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Legal Case Shots

Court judgements broken down into the case type, how the decision played out, and the lesson worth remembering, with the full judgement available as a PDF.

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Legal Case Shots is a searchable database of Supreme Court of India judgments, each broken down into the case type, the court's key holding, and a practical lesson learnt, with the full judgment available as a PDF for citation or deeper reading.

Civil Property & InheritanceSupreme Court of India

Chennai Metropolitan Development Authority v. D. Rajan Dev and Others

Civil Appeal · 2019 INSC 1356Decided 11 Dec 2019
Civil Appeal No. 9336 of 2019
Justice R. Banumathi · Justice A.S. Bopanna · Justice Hrishikesh Roy

Background

A Chennai builder, D. Rajan Dev, applied in May 2011 for additional Floor Space Index (FSI) under the government's "Premium FSI Scheme" for a residential-cum-commercial project. By the time the Chennai Metropolitan Development Authority (CMDA) processed the application and the government finally approved it in May 2012, the land's official guideline value (used to calculate the FSI charge) had risen sharply. The builder argued he should pay based on the lower guideline value prevailing when he first applied, and the Madras High Court's Division Bench agreed with him, directing CMDA to recalculate charges at the earlier, lower rate.

Decision Breakdown

The Supreme Court held that no legal right accrues to a builder merely by filing an application: the right to the Premium FSI benefit arises only once the government actually grants approval, and charges must be calculated using the guideline value in force on that approval date, not the application date. The Court found no undue delay by CMDA or the government in processing the application, noting the builder himself had initially submitted a defective plan. It relied on its own recent precedent (Prestige Estates) holding that Premium FSI liability crystallises on the date of government approval. The High Court's judgment was set aside, the appeal was allowed, and CMDA was permitted to recover the balance Premium FSI charges from the builder.

Lesson Learnt

Merely submitting an application for a government permission or benefit does not create a vested right: the applicable rates, fees, or charges are generally those prevailing on the date the authority actually grants approval, not the date the application was filed, unless the authority itself caused unreasonable delay.

Chennai Metropolitan Development Authority v. D. Rajan Dev and Others – Legal Case Shots | LegalAware