Hyderabad, Jan. 1: A piece of land leased to Bollywood producer and director Subhash Ghai in Greater Hyderabad by the state government has now got entangled in a legal tangle.
The state government issued a GO on August 19,2008,alienating 20.10 acres of land at Ibrahimbagh village in Golconda mandal of the city to Whistling Woods International Ltd,owned by Subhash Ghai,Hindi film director and producer.
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.
According to the GO, the allotment was made to establish an international school of film, television, animation and multimedia arts including a studio complex based on the model of Whistling Woods International,Mumbai.
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 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 told the court that the land was leased to the company at an annual lease of 0.25 per cent of land cost for first three years and lease rent of 1 per cent of land cost from the fourth year onwards.He said the lease was fixed at Rs 2 crore per acre.
He submitted that the state government has power to alienate government lands 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.
He urged the court to declare the action of the government as illegal and meanwhile stay the GO.The court will hear the matter after Sankranthi vacation.
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