Mere movement of an acquisition proposal does not prevent reservation lapse under Section 127 of the MRTP Act.

The petitioners claimed ownership of land bearing Survey No. 122/1, admeasuring 1 Hectare 91 R, situated within the limits of the erstwhile Malegaon Municipal Council.

The land had been reserved in the Development Plan for a Primary School/High School and, subsequently, for purposes including a Primary School and Playground.

Although the Revised Development Plan was published in 1986, the land was neither acquired nor released from reservation.

The petitioners issued a purchase notice under Section 49 of the Maharashtra Regional and Town Planning Act, 1966 (“MRTP Act”) and thereafter served a statutory notice under Section 127 on 9 September 1994, received by the Municipal Council on 12 September 1994.

The Municipal Council admitted that proposals for acquisition had been prepared and placed before its General Body, but no decision was taken and no acquisition proceedings were completed.

The petitioners accordingly sought a declaration that the reservation had lapsed and that the land was available for development.

Whether the reservation over Survey No. 122/1 had lapsed under Section 127 of the MRTP Act because the land was not acquired, or effective steps for acquisition were not commenced, within the statutory period after service of the purchase notice.

Whether the preparation and placement of an acquisition proposal before the Municipal Council’s General Body constituted “steps” for acquisition under Section 127 of the MRTP Act.

Whether the land was required to be declared released from reservation and made available to the petitioners for development as permissible for adjacent land.

The Court applied Sections 49 and 127 of the MRTP Act.

Section 127 provides that where land reserved, allotted, or designated under a plan is not acquired by agreement within ten years from the date on which the final plan comes into effect, the owner or person interested may serve a purchase notice on the planning or appropriate authority; if, within 24 months from service of the notice, the land is not acquired or effective steps for acquisition are not commenced, the reservation is deemed to have lapsed and the land is deemed released and available to the owner for development as permissible for adjacent land.

The Court relied on Girnar Traders v. State of Maharashtra & Ors., (2007) 7 SCC 555, for the meaning of “steps taken” for acquisition, holding that merely initiating or processing an administrative proposal does not satisfy the statutory requirement.

The Court found that the petitioners’ Section 127 notice was validly served and that the statutory period had long expired without acquisition of the land.

Although the Municipal Council had prepared acquisition proposals and placed them before its General Body, the proposals had not resulted in any decision, acquisition proceedings, or other effective statutory action.

Applying Girnar Traders, the Court held that the mere movement of an internal proposal could not constitute the requisite “steps” for acquisition under Section 127.

Since the land remained unacquired beyond the prescribed period, the statutory consequence of deemed lapsing of the reservation followed.

The land was deemed released from the reservation shown in the Development Plan/Revised Development Plan and was held to be available to the petitioners for development in accordance with the applicable planning regulations governing adjacent land.

The State Government was directed to notify the de-reservation in the Official Gazette within six weeks, and the rule was made absolute.