Date:12/05/2005 URL: http://www.thehindu.com/2005/05/12/stories/2005051201341300.htm

National

Supreme Court order on development of mill lands

Legal Correspondent

Construction of residences, creation of third party interest at risk of owner

NEW DELHI: The Supreme Court on Wednesday said that only those closed textile mills in Mumbai which were granted commencement certificates to develop the land in the possession of private owners could go ahead with the construction after getting the sanction from the authorities.

A Bench, consisting of Justice N. Santosh Hegde and Justice S.B. Sinha, passed the orders on a batch of appeals against the Bombay High Court order staying further development plans.

It also allowed the National Textile Corporation to complete the transactions relating to land development in its sick textile mills in Mumbai according to the plan approved by the BIFR.

However, the Bench made it clear that the construction of buildings for residential purposes as well as the creation of third party interest in the land would be at the risk of the owners. It would be subject to the result of the petition pending in the High Court.

The Bench said that if the petitioners succeeded before the High Court the NTC would have to offer land for greenery in other mills to offset the development in the seven mills under the plan approved by the BIFR.