Summary
The Supreme Court rejected Raghogarh Municipal Council’s external-development-fee demands against National Fertilizers and GAIL. The relied-on State orders applied to housing societies, colonizers and individuals developing colonies; these public-sector entities developed employee housing, not units for sale or rent, and did not fall within those categories. The judgment sustained non-liability under the particular orders and demands, rather than declaring blanket immunity for all government companies from municipal charges.
Issues
- Whether the State orders authorizing external development charges covered employee housing developed by these public-sector undertakings.
Held
- The relevant State orders addressed internal development by housing societies, colonizers and individuals and external development charges for colonies constructed by those categories under municipal supervision. The claimed rate of Rs. 5 per square metre depended on that scope. (¶¶ 11, 12)
- The respondents were neither colonizers, housing societies nor individuals. They developed residential units for their employees, not for sale or letting, as public-sector undertakings funded by the Central Government. The specific external-development demands therefore did not apply. (¶¶ 12, 13)
- The Court affirmed the concurrent conclusion that the respondents were not liable for the external development fee demanded. Municipal expenditure needs did not expand the coverage of the relied-on orders. The ruling concerned these demands and their legal basis. (¶¶ 9, 11, 12, 13)
Result
Municipal Council’s appeals dismissed; non-liability for the external-development-fee demands upheld. No costs.