The Karnataka High Court has held in an order that sanction plans and occupancy certificates (OCs) cannot be withdrawn just because the state government has recalled the Revised Master Plan (RMP) 2031.
The court granted a petition filed by a landowner, Bhavani Yallappa Palyaga and developer Maarq Spaces Private Ltd, for the construction of an apartment in southern Bengaluru's Varthur.
The order, dated April 19, 2023, said that even if the state government recalled a master plan, it wouldn't be able to undo any construction that had already been undertaken.
Advocates say the order will set a precedent and will provide a respite to several homebuyers in the city.
What is the case?
The landowner and the developer signed a joint venture agreement in December 2016.
The Bruhat Bengaluru Mahanagara Palike (BBMP) had sanctioned the master plan in 2018 and a commencement certificate was issued in 2019.
On completion of the project, the petitioners applied for and obtained a no-objection certificate (NOC) from Karnataka State Pollution Control Board (KSBCB) as also an electricity provider connection from Bangalore Electricity Supply Company Limited (BESCOM). Additionally, the petitioners applied for an OC in May 2022.
However, the state government recalled RMP 2031 in June 2022.
At this point, BBMP contended that there was a proposed road, measuring 18 metres, going through the property, according to RMP 2015, and therefore, refused to grant OC.
The petitioners said that according to RMP 2031 issued in 2017, there was no road proposed and the same was used for sanction plans in 2018.
"The BBMP cannot now rely on the withdrawal of the provisional RMP 2031 to deny the OC to the petitioners," the landowner and the developer argued before the court.
BBMP told the Karnataka High Court that when the application for the OC was submitted, the state government had withdrawn RMP 2031, and thus RMP 2015 would automatically come back into force.
"The corporation had no option but to consider the said application in light of the revised master plan RMP 2015," they said.
High Court’s findings
The court noted that construction was done as per the sanction plan, after obtaining all permissions.
The court stated that RMP 2031's withdrawal in June 2022 is the only reason behind the OC’s denial.
"The application for occupancy was made in May 2022 when provisional master plan 2031 was still in force," the bench presiding over the case said.
Additionally, the court said there is no allegation against the petitioners for illegal construction or having deviated from the plan.
"After starting construction on the basis of the approved sanction plan, BBMP cannot withdraw the OC just because the state government recalled the master plan," the order added.
"Even if the state government recalled the master plan, it won't reverse any action taken in its accordance. The petitioners have acted as per the sanction plan applicable with the law and thus withdrawal of the OC is not sustainable," the order concluded.
Will set a larger precedent: Advocates
Advocates say though this is an isolated incident, the order will serve as a precedent and will offer protection to homebuyers and developers alike.
Advocate Srinivas, who goes by one name, said: "The case here is particular as the application of the OC has been made before the state government withdrew RMP 2031."
However, homebuyers and even developers can refer to this order in future, even if they have applied for OC after the date of withdrawal of the RMP.
"The order clearly states that once a sanction plan has been approved based on an RMP, even if the master plan is withdrawn, the developments cannot be reversed," he concluded.
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