THE HON’BLE SRI JUSTICE R. SUBHASH REDDY WRIT PETITION NO.7823 OF 2008 DATED:26.8.2011 Between: Kotyada Demullu and others … Petitioners And Veerabhadrapeta Gram Panchayat Rep. by its Panchayat Secretary, Lakkavarapukota Mandal Vizianagaram District and others … Respondents THE HON’BLE SRI JUSTICE R. SUBHASH REDDY WRIT PETITION NO.7823 OF 2008 ORDER: Heard the learned counsel for the petitioners, learned Standing Counsel for the Gram Panchayats appearing for respondent No.1, Sri G. Elisha, and learned Government Pleader for Panchayat Raj appearing for the respondents 2 to 4. In this writ petition, the petitioners, who are Upa-Sarpanch and Members of the Veerabhadrapeta Gram Panchayat, question the auction-cum-tender notice issued in Letter No.2/2008 dated 13-3-2008 for sale of babool trees, as illegal and arbitrary. In the affidavit filed in support of the writ petition, it is stated that the petitioners are the Upa-Sarpanch and Members of the Veerabhadrapeta Gram Panchayat and they were elected in the elections held on 28.8.2006. In the limits of the Gram Panchayat, there is a tank, namely, Veera Mukunda Sagaram Tank and there are about 500 babool trees around the tank. It is the grievance of the petitioners that though the value of the said trees is more than Rs.20,00,000/-, the Sarpanch of the Gram Panchayat, without any resolution of the present Gram Panchayat and based on the earlier resolution of the Gram Panchayat dt.5.9.2004, has obtained approval for sale of the trees and got issued the impugned auction notice. This Court, at the stage of admission, by order dt.10.4.2009 granted interim direction to the respondents to the effect that if there are no orders from the Mandal Revenue Officer to cut the trees, no further steps shall be taken to cut the trees in pursuance of the auction held on 29.3.2004. The said order was also made absolute by order dt.10.11.2010. Mainly it is the case of the petitioners they are presently Upa- Sarpanch and Members of the Veerabhadrapeta Gram Panchayat and they were elected in the panchayat elections held on 28.8.2006, but without resolution of the Gram Panachayat the Sarpanch of the Gram Panchayat got issued the impugned notice based on the resolution passed on 5.9.2004. It is their further case that while the value of the babool trees is about Rs.20,00,000/-, without proper fixation of upset price and approval from the competent authority, the impugned notice is issued. The third respondent – District Panchayat Officer (Full Additional Charge), Vizianagaram District, has filed a counter affidavit. It is stated in the counter affidavit that Veerabhadrapeta Gram Panchayat, Lakkavarapu Kota Mandal, passed a resolution vide P.R. No.5, dt.5.9.2004 to remove 500 babool trees situated at Veera Mukunda Sagaram Tank. It is further stated that the said resolution was submitted to the District Collector, who in turn directed the third respondent to take action in the matter and after approval of the concerned District Forest Officer, further steps were taken. It is also stated that the auction was held on 29.3.2008 for Rs.4,20,000/- and the fifth respondent is found to be the highest bidder. While pleading that the procedure adopted is as per the Rules, he prayed for dismissal of the writ petition. The sale of usufruct and trees is governed by the Statutory Rules, namely, the Andhra Pradesh Panchayat Raj (Sale of usufruct and trees vested in Gram Panchayat) Rules, 2000 (for short, ‘the Rules’), framed under Section 58 of the Andhra Pradesh Panchayat Raj Act, 1994. As per 6 of the Rules, the Gram Panchayat has to fix the upset price fixing at least 70% of the market value of the usufruct or timber or fuel wood value, depending on the market value, and the same has to be approved by the Gram Panchayat. In the instant case, it is to be noticed that the upset price was fixed at Rs.1,50,000/- but as per the averments in the counter, the highest bid for the auction was for Rs.4,20,000/-. The very fact that the upset price was fixed at Rs.1,50,000/- shows that the respondents have not assessed the market value of the trees as per Rules. It is also to be noticed that when there is a constituted Gram Panchayat and the petitioners are its members, there is no justification for the Sarpanch of the Gram Panchayat to refer to the earlier resolution dt.5.9.2004 to address the District Collector seeking permission for sale of the trees. As there is no resolution of the present Gram Panchayat and as the upset price is not fixed as per the norms prescribed in the Rules, the impugned auction notice dt.13-3-2008 issued in Letter No.2/2008 is liable to be set aside, and is accordingly set aside. However, it is made clear that this order will not preclude the respondent – Gram Panchayat to take steps for auction of the trees by following the due procedure as contemplated under the Rules. With the above observations and directions, the writ petition is allowed. No costs. _____________________ R. SUBHASH REDDY, J 26.8.2011 bnr