Conversion fee must be paid to MCD to run shop from residential floor of mixed-use building: Supreme Court
Bench refuses to de-seal New Rajinder Nagar property, clarifies procedure for commercial use of residential floors
The Supreme Court has ruled that owners of shop-cum-residential (SCR) plots in Delhi cannot use residential-designated floors for commercial purposes without first paying the conversion charges required by the Municipal Corporation of Delhi (MCD) under the Master Plan for Delhi, 2021. The decision came while dismissing a plea to de-seal a property in New Rajinder Nagar, where commercial activity was being undertaken on floors earmarked for residential use.
The bench of Chief Justice BR Gavai and Justice K Vinod Chandran determined that while upper floors in such designated local shopping centres (LSCs) can be converted for commercial use, this conversion can only occur upon payment of specified charges and, if applicable, penalty fees for exceeding permissible Floor Area Ratio (FAR). The applicant’s property had an FAR beyond the limit for commercial use, and the Court held that excess construction must be regularized with penalties, and non-compoundable violations must be removed before commercial use is allowed.
The Court directed the MCD to inspect the premises, specify necessary charges, and permit compliance within a reasonable period, affirming that commercial activity on residential floors may proceed only after fulfilling these statutory requirements.