Tag Archives: Supreme Court judgement

Latest Supreme Court Judgment on Land Acquisition 2022

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By examining the Ministry of Statistics and Planning’s September 2018 flash report, the top five states where cost overruns occurred as a result of postponed project completion have been identified. Maharashtra topped the list with a cost overrun of Rs 1.99 trillion, delaying the completion of 129 projects. It led to the introduction of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement (Amendment) Bill, 2022. 

The amendment Bill is currently pending in the Rajya Sabha after being approved by the Lok Sabha on March 10, 2022. The amendment Bill has been released for all the major infrastructure development projects undertaken by the central and Maharashtra government, including the one in Mumbai, to speed up project completion and prevent further delays brought on by time-consuming procedures, procedural errors, and natural disasters. 

Bill 2022 amending land acquisition

The collector is granted special authority under Section 40 of the Act to purchase land urgently as required for the defense of India, national security, any emergencies brought on by natural disasters, or any other emergencies with the consent of Parliament, by the government’s directives. 

Two new sections, Sections 40A and 40B, are added to the amendment bill for the development of all infrastructure projects carried out in Mumbai by the Maharashtra government. 

Section 40A provisions 

  • Despite there being no such award, the collector will nonetheless purchase this land. 
  • According to Section 21 of the aforementioned Act, the collector may take possession of the aforementioned land based on the counsel of the Single Window No Objection Certificate Approval Committee after 30 days have passed since the notice was published. The government will then have complete ownership of the land, free from any liens. 
  • The government shall not take possession of such property without first giving notice to the occupier of its intention to take possession for at least 30 days and not more than 45 days. 
  • The collector will offer to pay compensation for the land before taking possession, and if payment is put off, the person who is entitled must still get an extra 2% of compensation each month. 

Section 40B provisions 

  • The government must issue a notice for publication in the official gazette before appointing the Single Window No Objection Certificate Approval Committee in Mumbai’s Metropolitan City. Section 40B (2) of the amendment bill contains a list of the committee members.     
  • After the government requests and submits the pertinent documents, the committee must submit its recommendations within 30 days. The committee should, however, report to the parties involved in the extension the considerations that the committee must consider when recommending a No Objection Certificate under sub-Section 5 of Section 40B (6) of the Amendment Bill. 

 Effects of the Change

The amendment speeds up the Act’s current multi-stage and drawn-out process of land acquisition and infrastructure development. They will benefit from the amendment in the following days:

  • It will assist the government in acquiring land more quickly while preserving the rights of the displaced people and landowners from whom the government will be purchasing the land. 
  • The modification also creates a new committee that separates the various authorities and departments currently involved in the procedure from one another. Establishing a single committee with equal representation that has the power to grant or revoke government approvals could eliminate bias, hold local communities and the environment’s interests, and ensure a transparent process. 
  • Ensuring the fairness of the land acquisition procedure and offering just compensation to the affected parties and landowners. It could foster the smooth start and completion of the necessary and emergency projects in the state. 

It is essential to implement such changes to help streamline the land acquisition process and time-bound project completion, which will result in lower capital costs because of timely acquisitions. It will help the government meet its goals. The committee’s recommendations and the policy and acquisition procedure, ensure transparency and lowers the likelihood of land-related lawsuits. 

Supreme Court Judgement on Commercial Use of Residential Property

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If you obtain permission from the local authority, you may use residential property as commercial real estate. Find out the process of going about this and other details. 

Saleha, an employee of a dentist, intends to convert her Vasai apartment into a clinic. Like Saleha, several other people are interested in actively leasing their residential property to businesses. It’s the norm in almost all cities due to the exorbitant rental prices. It reduces the cost of leasing or buying commercial real estate in addition to flight time and related expenses. 

Even though housing societies frequently oppose it, some areas are suitable for full commercial purposes in residential apartments. However, this area varies from state to state or even within a city. 

Residential and commercial properties have different characteristics. 

Let’s examine the distinction between residential and commercial real estate: 

  • Residential Property or Zone: A residential zone is a location with residential properties like apartments, plots, standalone homes, and floor apartments. Hotels or motels may exist in such areas, but no retail stores. 
  • Commercial Property or Zone: A commercial zone is a region that includes shopping centers, businesses, office buildings, lodging facilities, nightclubs, and restaurants, among other things. The Commercial Zone Act, which specifies which commercial activities are allowed in which zones, is in charge of this zone. Near places of worship like churches, mosques, and temples, for instance, certain commercial activities are forbidden. 

Is it possible to use a residential property for business purposes?

You can use a residential property for business with the necessary authorization. Every state has a different law regarding this; some states may only permit 30% of residential property to be used as commercial property, while others may allow 50%. Let us see what the law says. 

Let’s establish who is eligible to use residential property for commercial purposes. “Services by resident advocates, CAs, Lawyers, and Doctors are some of the approved commercial activities in any residential area,” a legal expert from MB states while dwelling on the same. Tutorials, dance, and yoga classes are also permitted to use the space. 

Is there a specific clause for this, then? “There is no specific provision for conversion of the use of an apartment from residential to commercial,” says Asha Basy, a partner at S Jalan & Company. You may use the apartment for business purposes, but such use shall be professional and shall not produce or manufacture any goods. Additionally, it should not bother other members of the community. 

However, the housing society must first grant the necessary approvals. Depending on the type of business, Basu says it might also be essential to obtain permission from the local municipal authorities to turn the flat into a commercial establishment. The landlord’s no-objection statement is necessary for tenants in addition to the usual approvals. 

What does the law say about converting residential property to commercial property?

Zoning law is a regulation that directs the transformation of residential property into commercial property. A piece of legislation that designates specific land use zones, either forbidding or allowing it. The law aims to safeguard against the detrimental effects of business operations. They try to keep the two distinct (commercial and residential). Residential, commercial, industrial, commercial, industrial, rural, combination zoning, agricultural zones, historic zones, and aesthetic zoning are just a few of the different zoning types. 

How does a residential property become a commercial property? 

A residential property’s transformation into a commercial property can take a long time. It is necessary to take all steps before starting commercial activities on residential property, regardless of how long it takes. It may lead to a penalty if you do not. This blog will walk you through turning a residential property into a commercial one. 

  • As a first step, go to the municipal authority in your city. You should visit the Delhi Municipal Corporation if you reside in Delhi. 
  • Step two is to submit a written application to the municipal officer to convert. It would be beneficial if you explained why you want to convert. 
  • Step three is to include the necessary paperwork for registering your business. Include additional pertinent information, such as the size of the company, its address, and the type of property. 
  • Step 4: The authorities will look into the company; if they discover no damage to the neighborhood or environment, they will only grant the company a license. 

Top Brand Hotels looking for growth on Noida-Greater Noida Expressway.

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Noida-Greater Noida Expressway is going to have one more addition to its glory as the top brand Hotels such as Marriott, Starwood, Oberoi and Hyatt have turned their interest in this locality.

As per the Analysts, it is going to be one among the greatest hotel hub in the country with an addition of around 2,500 hotel rooms. Projects such as Marriott Hotel, Marriott Executive Apartments and Fairfield Inn are already announced. These projects are expected to be very successful as the tourists will arrive in New Delhi, Agra and Formula One which is close to Greater Noida.

Akshay Kulkarni, director-hospitality, Cushman & Wakefield has recently said that “Availability of land in New Delhi to construct future hotels is low. As the most projects on the expressway come under mixed land use category, it has created an opportunity for hotel firms to bring their brands into the NCR region”.

After the recent Supreme Court judgement, hotel companies that were allotted projects by the UP government in 2007 are also likely to construct hotels. In the list of hotels, Canadian luxury brand Four Seasons, Inter-continental Hotel’s brands, including Crowne Plaza, Holiday Inn and Holiday Inn Suites are also going to be included.

Ankita Mehta, vice president, hospitality & commercial, Logix Group, said, “The availability of large tracks of land on the Expressway will lead to the development of five stars and luxury hotels in the area.” Marriott Hotels will manage the Logix Group Hotels.

HVS India, a Hotel Consultancy firm has tracked that construction of around 30 hotels has started in Noida and Greater Noida. They also believe that average room rates may get affected by the large supply of hotels in such a short term and may also create pressure on occupancies.