D. MANIKANDAN Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) The Government of Tamil Nadu during 2007 examined a proposal on the fixation of infrastructure and amenities charges in the context of the rapid developments that were taking place in the State. On consideration of such proposal, the Government was of the view that for ensuring sustainable development leading to formation of well planned urban areas and growth centres provision of adequate basic amenities have become essential and there was a necessity to provide adequate funds by establishing an infrastructure and amenities fund with adequate sources of revenue. Accordingly, by a Government order in G.O.Ms.No.191, dated 01.06.2007, the Government decided to collect infrastructure and basic amenity charges at the rates specified, giving power to the Director of Town and Country Planning to fix different rates for each of the categories of buildings for different areas taking into account the various aspects of developments including infrastructural needs. The ceiling of the rates was fixed in the said Government Order and the amount payable depended upon the type of building. By a subsequent Government order in G.O.Ms.No.215, dated 02.07.2007, the non-FSI and parking area were excluded from the levy of infrastructure and basic amenity charges and the applicants applying for building plan approval were required to pay 50% of the charges at the first instance and the balance 50% to be collected in two equal installments for which irrevocable Bank Guarantee was to be furnished. By G.O.Ms.No.4, dated 04.01.2008, a clarification was issued as regards the mode and method of payment. At that juncture, the Government realised that the Government orders, which have been passed for levying and collecting, these charges did not have any statutory backing. Accordingly, the Government introduced the Tamil Nadu Town and Country Planning (Second Amendment) Act, 2007, inserting new Section 63B and 63C in the Town and Country Planning Act, 1971, which dealt with levy of infrastructure and amenity charges and constitution of State Infrastructure and Amenities Fund respectively. In terms of Section 3 of the Amending Act, the levy of infrastructure and amenity charges any time between 01.06.2007 and the date of publication of the Amending Act in the Government Gazette was deemed to be and to have always been validity levied or collected in accordance with law, as if the Principal Act as amended by the Amending Act 2007 had been in force at all material times. The Government by G.O.Ms.No.22, dated 25.01.2008, framed rules under Section 63B of the Amending Act, namely the Tamil Nadu Town and Country Planning (Levy of Infrastructure and Amenity Charges) Rules, 2008.

(2.) In these batch of cases, there is challenge to the newly inserted provisions Section 63B & 63C and the Rules framed under Section 63B namely the Tamil Nadu Town and Country Planning (Levy of Infrastructure and Amenity Charges) Rules 2008. A few of the petitioners have not questioned the vires of the Amended Act or Rules, but have questioned the levy alone.

(3.) Few cases in these batch are writ appeals arising out of a common order in W.P.Nos.21402 of 2010 etc., batch dated 30.06.2011, by which the writ Court dismissed the writ petitions challenging the vires of Section 63B & 63C of the Act and the Rules and the individual writ petitions challenging the various orders passed pursuant to the amended provisions were also dismissed. Certain cases, which are tagged along with the batch of writ appeals are writ petitions filed by promoters and property developers after the order dated 30.06.2011 by which the batch of cases were dismissed by the writ Court. Therefore, broadly we have three category of cases before us