Gujarat High Court Vacates Stay on Auction of Commercial Shops in Residential Scheme

Court rules no evidence of construction beyond permissible limits under Mukhya Mantri Gruh Awas Yojna
In a significant decision, the Gujarat High Court has vacated a previously imposed stay on the auction of commercial shops constructed within the Rangoli Park Apartments, a residential scheme in Rajkot under the Mukhya Mantri Gruh Awas Yojna. The judgment, delivered by Justice Mauna M. Bhatt, concluded that there was no evidence to prove that the commercial construction exceeded the permissible limits as defined by the affordable housing policy and the General Development Control Regulations (GDCR).
The petitioners, Rajsinhbhai Chhaganbhai Kadchha and another, had contended that the construction of commercial shops was beyond the permissible limits set out in the development permissions granted. They argued that the scheme was a self-financed one, not falling under the affordable housing category, thus prohibiting commercial construction. The petitioners also claimed that the commercial shops were constructed in areas designated for parking in the initial plans.
The judgment clarified that under the affordable housing policy, commercial construction is permissible up to 10% of the total area or as per local GDCR provisions, whichever is higher. The court noted that no evidence was presented to show that construction exceeded these limits. It was observed that the commercial shops constituted less than 6% of the total area, thereby falling well within the permissible limits.
Justice Bhatt further outlined that the petitioners, who held leasehold rights for 99 years for their dwelling units, were not entitled to challenge permissible commercial construction on other spaces or land owned by the Gujarat Housing Board. The court emphasized that the development permission granted included both residential and commercial construction, and the petitioners took possession of their units after this permission was granted.
The ruling underscores the importance of adhering to established policies and permissions in housing schemes. It also highlights the necessity for petitioners to provide substantial evidence when challenging such permissions. The decision will allow the Gujarat Housing Board to proceed with the auction of the commercial shops, paving the way for further development within the Rangoli Park Apartments.
Bottom Line:
Auction of commercial shops constructed in a residential premises under a self-financed housing scheme - Commercial construction permissible to the extent of 10% of the total area or as per local GDCR provisions - Stay against auction vacated as no evidence of construction beyond permissible limits.
Statutory provision(s): Affordable housing policy dated 15.01.2014, General Development Control Regulations (GDCR)
Rajsinhbhai Chhaganbhai Kadchha v. State of Gujarat, (Gujarat) : Law Finder Doc Id # 2786346