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Though the municipal laws permit deviations from sanctioned constructions being regularised by compounding but that is by way of exception. Unfortunately, the exception, with the lapse of time and frequent exercise of the discretionary power conferred by such exception, has become the rule. Only such deviations deserve to be condoned as are bona fide or are attributable to some misunderstanding or are such deviations as where the benefit gained by demolition would be far less than the disadvantage suffered. Other than these, deliberate deviations do not deserve to be condoned and compounded. Compounding of deviations ought to be kept at a bare minimum. The cases of professional builders stand on a different footing from an individual constructing his own building. A professional builder is supposed to understand the laws better and deviations by such builders can safely be assumed to be deliberate and done with the intention of earning profits and hence deserve to be dealt with sternly so as to act as a deterrent for future. It is common knowledge that the builders enter into underhand dealings. Be that as it may, the State Governments should think of levying heavy penalties on such builders and therefrom develop a welfare fund which can be utilised for compensating and rehabilitating such innocent or unwary buyers who are displaced on account of demolition of illegal constructions.” (emphasis supplied) In Royal Paradise Hotel (P) Ltd. v. State of Haryana and Ors. (2006) 7 SCC 597, this Court noted that the construction had been made in the teeth of notices issued for stopping the unauthorized construction and held that no authority administering municipal laws can regularize the constructions made in violation of the Act. Some of the observations made in that judgment are extracted below:
“Whatever it be, the fact remains that the construction was made in the teeth of the notices and the directions to stop the unauthorized construction. Thus, the predecessor of the appellant put up the offending construction in a controlled area in defiance of the provisions of law preventing such a construction and in spite of notices and orders to stop the construction activity. The constructions put up are thus illegal and unauthorized and put up in defiance of law. The appellant is only an assignee from the person who put up such a construction and his present attempt is to defeat the statute and the statutory scheme of protecting the sides of highways in the interest of general public and moving traffic on such highways. Therefore, this is a fit case for refusal of interference by this Court against the decision declining the regularization sought for by the appellant. Such violations cannot be compounded and the prayer of the appellant was rightly rejected by the authorities and the High Court was correct in dismissing the Writ Petition filed by the appellant. It is time that the message goes aboard that those who defy the law would not be permitted to reap the benefit of their defiance of law and it is the duty of High Courts to ensure that such definers of law are not rewarded. The High Court was therefore fully justified in refusing to interfere in the matter. The High Court was rightly conscious of its duty to ensure that violators of law do not get away with it.
Architect Shri Jayant Tipnis vide his letter dated 7.6.2002 No. BC / C-92 addressed to the Ex. Eng. (B.P.) City has stated that roughly 9292.95 sq.ft. of area has been consumer over and above the FSI granted to the said project and almost the area of 14148.22 sq.ft. has been consumed in the staircase lift and lift lobby which if made available to the complex on payment of premium, it is possible that the whole complex as is and as built up could be regularized on the payment of concessional penalty, as the builders who have developed this property are not in developers and he can not be blamed and / or held responsible for the same. Balance FSI from their remaining part shall not be utilized to regularize this unauthorized constructions. The unauthorized construction carried out by the Developer is not as per the provisions of the Development Control Regulations-1967. The MCGM has given the permission prior to 1991. Therefore, Development Control Regulations, 1991 will not be applicable and accordingly, the unauthorized construction cannot be regularized. Hence, appeal may be rejected.

41. Though the argument of Dr. Singhvi that the developers / builders / promoters are responsible for the illegal construction finds support from the provisions of the 1963 Act, but that does not help the housing societies and their members because there is no provision under that Act for condonation of illegal/unauthorized construction by the developers/builders and promoters or regularization of such construction. Section 2(c) of that Act defines the term ‘promoter’ in the following words: