He is not correct in paying compensation to developer for road and open space area as it is unapproved layout
2) you are an interested person
3) amicable settlement with developer is best option
4) litigation is long drawn and expensive proposition
Land acquisition-Interested person or beneficiary to a trust
Approximately 50% of an unapproved layout was acquired by govt under section 17 of old act for bypass road in the year 2011 and the rest is remaining with the developer and few others. The acquired portion includes open space for park and road. The open space is roughly 10 % of the entire layout. The developer did not handover the road and open space to the municipality since it was an unapproved layout and was in his possession and enjoyment till the acquisition. I have purchased a plot in the acquired area more than 20 years back and I got 80% compensation for my plot area under the old act and the remaining 20% under the new act in 2021. I came to understand that the LAO has paid the compensation to the developer for the portion of land he owns that includes road portion and open space area since it was an unapproved layout and the developer did not hand over to the municipality and the title deeds land records were in the name of the developer and there was no mutation in the revenue records for road and open space. I do agree the road and the park space to be private road and private open space and I have bought the unapproved plot under my own risk. Since the developer has sold me the land as layout plots, the legal position of the developer has become Trustee of the entire layout and I am one of the beneficiaries to the trust. Please refer Supreme Court of India order in Pt. Chet Ram Vashist vs Municipal Corporation of Delhi on 26 October, 1994. In this case it is an approved colony but mine is an unapproved plot. 1. Whether the LOA is correct in his decision in paying the compensation to the developer for the road and open space area even though it is an unapproved layout? The defense of the LAO will be land cannot be acquired free of cost and there was no claim by the interested persons or municipality for the portion of road and open space area. And the only claimant was the developer. 2. What is my legal status after the award is passed, whether I am an interested person or beneficiary to the trust. If I claim as an interested person, I can ask for a reference under old or new act by claiming easement rights but more than 20 years passed since I have purchased the plot. I will be barred by limitations. Then also I have to prove that up to what extent I got rights in the road and open space area which is considered to be private. 3. If I am a beneficiary to the trust up to what percentage I can claim for the open area space and for road portion from the developer or LAO, please take into consideration that the open space is for the entire layout and the remaining 50% of the entire layout which is not acquired is with the developer and other few people. 4. instead of going for a lengthy legal battle whether I can settle the matter with the developer for a monetary consideration and disown the claim as beneficiary to the trust.
Asked 4 years ago in Constitutional Law
11 Answers
1. If you have the right in the said land then the said order is not proper. If you have claimed your right beforehand
2. Now beneficiary
3. It will depend on other beneficiaries if any
4. Yes you can
I had two different opinion of my legal status.. One is interested person and another is beneficiary of the trust. Which is correct and why?
Asked 4 years ago
You had purchased plot from developer in un approved layout
2) you are an interested person as developer could not claim compensation for land reserved for open spaces
3)the judgment of SC relied upon is in regards to an approved colony and not applicable in your case
See there is a thin line between both. If you have claim in compensation of the said acquisition you also comes under the definition of person interested under section 3(b) of the said Act
As an interested person my claim can be only easement rights. Am I barred by limitation since i have purchased the plot 20 years before 4(1) notification and i did not receive the compensation under protest, Do i have any other rights apart from easement rights?
Asked 4 years ago
developer has claimed compensation fraudulently for land reserved for open spaces
You have to take the plea that fraud was discovered recently and you have filed suit within period of 3 years of discovery of fraud
You can claim for compensation if applicable. Limitation need to be revived tactfully by creating it from knowledge of the same
1. You purchased your plot from the developer therefore the developer becomes your vendor.
The developer becomes the owner of the unsold plots and the common areas under his possession because the layout was not approved.
Therefore the claim for compensation from LAO by the developer is right and justified.
As you have been properly compensated for your land that was acquired by the authorities concerned, what is your concern about this.
2. If this is an unapproved layout, there is no question of common areas namely public road nor any other open space since it either belongs to society or the local civic body provided the layout is approved by the competent authority hence in my opinion your understanding that this is a trust proeprty is incorrect, you may not be eligible to claim any benefit that had been granted to the developer by the LAO.
3. See the above answer.
4. It is still not understood that how you claim to be a beneficiary of the trust which is not existing.
In my opinion you may not be considered by the concerned LAO authorities either as an interested person nor a beneficiary, therefore your claim may not be entertained by the authorities concerned, however you can pose a threat to the developer and demand your share on the lines of action that you may propose to take against him if he is not parting with any share out of the compensation amount he received for the open space of the unapproved layout.
Since your land has been acquired and you are no more a owner of the plot for which due compensation had been paid, you don't have even easement rights in the layout.
Hence there is no question of branding you as an interested person even for the purpose of easement rights.
Mr. Ajay Sethi sir you have told that LAO is not correct in paying compensation to developer for road and open space area as it is unapproved layout , can you please explain why compensation cannot be given to unapproved layout.
Asked 4 years ago
In my opinion the compensation for the acquisition of land given to the developer who is still holding the land at the time of acquisition is proper and right because in the unapproved layout. the developer is deemed to be the owner of the land acquired, may be by virtue of the registered GPA given to him by the landlord.
You had stated that
The acquired portion includes open space for park and road. The open space is roughly 10 % of the entire layout. The developer did not handover the road and open space to the municipality
2) in Maharashtra Under Section 127 of the Maharashtra Regional Town Planning Act, 1966, the BMC can acquire private land, marked as open space in the DP, and pay compensation to the original owner.