M/S. RAJ HOMES PVT. LTD. vs STATE OF M.P. .

The Supreme Court ruled that the imposition of premium under Rule 14 of the Madhya Pradesh Land Revenue Code, 1959, is arbitrary and violates Article 14 of the Constitution of India. The Court held that the flat rate premium imposed irrespective of land use is unreasonable and lacks a rational basis. Consequently, the Court restrained the State of Madhya Pradesh from collecting the premium as per the impugned rule.