THE HON'BLE SRI JUSTICE GOPALA KRISHNA TAMADA WRIT PETITION No.2654 of 2010 ORDER: 1 This writ petition is filed by the petitioner seeking a Writ of Mandamus to declare the action of the 4th respondent in issuing the impugned proceedings dated 29.01.2010 demanding the Petitioner to pay an amount of Rs.2,84,29,193/- without considering the representation of the Petitioner dated 18.01.2010 and subsequent thereto to reduce the percentage of enhancement from 20% to 10% and to pay the amount at 10% hike for the second year in four equal installments, in view of the fact that the Petitioner could run the business only for five months and sustained huge losses as the very auction was stayed by this Hon'ble Court is illegal arbitrary and consequently to direct the 4th Respondent to permit the Petitioner to pay the second year lease amount in four equal installments which shall be paid 15 days before enhancement of each quarter on enhancement of 10% on the first year bid amount. 2 The case of the petitioner, in brief, is that the 4th respondent has issued a notification No.5679/Sand/2007 Dated 14.04.2009 inviting applications for grant of leasehold rights to quarry sand reaches in East Godavari District. Pursuant thereto, it participated in the auction held on 04.05.2009 and became the highest bidder in respect of Reach No.11 GLB of Jonnada Village, Alamur Mandal for an amount of Rs.2,09,00,000/- for one year, renewable for the second year on 20% enhancement of the first year knocked down amount. The Petitioner further submits that after it was declared successful bidder, he paid 25% of the knocked down amount apart from the EMD amount of 25%, which was paid at the time of participation in the said auction and thus in total it paid 50% of the knocked amount i.e. Rs.1,04,50,000/-. While the things stood thus, challenging the auction process, its business rivals filed W.P.No.7675 of 2009 before this Court and in the said Writ Petition this court by order dated 17.04.2009 in WPMP No.10070 of 2009 stayed the confirmation of the auction, but, ultimately the said Writ Petition was dismissed as withdrawn. Subsequently on 31.10.2009 the 4th Respondent executed Sand Lease agreement in its name giving leasehold rights to excavate the ordinary sand. Thereafter on an application made by the Petitioner it was permitted to pay the remaining amount in four equal installments. 3 Petitioner further submits that on 29.01.2010 the 4th Respondent vide proceedings No.Lr.No.2744/Sand (R-11)/2009 served a notice on the Petitioner demanding to pay lease amount at the rate of 20% enhancement on the first year knocked down amount totaling to Rs.2,84,29,193/-. Hence, it approached the 4th respondent requesting to permit it to pay the second year lease amount with 10% enhancement on the first year lease amount, so as to enable it to renew the lease deed for the second year with effect from 01.04.2010. But, the 4th respondent did not consider his request and refused to renew the lease for the second year. Being aggrieved by the same, he approached this Court and filed the present writ petition. 4. Heard the learned counsel for the petitioner and the learned Government Pleader for Mines and Geology. 5. As seen from the record, it is clear that the petitioner was the highest bidder in respect of Sand Reach No.11 GLB of Jonnada village and it paid 25% of the highest bid amount on 04.05.2009, and the work order was issued only on 31.10.2009 i.e. after lapse of about six months. The amount paid by the petitioner is lying with the respondent authorities since 04.05.2009 without giving any benefit to the petitioner. As the Petitioner did not utilize the entire lease period during the first year, in my considered view, asking the Petitioner to enhance the licence fee by 20% is not justified. Therefore, this Court is of the view that the writ petition can be disposed of, with a direction to the respondents to renew the second year lease, in respect of Sand Reach No.11 GLB of Jonnada village on payment of 10% over and above the first year lease amount. 6. Accordingly, this writ petition is disposed of with a direction to the Respondents to collect the licence fee by enhancing the same at 10%. As the Petitioner came forward stating that he is prepared to pay the said licence fee in equal monthly installments, the Petitioner is permitted to pay the said licence fee in four equal monthly installments. There shall be no order as to costs. __________________________________ GOPALA KRISHNA TAMADA, J 9th February 2010 kvsn