A Division Bench of the Madras High Court on Wednesday stayed the operation of an order passed by a single judge of the court on April 16 directing the Chief Secretary to revisit a Government Order issued in March 2008 approving the sale of huge tracts of land at Ambattur, worth several hundred crores of rupees, by the defunct Dunlop Rubber Company (India) Limited to real estate firm VGN in July 2004.
Justices Anita Sumanth and Senthilkumar Ramamoorthy stayed the operation of the direction issued to the Chief Secretary on an appeal preferred by the representatives of the real estate firm. The interim stay was granted after senior counsel P.R. Raman, representing the appellants, contended that there was no reason why the single judge should direct the Chief Secretary to revisit a valid Government Order issued after due consideration.
It was brought to the notice of the court that the promoters of the real estate firm had filed a defamation suit before the High Court seeking damages from a person who initially intended to purchase a plot at VGN Victoria Park in Ambatttur. It also sought to restrain the individual from making slanderous and malicious statements against the promoters by questioning their title over the property being sold as individual plots.
During the course of hearing before the single judge, it was informed that the State government had acquired around 150 acres of land and assigned it to Dunlop in 1963. The assignment deed required the company to pay ground rent to the government every year and made it clear that the government could resume the lands, on payment of necessary amount, if the company gets wound up.
However, if the government decides not to resume, the company could dispose of the land in any manner. Despite such a condition, Dunlop had sold a part of lands to VGN in 2004 without obtaining prior approval of the State government, the single judge had said and pointed out that even the 2008 Government Order approving the sale had not considered the objections raised by Tiruvallur Collector with respect to the sale.
In his report dated August 14, 2007, the Collector had pointed out that the sale was against the provisions of the Land Acquisition Act of 1894 too. Hence, the single judge, in his order wrote: “Ignoring all these points, the Government has granted permission to the company to sell the land which is totally against the object and reason for the acquisition of the land for the utilisation of the industrial purpose by the government.
“In this regard, the Chief Secretary, Tamil Nadu Government, is directed to verify and revisit the entire circumstances found in and around the issuance of G.O.Ms.No.183, Revenue (LAII) Department dated March 31, 2008 and submit a report to this court on or before June 30, 2021. In fact, the lethargic attitude of the authorities, has caused heavy loss to the government to the tune of several crores of rupees, which is public money.”
