NARGIS JAL HARADHVALA vs STATE OF MAHARASHTRA .

The Supreme Court held that under Section 20 of the Urban Land (Ceiling and Regulation) Act, 1976, the percentage of land to be surrendered to government nominees must not exceed 5% of the total accommodation available, as established in Shantistar Builders vs. N.K. Toitame (1990) 1 SCC 520. The Court found that the appellant had complied with this requirement by offering flats that constituted 5.86% of the net permissible FSI, and thus the demand for additional flats by the respondents was not justified. The appeal was allowed, and the High Court's dismissal of the writ petition was set aside.