Authority: Calcutta High Court, Civil Appellate Jurisdiction (Bench of Justices Sabyasachi Bhattacharyya & Sandip Kumar De)

Order Date: 10 September 2026

Case Overview

  • Parties: Appellants Tai Industries Ltd. and another; Respondents State of West Bengal, Kolkata Metropolitan Development Authority (KMDA) and others.
  • Dispute: Cancellation of allotment of plot No. IND‑8/1, Mouza Nonadanga (≈6 acres) originally allotted to Tai Industries for setting up an industrial unit.
  • Timeline:
  • Offer letter dated 4 July 2001 indicated lease‑hold allotment for 99 years.
  • Allotment letter dated 31 Jan 2002 required full premium of Rs 8,75,17,360 payable in instalments; nominal rent of Rs 1 per Cottah.
  • KMDA acknowledged full premium payment on 17 Feb 2003 and handed over physical possession in April‑May 2003 (letters dated 20 Mar 2003 and 21 Aug 2003).
  • Petitioners submitted Detailed Project Report (DPR) on 21 Mar 2007 after receiving a final extension on 13 Feb 2007 to submit DPR and building plan.
  • KMDA’s Land & Plot Allotment Policy 2007 (effective 21 Aug 2007) required construction to commence within two years of allotment.
  • KMDA cancelled the allotment on 14 Dec 2007 citing the 2007 policy, despite the allotment having been made in 2002.
  • Writ petition (WPA 1429 of 2008) filed; Single Judge dismissed on 2 Nov 2023.
  • Appeal filed as FMA 318 of 2024.
  • Legal Arguments: Petitioners argued the 2007 policy was prospective and could not be applied retrospectively to an existing allotment; they also contended that KMDA’s failure to execute and register the lease deed caused the delay. KMDA relied on the policy’s clause requiring construction within two years and asserted the clause applied to the petitioners.

Final Outcome

  • The appellate court set aside the Single Judge’s order dated 2 Nov 2023.
  • The cancellation dated 14 Dec 2007 is annulled; KMDA and its agents are prohibited from dispossessing the petitioners or giving effect to the cancellation letter.
  • The appeal is allowed without any order as to costs.

Topics: Land Allotment, Judicial Review