Nagpur High Court Upholds NMRDA Infrastructure Charges on Developers

On October 31, the Nagpur Bench of the Bombay High Court ruled against Sandeep Developers Pvt. Ltd. and the Agrawal family, dismissing their petition that contested infrastructure charges levied by the Nagpur Metropolitan Region Development Authority (NMRDA). The court determined that developers who accept layout approval conditions and sign agreements are barred from later disputing those charges.

The dispute arose when Sandeep Developers challenged the infrastructure fees imposed by NMRDA for land development in Mouza Lava, Nagpur district. They claimed that part of their land was previously designated for affordable housing, a reservation that had since been lifted. Consequently, they argued that NMRDA should not be entitled to recover infrastructure costs from the property.

In response, NMRDA asserted that the land in question is categorized under the R-4 residential zone, thus making it liable for infrastructure charges as per the relevant development regulations. During the court proceedings, it was highlighted that the petitioners had accepted the NMRDA's conditions for layout approval and had signed an agreement to pay the associated costs.

The High Court noted that the developers had already deposited the required fees and received project approval, emphasizing that they could not later challenge the terms of the agreement. Furthermore, the petitioners failed to demonstrate that their agreement was signed under duress or fraudulent circumstances.

The court underscored the necessity of infrastructure charges, stating they are essential for the development of civic amenities such as roads, water supply, electricity, and drainage in growing regions. The ruling confirmed that the imposition of these charges was valid under the Maharashtra Regional and Town Planning (MRTP) Act and the applicable development regulations. With no merit found in the petition, the court dismissed it outright.