Municipality Cannot Compel Commercial Use Of Floor To Permit Reconstruction: Supreme Court Imposes ₹10 Lakh Cost On Delhi Civic Body

The Supreme Court held that a municipality cannot insist that a property owner must use a particular floor for commercial purposes as a precondition for granting reconstruction permission. The Court condemned the arbitrary and coercive approach of the civic body and imposed ₹10 lakh costs on it. It found that such a condition violated property rights and exceeded municipal powers. The ruling reiterates that administrative authorities cannot impose conditions unrelated to building safety, zoning laws, or statutory requirements. The judgment protects citizens from bureaucratic overreach and affirms that land-use decisions must remain lawful and non-discriminatory.