Andhra Pradesh Business Culture Legal Legislature

Andhra HC stays auction of land in Yendada, says govt cannot indulge in realty biz

VIJAYAWADA: The Andhra Pradesh High Court issued an interim order staying the public auction of 22,264 yards land at Sagarika Township in Yendada, Visakhapatnam, on Tuesday. It asked the government to not indulge in real estate business.

The bench of Chief Justice Prasant Kumar Mishra and Justice DVSS Somayajulu heard a PIL filed by Visakhapatnam East MLA Velagapudi Ramakrishna, urging the court to suspend the notification issued by the Rajiv Swagruha Corporation Limited to auction the land.

Ramakrishna’s counsel Aswini Kumar argued that the auctioning of the land for construction of houses was nothing but real estate business.Government special pleader Chintala Suman, on behalf of the government, informed the court that the decision to auction the land was not new and taken in 2013.

Suman explained that since the Corporation went bankrupt, the government had decided to auction the land.While the government pleader requested the court not to issue any interim order as the government would file a counter on June 24, the bench, after hearing both the sides, stayed the auction.

The court observed that the action of holding a public auction for the sake of construction of houses for middle-class people amounted to real estate business. Noting that 22,264 yards was five acres of land, the bench stated that the government cannot indulge in real estate business.The matter was posted to July 4 for further hearing.