Once Village Is Declared 'Urban Area' In Master Plan, State Can Permit Land Conversion For Development Of Such Area: Rajasthan High Court

The Rajasthan High Court rejected a plea challenging inclusion of village Asota in the Sujangarh Master Plan 2036 on the ground that it was done despite objections by the Gram Panchayat and was detrimental to the panchayat's autonomy.Justice Kuldeep Mathur held that consultation with the respective Gram Panchayat that was done prior to such inclusion was sufficient and the consent was not a sine-qua-non for taking the policy decision. "It is pertinent to note here that while making challenge to the notification dated 25.06.2021 inviting objections against the proposed inclusion of village Asota in the 'Sujangarh Master Plan 2036' and notification dated 24.11.2021 though which the State Government approved the said Master Plan, no argument with regard to competence of the authority issuing the same has been raised in either the writ petition or during the course of arguments. No material has been brought on record to indicate that the impugned notifications are either beyond the Parent Act or infringe legal or vested right of the petitioner – Gram Panchayat. It is also relevant to note here that prior to preparing the 'Master Plan', the objections raised by the petitioner – Gram Panchayat against the inclusion of village Asota in 'Sujangarh Master Plan 2036' were considered. In other words, there was an effective consultation at the end of State Government before taking a policy decision for inclusion of the Area of Gram Panchayat of village Asota in the Master Plan. Needless to observe that in these matters, consultation with the respective Gram Panchayat is sufficient enough and the consent of the Panchayat is not sine-qua-non for taking the policy decisions". Further, the Court also rejected the argument that the decision infringed the right of the Gram Panchayat to grant permission of land conversion from agricultural to non-agricultural use in certain cases and thus deprived the Gram Panchayat from catering to the needs of the residents of the village.The Court held that once an area was declared as “Urban Area” within Section 2(1)(x) of the Rajasthan Urban Improvement Act, 1959 (the “Act”), the State was well within its rights to grant permission for land conversions from agricultural to non-agricultural uses, for development, improvement and expansion of such area. “The Municipal Council/UIT/Development Authority are definitely having the experience and expertise to make plans for future developments and expansion of the Urban Area. Resultantly, the residents of Urban Area would get better facilities and would have better a quality of life.”The petition was filed by the Gram Panchayat, Asota, challenging the inclusion of Gram Panchayat, Asota in the Master Plan of Municipal Counsil, Sujangarh under the Act, on the above mentioned grounds. It was submitted that as per the communication received in March, 2022, the revenue village was not included in the Municipal Council, Sujangarh. Despite this, by way of a letter dated February, 2025, the Commissioner Municipal Council, Sujangarh asked the tehsildar to not undertake any proceedings for land conversion. It also communicated that the Gram Panchayat could only issue patta to its residents. It was argued that this action virtually stripped the Gram Panchayat off of all its powers, including the conversion proceedings and issuance of patta for land conversions. Meanwhile State argued that inclusion of a village or revenue area within Master Plan of an urban area by way of notification issued under Section 3 of the Act by the Chief Town Planner, Town Planning Department constitutes a legislative function of the State Government, immune from judicial review. After hearing the contentions, the Court held that,“…this Court is of the considered opinion that once an area has been declared 'Urban Area' within the meaning of Section 2(1)(x) of the Act of 1959, the respondents are well within their rights to vest grant of permission for land use change from agricultural to non agricultural purposes, in areas falling under the Master Plan with the Municipal Council/UIT/Development Authority as the case may be, for development, improvement and expansion of such area and considering the development of outgrowth area on the peripheral boundary of the territory (Gram Panchayat – Asota in the present case).”Furthermore, considering that the notification that included the village in the Master Plan was not challenged in the petition, neither the competence of the authority issuing such notification was questioned, the Court dismissed the petition. Title: Gram Panchayat, Asota v State of Rajasthan & Ors. Citation: 2025 LiveLaw (Raj) 279Click Here To Read/Download Order

Once Village Is Declared 'Urban Area' In Master Plan, State Can Permit Land Conversion For Development Of Such Area: Rajasthan High Court

Nupur Agrawal

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