Challenging masterplan of ongole municipal corporation

You may first issue a legal notice through a lawyer with the details of the land already gifted for the same purpose hence demanding again for the same reason as well as denying approval/permission for construction is illegal and contrary to the law of the land and seek approval expeditiously.

Failing to entertain your legal notice and refusing to grant approval, you may approach High court with a writ petition against the governmental department for relief and remedy.

It is your decision to donate or not, how can Municipality compel you to donate more land.

Yes, Municipality cannot compel anyone to gift their property. 

Further, you and other legal heirs may represent to the Competent Athority to recast/amend the Master Plan taken into account concessions/sacrifices made by your family for larger public interest. In case of positive response, you have the option to seek judicial review. However, such review may be successful in exceptional cases. However, the facts posted suggest your case to be exceptional.

Based on the facts stated, the action of the municipal authorities in insisting that you execute a gift deed in favour of the Ongole Municipal Corporation as a precondition for grant of building permission appears to be legally unsustainable unless such a requirement is specifically authorized by the applicable town planning statute. A Master Plan or Development Plan is only a planning instrument and, by itself, does not divest a landowner of title or authorize the Corporation to compel surrender of private property without following due process of law. If the land is genuinely required for a public purpose such as road formation, the Corporation must ordinarily acquire the land in accordance with the applicable law and pay compensation wherever legally mandated, rather than insisting upon a gratuitous transfer. In the present case, the fact that your family has already donated approximately 870 sq. ft. of land for the formation of an adjacent 30-foot public road is a material circumstance, and the subsequent proposal of another parallel 40-foot road through the same property without any apparent planning necessity may be challenged as arbitrary, unreasonable and lacking a rational basis. You should immediately obtain certified copies of the approved Master Plan, the road alignment plan, the technical justification for the proposed road and the written order refusing building permission, and seek disclosure of the specific statutory provision under which the Town Planning Department is demanding execution of a gift deed. Thereafter, submit a detailed representation to the Municipal Commissioner and the planning authority pointing out that a 30-foot road has already been gifted, that the proposed road is unnecessary and disproportionately affects your only remaining family property, and request reconsideration of your building application. If the authorities nevertheless continue to refuse approval or insist upon surrender of land without lawful authority or acquisition proceedings, you may invoke the writ jurisdiction of the High Court under Article 226 of the Constitution seeking quashing of the refusal, a declaration that the Corporation cannot compel execution of a gift deed without authority of law, a direction to consider your building application strictly in accordance with law, and, where justified by the facts and the governing planning legislation, a challenge to the road alignment itself on the grounds of arbitrariness, unreasonableness, non-compliance with statutory requirements and violation of your constitutional right not to be deprived of property except by authority of law under Article 300A of the Constitution of India.