HC
Allahabad High Court Bars Development Authorities From Levying Unauthorised Impact Fees
Nyaya Prep • Published • Updated • 3 min read
The Allahabad High Court held that development authorities cannot levy impact fees or open-area penalties without statutory authority.
Key development
The Court quashed the relevant part of the demand and directed refund of ₹21,05,933 with six per cent simple interest under the stated terms.
The Court quashed the relevant part of the demand and directed refund of ₹21,05,933 with six per cent simple interest under the stated terms.
Background
A petrol-pump operator challenged charges demanded by the Prayagraj Development Authority during approval of a site plan. The dispute arose under Section 15(2-A) of the Uttar Pradesh Urban Planning and Development Act, 1973.
Legal issue and reasoning
Applying the statutory list of permissible charges and Supreme Court precedent, the Bench found the two disputed levies unlawful. It distinguished other charges that the petitioner had not challenged.
Outcome and next step
The Court quashed the relevant part of the demand and directed refund of ₹21,05,933 with six per cent simple interest under the stated terms.
Case: Kapil Dev Vyas Filling Station Allahabad v State of UP
Bench: Justices J J Munir and Indrajeet Shukla
Act: U.P. Urban Planning and Development Act, 1973
Section: Section 15(2-A)
Original report: LiveLaw
- Urban Development Charges and Taxation
- HC
- 9 October 2026