This story is from August 10, 2007

AP babus keen to sell disputed land

The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has put up for auction a piece of disputed land.
AP babus keen to sell disputed land
HYDERABAD: Once bitten twice shy, so the saying goes. But such ageless words of wisdom do not apply to the mandarins of mana Andhra Pradesh.
A few months ago, the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) — the nodal agency for infrastructure development in the state — had put up for auction a piece of land in Raidurg close to Hi-Tec City.
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But there was a catch: It was a disputed land and a case was pending in the Supreme Court. In all fairness, the APIIC fine print did say that the sale would be subject to the court’s decision. Nevertheless, prospective buyers bid for it — perhaps under some mistaken impression. But such mistaken beliefs do not persist forever at corporates that do business on the bedrock of practicality.
So, ITC Ltd dropped out after quoting a record Rs 30 crore and so did the only other bidder, leaving APIIC high and dry. The ITC spokesperson said that it had bid for the land as the company expected the case to be over before the auction was finalised, but it had to withdraw later as this did not happen. Result: The entire auction had to be scrapped.
If you thought that the experience had chastened the APIIC babus, then think again. Last week, they put up for auction another disputed land in Raidurg. Here too a case is pending in the Supreme Court. The reserve price has been kept at Rs 18 crore per acre and the last date for submission of bids is August 24. Of course, the fine print does mention that if the case is decided against the government, the money would be refunded but without interest.
When quizzed, APIIC officials said that the solicitor general of India had given the go-ahead for this conditional auction.
But analysts are not amused. "I have never seen any sub-judice land being put up on the block. Are the APIIC bosses daft? Don’t they realise that what the solicitor general can offer is an opinion, not a judgment?" fumed an analyst. While another analyst said: "State government agencies have become the biggest realtors in town. As they have to produce cash to finance government schemes, they are not leaving any piece of land."
The entire 140 acres in Raidurg — where the government plans to build a Hyderabad Knowledge City Park — is disputed by petitioners whose land was taken over.
The petitioners approached the SC after the AP High Court upheld the state’s contention that the land was taken over under the provisions of the Urban Land Ceiling Act.
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