Kerala High Court Declares Fees on Large Constructions on Regularized Paddy Lands Invalid
The Kerala High Court recently ruled against charging fees for constructing large buildings on converted paddy lands or regularized lands. Justice C.P. Mohamed Nias made this decision, stating that such fees violate the Kerala Conservation of Paddy Land and Wetland Act, 2008, its rules, and the 2018 Amendment Act. This ruling came in response to petitions challenging the legality of these fees.
The fee in question was a charge of Rs 100 per square foot on buildings larger than 3,000 square feet, built on lands that had been converted or regularized. This fee was introduced under Note 1 to Rule 12(9) of the Kerala Conservation of Paddy Land and Wetland Rules. However, the petitioners argued that this fee was beyond the powers given by the law. They claimed that the Act does not allow such charges for buildings on lands that have already been regularized as per the rules.
The petitioners highlighted Section 27A(3) of the Act, which deals with the regularization of conversions made prior to the Act's implementation. According to this provision, applicants seeking to regularize such conversions are required to pay a fee at a prescribed rate. The petitioners contended that this provision does not include or permit any additional fee to be levied for the construction of buildings on the regularized lands. Therefore, they argued that the government’s decision to impose a fee based on the plinth area or size of the buildings was arbitrary, lacked statutory backing, and was contrary to the principles laid out in the parent Act.
The state government, in its defense, asserted that the fee was consistent with the legislative intent of responsibly regulating land use and ensuring ecological compliance while safeguarding agricultural interests. According to the government, Section 27A(3) does not expressly prohibit the levying of such fees, and the imposition was in line with its broader objectives of ensuring responsible land management. The government maintained that the fee was necessary to deter excessive construction and ensure that development activities on converted lands adhered to environmental and agricultural priorities.
Upon examining the arguments, the High Court observed that the parent Act does not provide any authority to impose a fee based on the extent or size of the construction. The court noted that while the government’s intentions might be laudable, any such fee must have a clear enabling provision within the legislation. Justice Nias emphasized that the Kerala Conservation of Paddy Land and Wetland Act primarily focuses on the conservation of paddy fields and wetlands, the prevention of unauthorized land conversion, and the regularization of pre-2008 conversions upon payment of a prescribed fee. Beyond this, the Act does not regulate construction activities on such lands. Therefore, any attempt to levy additional charges for building construction would exceed the scope of the Act and amount to overreach.
The court further clarified that while the government retains the authority to frame rules under the Act, such rules cannot introduce provisions that are inconsistent with the parent legislation. The imposition of a fee based on building size, as stipulated under Rule 12(9), was deemed ultra vires, or beyond the powers conferred by the Act. Consequently, the court declared the fee illegal and invalid.
In its judgment, the court directed the state authorities to refund the fees collected from the petitioners within four months. Additionally, it ordered that no further demands for such fees be made against the petitioners. The court also instructed the relevant authorities to process pending and future applications for building permits on converted lands without factoring in the now-invalidated fee.
