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« Export Ban Will Damage Industries | Home | Expansion Of NH-9 Delayed Till December 2008 »

Raidurg Land Private: Supreme Court

Posted by Pradeep Sadanapalli | April 17, 2008 | 730 views

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The 30 year-old saga surrounding the controversial Raidurg land (Survey no. 83) has ended with a Supreme Court ruling that the state government cannot claim ownership of the property.

The Apex Court, in its order on April 12, dismissed the Special Leave Petitions filed by the state government against an AP High Court order which held that over 400 acres of the land worth around Rs 8,000 crore belonged to private parties. The revenue department had fought the case claiming that it was government land.

Though the Supreme Court judgment will not have any immediate bearing on the recent auction of land to sever al companies by the AP Industrial Infrastructure Corporation, the case exposed contradictory stands taken by government departments hoping to gain hold of the land.

While the revenue department argued that it was government land, the AP Industrial Infrastructure Corporation held that the land belonged to private parties. But the APIIC acquired 424 acres of the 526acre property under provisions of the Urban Land Ceiling Act.

As per the recently repealed Act, individuals could not possess more than 1,000 Sq.m of land. The ULC authorities computed 100 acres as the retainable area and handed over 424 acres to APIIC.

With the boom in real estate, the Raidurg land turned a gold mine for the government. APIIC sold about 150 of the 424 acres it took hold of to major companies like DLF, ITC Hotels and Salarpuria at prices ranging between Rs 18 crore and Rs 25.5 crore per acre.

APIIC sold the land with the rider that the auction was subject to the outcome of the court judgement.

“The Supreme Court judgement on April 12 will not have any bearing on the auctions,” said Mr B.P.

Acharya, APIIC managing director. “In fact, our case is strengthened because our contention is that it is private land and attracted the provisions of ULC Act.” Petitioners in the case had alleged that the conduct of the state was legally malafide. “It resorted to various proceedings to achieve its purpose to take over the land,” they said. Scores of individuals were petitioners in the case.

The saga of Raidurg land, which started in 1976 with the clamping of the ULC Act, took a twist in 1980 when the development master plan was extended to Raidurg area.

The Ranga Reddy district administration in 1998 issued notices under the Land Revenue Act declaring that the land under survey no. 83 belonged to the government. After the High Court struck down the notices, the government filed Special Leave Petitions in the Supreme Court challenging the High Court order.

In the meantime, the government speeded up the process under the ULC Act and in 2006 handed over the “surplus land” to APIIC.

The government came under criticism for conducting the ULC proceedings arbitrarily. It earmarked 100 acres of retainable land according to its choice even though the Act empowered land owners to chose the property.

SOURCES:
Deccan Chronicle

Topics: Govt Failures, Real Estate |

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