IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) MONDAY, THE TWENTY SECOND DAY OF JUNE TWO THOUSAND AND NINE PRESENT HON'BLE SRI JUSTICE R.SUBHASH REDDY WRIT PETITION No.4994 of 2002 Between : 1 Y.Bullaiah S/o Ayyanna, R/o H.No.1-4-913, (Ward No.9), Bodhan, Nizamabad District. 2 Mohd. Meera Mohiuddin S/o Basheeruddin R/o H.No.1-4-1074, (Ward No.12), Bodhan, Nizamabad District. 3 Smt.Ameeda Bee W/o Basheer, R/o H.No.1-3-28, (Ward No.8), Bodhan, Nizamabad District. 4 Raja Khan S/o Raja Khan, R/o H.No.1-3-35, (Ward No.8), Bodhan, Nizamabad District. 5 Mahaboob Khan S/o Moulana Khan, R/o H.No.1-3-30, (Ward No.8), Bodhan, Nizamabad District. ..... PETITIONERS AND 1 Government of Andhra Pradesh Rep:Secretary Municipal Administration & Urban Develpment(J2), Hyderabad. 2 The Commissioner & Director of Municipal Administration, Hyderabad. 3 The District Collector, Nizamabad, Nizamabad District. 4 The Commissioner of Bodhan Municipality, Bodhan, Nizamabad District. .....RESPONDENTS Petition under Article 226 of the constitution of India praying that in the circumstances stated in the Affidavit filed herein the High Court will be pleased to issue an appropriate writ, order or direction, more particularly one in the nature of Writ or Mandamus, declaring the G.O.Ms.No.255 M.A. Dt: 13.6.2001 of the 1st respondent as illegal, arbitrary and without jurisdiction and quash the same in so far as the same against the interest of petitioners and consequently direct the respondent to receive the actual value of the site as per G.O.Ms.No.194 M.A. dt: 6.3.1981. Counsel for the Petitioners : MR.K.DURGA PRASAD Counsel for the Respondents : GP FOR MUNCIPAL ADMN. & URBAN DEV. The Court made the following : ORDER : In this writ petition, the petitioners, five in number, have challenged the validity of the orders issued by the Government in G.O.Ms.No.255, M.A., dated 13th June 2001, insofar as it is against them, and consequently, to direct the 4th respondent to receive the actual value of the plots allotted to them, as per G.O.Ms.No.194, M.A., dated 6th March 1981. 2. In the Municipal limits of Bodhan in Nizamabad District, about two thousand hut-dwellers were residing in different localities, by encroaching upon the open sites. They requested the Municipal authorities to allot the said sites to them on the ground that they are in long-standing possession of those sites, and that they will be subjected to hardship, if they are evicted. Based on their requests, the Municipal Council has decided to allot the said sites to the persons in occupation, by collecting certain fixed amount as contemplated under the Andhra Pradesh Municipalities (Acquisition and Transfer of Immovable Properties) Rules, 1967. The District Collector, after approving the rates fixed by the Municipal Council, wrote to the Government for issuance of necessary orders. Initially, the Government has issued G.O.Ms.No.194, M.A., dated 6th of March 1981, fixing the rates ranging from Rs.5/- to Rs.12/- per square yard, for sites in different localities. Though a large number of persons have applied to the Government and got the benefit of the aforesaid G.O., but subsequently, some persons, who did not pay the amount fixed by the Government, have approached the District Collector, offering to pay the amount. The District Collector, in the year 2001, sought for clarification from the Government, and the Government in turn, issued the impugned G.O., ordering for regularization of encroachments on payment of interest ranging from 10% to 14% per annum, basing on the size of the plot. 3. The impugned order issued by the Government in G.O.Ms.No.255, dated 13.06.2001, is questioned by the petitioners mainly on the ground that if the rates as ordered by the Government are to be collected, it will result in great hardship to them, as the same is disproportionate to the original cost itself. It is submitted that charging of an exorbitant interest is illegal and arbitrary. 4. Counter affidavit is filed on behalf of the Commissioner and Director of Municipal Administration. While denying the various allegations made by the petitioners, it is stated in the counter affidavit that pursuant to the orders of the Government issued in G.O.Ms.No.255, dated 13.06.2001, notices were issued to all the encroachers and about one thousand encroachers have already paid the charges for allotment of sites, and there is opportunity for the remaining encroachers to pay the same. It is stated that the Government has issued further orders in G.O.Ms.No.19, M.A., dated 18.01.2002, and G.O.Rt.No.643, M.A., dated 30.05.2002, extending the time for implementation of the earlier Government orders. 5. Transfer of immovable property belonging to Municipalities, is governed by Statutory Rules, namely, the Andhra Pradesh Municipalities (Acquisition and Transfer of Immovable Properties) Rules, 1967. In this case, it is not in dispute that all the applicants, including the petitioners, were encroachers on the land belonging to the Municipality. Keeping in mind the encroachments made by large number of people, the Government has issued G.O.Ms.No.194, dated 06.03.1981, to allot sites to them, on payment of the rates fixed for the said sites. Though a large number of people have availed the said opportunity, the petitioners herein did not avail the benefit of said G.O., and when a further G.O. was issued after twenty years, in G.O.Ms.No.255, M.A., dated 13.06.2001, charging interest on the original rates, the petitioners have rushed to this Court, mainly on the ground that the interest fixed under G.O.Ms.No.255 is exorbitant. 6. In this case, it is to be noted that originally, the rates were fixed by the Government in the year 1981, and for all these years, the petitioners have been in possession of the sites encroached by them, without paying the said rates. In view of steep increase in the price of the land, the interest rates fixed by the Government in G.O.Ms.No.255, dated 13.06.2001, cannot be said to be arbitrary or illegal. Further, after issuance of G.O.Ms.No.255, and pursuant to the notices issued to the encroachers, nearly one thousand persons have paid the amounts and availed the opportunity, but the petitioners did not do so. In that view of the matter, I do not find any illegality in the order passed by the Government in G.O.Ms.No.255, charging penal interest for those who have not availed the benefit of rates fixed vide G.O.Ms.No.194, dated 06.03.1981. 7. During the course of arguments, it is submitted by the learned counsel for petitioners that pursuant to the interim orders passed by this Court on 19.03.2002, petitioners have paid 50% of the regularization charges and they were issued receipts. In view of the said submission, and also in view of the fact that the matter is pending before this Court for a considerable time, the petitioners are permitted to pay the balance amount, along with interest, in terms of G.O.Ms.No.255, M.A., dated 13.06.2001, within a period of three months from today. The 4th respondent/Commissioner is directed to verify the payments made by the petitioners and to charge interest only on the balance amount payable by them. On receipt of amount from the petitioners, the respondents shall issue appropriate certificates to them, regularizing their possession over the sites in question, in accordance with the rules. 8. Subject to above directions, the writ petition is disposed of. No order as to costs. _____________________ R.SUBHASH REDDY, J 22nd June 2009 ktl/asp/ajr