In a landmark ruling, the Telangana High Court has directed the state government to revoke land allocations made to companies that have failed to commence construction or take steps to establish their businesses. The order was issued by a division bench led by Chief Justice Alok Aradhe and Justice J. Sreenivas during a hearing of a public interest litigation (PIL) filed by the Campaign for Housing and Tenural Rights Initiative (CHATRI), represented by secretary S. Jeevan Kumar.
The court specifically named several companies, including M/s Indu Techzone Private Limited, M/s Brahmani Infratech Private Limited, M/s Stargaze Properties Private Limited, M/s Anantha Technologies Limited, and M/s JT Holdings Private Limited, as respondents. It mandated the cancellation of their land allotments if they did not initiate operations within four months.
The PIL contended that public resources, including land, should benefit the community at large rather than be monopolized by a select few entities. Petitioners highlighted concerns over extensive land allocations made by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) in and around Hyderabad, as well as in other regions of undivided Andhra Pradesh, to private firms at minimal costs without conducting public tenders or auctions. They argued that this practice violated constitutional principles and undermined transparency.
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Between 2001 and 2006, the petitioners claimed that APIIC had allotted over 4,156 acres of land on a nomination basis without any competitive bidding process, raising red flags about the potential misappropriation of public assets. They referenced a response to a Right to Information (RTI) request, which confirmed that these allocations were made without a competitive bidding process.
In defense of the land allotments, the state revenue department argued that there was low demand for industrial land during the period in question and that the allocations were intended to promote industrial development. They maintained that the process was aligned with the needs of entrepreneurs and that auctions were only implemented when demand exceeded supply.
However, the court underscored the state’s responsibility to act as a steward of public resources. It emphasized the necessity for these assets to benefit the public and not be concentrated in the hands of a few. The court directed the government to take appropriate action against companies that have not developed the allocated land and to prioritize public interest in future land transactions.
This ruling is expected to have significant implications for land use policies in Telangana, reinforcing the principle that public resources should serve the community’s interests above all else.
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