Court reprimands MCGM for delaying statutory obligations and stresses on transparency and rule of law.
In a significant ruling, the Bombay High Court has directed the Municipal Corporation of Greater Mumbai (MCGM) to promptly process the application for an Occupation Certificate (OC) submitted by Arkade Developers Ltd. for its redevelopment project "Arkade Pearl." The judgment, delivered by Justices Ravindra V. Ghuge and Gautam A. Ankhad, emphasized the statutory obligation of MCGM to process applications in accordance with the law, highlighting that vague remarks on portals such as "Reconcile and Re-submit" without specifying deficiencies are insufficient and detrimental to developers and flat purchasers.
The court's decision arises from two intertwined writ petitions concerning the processing of OC applications and disputes regarding layout approvals. Arkade Developers sought judicial intervention for the delay in granting OC, arguing that the MCGM's portal failed to specify statutory violations or document deficiencies, leaving their application pending since February 2026.
Conversely, M/s. Atharv Infra LLP opposed the OC grant, contesting the imposition of Amenity Open Space on its adjoining land, which they argued should be on Arkade Developers' portion. Atharv Infra had previously challenged the development permissions granted to Arkade Developers, leading to an appeal before the Hon'ble Minister (Urban Development Department).
The court noted that the disputes, particularly concerning the wrongful imposition of Amenity Open Space, fall within the jurisdiction of the planning authority. It directed the Chief Engineer (Development Plan), MCGM to issue notices to all stakeholders, hear their contentions, and resolve the issues with reasoned orders within six weeks.
Furthermore, the court expressed strong displeasure at MCGM’s reliance on alleged oral directions from the Additional Chief Secretary, which restrained the processing of Arkade Developers’ application. The judgment underscored that government authorities must act strictly in accordance with law, and oral instructions violate principles of transparency, accountability, and the rule of law.
This landmark ruling not only expedites the processing of the OC but also addresses the broader issue of procedural transparency within statutory bodies, reaffirming the judiciary's commitment to uphold the rule of law. The court's order is expected to impact the real estate sector significantly, ensuring timely delivery of projects and safeguarding the interests of developers and purchasers alike.
Bottom line:-
Municipal Corporation of Greater Mumbai (MCGM) is under a statutory obligation to process applications for Occupation Certificates (OC) in accordance with law. Applications cannot be kept in abeyance indefinitely based on vague remarks or extraneous reasons. Any deficiencies in the application must be specifically communicated to the developer. Oral directions by government officials restraining statutory functions are illegal and inconsistent with principles of transparency, accountability, and rule of law.
Statutory provision(s): Maharashtra Regional and Town Planning Act, 1966
