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by Deepak Kumar
13 September 2026 8:08 AM
"The direction contained in the impugned order, requiring the petitioner to deposit five times the prescribed compounding fee, cannot be sustained to that extent." High Court of Jammu & Kashmir and Ladakh, in a significant ruling balancing unauthorized construction regularization within permissible plot limits against statutory penalty enforcement, has held that municipal compounding charges must strictly conform to uniform statutory fee notifications rather than arbitrary multipliers.
A bench of Justice Sanjay Parihar ruled that where structural deviations remain within the permissible plot envelope and building line, regularization fees cannot be inflated to five times the prescribed rates outside the governing statutory framework.
The petitioner, owner of commercial land in Bari Brahmana, Samba, had obtained building permission in 2020 to construct a basement, ground floor, first floor, and second floor. Despite staying within the permissible fifty percent plot coverage limit, deviations in constructed floor areas prompted municipal authorities to issue demolition notices under Section 7(1) and Section 7(3) of the Control of Building Operations Act, 1988. On appeal, the Jammu & Kashmir Special Tribunal ordered regularization after observing that the structure remained strictly within the plot envelope, but arbitrarily imposed compounding fees at five times the rate prescribed under Appendix-D of the J&K Unified Building Bye-Laws, 2021. The petitioner challenged this five-fold multiplier before the High Court under Article 226 of the Constitution of India.
The primary question before the court was whether compounding fees for structural deviations that do not breach the permissible plot envelope or setback norms can be enhanced five-fold beyond statutory schedules. The court was also called upon to determine the applicability of the newly notified Uniform Building Permission Fee Schedule under Government Order No. 157-JK(HUD) of 2026 to pending compounding proceedings.
Deviations Within Permissible Plot Coverage Warrant Regularization Rather Than Demolition
The court examined the factual findings arrived at by the Special Tribunal, which established that while the petitioner had constructed 2,100 square feet of basement area against the sanctioned 767 square feet, and 2,250 square feet on the ground and first floors against the sanctioned 1,197 square feet, no construction was raised on the second floor. The entire structure was erected over a total plot area of 4,220 square feet, which strictly covered around fifty percent of the total plot area.
Crucially, the court noted that Table 5-4 of the J&K Unified Building Bye-Laws, 2021 permitted up to fifty percent plot coverage, meaning the owner had not exceeded the overarching developmental threshold. The record revealed that the open space on the front side was preserved, and the construction did not infringe the existing building line or setback requirements, thereby justifying the Tribunal's decision to regularize the excess construction rather than ordering coercive demolition.
"It is not the case of the respondent that appellant has gone beyond the envelop of his plot... and the construction does not violate the building line as existing on spot."
Compounding Penalties Must Adhere Strictly To Statutory Fee Schedules
Turning to the core challenge regarding the quantum of the compounding fee, the bench observed that the dispute was strictly confined to whether the Tribunal possessed the authority to impose a penal multiplier of five times the prescribed compounding rate. Counsel for the petitioner argued that Appendix-D, Part B.B. of the Unified Building Bye-Laws, 2021 statutorily prescribes compounding rates for commercial items at ₹1,000, leaving no room for discretionary five-fold escalation.
The court observed that statutory compounding mechanisms are designed to penalize deviations proportionately while regularizing technical infractions that do not harm urban planning layouts. Discretionary escalations that multiply statutory baseline rates without legislative backing undermine the predictability and fairness essential to municipal enforcement regimes.
Intervening Uniform Building Permission Fee Schedule Governs Compounding Charges
The bench took judicial notice of Government Order No. 157-JK(HUD) of 2026 dated July 29, 2026, issued by the Housing and Urban Development Department during the pendency of the writ petition. The said notification was promulgated in supersession of all prior notifications, instructions, and orders issued by Urban Local Bodies, Municipal Corporations, or Development Authorities to establish a comprehensive Uniform Building Permission Fee Schedule.
The court held that because the newly notified Government Order directly governs the levy of relevant regularization charges across Jammu & Kashmir, the Tribunal's direction imposing a five-fold penalty could no longer survive judicial scrutiny. The bench held that statutory authorities must give full effect to uniform executive schedules rather than sustaining disparate compounding multipliers.
"In view of the aforesaid Government Order, which now governs the levy of the relevant charges, this Court is of the considered opinion that the direction contained in the impugned order dated 18.06.2026, requiring the petitioner to deposit five times the prescribed compounding fee, cannot be sustained to that extent."
Modifying the Tribunal's order, the High Court directed that the petitioner shall be liable to pay regularization charges strictly in accordance with Government Order No. 157-JK(HUD) of 2026. The competent municipal authority was ordered to proceed with formal regularization of the commercial structure upon receipt of the uniform charges and verification of compliance with remaining statutory requirements.
The ruling establishes an important precedent that where structural deviations remain confined within permissible plot envelopes and maintain mandatory setbacks, authorities cannot levy arbitrary penalty multipliers beyond notified uniform compounding fee schedules.
Date of Decision: 12 August 2026