Bombay HC: land can be acquired for urban-renewal redevelopment even without formal 'reservation' in the plan

A Division Bench of the Bombay High Court dismissed writ petitions by owners and occupants in Mumbai's Bhendi Bazaar area who challenged the acquisition of their land for a cluster redevelopment (urban renewal) scheme undertaken by a private trust under Regulation 33(9)(3)(5) of the Development Control and Promotion Regulations, framed under the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act). The petitioners argued that Sections 125 and 126 of the MRTP Act permit acquisition only of land that is 'reserved' or 'designated' for a public purpose in a sanctioned Development Plan, that their land carried no such reservation, and that letting a private trust invoke the acquisition power for its own redevelopment scheme was excessive delegation beyond the parent Act. Justices Manish Pitale and Shreeram Shirsat rejected this: Sections 125 and 126 also use the independent word 'required', so land genuinely required for a public purpose under a scheme sanctioned under the MRTP Act can be acquired even without a prior plan reservation, and the Development Control Regulations are themselves part of the Development Plan.

On facts, only about 7% of affected owners opposed the scheme while an overwhelming majority supported it, compensation had already been determined and offered, and the petitioners had themselves sought enhancement of that compensation under Section 64 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The Court held private interest must yield to the larger public good of urban renewal, and dismissed the petitions.