The Supreme Court has rejected a plea to de-seal a commercial property in New Rajinder Nagar Market, Delhi, upholding the MCD’s stand that only the ground floor is permitted for commercial use under MPD-2021.
Thank you for reading this post, don't forget to subscribe!NEW DELHI: The Supreme Court of India has dismissed a plea seeking the de-sealing of commercial premises located at Plot No. 106, New Rajinder Nagar Market (LSC), New Delhi.
The two-judge bench, comprising Chief Justice of India B.R. Gavai and Justice K. Vinod Chandran, upheld the stand of the Municipal Corporation of Delhi (MCD), emphasizing that the property in question falls within a shop-cum-residence Local Shopping Centre (LSC) as designated under the Master Plan for Delhi 2021 (MPD-2021).
The Bench categorically held that only the ground floor of the premises is permitted for commercial use as per the lease and freehold rights granted to the property owner. The upper floors, though eligible for conversion, can only be used for commercial purposes upon payment of prescribed conversion charges.
“We find the New Rajinder Nagar Market to be a shop-cum-residence LSC as designated in the MPD-2021. The FAR of the building already constructed, with the upper floors further fortify the contention of the MCD that over the shop residential spaces were constructed,”
the Bench observed.
Background
Over the years, several markets and neighborhood shopping areas in Delhi have been developed by the Land & Development Office (L&DO), the Delhi Development Authority (DDA), and the MCD, often with the participation of private developers.
According to the Master Plan for Delhi 1962 (MPD-1962) and subsequent Building Bye-Laws (1959, amended in 1964), many shop-cum-residential complexes were approved in residential colonies. However, numerous occupants gradually converted the residential portions of these properties into commercial establishments, prompting the authorities to issue show-cause notices for unauthorized use.
This led to a Public Interest Litigation (PIL) before the Supreme Court, highlighting widespread misuse of residential premises, unauthorized construction, and environmental concerns in Delhi. A Monitoring Committee was constituted to oversee compliance and seal non-conforming properties, though subsequent challenges led to the appointment of a Judicial Committee to review individual cases, including the present one.
Supreme Court’s Observations
In the present case, the petitioner contended that the first floor of the premises had long been used for commercial purposes by his predecessor. However, the Court found no documentary proof supporting this claim.
“The conveyance deed obtained by the applicant shows an approval for construction of upper floors in 2005, which was explicitly sanctioned for residential use,”
the Bench noted.
The Court further observed that the Floor Area Ratio (FAR) exceeded the permissible limits for commercial premises, meaning that the applicant must pay a penalty and conversion charges to regularize the excess construction.
Any non-compoundable structures or unauthorized projections, however, must be removed.
Directions to the MCD
The Supreme Court directed the MCD to conduct a joint inspection of the premises and issue a written order identifying all violations and the applicable conversion and penalty charges.
“The applicant would be entitled to remove the non-compoundable constructions and deposit the conversion and penalty charges to carry out commercial activities in the upper floors,”
the Bench clarified.
Consequently, the Interlocutory Application (IA) filed by the petitioner was rejected.
Case Title:
M.C. Mehta v. Union of India & Ors.
Writ Petition (C) No.4677 of 1985
READ ORDER

