Telangana High Court Strikes Down Free Land Allotment to IAMC, Cites Legal Violations and Public Interest Concerns

Telangana, Jun 30 (KNN) In a significant ruling, the Telangana High Court’s Division Bench of Justice K. Lakshman and Justice K. Sujana struck down the Government Order, which had allotted 3.7 acres of land in Raidurg village to the International Arbitration and Mediation Centre (IAMC) free of cost.

The court also cancelled the land allotment to IAMC, citing that such distribution of state resources must not be without compensation unless for a greater public cause and to a non-profit entity.

The judgment came in response to PILs challenging the land allotment, the grant of Rs 3 crore financial aid, and the directive mandating state departments to refer disputes above Rs 3 crore to IAMC.

Petitioners argued the government misused its power, pointing out IAMC's private status, the land’s high value, and lack of legal provision for free land allotment to a private body. They also raised concerns over IAMC’s fees and its burden on public funds.

The court observed that the 1975 Rules governing land alienation do not allow free land allotment to private bodies, nor do they permit allotment to entities not registered under the Companies Act.

Since IAMC wasn’t registered as a company at the time of allotment and the land was given without charging market value, the allotment was deemed legally flawed.

However, the court upheld the Rs 3 crore financial aid and referral of high-value disputes to IAMC, classifying them as policy decisions.

It noted that such support has precedence, as with ICADR. The court advised annual performance reviews of IAMC and mandated that future funding after the initial five-year MoU be performance-based.

(KNN Bureau)