Navi Mumbai: The Bombay High Court has granted an interim stay on the Maharashtra state government’s order to the Panvel Municipal Corporation (PMC) to allot Floor Space Index (FSI) in lieu of Transferable Development Rights (TDR) for construction projects under its jurisdiction on payment of premium. This decision has come as a major relief to villagers in Panvel region.

The court’s interim order is expected to benefit local farmers, who will now be able to demand higher prices for their TDRs, which they receive in exchange for acquiring land for infrastructure projects.

The verdict came in response to two petitions filed against a March 15 order passed by the state’s urban development authority. The petitioners, Pawan Kadam, a farmer, and Haresh Keni, a former PMC councillor and BJP leader, challenged a clause in the Unified Development Control and Development Rules under the Maharashtra Regional and Town Planning Act.

The notification stated that within the jurisdiction of PMC, 75% of the total permissible TDR component could be availed on payment of a premium equal to 60% of the land rate specified in the annual fee schedule. The remaining 25% could be availed only in the form of TDR.

At least 11 villages in the PMC area have privately owned land. As per existing norms, landowners are given TDR as compensation when their land is acquired for public infrastructure such as roads and hospitals. Villagers usually sell this TDR to private developers at a price that is significantly higher than the value of their land. There is a significant demand for TDR for additional construction projects in the CIDCO nodal areas of Panvel, New Panvel, Kalamboli and Khanda Colony.

Kedar Soman, president of the Navnirman Sena Panvel in Maharashtra, who opposed the notification, said, “The government’s notification ordering immediate implementation came just a day before the Lok Sabha code of conduct came into force. This despite former PMC commissioner Ganesh Deshmukh rejecting such a proposal in September last year.”

He added, “The notification is unfair to the farmers as FSI is now available at very low prices. Since additional FSI is available from the municipal corporation, the developers do not need the TDR of the farmers.”

Soman further explained, “The farmers had no reason to take TDR as it had lost its value. Moreover, the PMC should have bought the land for millions of rupees instead of acquiring it against TDR. Where is the PMC’s funds for this?”

The high court on July 3 initially ordered a status quo as the notification was to be implemented immediately without a hearing. The urban development department then issued summons for a hearing on July 6, which was held on August 7. On August 8, the court issued a similar stay order on the second petition. The next hearing is scheduled for November 25.

Welcoming the order, Keni said, “We are grateful to the Supreme Court as hundreds of villagers will benefit from the stay. Also, PMC will be able to easily acquire land from the farmers who would otherwise have refused financial compensation as the price of land in their areas is not high. Now the developers have no option but to buy the TDR generated in the villages. PMC will get land without having to spend anything and the farmers will get double the price for their land.”

He continued: “Farmers could earn up to ₹15-20 lakh per guntha through TDR for land acquired by them. Based on the notification, developers could get the same development rights for much less. Then why should they buy it from farmers?”

Keni also mentioned that they have raised their concerns with both the government and PMC. He stressed that farmers were not consulted and that the order appears to primarily serve the interests of developers. He called on the government to withdraw the order, warning that otherwise farmers would be reluctant to release their land for infrastructure development.