The Calcutta High Court, in a significant ruling delivered on 29 August 2025, addressed the long-standing dispute over the construction of the 16th tower in the Elita Garden Vista (EGV) housing complex at New Town, Kolkata. The appeals were heard by a Division Bench comprising Justice Rajasekhar Mantha and Justice Ajay Kumar Gupta.
Background of the Case
The EGV project was originally sanctioned in 2007 for 15 towers with 1,278 flats. Flat owners registered their rights under the West Bengal Apartment Ownership Act, 1972, fixing each owner’s undivided share at 0.1%. In 2015, the new promoter, Elita Garden Vista Project Pvt. Ltd., obtained a revised sanction plan from NKDA for a 16th tower and a commercial complex—without the consent of existing owners. This reduced common areas and open spaces, triggering protests.
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The flat owners argued that the revised plan violated their statutory rights. They claimed that the promoter needed prior consent under Section 7 of the 1972 Act before adding any new structure. They also relied on the Supreme Court’s ruling in Supertech Ltd. v. Emerald Court Owners Welfare Association (2021) to press for demolition of the illegal tower.
The promoter countered that agreements signed with owners allowed additional construction. They argued that owners had delayed challenging the plan, and many third-party rights were already created. NKDA maintained that it acted within its powers under the NKDA Act, 2007, and the 1972 Act had no binding effect on it.
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The Division Bench disagreed with the Single Judge’s earlier ruling. It held that the 1972 Act complements the NKDA Act, and cannot be ignored. The Bench observed:
“The non-obstante clause in Section 184 of the NKDA Act does not override the WB Apartment Ownership Act, 1972. The consent of existing flat owners is mandatory before sanctioning additional towers.”
The court also noted that the promoter was aware of the requirement, as evident from attempts to amend Form A through Form B, which were rejected by both the Competent and Appellate Authorities.
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The Bench concluded that the 16th tower was constructed without mandatory owner consent, making the revised sanction plan invalid. Directions were issued regarding the rights of innocent buyers and the promoter’s liability to compensate.
Case Title: Rajan Kumar Prasad & Ors. v. New Town Development Authority & Ors. with Elita Garden Vista Project Pvt. Ltd. v. EGV Association of Apartment Owners & Ors.
Judgment Date: 29 August 2025
