The Supreme Court upheld the exemption from Open Space Reservation charges under Annexure XX of the Development Regulations, applicable to holdings below 3000 square metres. It affirmed that a lawful pre-1975 subdivision, evidenced by registered deeds and revenue records, created a separate holding, preventing the authority from notionally recombining it with a larger parent estate to levy charges.
Facts Of The Case:
The property originated from the estate of Haji Syed Ali Akbar Ispahani. Following a 1949 partition, 21 grounds in Nunganbakkam were allotted to his son, Syed Jawad Ispahani. In 1972 and 1973, Syed Jawad gifted 11 grounds to his own son, Syed Ali Ispahani, via registered deeds, and separate pattas were issued for this holding. In 1984, Syed Ali gifted a small portion (125 sq. ft.) from this 11-ground plot to a charity. The respondent, Dr. Kamala Selvaraj, purchased the remaining portion of 10 grounds and 2275 sq. ft. (approx. 2229 sq. metres) from Syed Ali Ispahani in 2008 to build a hospital. When she applied for planning permission, the Chennai Metropolitan Development Authority (CMDA) demanded Open Space Reservation (OSR) charges of over ₹1.64 crore, claiming her purchase constituted a fresh subdivision of the original 21-ground property. The respondent paid under protest and challenged the levy. The High Court quashed the demand, directing a refund. CMDA appealed to the Supreme Court, contending the holding was part of the larger, parent property and thus not exempt from OSR charges.
Procedural History:
The procedural history commenced with the Chennai Metropolitan Development Authority (CMDA) demanding Open Space Reservation (OSR) charges from the respondent, Dr. Kamala Selvaraj, which she paid under protest in April 2010. She subsequently filed Writ Petition No. 6495 of 2010 before the Madras High Court under Article 226 of the Constitution. A Single Judge, by judgment dated 13.07.2010, quashed the demand and directed a refund with interest. The CMDA’s appeal (Writ Appeal No. 303 of 2011) was dismissed by a Division Bench of the High Court on 21.12.2011, affirming the Single Judge’s order. The CMDA then filed the present Civil Appeal No. 3051 of 2015 before the Supreme Court, which was ultimately dismissed on 08.10.2025, upholding the High Court’s decision and directing the refund.
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Court Observation:
The Supreme Court made key observations on two primary legal aspects. First, it found that the respondent’s property was a lawfully subdivided, independent holding long before the 1975 Master Plan came into force, as conclusively evidenced by a chain of registered gift deeds from 1972-73 and corroborating revenue records (pattas). The appellant authority’s claim of a fresh subdivision in 2008 was unsupported by evidence. Second, the Court held that the respondent’s plot, measuring 2229 square metres, fell squarely within the explicit exemption for the “first 3000 square metres — Nil” under Annexure XX of the Development Regulations. The attempt to notionally recombine it with the original, larger parent estate to deny the exemption was contrary to both the factual record and the plain text of the regulation.
Final Decision & Judgement:
The Supreme Court dismissed the appeal, upholding the judgements of the High Court. It directed the Chennai Metropolitan Development Authority (CMDA) to refund the sum of ₹1,64,50,000/- to the respondent, Dr. Kamala Selvaraj, with interest at 8% per annum, to be paid within six weeks. The Court affirmed that the respondent’s property was a lawful, pre-1975 subdivision exempt from Open Space Reservation charges, as it was below the 3000 square metre threshold specified in the Development Regulations. No order was made as to costs.
Case Details:
Case Title: Chennai Metropolitan Development Authority vs. Dr. Kamala Selvaraj Citation: 2025 INSC 1200 Appeal No.: Civil Appeal No. 3051 of 2015 Date of Judgement: October 08, 2025 Judges/Justice Name: Justice Aravind Kumar and Justice N.V. Anjaria
Download The Judgement Here