Allahabad High Court:Development Authorities can't levy and demand of various fee including bank guarantee

judgment (WRIT - C No. - 56485 of 2013 Petitioner :- Smt. Rekha Rani Respondent :- State Of U.P. Thru Secy. And 3 Others) date 12.12.2013 where in a bunch of writ petitions  clubbed  together to decide common question of facts and law  with   regard   to   the   competence  of   the Development Authorities constituted under Act 1973 to levy and demand  of (a) External  development  fee  (b) Internal development   fee   (c   )Sub-division   charges   (d)   park   fee   (e) compounding   fee   in   respect   of   sub-division   charges,   (f) inspection/   supervision   charges,  (g) labour   cess,   (h)   bank guarantee   for   the   value   of   the   cost   of   the   land   before sanctioning the building plan as per the application submitted under Section 14 of the 1973. For recorded the demand under the heads of (a) permit   fees (b) malwa fee (c) water fees (d) Triveni Mahotsav fee  has not been challenged.

                                                                                                                                                                                       

Bench of Hon'ble Arun Tandon,J and Hon'ble Anjani Kumar Mishra, J. disposed  bunch of Writ petitions with following directions:

1. We hold that the development fee both external and internal as well as city development charges/impact fee cannot be levied or collected by the Development Authorities, so long as statutory rules in exercise of powers under Section 15 (2-A)/38-A  of Act, 1973 are not framed.
2. We   direct   that   henceforth   the   Development Authorities shall not levy or collect any development fee both external   and   internal   as   well   as   city   development charges/impact fee until statutory rules as required are framed.
3. We   also   hold   that   the   demand   of  sub-division charges, compounding fee for sub-division, as wholly illegal and the Building Bye-Laws framed in that regard need not be given effect   to.  The   Development  Authorities   must   insist   for   open space   being   left   in   accordance   with   the  Building   Bye-Laws instead of charging money for violation thereof.
4. Demand of permit fee,   supervision fee, inspection fee, park fee, impact fee, labour cess  is held to be illegal, as not contemplated by any of the provision of Act, 1973.
5. Petitioners, who have deposited the money under the aforesaid heads, (a), (c) and (d) under protest or under interim orders passed in these petitions, shall be entitled for refund of the same on an application being made before the Development  Authority   concerned  within   one   month   of   the making of the application. 
6. All money collected by the Development Authorities from   other   persons   under   the   aforesaid   heads   shall   be transferred to the relevant account and shall be utilized for the purposes, mentioned under Act, 1973. 
7. The demand of Bank Guarantee in advance towards the cost of land and construction of houses for E.W.S. and persons   belonging   to   lower   income   group,   as   also   for installation  of  rain water  harvesting system is  also  quashed subject to conditions mentioned in the body of the judgement.

Details of the judgment :

Case :- WRIT - C No. - 56485 of 2013 Petitioner :- Smt. Rekha Rani Respondent :- State Of U.P. Thru Secy. And 3 Others the judgment date: 12.12.2013