Jhalak Constructions' plea dismissed; strict judicial stance against unauthorized constructions reaffirmed
In a landmark judgment delivered by the Bombay High Court on April 29, 2026, the division bench comprising Justices A.S. Gadkari and Kamal Khata dismissed the writ petition filed by Jhalak Constructions against the Ulhasnagar Municipal Corporation (UMC). The petition challenged the revocation of development permissions granted for a multi-story building project known as 'Jhalak Paradise.'
The case centered around allegations of fraudulent misrepresentation by Jhalak Constructions to obtain development permissions for constructing a building of up to 16 floors. The UMC had revoked these permissions under Section 51 of the Maharashtra Regional Town Planning Act, 1966, citing the submission of misleading documents by the petitioners.
The petitioners argued that they had followed all procedural requirements, including the relinquishment of land for proposed development plan roads and payment of necessary fees. However, the UMC, backed by an affidavit from its Assistant Director of Town Planning, contended that the permissions were granted based on incorrect material and plans, affecting 80% of the subject plot by proposed DP roads.
In its judgment, the Bombay High Court emphasized the principle that fraud vitiates all orders, rendering permissions obtained through deceptive practices null and void. The court reiterated the need for strict judicial action against unauthorized constructions, underscoring that investments or construction progress cannot override legal compliance.
The judgment referenced previous Supreme Court rulings, asserting that courts must not condone illegal constructions, as such actions undermine the rule of law and encourage impunity. The bench highlighted the role of municipal corporations as guardians of planned urban development, stressing the necessity of holding erring officers accountable.
Despite Jhalak Constructions' plea for leniency citing significant financial investments and construction completion up to 80%, the court maintained that the project was illegal due to fraudulent permissions. The court dismissed the petition with costs, instructing the UMC to proceed with actions in accordance with its notice.
The decision reinforces the judiciary's commitment to upholding urban planning laws and deterring fraudulent practices in real estate development. Jhalak Constructions has indicated its intention to appeal the judgment to the Supreme Court.
Bottom line:-
Fraudulent misrepresentation to obtain development permissions renders permissions null and void. Courts must take a strict approach against illegal constructions, fraudulent practices, and unauthorized developments.
Statutory provision(s): Maharashtra Regional Town Planning Act, 1966, Sections 45 and 51
Jhalak Constructions v. Ulhasnagar Municipal Corporation, (Bombay)(DB) : Law Finder Doc id # 2890789
