AP High Court stalls lease of land given to film director Subhash Ghai

By S A Ishaqui

Hyderabad, Jan. 27: A piece of land leased to Bollywood producer Mr Subhash Ghai in the Greater Hyderabad area by the state government was stalled by the AP High Court on Wednesday.

The state government had issued a GO on August 19, 2008, alienating 20.10 acres at Ibrahimbagh village in Golconda mandal of the city to Whistling Woods International Ltd owned by Mr Ghai.

The government allotted the land for a period of 66 years to be renewed every 30 years at a nominal lease rent of 1 per cent of the land value.

Mr O. M. Debara, a retired employee and a resident of Hyderabad, approached the High Court through a public interest litigation against the allotment. The petitioner contended that the allotment was in violation of Article 14 of the Constitution and against the provisions of the AP (Telangana Area)

Alienation of State Lands and Land Revenue Rules, 1975 and the AP

(Telangana Area) Grant of lease of land for Non-Agricultural Purposes Rules, 1977.

The petitioner said the land was leased to the company at an annual lease of 0.25 per cent of the land cost for the first three years and a lease rent of 1 per cent of land cost from the fourth year onwards. He said for payment of lease the value of land was fixed at Rs 2 crore per acre and the lease was granted for 66 years initially and renewable for a further period 30 years.

Mr Gandra Mohan Rao, counsel for the petitioner, argued that the state government has the power to alienate government land at nominal rates to local bodies or local authorities for a public purpose. He contended that the alienation to a private company, which is not a local body or local authority, could be by collecting market value only.

A division bench comprising Justice V. V. S. Rao and Justice B. N. Rao Nalla conceding to the contention of the petitioner granted stay on the implementation of the GO till further orders.