Madras High court slaps Rs 25 Lakh fine on fraud Madurai realtor

Madurai: A realtor who promoted unapproved colony by selling plots abutting irrigation tank has been asked to pay a fine amount of Rs 25 lakh by the Madurai bench of the Madras High court here on Friday.

While passing this order, a division bench comprising Justices K K Sasidharan and GR Swaminathan observed that, "while dealing with writ petitions relating to unauthorized construction, we have found the mushroom growth of illegal buildings in the city of Madurai. The failure on the part of the officials of the corporation and the municipalities and the patronage given by those who are in power protected the wrong doers." 

The realtor Dhanasekaran, proprietor of Ayappan Real Estate, Madurai, had purchased the land close to Nelliyenthal Kanmoi (tank) near here and converted it as layout named "Manikandan Nagar'. Without obtaining layout approval from the Nelliyethan panchayat, he published brochures indicating that the layout is connected to the national highway and it is situated near the Madurai bench of the Madras High court and the Agricultural University, said the court.

The judges said it was a clear case for initiating criminal action against Dhansekaran because he had cheated the innocent public by selling unapproved plots and converted the bund of the 'kanmoi' as a road. And many people had also constructed houses sans planning permissions. 

However, as the realtor submitted that he would not repeat such things in future, the judges directed him to pay the fine. The realtor agreed to pay '5 lakh immediately and the remaining amount within a period of six weeks. 

While directing to spend the amount for the development of the 'Kanmoi', Justice Sasidharan observed that the panchayat authorities owe a duty and obligation under the statute to see that unauthorised layouts were not developed by builders. The rights of the other residents in the area were invaded by such mushroom growth. 

Referring to an observation in the Supreme Court order in Shanti Sports Club Vs Union of India, Justice Sasidharan said that it was high time that the executive and political apparatus of the State take serious view of the menace of illegal and unauthorized constructions and stop their support to lobbies of affluent class of builders and others. The court's order was on a petition filed by one Ramanathan who sought action against the realtor for the violation.