SC directs Tamil Nadu to allot alternative land before demolishing 20 flats built on water body

The Supreme Court has directed the Tamil Nadu government to provide an alternative site to the owners of 20 flats built on land classified as a water body before demolishing their apartments, observing that homebuyers who relied on official permissions and revenue records should not suffer for lapses by government authorities.

A bench of Justice SVN Bhatti and Justice NV Anjaria directed the state’s Chief Secretary and the District Collector of Tiruvallur to allot a vacant site of commensurate value to the flat owners, represented by their society, preferably within six months, before proceeding with the demolition of the apartments constructed on 0.22 acres of the disputed land.

The court, however, upheld the cancellation of the ryotwari patta granted over the property, ruling that the land was classified as a government water body and was not eligible for such a grant.

“These permissions/Orders lead a bona fide purchaser to believe that the subject matter is available and free from any objectionable use,” the bench observed, noting that purchasers ordinarily rely on the presumptive value of revenue entries and town survey records when buying property.

“At the government's convenience, the nature of the land is changed,” the court remarked.

Government permissions created an impression of legality

The court noted that municipal authorities had approved the building plans for the apartments, while the revenue department had altered the Town Survey Land Register and approved the subdivision of the disputed property. These official actions had led purchasers to reasonably believe that the land was legally available for residential development.

The bench said the government's responsibility to protect water bodies did not justify overlooking the hardship caused to innocent purchasers by the actions of its own officials.

It observed that ordering demolition without considering the flat owners’ circumstances and their independent legal remedies against the landowner and developer would cause irreparable financial injury and leave families without homes.

The court said the flat owners had been led to believe that the government had no interest under Section 14-A of the Tamil Nadu Estates (Abolition and Conversion into Ryotwari) Act, 1948. It therefore directed the state to provide an alternative site before demolition, while making it clear that the arrangement would not violate the law protecting water bodies.

The bench also granted the state government liberty to initiate or conclude disciplinary proceedings against officials responsible for failing to maintain the relevant records and protect the water bodies.

How the dispute over the land unfolded

The dispute concerns 0.72 acres of land in Survey No. 572 at Thirumullaivoyal village in Tiruvallur district. The 1911 Resurvey and Resettlement Register classified the property as “Government Poramboke - Kanakkan Kuttai”, indicating that it was government land associated with a water body.

In 2011, the District Revenue Officer of Tiruvallur granted a ryotwari patta over the 0.72 acres to P. Ramadoss, treating the land as ryoti land rather than a water body. Ramadoss subsequently mortgaged the property to Tamil Nadu Mercantile Bank to secure credit facilities worth ₹3.40 crore.

A portion measuring 0.22 acres was later settled in favour of Ramadoss’s wife, who executed a power of attorney in favour of a builder. The builder constructed 20 residential flats on the land and sold them to individual purchasers along with undivided shares in the property.

In 2014, a third-party objector challenged the grant of the patta before the Commissioner of Land Administration. In December 2019, the commissioner cancelled it, holding that the patta had been illegally granted over land classified as a government water body.

The Madras High Court subsequently upheld the cancellation and ordered the removal of unauthorised structures across a larger extent of 1.68 acres, along with the restoration of the water body. A flat owner and Tamil Nadu Mercantile Bank then approached the Supreme Court challenging the High Court’s judgment.

Supreme Court rejects challenge to patta cancellation

The Supreme Court held that the earliest revenue and settlement records established that the disputed land had been classified as a government water body. The appellants had failed to demonstrate that it was ryoti land eligible for a ryotwari patta.

The bench relied on Section 14-A of the Tamil Nadu Estates (Abolition and Conversion into Ryotwari) Act, 1948, which prohibits the grant of ryotwari pattas over private tanks or ooranis and provides for the cancellation of pattas granted over such land.

It also rejected the argument that the property's designation as a mixed residential zone under the urban development plan changed its legal status. The court clarified that zoning regulations permitting residential development do not extinguish the government's rights over poramboke land or water bodies.

While dismissing the appeals and upholding the cancellation of the patta, the court directed the state to allot an alternative site to the flat owners, preferably within six months, before demolishing the apartments on the 0.22-acre portion.

The bench also clarified that the flat owners and the bank could pursue appropriate legal remedies against the developer, landowner or mortgagor.

The state government was granted liberty to initiate or conclude disciplinary action against officials responsible for failing to maintain the records and protect the water bodies.

Lawyers who appeared

Senior advocate T. Raja and advocate K.S. Mahadevan appeared for the appellants. Advocate Jayasree Narasimhan appeared for the respondents.