The Supreme Court on Friday (October 31) dismissed an application seeking de-sealing of a commercial property in Delhi’s New Rajinder Nagar Market, affirming that the premises had been illegally used for commercial activities beyond the approved limits.

A Bench comprising Chief Justice BR Gavai and Justice K. Vinod Chandran upheld the action taken against the misuse, observing that the property was originally sanctioned as a “shop-cum-residence”, permitting commercial activity only on the ground floor, while the upper floors—approved and constructed for residential use—had been converted into commercial space in violation of the sanctioned plan.

The matter arose in connection with the long-running M.C. Mehta PIL concerning unauthorized constructions and environmental violations across Delhi. The applicant sought relief based on a Judicial Committee order dated December 18, 2023, which suggested treating the New Rajinder Nagar Market as a fully commercial area. However, the Municipal Corporation of Delhi (MCD) opposed the plea, contending that the applicant had breached building bye-laws and misused residential premises for trade purposes.

Rejecting these arguments, the Court clarified that the Judicial Committee’s recommendation was general in nature and did not grant automatic de-sealing rights to individual property owners. Each case, it said, must be determined independently based on building plans, lease deeds, and supporting documents.

The applicant argued that the property had been used commercially for decades, and therefore acquired a commercial character by long-standing use. The Court disagreed, finding that both the lease deed and freehold conversion documents restricted commercial use exclusively to the ground floor. The upper floors, approved in 2005 for residential construction, could not be treated as commercial merely because of historical use patterns.

“The admitted position is that the ground floor was leased and conveyed for shop use. The only issue is whether upper floors may also be used commercially,” the Bench noted, referencing the applicant’s own documents, which confirmed residential approval for the upper floors.

Affirming the New Rajinder Nagar Market’s status as a “Local Shopping Centre (LSC)” under the Master Plan of Delhi (MPD)-2021, the Court reiterated that only ground floors in LSCs are intended for business, while upper floors are designated for residential purposes.

“We find the New Rajinder Nagar Market to be a shop-cum-residence LSC as designated in the MPD-2021,” the Court held, rejecting the plea.

However, the Court provided a limited route for regularization, directing the MCD to conduct a fresh inspection and issue a detailed order identifying non-compoundable violations requiring demolition, alongside calculating conversion and penalty charges for regularizing excess Floor Area Ratio (FAR) and unauthorized commercial use.

The applicant may seek de-sealing only after removing all non-compoundable structures and paying the prescribed fees in full. The Court observed that the property’s existing FAR exceeded permissible commercial limits, further supporting the MCD’s position that upper floors were residential by sanction but commercially exploited.

“The upper floors may be converted only upon payment of due charges,” the Court added, directing that MCD’s subsequent inspection notice must specifically identify violations, conversion charges, and penalty dues required for regularization.

Consequently, the application was dismissed, and the sealing order affirmed.

Cause Title: M.C. Mehta v. Union of India & Ors.