IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD (Special Original Jurisdiction) TUESDAY, THE THIRTEENTH DAY OF DECEMBER TWO THOUSAND AND ELEVEN PRESENT THE HON'BLE SRI JUSTICE K.C.BHANU WRIT PETITION NO. 25070 OF 2011 Between: Reddy Colony Residents Welfare Association …PETITIONER AND The Government A.P. and others. ...RESPONDENTS The Court made the following : THE HON'BLE SRI JUSTICE K.C.BHANU WRIT PETITION NO. 25070 OF 2011 O R D E R: This Writ Petition is filed seeking to declare the action of respondent Nos.2 and 3 in not taking any action for resuming the land in an extent of Ac. 0-77 cents Ward No.26 (Old ward No.30) in R.S.No.406/6 (Old R.S.No.495/7) of Reddy Colony, Bhimavaram, West Godavari District in spite of violation of lease conditions by respondent No.4 and further action of respondent Nos.2 and 3 in allowing respondent No.4 to do real estate business by converting the land belonging to public to that of the private purpose, as arbitrary and illegal. 2. In the affidavit filed in support of the Writ Petition, it is stated that the petitioner association is a Resident Welfare Association. A request was made by respondent No.4 to lease out a particular portion of the land for construction of Kalyan Mandapam, Library and public park. There was a vast extent of land lying vacant in Ward No.26 of the Colony. Respondent No.4 got a wicked idea to knock away the land by showing a public purpose and in the guise of the same, respondent No.4 developed an idea to do real estate business also. To fortify their intention, respondent No.4 moved an application for construction of Kalyan Mandapam and Library by showing proposals. Respondent No.3 considered the same and passed resolution, dated 25.06.1996 to lease out the said land to respondent No.4 for construction of Kalyana Mandapam and Library apart from construction of public park. Thereafter, respondent No.3 municipality has sent proposals to the Government vide its proceedings ROC No.4404/6-G1, dated 2.7.1996 for permission of lease. Thereupon, Government granted permission vide Memo, dated 25.03.1997 directing the respondents to take up the proposals as per the guidelines issued in G.O.Ms.No.419, dated 15.09.1996. Thereafter, respondent No.3 passed Resolution, dated 13.03.1997 granting lease in favour of respondent No.4 on the following terms: a) The said Samithi shall pay Rs.100/- to the Municipality per year. b) Only ¼ extent shall be used for Kalyana Mandapam. c) Rest of the area park shall be developed d) Period of lease 25 years. The petitioner association filed objections in respect of construction of Kalyana Mandapam vide representation, dated 21.05.1997, as respondent No.4 has not followed the terms and conditions. Upon considering the said objections, the Commissioner of respondent No.3-Corporation issued proceedings, dated 11.07.1997, directing respondent No.4 to hold the terms and conditions of lease and further caution not to violate the same. However, acting contrary to the terms and conditions of the lease, respondent No.4 has not at all taken up the construction of Kalyan Mandapam and kept the land vacant without construction of public park. Thereafter, petitioner association has been continuously pursuing the matter with respondent Nos.2 and 3 for cancellation of the lease and for resuming the land so as to put the same for public use and also for constructing a public park with the funds of respondent No.3. Respondent No.4 in order to make out money has been taking steps by laying plots in the land allotted by respondent No.3, in the guise of the earlier permission and lease granted in the year 1997. Therefore, the petitioner association made representation, dated 12.10.2009 to the authorities, but no action has been taken as all officials of the authority working in respondent No.3 Municipality are acting in collusion with respondent No.4. Hence, the Writ Petition. 3. Respondent No.3 filed counter-affidavit stating that the Municipality has taken action for cancellation of the lease agreement of Srikrishna Devaraya Samskruthika Samithi, Bhimavaram and also the matter will be brought to the notice of the Government along with the opinion of the Municipal Council, Bhimavaram, Seeking for necessary orders. 4. Respondent No.4 filed counter affidavit stating that respondent No.4 requested the Corporation to lease out the land which is a reserved vacant site of Ac.0.77 cents vested in Bhimavaram Municipality, for construction of Kalyana Mandapam, Library and park. Thereafter, the Municipality passed a resolution and sent proposals to the Government and in turn Government granted permission and issued G.O.Ms.No.67, dated 28.02.1997. Accordingly, respondent No.3 passed resolution, dated 13.03.1997 and communicated the same to respondent No.4 with regard to grant of lease respondent No.4 for a period of 25 years @ Rs.100/- per year. Respondent No.4 trust spent huge amount for construction of function hall, library room and for development of park and garden in the said land. Thereafter respondent No.4 trust applied for permission for construction of Function hall-cum-library room by submitting plans and got approval of the same from Director of Town & Country Planning and also from Municipality. Respondent No.3 forwarded the application and the plans to the Director with covering letter, dated 23.02.1998. The Director of Town & Country Planning forwarded its approval to the Municipal Commissioner on 01.08.1998 along with approved plan. After getting permission from the concerned authorities, respondent No.4 started construction of the building by raising level of the land to slab level. The proposed building is a huge construction. Due to unforeseen circumstances, there was an inflammation of cost of construction beyond the estimates. Respondent No.3 issued notice, dated 11.09.2009 to respondent No.4 and thereafter, respondent No.4 gave reply on 29.09.2009, stating that the Society is proceeding with the work by spending Rs.25,00,000/-. In total an amount of Rs.45,00,000/- was spent by respondent No.4 for construction of the building. Respondent No.4 is making efforts to complete the project by securing necessary funds. Respondent No.3 issued show cause notice, dated 28.07.2011 to respondent No.4 trust and thereafter respondent No.4 trust gave reply stating all the facts. Respondent No.4 trust is making all necessary efforts for completion of the construction of the building and for development of the part. Respondent No.3 authorities are fully aware of the bona fide intentions and the efforts of respondent No.4 trust. 5. The reply affidavit filed by the petitioner society denying the averments made in the counter-affidavit. 6. Respondent No.4 submitted a representation to respondent No.3-Corporation, Bhimavaram to lease out the site to an extent of Ac 0.77 cents of Reddy Colony, Bhimavaram, West Godavari District, for construction of Kalyana Mandapam and Library and the same was accepted by Respondent No.3. The Government was also given permission to Respondent No.3 to lease out the said site to respondent No.4 for a period of 25 years as per G.O.Ms.No.67, dated 28.02.1997 @ Rs.100/- per annum with the following conditions: “1. That permission should be obtained within six months by getting architectural plan for the purpose of the construction of Srikrishna Devaraya Samskruthika Samithi from the Director of Town and Country Planning and start the construction within six months. 2. In the site taken on lease only 1/4th of the thereof shall be utilized for Kalyana Mandpam and Library. The remaining extent of 3/4th shall be developed with the own funds of the Samithi as Garden of Park for the use of the public. 3. The construction of the Kalyana Mandapam and the Library shall be completed within two years after taking possession of the site. 4. A condition was imposed that the said Kalyana Mandapam shall be let out for the public functions of all communities at reasonable rents.” The site was handed over to respondent No.4 on 19.04.1997. Respondent No.4 also submitted proposals for construction of Kalyana Mandapam and also development of park to the Director of Town and Country Planning, who accorded approval for construction. Thereafter, respondent No.4 has not fulfilled the terms and conditions and making valuable land useless by violating the terms and conditions and causing inconvenience to the surrounding people. Therefore, the Municipal Corporation issued notice, dated 11.09.2009 to respondent No.4 to give explanation within 15 days for the intentional acts and further to take necessary action for cancellation of lease. For which, respondent No.4 gave representation on 29.09.2009 stating that he would complete the proposed construction of Kalyana Mandapam and requested the Municipality to extend the time. Even after two years from the date of representation, there was no progress for construction of Kalyana Mandapam. Therefore, the Municipality issued a final notice stating that as to why the lease agreement should not be cancelled. After receipt of reply from respondent No.4, the matter was placed before the Municipal Council, Bheemavaram for taking necessary action. Hence, at this stage, no direction can be issued in view of the fact that the matter is pending adjudication before the Municipal Council. 7. In view of the above, the Writ Petition is disposed of directing respondent No.3 to take appropriate decision on the representation of respondent No.4 in accordance with law duly taking note of the final notice, dated 27.08.2011 along with the explanation given by him within a period of eight (8) weeks from the date of receipt of a copy of this order. There shall be no order as to costs. _______________ K.C.BHANU, J DECEMBMER 13, 2011 YVL THE HON'BLE SRI JUSTICE K.C.BHANU WRIT PETITION NO. 25070 OF 2011 13.12.2011 YVL