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12. Identical challenge was raised in Foreshore Cooperative Housing Society Ltd. vs. Nivara Hakk Suraksha Samiti, (1991) 2 SCC 75 and the Supreme Court turned down that challenge in the following words:

"5. The last contention raised by Shri Sebastian was that the plots in question were reserved in the draft development plan for "housing the dishoused" and that, therefore, the allotment of this land to the society for housing purposes was not proper. The High Court has pointed out that the plots have been dereserved under the powers vested in the Administrator of the Municipal Corporation under Section 50 of the Maharashtra Regional Town Planning Act. Learned Counsel referred to the provisions of Sections 26 to 29 abs 15 of 39 PIL-12-2011-final.sxw of the Act. But we agree with the High Court that the relevant provision is contained in Section 50 and that, since dereservation has been made under this section, the objection put forward does not survive. The reservation becomes material only at the stage of permission to construct on these plots and it is common ground that by the time the constructions were made dereservation had been effected."