Once a sanctioned builder plan expires, a builder must apply for a new one, the Calcutta High Court (HC) has ruled. While giving its order in a recent case, the high court clarified that developers can’t apply for an extension of a building sanction plan after the expiration of the construction period.
The September 30, 2022, order by the Calcutta HC set aside an earlier order of a single-judge bench in which the court had directed the Kolkata municipal commissioner to extend an expired sanction plan of a city-based developer. Aggrieved by the single judge bench order dated April 21, 2022, the commissioner moved the HC in appeal.
“The application for extension of validity of the sanctioned plan must be made before the time permitted for completing the construction expires,” the division bench of Justices Arijit Banerjee and Rai Chattopadhyay said while stating that the Supreme Court (SC) has already made this clear in the Pune Cantonment Board & Anr. Versus MPJ Builders & Anr case in 1996.
In its order, the top court has said for an extension of a building plan, an application has to be made prior to its expiry. In case a developer fails to do so, they will have to apply for a fresh sanction letter.
“The observations of the Hon’ble Supreme Court in the case of Pune Cantonment Board (Supra) in relation to Section 181A of the Cantonments Act, shall squarely apply to Section 399 of the KMC Act. The object of the two Sections of the said two statutes is the same – to regulate construction activities in the interest of public safety and planned development of the area to which the statute applies,” the HC said.
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
sunita.mishra@proptiger.com
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