HC Directs Telangana Govt To Cancel Decades-Old Land Allotment to Indu Techzone and Others

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

A Division Bench of the High Court comprising Chief Justice Alok Aradhe and Justice J. Sreenivas Rao told the state government to complete the cancellation process within four months.

Government land in prime areas was allotted to these companies to set up IT-related and IT Enabled-Services (ITeS) companies. Despite the land being allotted, these companies did not take any steps to set up industries. Therefore, the High Court ordered the cancellation of the land allotments made to these companies.

The order was issued by the High Court in a public interest litigation (PIL) filed by an NGO ‘CHATRI’ in 2007, which challenged the allotment of public properties to private companies, firms, individuals either by way of outright sale or lease without calling for tenders or advertisement.

The NGO brought to the notice of the court that an extent of 4,156 acres and 81 guntas of government land was allotted on nomination basis, without calling for tenders and auctions, from 2001 to 2006.

Most of the land allotted to these companies was in and around Hyderabad and other parts of the erstwhile undivided Andhra Pradesh. The NGO also informed the court that the APIIC had confirmed the allotment made to the private companies and individuals on a first-come first-serve basis without the knowledge of the public at large.

The NGO requested the court to give directions to the state government to cancel the allotments and to resume the lands in all cases where the development had not commenced or the substantial progress was not yet made.

The PIL has been pending before the High Court since 2007 and it was being heard by the Chief Justice Bench of Telangana High Court recently. After conclusion of the arguments, the court pronounced its judgment.

Gandra Mohan Rao, a senior counsel representing the petitioner NGO, argued that the land allotment was made at throw-away prices and caused loss of several thousand of crores to the state exchequer.

Further, he brought to the notice of the court that the land allotment on nomination basis is contrary to the circular issued by the state government and erstwhile APIIC, on land allotments, which clearly says that the lands have to be auctioned.

Mohan Rao also submitted to the court that lands were allotted to several companies like Neuland laboratories, Dakshin Infra, Bhuviteja enterprises, Varun Motors, Alif Resources and others which do not come within the purview of information technology companies. However, APIIC had allotted the land in their favour on nomination basis.

The senior counsel submitted 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 judgments of the Supreme Court which clearly stated that the land allotment must be on auction or tenders.

The Advocate General, appearing for the state government and TSIIC, however, argued that the policy decision of the government cannot come under the scope of judicial review.

Hearing the all parties involved in the case, including the government and the beneficiary companies, the High Court decided against interfering in the lands allotted to other non IT-sector 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 allotted land and created the employment. The High Court also was not inclined to interfere with the land allotments that fall in the territory of the current Andhra Pradesh state.