Mumbai, July 3, 2026: After a stern warning from the Bombay High Court, the Thane Municipal Corporation (TMC) on Friday agreed to issue the Development Rights Certificate (DRC) and TDR Utilisation Certificate to M/s D. Dahyabhai & Co. Pvt. Ltd., bringing the long-running dispute over implementation of the court's February judgment a step closer to resolution.
Court Warns TMC On Compliance
A bench of Acting Chief Justice Ravindra Ghuge and Justice Gautam Ankhad was hearing a contempt petition filed by the company alleging that TMC had failed to comply with the High Court's February 20 order directing it to issue the statutory compensation within 21 days.
The February judgment had ended a nearly five-decade-old dispute by holding that the Maharashtra government had failed to legally acquire around 193 acres of land at Chitalsar-Manpada in Thane as "private forest" under the Maharashtra Private Forests (Acquisition) Act, 1975. The court found that the acquisition process suffered from fundamental procedural lapses, including failure to serve notice on the landowner, and ruled that the company was entitled to compensation through DRC/TDR certificates.
The State's challenge to the judgment was subsequently dismissed by the Supreme Court. However, despite the order, the certificates were not issued, prompting the landowner to initiate contempt proceedings.
Corporation Agrees To Issue Certificates
During Friday's hearing, TMC's counsel, Ram Apte, informed the court that the State was pursuing further proceedings and submitted that the outcome could have a bearing on the matter.
The bench, however, made it clear that the contempt proceedings were directed against the municipal corporation and not the State.
"In a contempt petition, you either comply with the order or go to jail," the court remarked, directing TMC to produce proof of implementation.
Advocate Cherag Balsara, appearing for the petitioner, argued that internal government deliberations could not override a binding judicial order. He also questioned the authenticity of a communication sent by the corporation, pointing out that it carried "no date, no folio number and no outward number".
To address TMC's concerns in the event the State succeeds in future proceedings, the court suggested that the petitioner could furnish an undertaking regarding the use of the DRC. The bench observed that such a statement would protect both the corporation and the landowner.
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Following the court's observations, Apte informed the bench that the petitioner could visit the corporation on July 7 to complete the required formalities, after which the DRC and TDR Utilisation Certificate would be handed over. Balsara agreed, saying the petitioner would remain present to sign the necessary documents. The court has kept the matter for further hearing on July 7 in the afternoon session.
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