'Permissions Obtained By Misrepresentation Are Void': Bombay High Court Upholds Revocation Of Building Approval

The Bombay High Court has held that permissions obtained from a Municipal Corporation by misrepresentation or submission of incorrect material are void and cannot be sustained in law. The Court observed that fraud vitiates all actions, and a party cannot take advantage of permissions secured by misleading the authority.

A Division Bench of Justices A.S. Gadkari and Kamal Khata was hearing a writ petition challenging an order passed by the Ulhasnagar Municipal Corporation revoking development permission granted to the petitioners for the construction of a multi-storey building under Section 51 of the MRTP Act. The Corporation had also directed the removal of the construction. The petitioners contended that they had obtained all necessary permissions after following due procedure and had already completed construction up to 14 floors. The Corporation, however, submitted that the permissions were granted on the basis of incorrect and misleading documents.

The Court found that the petitioners had indeed misled the authorities by presenting incorrect material and were aware that the plot was affected by the development plan roads. It held that a party that secures permissions by misrepresentation cannot claim any equitable relief.

Emphasising settled principles, the Court observed that fraud vitiates all acts and that permissions obtained in such manner are non-est in law. It further held that the investment made or the extent of construction completed cannot be a ground to regularise an illegality.

“A party attempting to play a fraud on the Authorities cannot be permitted to take advantage of his own wrong… The investment of a Developer or by flat purchasers of said property cannot be a ground for regularizing an illegality or irregularity,” the Court observed.

The Court noted that the Petitioners were all throughout aware that the subject property was affected by DP Roads on either side of the subject property; with the help of their Architect, they presented misleading documents to the Corporation to obtain the development permissions. Hence, though permissions were obtained from the UMC, they would be null and void.

The Court also stressed that municipal authorities are duty-bound to ensure planned development and must take action against illegal constructions, including action against erring officials who facilitate such approvals.

Accordingly, the High Court upheld the revocation of permissions and dismissed the writ petition, refusing to grant any relief to the petitioners.

Case Title: Jhalak Constructions & Ors. vs. Ulhasnagar Municipal Corporation & Ors. [Writ Petition No. 14342 of 2024]

Citation: 2026 LiveLaw (Bom) 232

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