Government cannot claim right in transfer charges of immovable properties: HC

The Bombay High Court recently reiterated that the government has no right to ask someone to seek its prior approval before entering into any new transaction or transfer of immovable property.

A division bench of Justice Satyaranjan Dharmadhikari and Justice Bharati Dangre reiterated the ruling while hearing a writ petition challening the notices and letters of demand issued by the City Collector. The Collector by way of the notices and letters had demanded transfer charges of the petitioner — BSES’s property citing a Government Resolution (GR) issued way back in November 2001.

The BSES limited had accordingly contended that the GR is violating its right to equality before law and right to privacy.

To substantiate its case, the BSES had relied upon a 2009 judgement of the Bombay HC wherein it had held that once a property has been given on lease by the government then it has no right to claim share or demand the transfer charges if the same property is being transferred to some other party. During the course of hearing the judges were apprised of the fact that despite the Maharashtra government challenging the ruling before the Supreme Court, the judgement is still in force as it is not stayed. Having considered the facts of the case, the judges said, “On the specious plea that the challenge is pending in the Apex Court, we cannot ignore and brush aside a binding judgement of this court as that would be judicial indiscipline, particularly when the issues raised in this case are identical to the matter in which the judgement was delivered.”

Accordingly, the judges quashed the letters and notices issued by the Collector.