Municipal Corporation Cannot Demand Fresh Fees for Building Permissions Expired Due to Pandemic Restrictions
The Madhya Pradesh High Court has dismissed a writ appeal filed by the Municipal Corporation Gwalior against the decision of the Single Judge to extend building permissions that expired during the COVID-19 pandemic. The case, Municipal Corporation Gwalior v. Padma Bansal, revolved around the refusal to grant extensions for building permissions that lapsed during the pandemic restrictions, insisting instead on fresh applications and fees.
The Division Bench, comprising Justices G.S. Ahluwalia and Anuradha Shukla, upheld the Single Judge's decision, emphasizing the impracticality and legal prohibition against starting construction during the COVID-19 lockdowns. The judgment pointed out that individuals could not be penalized for compliance with national lockdown orders that effectively barred construction activities.
The Court criticized the Municipal Corporation's insistence on fresh applications and fees solely for revenue collection when construction was legally barred, stating that financial considerations should not override public health and safety. The Court reaffirmed that the extensions were warranted under Rule 23(3) of the Bhumi Vikas Rules, 2012, given the extraordinary circumstances.
The judgment further confined its applicability to cases where the building permission expired specifically during the COVID-19 restrictions, highlighting that legal impediments, rather than voluntary non-compliance, prevented construction.
The decision marks a significant precedent in balancing municipal revenue interests against public safety and legal compliance in extraordinary situations like the pandemic. The ruling provides relief to builders and developers whose projects were halted due to the unprecedented global health crisis, ensuring they are not unduly burdened by additional fees for circumstances beyond their control.
The Municipal Corporation's appeal was dismissed, reiterating that the original direction for reconsideration of the extension application should stand, and no fresh application or fee should be demanded from the respondent, Padma Bansal.
Bottom line:-
Extension of building permission under Rule 23(3) of Bhumi Vikas Rules, 2012 cannot be denied where the life of building permission expired during COVID-19 restrictions. Municipal Corporation cannot insist on fresh building permission application merely for collecting fresh fees when restrictions prevented construction activities.
Statutory provision(s): Rule 23(3) of Bhumi Vikas Rules, 2012, Section 2(1) of Madhya Pradesh Uchcha Nyayalaya (Khand Nyayapeeth ko Appeal) Adhiniyam, 2005
