In a significant order, the Supreme Court clarified the legal framework governing the use of upper floors in designated Local Shopping Centres (LSCs) in Delhi. The Court held that while the ground floor is permitted for commercial use, utilizing upper floors for commercial purposes requires payment of conversion charges and regularization of any unauthorized construction as per the Master Plan for Delhi-2021 and relevant building bylaws.
Facts Of The Case:
This case concerns an application for the de-sealing of a commercial premise at Plot No. 106 in New Rajinder Nagar Market, New Delhi. The applicant, M.C. Mehta, filed an Interlocutory Application (I.A.) in the long-standing Public Interest Litigation (W.P.(C) No. 4677 of 1985) concerning unauthorized constructions and land misuse in Delhi. He relied on a general order by a Supreme Court-appointed Judicial Committee, which had considered the market’s status. The Municipal Corporation of Delhi (MCD) opposed the plea, arguing the premises violated usage norms. The core dispute centered on whether the upper floors of the building, beyond the ground-floor shop, could legally be used for commercial activities. The applicant claimed his predecessor-in-interest had built and used the first floor commercially since 1961, citing various historical documents and lease deeds. The MCD countered that the property was part of a ‘shop-cum-residence’ complex designated as a Local Shopping Centre (LSC), where only the ground floor was approved for commercial use, and upper floors were sanctioned for residential purposes only. The Court’s analysis focused on interpreting the original lease documents, sanctioned building plans from 2005, and the classifications under the Delhi Master Plans to determine the permissible use of the property.
Procedural History:
The procedural history of this case originates within the long-pending Public Interest Litigation (Writ Petition (C) No. 4677 of 1985) concerning environmental degradation and unauthorized constructions in Delhi. To address issues of sealing and misuse, the Supreme Court constituted a Monitoring Committee in 2004, whose sealing actions were later set aside by the Court in 2020 for lacking statutory authority. Subsequently, in 2022, the Court appointed a Judicial Committee to specifically examine cases of sealing, de-sealing, regularization, and demolition. The applicant, seeking de-sealing of his premises, relied on a general order dated 18.12.2023 passed by this Judicial Committee regarding New Rajinder Nagar Market. However, finding that the Judicial Committee’s order dealt with markets en bloc and not individual merits, the Supreme Court, vide its order dated 22.08.2024, directed a case-specific examination. The present order of October 31, 2025, was passed after hearing the parties on the individual merits of the applicant’s case, ultimately rejecting his plea for de-sealing.
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Court Observation:
Final Decision & Judgement:
In its final decision, the Supreme Court rejected the applicant’s Interlocutory Application seeking de-sealing and permission for commercial use of the upper floors of Shop No. 106 in New Rajinder Nagar Market. The Court held that the property is part of a designated ‘shop-cum-residence’ Local Shopping Centre where only the ground floor is permitted for commercial activity. Utilizing the upper floors for commerce would require payment of conversion charges and the regularization of any unauthorized construction. The Court directed the Municipal Corporation of Delhi to issue a fresh notice, jointly inspect the premises, and specify the payable conversion and penalty charges for excess Floor Area Ratio (FAR), as well as identify any non-compoundable violations to be removed. The applicant’s commercial use of the upper floors was thus made conditional upon compliance with these statutory requirements.
Case Details:
Case Title: M.C. Mehta vs. Union of India & Ors. Citation:2025 INSC 1274 Appeal Number: Writ Petition (Civil) No. 4677 of 1985. Date of Judgement: October 31, 2025. Judges/Justice Name: Justice B. R. Gavai & Justice K. Vinod Chandran
Download The Judgement Here