Authority Can't Decline Landowners' Plea For Layout Plan Approval Unless Acquisition Notification Is Published For Scheme Formation: Karnataka HC

The Karnataka High Court has said that an urban development authority would have the right to decline a plea for approval of layout plan of land, only if a notification is duly published as per law for acquisition of the lands for formation of a scheme or a layout. A division bench of Justice R Devdas and Justice G Basavaraja held thus while dismissing an appeal by the State government challenging an order of the single judge which allowed the petition filed by Mahaveer Oswal and others and which had directed the Vijayapura Urban Development Authority, to consider seeking approval of a layout plan. The court said “...we find that the application filed by the contesting respondents/writ petitioners seeking approval of layout plan at the hands of Vijayapura Urban Development Authority was required to be considered by the authority in accordance with the provisions of the Karnataka Town and Country Planning Act. An endorsement could not have been issued by the authority declining to sanction the plan on the ground that scheme was proposed by the authority way back in the year 2010 for development. A right would arise to the authority to decline such application only if a notification is duly published preliminarily for acquisition of the lands for formation of a scheme or a layout. The Urban Development Authority would get a right to decline such an application only if an acquisition notification is published in accordance with law". The respondent persons (before the division bench) had filed a writ petition before the Single judge that the Vijayapura Urban Development Authority had not acted on their application seeking approval of a layout plan. The writ petitioners were informed that their lands were included in a scheme proposed by the authority under Notification of August 13, 2010 notified in the Official Gazette on August 26, 2010. The scheme was announced under Sections 17(1) & 17(3) of the Karnataka Urban Development Authorities Act. The Vijaypura Urban Development Authority had proposed the scheme to form a residential layout for the benefit of the general public in terms of Sections 35 and 36 of the Act.In terms of Section 35, the authority is empowered to enter into an agreement with the owner of any land, with prior approval of the Government which would enable the authority to allot developed sites to the owner of the land in lieu of compensation determined in accordance with the provisions of Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act as could be found in Rule 3 of the Karnataka Urban Development Authorities (Allotment of Sites in Lieu of Compensation for the Land Acquired) Rules.The Single judge had allowed the petitions noticing the fact that earlier too, the court dealt with such matters where such schemes were announced by the State and the concerned Urban Development Authority, and had declared that the scheme proposed by the State and the Authority had lapsed. A direction was also issued to the State to communicate the orders passed in the earlier petitions to all concerned authorities under their jurisdiction covered under 50:50 scheme for development of residential plots about the lapsing of the scheme. The appellant State argued that the State Government has floated such a scheme having regard to the express provisions contained in Sections 35 & 36 of the Act, 1987 and under the Karnataka Urban Development Authorities (Allotment of Sites in lieu of Compensation for the Land Acquired) Rules, 2009. Further, such schemes have been formulated and notified for the benefit of the general public and to ensure that the residential sites are allotted to persons who do not have houses of their own. Mere lapsing of the scheme would not disentitle the authority from acquiring the land afresh and such directions could not have been issued by the learned Single Judge. Findings The bench on going through the provisions under the Act, noted in terms of Section 18 of the Act, 1987, after publication of the scheme and service of notice as provided in Section 17 and after consideration of the representations, the authority is required to submit the scheme for the sanction of the Government furnishing a description with full particulars of the scheme including the reasons for any modification inserted therein; complete plans and estimate of the costs of executing the scheme, etc. Thereafter, in terms of the Section 19, after sanction of the scheme, the Government shall publish in the official gazette a declaration stating the fact of such sanction and that the land proposed to be acquired by the authority for the purpose of the scheme is required for a public purpose. The bench then said “In the present case there is no declaration notified under Section 19(1) of the Act at the hands of the State Government. What is notified is only a proposal for a scheme under ...

Authority Can't Decline Landowners' Plea For Layout Plan Approval Unless Acquisition Notification Is Published For Scheme Formation: Karnataka HC

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