HC orders Telangana govt to cancel decades-old land allotment to Indu Techzone, others

Hyderabad: The Telangana High Court has ordered the state government and the Telangana State Industrial Infrastructure Corporation (TSIIC) to cancel the land allotment made between 2001 and 2006 to several private companies, including Indu Techzone, Brahmani Infratech, Stargaze Properties, Anantha Technologies and JT. Assets.

A division bench of the High Court comprising Chief Justice Alok Aradhe and Justice J. Sreenivas Rao asked the state government to complete the annulment process within four months.

Government land in prime areas has been allocated to these companies for them to set up IT and IT Services (ITeS) related companies. Despite land allocation, these companies have not taken any steps to establish industries. The High Court therefore ordered the cancellation of the land allotments given to these companies.

The order was passed by the High Court in a Public Interest Litigation (PIL) filed by an NGO ‘CHATRI’ in 2007, which challenged the allocation of public properties to private companies, businesses and individuals, either by pure or simple sale, or by rental without call. for tenders or advertising.

The NGO told the court that an area of ​​4,156 acres and 81 guntas of government land was allotted on the basis of nominations, without tenders or auctions, from 2001 to 2006.

Most of the land allocated to these companies was in and around Hyderabad and other parts of the formerly undivided Andhra Pradesh. The NGO also informed the court that APIIC confirmed the allocation of funds to private companies and individuals on a first-come, first-served basis, without the knowledge of the general public.

The NGO requested the court to direct the state government to cancel the allotments and take back the land in all cases where development had not started or substantial progress had not yet been made.

The PIL has been pending before the High Court since 2007 and was recently heard by the Chief Justice of the Telangana High Court. After the conclusion of the proceedings, the court rendered its judgment.

Gandra Mohan Rao, a senior advocate appearing for the petitioner NGO, argued that the land allotment was done at throwaway prices and resulted in a loss of several thousand crores to the exchequer.

Further, he pointed out to the court that allotment of land on the basis of nomination is contrary to the circular issued by the state government and the erstwhile APIIC, on allotment of land, which clearly states that the land should be auctioned.

Mohan Rao also submitted to the court that land had been allotted to several companies like Neuland Laboratories, Dakshin Infra, Bhuviteja Companies, Varun Motors, Alif Resources and others which do not fall under the purview of technology companies in the information. However, the APIIC had allocated the lands in their favor on the basis of nominations.

The senior counsel argued that several companies were not eligible to get the land under the policy adopted by the state government to promote IT industries. He cited several Supreme Court rulings which clearly stipulated that land allocation should be subject to auction or tender.

The advocate general, appearing for the state government and the TSIIC, however, argued that the policy decision of the government cannot be subject to judicial review.

After hearing all parties involved in the matter, including the government and the allottee companies, the High Court decided not to interfere in the land allotted to other non-IT companies, such as Neuland Laboratories, Metro Cash and Carry India, Indian Hotels and Health. Resorts (IHHR) Hospitality, Gitanjali Gems, Portal Player, Dakshin Infrastructures Projects, Bhuviteja Enterprises, Varun Motors, Franklin Templeton International Services, RU Service Center as they are operational and have invested money in the allocated land and created employment. The High Court was also not inclined to interfere in the allotments of land located within the territory of the present State of Andhra Pradesh.