Telangana HC: Orders government to cancel land allotment to IT companies

Telangana: In a significant development, the Telangana High Court directed the state government to take back land allotted to companies that have failed to set up their units on it.The court order named several companies including Indu Techzone Pvt Ltd, Brahmani Infratech Pvt Ltd, Stargaze Properties Pvt Ltd and some others that had promised to set up their businesses but are yet to start construction on the allotted land. These companies were allotted pieces of land between 2001 and 2006.

A bench of Chief Justice Alok Aradhe and Justice J. Srinivasa Rao passed the order after hearing a public interest litigation (PIL) filed by Campaign for Housing and Tenural Rights (CHATRI). It also directed the government to initiate the process of cancellation of land allotted to these companies if they fail to start operations in the next four months. In 2007, CHATRI, a non-profit organisation, had challenged the allotment of government land to private companies on the basis of nomination without following the due process of conducting public tenders or auctions. The PIL stated that the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) had allotted 4,156 acres and 81 guntas of government land to the respondents in and around Hyderabad.
The petitioner found fault with the allotment of government land to the companies selected by APIIC, and argued that public resources should be used for the benefit of the community at large. Highlighting the lack of a competitive bidding process, the petitioner submitted to the court that the allotment of land to these companies was done in violation of constitutional principles.