectuate the purpose of the
~
National Capital Region plan in the larger public interest for the plan I

C development of that area. The State Government ultimately restored the
original position indicated in the Master Plan of use of that area for
recreational purposes. On 23.4.1992 Delhi Auto was refused the permission
it had sought under Section 15 of the U.P. Act. The same was the effect
of the communication to Maha Maya which amounted to revocation of the
D earlier permission. On facts, the only difference between Delhi Auto and
Maha Maya is that in the case of Maha Maya a conditional permission had
been granted by the Ghaziabad Development Authority prior to restoration
of the. land use to the original 'recreational' purpose, while in the case of

E
Delhi Auto the pending application was rejected after restoration of the
original position. .
As earlier stated, the writ petitions filed in the Allahabad High Court
by Delhi Auto and Maha Maya challenging the refusal of permission sought
by them under Section 15 of the U.P. Act have been allowed. The reasons
given by the High Court for deciding in favour of the two private colonisers
are the following :
F
1. By virtue of bye law 7.2 of the Ghaziabad Development
Authority it would be deemed that the plan of the writ petitioners
stood sanctioned on 22.11.1991. Not-withstanding the fact that the
bye-laws have not been approved by the State Government, this
G consequence follows since the Ghaziabad Development Authority
has been following the bye-laws in practice. There is deemed
approval of the bye-laws by the State Government under Section
57 of the U.P. Act;

H 2. After conversion of the land use of the area, including the land
\
}-

G.D.A. v. DELHI AUTO AND GEN. FJNANCE (P) LTD. fVERMA.J.] 253

of the writ petitioners, from 'recreational' as shown in the master A
plan to 'residential', the writ petitioners had a legitimate expecta-
tion that they can conscruct a housing colony according to their
plans. Accordingly amendment of the master plan under Section
13 of the U.P. Act to restore the original land use, in the absence
of any scheme to meet strong public necessity, is arbitrary and
illegal.
B

3. The Ghaziabad Development Authority has merely followed the
order of the State Government dated 24.9.1991 which has changed
.. the land use from 'recreational' to 'residential' and back again to
'recreational' within a short period. c
4. Sanction of the lay-out plan of Maha Maya while refusing the
permission to Delhi Auto is discriminatory.

However, in view of the revocation .of permission given to Maha
Maya this ground does not survive. D
On behalf of appellants the learned counsel appearing for the State
.. , of Uttar Pradesh and the Ghaziabad Development Authority have assailed
the High Court's judgment on several grounds. The arguments advanced
to support the High Court's judgment, as finally crystallised in the submis-
sions of Shri Soli J. Sorabjee appearing for Delhi Auto may be wmmarised, E
thus:

1. The change of land use from 'recreational' to 'residential' was
not prohibited in the master plan; and it was also proper and
reasonable in the facts '3fid circumstances of the case.
F
2. 'Indirapuram' housing project covered at least 1626 acres which
includes the lands of Delhi Auto and Maha Maya and not merely
1288 acres excluding the lands of these two private colonisers.

3. There was violation of Article 14 of the Constitution inasmuch
as there is no rational basis for distinguishing between the lands G
of Ghaziabad Development Authority and those not of Ghaziabad
Development Authority belonging to private colonisers. It is urged
that the object of housing is equally met by the Ghaziabad
Development Authority as well as private colonisers and, there-
fore, the private colonisers also should be permitted to build H
·'

254 SUPREME COURT REPORTS [ 1994] 3 S.C.R.

A houses in that area. _,,.

4. There are planning commitments n1adc by the private colonisers ~

and expenses incurred for that purpose \vhich have lo be taken in ,..._
conjuction \Vith de facto operation of bye-la\vs in the practice
followed. Thus fair treatment to Delhi Auto and Maha Maya \
\
B required grant of pcrn1issi('Il and sanction of their lay-out plans on
that basis.
I
Shri C.S. Vaidyanathan learned counsel for Maha Maya also ad- >

vanced the same arguments and submitted further that the right of Maha

c Maya was greater in view of the permission accorded to it earlier under
Section 15 of the U.P. Act before the directions given by the State Govern-
.
ment not to grant such permission. Learned counsel submitted that the
planning commitment made by Maha Maya was much more in view of the
investments made by it because of the permission accorded to it. He also
submitted that the reason for change of land use back to 'recreational' from
D 'residential' \Vas never disclosed and no notice or hearing was given to
Maha Maya which had already been granted permission. He also submitted \.
that private colonisers alone being excluded while Ghaziabad Development
Authority was permitted to construct in a part of that area, the action was
discriminatory. • ' 'j
E We may first dispose of the point relating to deemed approval of the
bye-laws by the State Government under Section 57 of the Act and the
deemed sanction of the plans of respondents under bye-law 7.2 as held by
the High Court. Learned counsel for the respondents rightly made no
serious attempt to support this untenable view. Section 57 of the U.P. Act
provides for the making of bye-laws and says that "the authority may, with
F previous approval of the State Government, make bye- laws ........ ". It is
obvious that the provision empowers the authority to make bye-laws only
with the previous approval of the State Government. This being so, there
can be no question of any deemed previous approval of the bye-laws.
Merely because the authority chooses to follow certain procedure in the
G absence of any bye-laws which happens to correspond with the draft l
bye-laws awaiting approval of the State Government, the draft bye-laws do
not become those framed under Section 57 of the Act with the express [
approval. The basic premise on which the High Court proceeded to assume
the existence of any bye-laws, is clearly non-existent. The further question
of a deemed sanction under bye-law 7.2 which has not come into operation
H does not, therefore, arise. It is unnecessary to discuss this point any further:.
G.D.A. L DELHI AUTO AND GEN. FINANCE(P) LTD. [VERMA,J.J 255

Suffice it to say that the view taken by the High Court on the basis of A
bye-laws and panicularly bye-law 7.2, is wholly untenable .

• The next ground to legitimate expectation, on which the High Court's
conclusion is based, is equally tenuous. That vieW results from a misreJding
of the decision of this Court in F. Cl. v. Kamdltenu Cattle Peed Jndustlies,
[199311 sec 71. It was clearly indicated in that decision that non-con- B
sideration of legitimate expectation of a person adversely affected by a
1 decision may invalidate the decision on the ground of arbitrariness even

l. though the legitimate expectation of that person is not an enforceable right
to provide the foundation for challenge of the decision on that basis alone.
In other words, the pica of legitimate expectation relates to procedural
fairness in decision making and forms a part of the rule of non-arbitrari-
c
ness; and it is not meant to confer an independent right enforceable by
itself. That apart, the manner in which legitimate expectation has been
relied on by the High Court in the present case, is difficult to appreciate.
The High Court on this aspect has stated as under :
D
"After the notification of the State Government dated 22.4.1991
converting the use of petitioners' land from recreational to residen-
' ,,. ' t tial the petitioners had a legitimate expectation that they can
construct the colony and submitted plans. They have invested
substantial amounts and people have made investments. They E
acted on the assurance of the State Government and have altered
their position. This legitimate expectation of the petitioners has to
be balanced with the general public interest. In the instant case it
is admitted. that the authority has not made any plans or scheme
for the use of this vast land for recreational purpose and no
F
proposals to this effect had been sent to the State. The State has
not disclosed the reasons for which the user of the land is again
being changed. In the absence of any scheme to meet strong public
necessity, the present exercise of power under Section 13 of the
Act is arbitrary and illegal."
G
It is difficult to appreciate how the change of land use of the area in
_J the Master Plan from 'recreational' to 'residential' could give rise to a
legitimate expectation in a private coloniser owning land in that area that
he could construct a housing colony therein simply because he had sub-
mitted some plan for approval, when grant of the permission under Secti~n H
256 SUPREME COURT REPORTS [1994) 3 S.C.R.

A 15 of the U.P. Act is not automatic and the statute permitted amendment
of the Master Plan by change of the land use even thereafter. The mere
fact that the area was shown originally as meant for 'recreational' use,
shows that reversion to the original land use is equally permitted by the
statute. No legitimate expectation of the kind claimed by these private
colonisers could arise on these facts and in a situation like this clearly
B contemplated by the Statute itself.

It is for this reasor. that learned counsel for the respondents modified
their argument to contend that the planning commitments and incurring of
expenses together with the de facto operation in practice of the bye-laws
C for grant of the permission gave rise to the legitimate expectation that their
lay-out plans would be sanctioned. In the case of Maha Maya it was urged
•
by Shri Vaidyanathan that the planning commitments were much more on
account of permission being granted earlier under Section 15 of the U.P.
Act. The question, therefore, is whether even this modified argument
D merits acceptance. In our opinion) it does not.

As earlier indicated, the decision in FCI v. Kamdhenu Cattle Peed
Industries, (supra) clearly says that legitimate expectation does not form an
enforceable right to provide an independent ground of challenge. The
modified stand taken by the learned counsel for respondents on this aspect
E is equally met by this proposition. In substance the contention of learned
counsel for the respondents is that the planning commitments and the
in.vestments made by the two private colonisers confer on them or at least
on Maha Maya the indefeasible right to grant of the permission and
sanction of their lay-out plan which cannot be defeated by exercise of the
F power of amendment of the master plan under Section 13 of the U.P. Act.
The fallacy in this contention is that it upgrades the so called legitimate
expectation, assuming it to be so in the present case, to a legally enforce-
able right which a legitimate expectation is not, it being merely a part of
the rule of non-arbitrariness to ensure procedural fairness of the decision.
It is clear that the requirements of public interest can out weigh the
G legitimate expectation of private persons and the decision of a public body
on that basis is not assailable. This contention of learned counsel for the
respondents fails.

Before deali'1g with the remrumng submissions, it would be ap-
H porpriate to refer to certain provisions of the Uttar Pradesh Urban Plan-
G.D.A. v. DELHI AUTO AND GEN. FINANCE (P) LTD. [VERMA, J.] 257

rting and Development Act, 1973 and the National Capital Region Planning A
Board Act, 1985 (referred hereafter as "NCR Act").

The UP Act is made to provide for the development of certain areas
of Uttar Pradesh according to plan and for matters ancillary thereto. In
the developing area of the State of Uttar Pradesh the problems of town B
planning and urban development need to be tackled resolutely, the existing
local bodies and other authorities being unable to cope with the problems
to the desired extent. In order to improve the situation, the State Govern-
ment considered it advisable that in such developing areas, Development
Authorities on the pattern of Delhi Development Authority be established.
c
Section 3 of the U.P. Act provides for declaration of development
areas for this purpose. Section 4 provides for constitution of a development
authority for any development area declared under Section 3 of the Act.
The Ghaziabad Development Authority is one such authority and the lands D
in question in the present case are within the development area declared
under Section 3 of the Act. Chapter III contains Sections 8 to 12 relating
to preparation, approval and commencement of master plan and zonal
development plan. Chapter IV contains Section 13 which relates to amend-
ment of the master plan and the zonal development plan. Chapter V relates
to development of lands. Therein, Se.ction 14 provides that after the dec- E
laration of any area as development area udner Section 3, no development
of land shall be undertaken or carried out or continued in that area by any
person or body unless permission for such development has been obtained
in writing in accordance with the provisions of the Act. It also provides
that no development shall be undertaken or carried out or continued in p
that area unless the same is also in accordance with such plans. Section 15
• deals with the applicatioµ for permission referred to in Section 14. It
contemplates making of the requisite enquiry before making an order
refusing or granting such permission. Section 16 prohibits use of any land
or building in contravention of the plans. Chapter VI relates to acquisition
and disposal of land required for the purpose of development. The remain- G
ing provisions relate to ancillary matters. Section 56 empowers the develop-
ment authority to make regulations with the previous approval of the State
Government for the administration of the affairs of the authority. Section
57 empowers the authority to make bye-laws with the previous approval of
the State Government for carrying out the purposes of the said Act. H
258 SUPREME COURT REPORTS (1994] 3 S.C.R.

A It is by virtue of the provisions of the U.P. Act that -the two private
colonisers, Delhi Auto and Maha Maya, in the present case applied for
permission of the authority under the Act for the development of their
lands and making construction therein. Those lands were within the area
set apart originally in the master plan for recreational' use, to which it
reverted finally on amendment in accordance with Section 13 of the Act.
B

Some provisions of the National Capital Region Planning Board Act,
1985 (hereinafter referred as "NCR Act") may now be referred. The
enactment is 'to provide for the constitution of a Planning Board for the
preparation of a plan for the development of the National Capital Region
c and for co-ordinating and monitoring the implementation of such plan and
for evolving harmonized policies for the central of land-uses and develop-
ment of infrastructure in the National Capital Region so as to avoid any
haphazard development of that region and for matters connected therewith
or incidental thereto.' Section 2 contains the definitions. Clause G) therein
D defines "Regional Plan" to mean the plar. prepared under this Act for tile
development of the National Capital Region and for the control of land-
uses etc.. Clause (m) defines "Sub-Regional Plan" to mean a plan prepared
for a sub-region. Section 3 provides for constitution by the Central Govern-
ment of the National Capital Region Planning Board, in the marmer
provided therein. Section 7 specifies the functions of the Board which
E include preparation of the Regional Plan and to arrange for the prepara-
tion of Sub-Regional Plans and Project Plans by each of the participating
States. Section 10 indicates tho contents of the Regional Plan which include
the manner in which the land in National Capital Region shall be used and
the policy in relation to land use and the allocation of the land for different
uses. Section 14 deals with modification of the Regional Plan and Section
F 15 provides for review and revision of the Regional Plan. Section 17
requires each participating State to prepare a sub-regional plan for the
sub-region within that State. It has also to indicate the specified elements
including the reservation of areas for specific land-uses. Section 19 requires
that before publishing any Sub-Regional Plan, each participating State shall
G refer such plan to the Board to enable the Board to ensure that such plan
is in conformity with the Regional Plan. Section 20 lays down the obligation
of each participating State for the implementation of the Sub-regional plan,
as finalised. Section 27 provides for the overriding effect of this Act
notwithstandbg anything inconsisting there-with contained in any other
law, instrument, decree or order etc. Section 28 empowers the Central
H Government to give directions to the board for the efficient administration
G.D.A v. DELHI AUTO AND GEN. FINANCE (P) LID. [VERMA, J.] 259

of the Act, which the Board is bound to carry out. Section 29 ·expressly A
provides that on coming into operation of the finally published Regional
Plan, no development shall be made in the region which is inconsistent with
the Regional Plan as finally published. Thus the overriding effect of the
Act by virtue of Section 27 and total prohibition of any activity of
developemnt in violation of the finally published Regional Plan provided
in Section 29 of the Act is sufficient to indicate that any claim inconsistent B
with the finally published Regional Plan in the area cannot be sustained on
any ground.

The four villages in question in which the lands of Delhi Auto and
Maha Maya are situate form part of the U.P. Sub-Region of the National
Capital Region. In the Master Plan of 1986 operative till 2001 A.D.(An- C
nexure I) the lands of Delhi Auto and Maha Maya are included in the area
set apart for 'recreational' use only. On this basis the Regional Plan was
prepared and approved under the NCR Act on 3.11.1988 and finally
published thereunder on 23.1.1989 according to which the area in question
was set apart for 'recreational' use only. Admittedly no change in this D
Regional Plan to alter the land use of that area to 'residential' purpose was
made any time thereafter in accordance with the provisions of NCR Act.
The overriding effect of the NCR Act by virtue of Section 27 therein and
the prohibition against violation of Regional Plan contained in Section 29
,' of the Act, totally excludes the land use of that area for any purpose
inconsistent with that shown in the published Regional Plan. Obviously, the E
permissible land use according to the published Regional Plan in operation
throughout, of the area in question, was only 'recreational' and not residen-
tial since no change was ever made in the published Regional Plan of the
original land use shown therein as 'recreational'. This being the situation
by virtue of the overriding effect of the provisions of NCR Act, the

• amendment of land use in the Master Plan under U .P. Act from
'recreational' to 'residential' at an intermediate stage, w~ch is the main
foundation of the respondents' claim, cannot confer any enforceable right
in them. However, if the first amendment in the Master Plan under the
F

U.P. Act altering the land use for the area from 'rncre'ational' to
'residential' be valid, so also is the next amendment reverting to the original G
land use, i.e., recreational'. Intervening facts relating to the private
colonisers described as planning commitments, investments, and legitimate
expectations do not have the effect of inhibiting the exercise of statutory
power under the U.P. Act which is in consonance with the provisions of
the NCR Act, which also has overriding effect and lays down the obligation
H
260 SUPREME COURT REPORTS [1994] 3 S.C.R.

A to each participating State to prepare a Sub-Regional Plan to elaborate the
Regional.Plan at the Sub-Regional level and holds the concerned State
responsible for the implementation of the Sub-Regional Plan. The original
land use of the area shown as 'recreational' at the time of approval and
publication of the Regional Plan under the NCR Act having remained
unaltered thereafter, that alone is sufficient to negative the claim of Delhi
B Auto and Maha Maya for permission to make an inconsistent land user
within that area.

The only surviving point is, whether change permitted by the NCR
Planning Board for the 'lndirapuram' project in that area by conversion of
C the land use form 'recreational' to residential' is af the whole 1626 acres
including the respondents' land as claimed by them or only of 1288 acres
which does not include the respondents' land, and its effect?

In a letter dated March 10, 1992 of Secretary, Housing & Urban
D Planning Department, Government of Uttar Pradesh to the Secretary,
Ministry of Urban Development, Government of India there is a denial of
violation of NCR plan in the U.P. Sub- Region. To the letter is annexed a
note in the form of clarification and justifiction. Reliance is placed on this
document and particularly on the portion at pages 234 to 236 of the paper
book. The documents says that in Master Plan for the Ghaziabad Develop-
E ment Area, an area of about 2880 acres was reserved for recreational
activities and this was incorporated as such in the NCR plan. Then it says
"a land use of a part of this area {1288.0 acres) has been changed to
residential use by U.P. Government Gazette nofitication dated 22.4.1991."
.......... "Out of the total area of 2880 acres proposed in Ghaziabad Master
F Plan only 1288.0 acres are being now developed as residential. While rest
around 1500 acres are still under recreational land-use." ..... "Of this 1288.0
acres an area of about 328.0 acres is still undeveloped and 125.0 acres is
under Village abadi. Hence only about 835.0 acres is actually being
developed for residential use and 1920.0 acres is available for recreational
use." In between these extracts ;tre given the details of planned regional
G recreational facilities, in which at SL No. 1 is 'lndirapuram' against which
the area shown as 1592 acres. Deducting 1592 from the total area of 2880
acres, the remaining area left is only 1288 acres which is indicated
throughout as the area of which the change of land use to 'residential' was
made by the State Government. Reading this document as a whole there
H is no inconsistency therein and the area consistently shown as altered to
G.D.A. v. DELHI AUTO AND GEN. FINANCE (P) LTD. [VERMA. J.] 261

'residential' use by the State Government is only 1288 acres and not. 1626 A
acres. Admittedly, the lands of Delhi Auto and Maha Maya are not within
this area of 1288 acres. This being so, it is unnecessary to discuss at length
the permission for alteration of land use of the smaller area given by the
Board under the NCR Act which does not include the respondents' lands.

However, reading all the related documents together, it would ap- B
pear that the NCR Planning Board finally permitted conversion of land-use
from 'recreational' to 'residential' at 'Indirapuram' of an area lesser that
even 1288 acres confining it only to that part which was shown in Govt. of
U.P.'s letter dated 10.3.1992 and its enclosure (P.231-236 of Paper Book)
as already utilised for 'residential' use. This area was mentioned as 835 c
acres only by saying (at page 236) 'only about 835 acres is actually being
developed for residential use and 1920 acres is available for recreational
use'. The NCR Planning Board, on 3.6.1992 approved the Sub-Regional
Plan for U.P. Sub-region (P. 118 of the Paper Book) clearly stating as
under:
D
"2. The land use changes made vide Government of Uttar Pradesh
Gazette Notification dated 22.4.1991 in respect of Indirapuram at
Ghaziabad from 'recreational' to 'residential' use may be confmed
only to those parts where planning commitments have already been
made. E

3. Any further major land use change in Ghaziabad may not be
effected without consultation NCR Planning Board."

Learned counsel for the respondents relied on the expression 'planning F
commitments' in the above extract to support thier modified argument of
.. legitimate expectation, rejected by us earlier. We may add that the expres-
sion in the above extract has to be read with the particulars given in
Government of U.P.'s letter dated 10.3.1992 wherein (at page 236) that
area is reduced clearly from 1288 acres to 835 acres only. Admittedly, the
respondents' lands are not even within 1288 acres. It is clear that the NCR G
, Planning Board did not at any time permit the change of land use of lands
belonging to Delhi Auto and Maha Maya from 'recreational' to
'residential'. In such a situation there is no foundation for their claim for
the permission sought under Section 15 of the U.P. Act for development
of theidands and making any constrction therein. H
262 SUPREME COURT REPORTS [1994] 3 S.C.R.

A The argument of discrimination between the development authority
constituted under the U.P. Act and a private coloniser does not arise for
serious consideration on the above view. It is the approval of the Board
under the NCR Act of conversion of.land use to 'residential' of a smaller
area and not the larger area including the respondents' lands which results
in this consequence. Unless the approval of the Board can be successfully
B assailed, this point does not merit any serious consideration. This point was
neither urged before the High Court nor relied on for allowing the writ
petitions. Even before us there is no direct challenge to the same.
Moreover, assailing the approval of conversion of land use of a part of that
area by the Board under the NCR Act would not benefit the respondents
C by giving them the same approval. We do not find any merit in the
challenge made on behalf of the respondents on the basis of Article 14 of
the Constitution.

For the aforesaid reasons these appeals are allowed with costs. The
impugned judgments of the High Court are set aside resulting in the
D dismissal of the two writ petitions, namely, Writ Petition No. 16382 of 1992
- Delhi Auto & General Finance Pvt. Ltd. v. State of U.P. & Anr., and Writ
Petition No. 25461 of 1992 - Maha Maya General Finance Co. Ltd. v. State
of U.P. & Anr. The appellants are to get the costs form respondent No. 1.
~ ·•
Costs fixed at Ra. 10,000 in each appeal.
E
S.S.H.R. Appeals allowed.