AP High Court faults APIIC’s deal

By S A Ishaqui
Hyderabad, July 29: The Andhra Pradesh High Court found fault with the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for delegating its power to collect property tax from the industries located in industrial estates surrounding the city to Industrial Areas Service Societies. The state government has entrusted the management and maintenance of civic services in industrial areas across the state through an order in 1994 to the APIIC.
The APIIC had also delegated its powers to approve building plans. They covered industrial and non-industrial houses in industrial estates and adjoining areas in areas of municipalities and corporation under Section 13 and 14 of the AP Urban Area (development) Act 1975. It was also entrusted with the task of collecting property tax and other taxes. However, the APIIC delegated its powers to collect property tax, maintain civic services and mobilisation of funds through donations to the Industrial Areas Service Societies.
D. Srinivasa Rao, general secretary of APIIC Workers and Employees’ Union filed a writ petition in 1998, challenging the action of the APIIC. A division bench comprising Justice T. Meena Kumari and Justice Ramesh Ranganathan took up the final hearing on the petition. The bench in its recent observation pulled up the APIIC on how it could delegate its powers to others without any statute.
The court observed that the corporation has no power to transfer its statutory functions to a third party.
The court asked the counsel for APIIC whether they would out source the statuary powers vested with them.
It asked the counsel to inform it within two weeks whether the corporation would withdraw the powers from the Industrial Areas Service Societies.