ABB LIMITED Vs. MUNICIPAL CORPORATION FARIDABAD

JUDGEMENT

(1.) The 2nd respondent through the impugned memos dated 11.10.2006 and 08.01.2007 sought for deposit of External Development Charges (EDC), amounting to Rs. 1,16,58,775/- for approving of the building plan submitted by the petitioner. This demand was purported to be in consonance with the Directive of the Haryana Urban Development Authority on the subject of fixation of EDC in cases of release/change of land dues dated 15.01.2002. The petitioner's contention was that the municipality does not have a power to levy EDC in cases where the building is situate within the Faridabad Municipal Corporation limits and where the petitioner had applied for sanction for additional construction in the existing construction complex of the petitioner's factory. The justification for the respondents' action as raised in the written statement was that the Municipal Corporation, Faridabad had revised the zoning plan of the new industrial township (NIT), wherein the floor area ratio (FAR) had been raised from 75% to 125% and in view of the fact that the Municipal Corporation had upped its town level service with regard to the enhanced FAR in the industrial area of NIT, the EDC had been decided to be recovered between 75% to 125% at the time of approval of building plans.

(2.) The source of the power to refuse the zoning plan of the area within the jurisdiction of the Municipal Corporation was referred as falling within the Section 346 of the Haryana Municipal Corporation Act, 1994. The contention in defence was that the petitioner's site fell within the jurisdiction of the Municipal Committee NIT, Faridabad in the year 1969, later it fell within the jurisdiction of Faridabad Complex administration from 1971 to 1994 and later it fell within the jurisdiction of the Municipal Corporation Act. All the building plans were required to be approved under the Faridabad Complex administration (Regulation and Development) Act, 1971 and presently the approval was required to be done under the Haryana Municipal Corporation Act, 1994.

(3.) According to the respondent, the industrial plot of the petitioner-Company had been allotted in the year 1965 by the Government and it did not attract the provisions of EDC at that time. However, in view of the increase in FAR and the revision of the zoning plan, it became possible for the petitioner to increase the construction area within the existing land and the Corporation, therefore, became entitled to recover the difference of EDC as per the rates calculated by HUDA, Faridabad Urban Area for augmentation on town level service for the enhanced FAR. The reference to payment of EDC itself comes through a provision in Haryana Developmental Regulation of Urban Areas Act of 1975.