The Bombay high court on Thursday upheld a government notification of November 2013 in a decision that will benefit the poor in terms of housing. The notification states that while developing a plot measuring 4,000 sqm or more, 20 per cent of it should be used to construct tenements for the economically weaker sections (EWS)/ low income groups (LIG).

A division bench of Chief Justice Mohit Shah and Justice MS Sanklecha dismissed five petitions by developers and co-operative housing societies challenging this notification. The judges observed, "We do not find that the petitioner is deprived of properties without authority of law under Article 300-A of the Constitution of India."

The notification makes it mandatory for the land owner to either develop plots of 30-50 sqm for EWS/LIG on 20 per cent of the land or hand over this part of land to the Maharashtra Housing and Area Development Authority (MHADA) for constructing EWS/LIG tenements at the rate prescribed in the annual statement of rates. There is also a clause which states that for affordable plots which are to be sold to MHADA, equal quantum of FSI will be given to be utilised on the remaining plots. The notification also lays down the method of deciding the cost of land acquisition in the Development Control Regulation itself and by-passes the Land Acquisition Act, 1894.

Rejecting the argument that the notification is arbitrary and unconstitutional, the HC observed that the owners are being provided with equal benefits. "The petitioners are being given compensation in the form of FSI or in the form of construction cost as per the ready reckoner. The compensation in both forms is not illusory. The land owner can exploit the land to the fullest extent by virtue of receiving FSI attributable to the 20% of land which is taken over for economically weaker sections. The cost of construction is also paid at the ready reckoner rate where the land owner builds tenements and gives it to the MHADA," the bench said.

The HC did not accept contentions of the petitioners that the notification does not define EWS. It observed that MHADA had issued a notification in February 2007 that classified EWS in LIG and MIG (Medium Income Group).

One of the petitions is of Central Bank Colleagues Co-operative Housing Society Limited at Vile Parle and Mayfair Housing Private Limited at Andheri through advocate Nivit Srivastava. The other petition is by promoter and builder Sanjay Kulkarni.