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Delhi Development — Misuse of residential premises — Sealing and de-sealing of properties — Jurisdiction of Monitoring Committee and Judicial Committee — De-sealing of shop-cum-residence — New Rajinder Nagar Market (LSC), New Delhi — Whether upper floors of Shop/Plot No. 106 intended for commercial use — Held, No. Monitoring Committee (appointed vide orders dated 07.05.2004 and 24.03.2006 in M.C. Mehta case) was empowered only to prevent misuse of residential premises by conversion to commercial use. Later, a Judicial Committee (constituted vide order dated 13.09.2022) was empowered to hear matters relating to sealing/de-sealing, regularization, demolition, and encroachment. Applicant sought de-sealing of Shop No.106, New Rajinder Nagar Market, claiming the entire building was intended for commercial use. Judicial Committee had passed a common order dated 18.12.2023 treating markets “en bloc”. MCD contended that only the ground floor was commercial, upper floors were residential, and there were unauthorized constructions. Held: Judicial Committee’s order dealt only with markets in general, not with individual cases. Factual adjudication was necessary to determine the use of individual premises. Documents produced by applicant (lease deed of 06.08.1987, conveyance deed of 28.02.1989, sanctioned plan of 2005) showed only ground floor was commercial and upper floors were sanctioned as residential. No material showed that the first floor had been constructed or used commercially in 1961 as claimed. Under Master Plan for Delhi (MPD) 2021, Local Shopping Centres (LSC) are divided into (i) planned LSCs (exclusively commercial) and (ii) designated LSCs (shop-cum-residences permitting commercial use of upper floors after payment of conversion charges). New Rajinder Nagar Market falls in a shop-cum-residence designated LSC. Hence, conversion of residential upper floors to commercial use is permissible only after payment of prescribed conversion charges and regularisation of excess Floor Area Ratio (FAR) and removal of non-compoundable deviations. Applicant’s premises exceeded sanctioned FAR (162.32 existing as against 260.40 permissible), with further unauthorized structures. Consequently, request for de-sealing and commercial use of upper floors was rejected. However, MCD directed to issue fresh notice for inspection, specify non-compoundable portions, and indicate conversion and penalty charges payable for regularization and conversion. Applicant permitted to comply by (i) removing non-compoundable constructions and (ii) paying conversion and penalty charges, after which commercial use of upper floors may be regularized. Held: “On a broad overview of the documents produced by the applicant with respect to Shop No.106 in New Rajinder Nagar Market, we find that the lease and the subsequent freehold rights granted permit only the ground floor to be used as commercial area. The upper floors though eligible for conversion, it can happen only with payment of the conversion charges. The additional FAR as built and existing in excess of that sanctioned will also have to be regularised by paying penalty charges and any non-compoundable constructions will have to be removed.” (per K. Vinod Chandran, J. for the Bench) Direction: I.A. for de-sealing rejected. MCD to issue inspection notice; joint inspection to be held. Specific written order to be issued identifying: (a) Non-compoundable constructions; (b) Conversion charges for upper floors; and (c) Penalty for excess FAR. Applicant entitled to comply by removing non-compoundable portions and paying charges for regularization and conversion. Result: I.A. Nos. 203615/2024, 218080/2024 and 210981/2025 — Rejected with directions as above.


Delhi Development — Misuse of residential premises — Sealing and de-sealing of properties — Jurisdiction of Monitoring Committee and Judicial Committee — De-sealing of shop-cum-residence — New Rajinder Nagar Market (LSC), New Delhi — Whether upper floors of Shop/Plot No. 106 intended for commercial use — Held, No.


Monitoring Committee (appointed vide orders dated 07.05.2004 and 24.03.2006 in M.C. Mehta case) was empowered only to prevent misuse of residential premises by conversion to commercial use. Later, a Judicial Committee (constituted vide order dated 13.09.2022) was empowered to hear matters relating to sealing/de-sealing, regularization, demolition, and encroachment.


Applicant sought de-sealing of Shop No.106, New Rajinder Nagar Market, claiming the entire building was intended for commercial use. Judicial Committee had passed a common order dated 18.12.2023 treating markets “en bloc”. MCD contended that only the ground floor was commercial, upper floors were residential, and there were unauthorized constructions.


Held: Judicial Committee’s order dealt only with markets in general, not with individual cases. Factual adjudication was necessary to determine the use of individual premises. Documents produced by applicant (lease deed of 06.08.1987, conveyance deed of 28.02.1989, sanctioned plan of 2005) showed only ground floor was commercial and upper floors were sanctioned as residential. No material showed that the first floor had been constructed or used commercially in 1961 as claimed.


Under Master Plan for Delhi (MPD) 2021, Local Shopping Centres (LSC) are divided into (i) planned LSCs (exclusively commercial) and (ii) designated LSCs (shop-cum-residences permitting commercial use of upper floors after payment of conversion charges). New Rajinder Nagar Market falls in a shop-cum-residence designated LSC. Hence, conversion of residential upper floors to commercial use is permissible only after payment of prescribed conversion charges and regularisation of excess Floor Area Ratio (FAR) and removal of non-compoundable deviations.


Applicant’s premises exceeded sanctioned FAR (162.32 existing as against 260.40 permissible), with further unauthorized structures. Consequently, request for de-sealing and commercial use of upper floors was rejected.


However, MCD directed to issue fresh notice for inspection, specify non-compoundable portions, and indicate conversion and penalty charges payable for regularization and conversion. Applicant permitted to comply by (i) removing non-compoundable constructions and (ii) paying conversion and penalty charges, after which commercial use of upper floors may be regularized.


Held:


“On a broad overview of the documents produced by the applicant with respect to Shop No.106 in New Rajinder Nagar Market, we find that the lease and the subsequent freehold rights granted permit only the ground floor to be used as commercial area. The upper floors though eligible for conversion, it can happen only with payment of the conversion charges. The additional FAR as built and existing in excess of that sanctioned will also have to be regularised by paying penalty charges and any non-compoundable constructions will have to be removed.”

(per K. Vinod Chandran, J. for the Bench)


Direction:


I.A. for de-sealing rejected.


MCD to issue inspection notice; joint inspection to be held.


Specific written order to be issued identifying:


(a) Non-compoundable constructions;


(b) Conversion charges for upper floors; and


(c) Penalty for excess FAR.


Applicant entitled to comply by removing non-compoundable portions and paying charges for regularization and conversion.


Result:


I.A. Nos. 203615/2024, 218080/2024 and 210981/2025 — Rejected with directions as above.2025 INSC 1274

Page 1 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

Reportable

IN THE SUPREME COURT OF INDIA

CIVIL ORIGINAL JURISDICTION

I.A. Nos.203615 & 218080 of 2024

and

I.A. No.210981 of 2025

in

Writ Petition (C) No.4677 of 1985

M.C. Mehta

…Petitioner

Versus

Union of India & Ors.

...Respondents

O R D E R


1. The applicant is concerned with plot bearing No.106

and the building thereon situated in New Rajinder Nagar

Market (LSC), New Delhi, admeasuring approximately 89 sq.

yards. The petitioner by this I.A. prays for de-sealing the

‘commercial premises’ at plot No.106 relying on the common

order dated 18.12.2023 passed by a Judicial Committee

appointed by this Court in W.P.(C) No.4677 of 1985. The very

same order has been challenged by the Municipal

Corporation of Delhi (MCD) in I.A. No.32418 of 2024. We are

in the present I.A. concerned only with the claim filed by the

individual for de-sealing of his premises.

Page 2 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

2. Before we go into the nitty gritty of the claim raised in

the I.A., we have to briefly notice the history of the litigation.

As has been submitted by the MCD, over a period of time

number of markets/neighbourhood shopping areas were

developed by the Land and Development Office (L&DO), the

Delhi Development Authority (DDA) & the MCD with

participation of private developers. Based on the Master Plan

for Delhi, 1962 (MPD’1962), the shopping facilities and the

shop-cum-residences were shown in the zonal development

plans wherein layout plans were approved for different

residential colonies by the MCD. Based on the Building ByeLaws, 1959 as amended in 1964, the occupiers of the shopcum-residences put the residential area also to commercial

use upon which show cause notices were issued against the

unauthorised conversions. W.P.(C) No.4677 of 1985, a Public

Interest Litigation (PIL) was filed before this Court

complaining of the stifling environment within Delhi, seeking

multiple prayers to better effectuate the decongestion, like

shifting of heavy and noxious industries, stopping mining

activities in Aravali Hills in and around Delhi, demolition of

Page 3 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

colonies built on forest land as also misuse of premises and

unauthorized constructions.

3. In the said Writ Petition, this Court on 07.05.2004,

appointed a Monitoring Committee comprising of Chief

Secretary of Delhi, the Commissioner of Police, Delhi,

Commissioner of MCD and Vice-Chairman, DDA for

stoppage of illegal industrial activities. Later by order dated

24.03.2006, a three Member Monitoring Committee

comprising of the Former Advisor to the Election

Commission, Chairman of EPCA and a Major General (Retd.)

was appointed to oversee the implementation of law;

especially to proceed against offensive premises, built or

converted unauthorisedly. The Monitoring Committee

appointed in 2006 was divested of its powers in 2012 and

later it was restored in 2017. In the meanwhile, at one point

in 2012, the matters were also transferred to the High Court

which order was also recalled in the year 2017, for the slow

progress made in the High Court, on which date the

Monitoring Committee’s powers were also restored. The

Monitoring Committee proceeded under the authority 

Page 4 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

granted by this Court and sealed residential premises on

leased/free hold land when the same was challenged before

this Court.

4. This Court by order dated 14.08.2020 categorically

found that the Monitoring Committee was appointed only to

prevent misuse of residential premises by conversion to

commercial use and not with respect to residential premise

used as such. The order specifically noticed the constitution

of a Special Task Force (STF) by order dated 25.04.2018

passed by this Court and found that the Monitoring

Committee at best could only make suggestions to the STF

with respect to encroachment on the public land, roads and

public places and not proceed peremptorily to seal the

premises, which would in effect deprive the land

owner/lessee from availing statutory remedies. Various

reports of the Monitoring Committee were referred to and

some extracted. The procedure of sealing, it was expressed,

carries with it civil consequences and there was a procedure

in place as per the Delhi Municipal Corporation Act, 19571

1

For brevity ‘the DMC Act’

Page 5 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

providing for an appeal to the Tribunal constituted. It was

found that the Monitoring Committee would not have the

statutory powers conferred on the authorities under the

enactment. The sealing of premises by the Monitoring

Committee was set aside and the notices issued for

demolition, on the reports of the Monitoring Committee,

were also quashed.

5. This Court again by order dated 13.09.2022 appointed

a Judicial Committee to consider the following aspects.

“i) Sealing and de-sealing of properties;

ii) Regularization and/or levy of penalties or

conversion charges;

iii) Demolition of unauthorized construction; and

iv) Directing the removal of encroachment.”

6. The Judicial Committee was conferred with the

jurisdiction to hear the challenge to the orders/decisions on

any of the above aspects passed by or on recommendations

of the Monitoring Committees constituted by this Court by

orders dated 07.05.2004 and 24.03.2006. The orders of the

Judicial Committee with respect to de-sealing and rejection

of the application as opined by this Court could be 

Page 6 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

challenged before this Court wherein it was also observed

that this Court would adopt the SLP approach. The objection

raised by the learned Amicus Curiae regarding certain

applications filed by associations/federations was also

noticed and it was observed that the remedy for individual

cases cannot lie through the associations/federations, since

the factual scenario would vary. All applications pending

before this Court was hence referred to the Judicial

Committee for consideration and passing orders and the

associations/federations as also those seeking individual

relief were directed to approach the Judicial Committee

thereafter; except a challenge to the master plan, ordinances

issued from time to time, the application concerning the

marble markets and challenge to the constitution of the

Monitoring Committee and the STF. We have to immediately

notice that the order of the Judicial Committee challenged in

the above I.A. refers to the markets/shopping centres ‘en

bloc’ and does not deal with the individual case of the

applicant.

Page 7 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

7. We are hence of the opinion that the case of the

applicant to enable de-sealing by virtue of the order passed

by the Judicial Committee will have to be considered on the

merits of the facts arising on the subject premises.

8. We have heard Mr. Kailash Vasdev, learned Senior

Counsel, appearing for the applicant, learned Senior

Counsel Mr. S. Guru Krishna Kumar, the Amicus Curiae and

Mr. Sanjib Sen, learned Senior Counsel appearing for the

MCD.

9. On behalf of the applicant, it was submitted based on

the documents referred to from the I.A., compiled separately

for our convenience, to assert that the subject premises was

intended to be used commercially. Much reliance was also

placed on the order of the Judicial Committee which holds

that the properties in New Rajinder Nagar Market was

intended to be used on a commercial basis. The learned

Amicus Curiae and the learned Senior Counsel appearing for

the MCD, however asserted that only the ground floor could

be used as commercial space and even the applicant had

applied for construction of residential accommodation on the 

Page 8 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

upper floors. Even after completion of the construction for

residential use, the building has been combined with the

adjacent plot, which is against the regulations, the master

plan and the various circulars and notifications issued in this

behalf. A number of such conversions from residential to

commercial have been permitted, based on payment of

conversion charges to ensure that the infrastructure

requirements could be met from such amounts. There was no

intention to enable the allottees of lands to have windfall

benefits, since that would run against the concept of

sustainable development. When residential spaces are

converted as commercial, there would be more footfalls and

there would be need to augment infrastructure; providing

parking spaces and other facilities for common use of the

public visiting the commercial spaces. It is also pointed out

that there are unauthorised constructions made by the

applicant which also has to be dealt with.

10. With respect to the order of the Judicial Committee

which has considered the relevant provisions of the law

juxtaposed with various office orders and dealt with the rival 

Page 9 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

contentions, it is more on a general manner and not on an

individual basis. Insofar as New Rajinder Nagar Market is

concerned, the association’s application was before the

Committee and the specific premises referred to are plot

Nos.106 and 79, the first of which belongs to the applicant.

Reliance was placed on a letter issued by the L & DO dated

19.11.1957 to one Dr. K.L Tuli, wherein it was specified that

there was no objection to the sanction of the plan if the first

floor is being used for commercial purpose and not for

residential use. Reference was also made to lease deeds

dated 16.05.1974 and 19.07.1975 pertaining to the Old and

New Rajinder Nagar markets which speaks of erection of

single storied building containing one business flat or double

storied building with one or two business flats. The word

‘business’ was substituted for residential which clearly

indicates that the use intended was commercial and not

residential.

11. We are not persuaded to place any reliance on the

letter issued to a third-party or to the supplementary lease

deeds which are not specified as the one in the name of the

two plots referred therein. We would, hence, go by the 

Page 10 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

arguments addressed before us with reference to the various

documents, which though may not be a strictly SLP approach,

will have to be resorted, to enable factual consideration. This

is more so since the consideration by the Judicial Committee

has virtually made ineffective the statutory remedies where

a factual adjudication would have been possible.

12. This Court has also by Order dated 22.08.2024 looked

at the order of the Judicial Committee dated 18.12.2023 and

found prima facie that the Committee has not looked into

individual cases of buildings/units. It has also been observed

that it is necessary for the Committee to call upon the

applicant to produce copies of the sanctioned plans in

respect of individual buildings/units and copies of

documents of allotments/ purchases. These are the

documents which the Judicial Committee has not looked into,

which was to be done on a case-to-case basis.

13. As has been noticed in the order of the Judicial

Committee the influx of refugee migration to Delhi in the

1950s necessitated the formulation of a master plan for

focused development, helmed by the local authority but with

private participation. The subject plot was allotted to the 

Page 11 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

predecessor-in-interest of the applicant through a certificate

of possession produced as Annexure A-29, the layout plan of

which is produced as Annexure A-30. The letter of the L&DO

dated 09.11.1957 with reference to one Dr. K.L. Tuli relied on

by the Judicial Committee is produced as Annexure A-31.

The contention of the applicant is that the subject plot was

given in possession to the predecessors in interest as per

Annexure A-29, specifically designating the property as a

shop which squarely indicates the commercial purpose for

which it is intended. Further, as specified in Annexure A-31

which is a similarly situated plot in the very same market, the

first floor was permitted use as a commercial space. It is the

further contention that the predecessor-in-interest of the

applicant, in the year 1961, constructed the first floor of the

premises as commercial, after obtaining necessary

permission. Subsequently on 06.08.1987, a lease deed was

issued in the name of the predecessor-in-interest of the

applicant as per Annexure A-37 which also showed the

nature of the property as commercial, after which the

conveyance deed was issued in the name of the predecessor-

Page 12 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

in-interest of the applicant, indicating, again, the plot to be

commercial.

14. Contemplating sale of the lease hold rights, the

predecessor-in-interest approached the L&DO for an

inspection and the proforma drawn up for the said purpose

Annexure A-40 also indicated it as commercial. The

applicant himself was called upon to pay additional ground

rent at commercial rates for the additional floors (first floor)

which was paid on 27.12.1988 as evidenced at Annexure A41 after which the permission for sale was obtained in 1989.

The applicant came into possession of the premises vide sale

deed dated 28.02.1989 and it was thereafter that an

application was made to convert the property from leasehold

to freehold. The input checklist for conversion, as prepared

by the L&DO Annexure A-45 also indicated the property to

be a shop and the charges paid by the applicant for

conversion was also at commercial rates. There was no

undertaking made by the applicant at any point of time nor

by his predecessor-in-interest that the property would be 

Page 13 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

used only for residential purpose or no commercial purpose

would be carried on in the upper floors.

15. Before we look at the documents, as referred to by the

applicant, we have to specifically notice that the admitted

position is that the ground floor of the property in question

was given in possession on lease, and subsequently

conveyed, to be used as a shop for commercial purpose. The

question is only whether the upper floors can be constructed

and used for commercial purpose. Annexure A-29, the

certificate of possession, specifically speaks of house No. 32

in Block No.25 out of which Shop No.106 in Rajinder Nagar

was given possession to the predecessor in interest. We

cannot place any reliance on Annexure A-31 since there is

nothing in the said document of 1957, indicating that the New

Rajinder Nagar Market was intended as a fully commercial

one. Nor is anything placed before us to indicate that the

documents of such property was similar to the demise of

possession in favour of the applicant's predecessor-ininterest. Further admittedly on the said date there was no

additional construction sought for by the predecessor-in-

Page 14 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

interest and what existed was the ground floor shop.

Annexure A-34 is an office order issued by the L&DO in the

year 1979 specifically dealing with shop-cum-residences

and the user clause having been specified as shop-cumresidence which has no bearing on the issue.

16. Annexure A-37 is a lease deed dated 06.08.1987 in

favour of Shri Hira Lal, the predecessor-in-interest of Shop

No.106 of New Rajinder Nagar which does not speak of any

first floor having been constructed as contended by the

applicant, in the year 1961. On the very same day, Annexure

A-38 deed of conveyance was also executed, which, in its

Schedule I, specifically speaks of a single storied building

which again puts to peril the contention of the applicant that

there was a first floor constructed in the year 1961 and the

same was also intended for commercial use.

17. Annexure A-39 is a notice of inspection issued to the

predecessor-in-interest in the year 1988 when as contented

by the applicant the leasehold rights in the premises was

sought to be sold. Therein it has been specifically indicated

that the existing building as per the previous plan sanctioned 

Page 15 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

under lease/construct by CPWD is only 570 sq. feet on the

ground floor. True, under paragraph 10, the plans under

L&DO were referred to which speaks of first floor coverage

of 529 sq. feet, which as per the proforma prepared on

inspection had not materialised at that point. There is nothing

in Annexure A-41 grant of sale permission to indicate that the

payments were made on commercial rates. The sale deed

itself is relied on by the applicant, produced as Annexure A43 which is dated 28.02.1989 by which the leasehold rights

was transferred to the applicant. The specific recital in the

said deed indicates a government-built Shop No.106,

measuring 89 sq. yards situated in the abadi of New Rajinder

Nagar, Shankar Road, New Delhi with the specified

boundaries, the leasehold rights in which were intended to

be conveyed. Hence, as on the date on which the sale was

made to the applicant, Shop No.106 had only the ground

floor, in the plot of 89 sq. yards area.

18. It is also pertinent that this Court by order dated

20.05.2025 directed the officers of the MCD to visit the

premises and report on the compliances. It was also 

Page 16 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

specified that those who want relief of de-sealing must apply

to this Court. This Court also observed that if such

applications are made before Court, the same would be

considered on its merits without being influenced by orders

passed by the Judicial Committee. In this context, we cannot

but notice the finding of the Judicial Committee with respect

to a circular issued by the DDA dated 22.06.2025, which

referred to a case filed by one Asha Pal Gulati in which the

High Court of Delhi after examining the issue and keeping in

view the circular issued by the L&DO in 1983 directed that

with respect to the use of the top floors there would be no

proceedings for misuse. We have not been informed, how

the said circular would apply to the applicant herein,

especially in the context of the communication issued by the

DDA itself on 27.11.2018 produced as Annexure P/1 in I.A.

No.32418 of 2024. In the said letter it has been specified that

shop-cum-residence/shop-plot complex declared as LSC

and CSC (Local Shopping Centre and Convenience

Shopping Centre), wherein standard plan was used, the

upper floor was intended to be residential. Whereas in shopplot complex which were not made as per the standard plan,

Page 17 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

the total plan was for commercial use. The conversion was

allowed after payment of conversion charges in which

circumstances the earlier clarification issued by the DDA was

annulled especially noticing that there was no intention for

the owners of the shop-cum-residential complexes to obtain

windfall gains.

19. The above communication has to be juxtaposed with

Annexure A49, Deed of Conveyance issued in the name of

the applicant herein. It is true that in Annexure A47 and A48

referring to the execution of ‘Conveyance Deed and

Conversion from lease hold to free hold’, it was specified that

there was no undertaking given by the applicant that the

premises will be used only for residential purposes.

However, the absence of the undertaking cannot lead to the

corollary that the permission was for commercial purposes

especially when the plan appended to the Conveyance Deed

as seen from I.A. No.203615 of 2024 speaks of “proposed

shop-cum-residential building plan of plot No.106 situated at

New Rajinder Nagar, New Delhi for Sh. Vinod Kumar Arora

(the applicant)”. The said plan indicates sanction of 

Page 18 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

residential apartments over the shop building and a

basement for storage purposes. The sanction is for

residential buildings with kitchen, bathroom, bedroom etc.

Hence the plan approved for construction of the upper floors

was clearly intended for residential purposes, as applied for

by the applicant, putting again to peril, the contention that

the predecessor-in-interest had constructed the first floor

and put it to commercial use.

20. The learned Senior Counsel for the MCD further

enlightened us on the different categories of markets across

Delhi with reference to the Master Plans notified for Delhi.

The first Master Plan for Delhi was MPD-1962, replaced by

the 2nd Master Plan, MPD-2001 published on 01.08.1990 and

then the 3rd Master Plan, MPD-2021 which came into effect on

07.02.2007. We have from the documents produced by the

applicant himself, found that the applicant has obtained a

sanctioned plan for construction only in the year 2005. The

Master Plan for 2021 conceived the Community Centres (CC)

as shopping and business centres while the Local Shopping

Centre (LSC) and the Convenience Shopping Centre (CSC) 

Page 19 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

would cater to the day-to-day needs of the local population.

Certain areas developed prior to 1962 like Lajpat Nagar,

Rajouri Garden, Tilak Nagar, Kamla Nagar and others which

existed prior to MPD-1962 had consolidation of commercial

activities.

21. The LSCs were categorised into two categories, one

meant exclusively for commercial use and the other for

mixed use where commercial activity was allowed to be

carried out on the ground floor and residential activity

permitted on the upper floors. MPD-2021 designated some of

the shop-cum-residential complexes which were earlier

termed as ‘shop-cum-residence’ plots/shops as Local

Shopping Centres and permitted commercial use of floors

above the ground floor, subject to payment of conversion

charges. The former category of LSCs wherein exclusively

commercial activities were carried out, were thus called

planned LSCs while those in which conversion of the

‘residential’ to ‘commercial’ was permitted were called

designated LSCs. New Rajinder Nagar in which the

applicant’s plot is situated has been notified as a pre-1962

built up residential and rehabilitation colony. The 

Page 20 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

understanding of the applicant was also not otherwise since

the sanctioned plan produced along with the IA, as applied

for the applicant, clearly indicates the sanction of residential

areas on the upper floors.

22. One of the distinguishing factors is that the planned

LSCs, where commercial use was permitted, uniformly had a

Floor Area Ratio (FAR) of 100 in all the Master Plans for Delhi.

Insofar as the designated LSC’s are concerned, FAR was

always one that was permissible for residential plots which

could go up to a maximum of 350 FAR. The Counter Affidavit

filed on behalf of the MCD tabulates the FAR as per the

sanction granted to the applicant which is 162.32 while the

existing area is 217.08; bringing forth an additional of 69.22

sq. mtrs, in excess of that sanctioned for the area of the plot,

which is 89 sq. yards. The permissible FAR upto 350 is

computed as 3.50 x 74.40 sq. mtrs. which equals 260.40 sq.

mtrs for the subject plot. This clearly indicates, according to

the MCD, that the applicant’s plot is situated in the shop-cumresidential LSC which by MPD-2021 is a designated LSC

permitting conversion of the residential area to a commercial 

Page 21 of 23

I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

area after payment of the conversion charges. The Counter

Affidavit also speaks of FAR in excess of that sanctioned,

inviting penalty charges for the purpose of regularisation.

The Counter Affidavit also notices non-compoundable

deviations on the 1st floor and 2nd floor on the back side.

23. On a broad overview of the documents produced by

the applicant with respect to Shop no. 106 in New Rajinder

Nagar Market, we find that the lease and the subsequent

freehold rights granted permits only the ground floor to be

used as commercial area. The applicant though contends that

the 1st floor was built by his predecessor-in-interest and used

as a commercial area, there is nothing produced to establish

the same. On the contrary, the conveyance deed obtained by

the applicant as produced by him in the IA, referred to by us,

has been annexed with an approval for construction of upper

floors in the year 2005, which approval is also for residential

spaces on the upper floors. We find the New Rajinder Nagar

Market to be a shop-cum-residence LSC as designated in the

MPD-2021. The FAR of the building already constructed, with

the upper floors further fortify the contention of the MCD that 

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I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

over the shop residential spaces were constructed, since the

FAR sanctioned exceeds that for commercial spaces. The

upper floors though eligible for conversion, it can happen

only with payment of the conversion charges. The additional

FAR as built and existing in excess of that sanction will also

have to be regularised by paying penalty charges and any

non-compoundable constructions will have to be removed.

In the above circumstances, we reject the I.A. filed by the

applicant to de-seal the premises at Shop/Plot no. 106, New

Rajinder Nagar Market and also reject the prayer for

permitting the use of upper floors as commercial.

24. We have to notice from the Counter Affidavit, the

violations which were found on inspection with notice to the

applicant. However, we direct the MCD to issue a further

notice for inspection which shall be jointly done and the

violations intimated by a written order specifically pointing

out the non-compoundable constructions. The order shall

also indicate the conversion charges payable for the upper

floors and the penalty charges for regularisation of excess

FAR from that sanctioned. The applicant would be entitled to

comply with the order passed removing the non-

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I.A. No. 203615 of 2024 in W. P.(C) No.4677 of 1985

compoundable constructions/ projections and depositing

the conversion charges as also the penalty charges for

regularisation of the excess FAR so as to carry out

commercial activities in the upper floors.

25. With the above directions, the I.As stand rejected.


 ……….……………………. CJI.

 (B. R. GAVAI)

………….……………………. J.

 (K. VINOD CHANDRAN)

New Delhi;

October 31, 2025.