MHC refuses to set aside single judge order dismissing CMDA’s demand

CHENNAI: The Madras High Court has refused to set aside the single judge’s order which held that the Chennai Metropolitan Development Authority’ (CMDA) demand of additional premium Floor Space Index (FSI) charges from a private real estate developer is erroneous.

CMDA moved the Madras High Court (MHC) challenging the single judge’s order which held that the demand of revised FSI charges is erroneous.

The case was listed before the first division bench of the MHC comprising Chief Justice S V Gangapurwala and Justice D Bharatha Chakravarthy.

In 2014 Akshaya Signature Homes Private Limited approached CMDA for planning permission to construct dwelling units in a built-up area of 9326.21 square meters, which was granted and the real estate developer also paid Rs. 12.27 crores as premium FSI charges.

Subsequently, when the real estate developer approached the CMDA again to revise the planning permission for the reduced built-up area of 9314.59 square meters, the CMDA demanded RS. 5.72 crores as additional premium FSI Charges on the grounds that the rates have been revised.

Aggrieved by this the real estate developer approached MHC and the single judge also held that the demand for additional charges is erroneous and directed to refund the amount.

Challenging this, the CMDA moved the MHC to set aside the single judge’s order. However, the bench dismissed the appeal and directed the CMDA to comply with the single-judge order within six weeks.