BINAY MAHAPATRA Vs. STATE OF ORISSA

JUDGEMENT

(1.) This writ application is in the nature of a public interest litigation wherein the authority of the State Government as well as the Cuttack Development Authority to impose a fee called 'front -end -fee' of Rs. 5.000/ - as a condition precedent for approval of a building plan is being challenged.

(2.) IT is contended that when a citizen seeks permission to construct a house in accordance with the provisions of the Orissa Development Authorities Act, it is not open for the competent authority to demand a sum of Rs. 5,000/ - as front -end -fee as a condition precedent for applying for permission as neither the statute nor the rules made there - under authorise the levy in question It is further contended that such levy is arbitrary and grossly excessive, unreasonable and is a whimsical act of the authorities and consequently must be held to be unconstitutional, invalid and inoperative and must be struck down. The order of the Planning Member of the Cuttack Development Authority requiring such deposit as a condition precedent for processing of the application for permission to build up a house has been annexed as Annexure -1.

(3.) THE Water Supply and Sewerage Board was initially not a party to the writ application, but on being impleaded as a party pursuant to an application filed by the Board a counter affidavit has been filed on behalf of the Board. The stand taken in the counter affidavit of the Board is that the Board having been constituted on 24 -7 -1991 has takan up the implementation of the Water Supply Schemes in eleven major towns in Orissa including Cuttack. So far as Cuttack is concerned, the Board entrusted the work of preparing a detailed project report for Water Supply Scheme to a Management Consultant in New Delhi, who in the meantime has submitted a detailed project report and the estimated cost of implementing the Scheme of Water Supply to Cuttack City will be Rs. 2,857/ - lakhs. The said Consultant has also furnished a cash -flow statement and while calculating the estimated cost of the project and its repayment schedule it has taken into account the levy of Rs. 5,000/ - towards front -end.fee from each connection in Cuttack Town on cost -effective basis. On the basis of the aforesaid report of the Consultant, the Board has given its proposal of the levy of front -end - fee which has been duly approved by the State Government and the State Government in its stand has issued the Circular to the Cuttack , Development Authority for raising the demand in question as a condition precedent for processing an application for construction of a house within the Cuttack City. According to the Board, Section 16 of the Water Supply Act fully authorises the Board to make such levy and therefore there is no illegality or unconstitutionally in the levy in question.