Malls on market land should share revenue with civic body: HC

The Bombay high court (HC) has held that the description of a ‘market’ should now also cover malls that have banks and marriage halls. The court said it is incumbent

The Bombay high court (HC) has held that the description of a ‘market’ should now also cover malls that have banks and marriage halls. The court said it is incumbent on persons offering such services to share their revenue with the civic corporation, even if they may have developed the facilities at their own cost.

HT Image

HC justified its observation, saying that as the development was on the land belonging to the state, no private players or entities could be allowed to exploit the potential of the land.

The division bench of justices SC Dharmadhikari and RI Chagla, while hearing a public interest litigation (PIL) filed by activist Pradeep Indulkar through advocate Gauri Godse, was informed that in 1992 a building had been constructed on a plot of land in Thane reserved for a market, which housed various commercial establishments that were profiteering from the use of the premises without paying anything to the Thane Municipal Corporation (TMC).

One of the commercial establishments, through their advocate, submitted that the market was replaced by the building as huge residential complexes had come up and locals required a modern market and housing; not only shops but other amenities such as banks, restaurants, etc as well. They further submitted that the change in the use of the land was done at their own expense.

After hearing the submissions, the court said, “Today a market building has become a mall and a mall houses not only shops but much more than that. The revenue that is generated ought not to be pocketed entirely by private persons who have developed the plot of land, but equally by a public body.”