ALLA SANYASI RAO Vs. BANK OF INDIA

JUDGEMENT

(1.) The brief facts in W.P.No.43526 of 2017 are as follows:

(2.) Alternatively, it is stated that the Government of Andhra Pradesh through Municipal Administration and Urban Development (H2) Department issued G.O.Ms.No.345 dt.30.6.2006 under Section 12(2) of the A.P.Urban Areas (Development) Act, 1975 modifying the Zonal Regulations and land use plans where under the lands proposed to be auctioned were ear marked for residential use. It is submitted that the market value guidelines issued by the Stamps and Registration Department w.e.f. 01.4.2013, the basic unit rate per square yard for the land in Narava village was fixed at Rs.2,500/- per square yard and the basic unit rate of Rs.2,500/- per square yard is grossly low and it does not reflect the true market value of the land as neighboring lands which are at a distance of less than one kilometer on either side from the lands of the petitioners, the basic unit per square yard is fixed at Rs.8,000/- per square yard. Hence the reserve price in the impugned auction notice i.e. Rs.5,02,80,000/- for all the four properties is very low.

(3.) The reserve price fixed in the auction notice for all four properties i.e. item no.1(Ac.3.04cents), item no.2(Ac.2.00cents), item no.3(Ac.2.09cents) and item no.4(Ac.1.25cents) even though the properties are independent to each other, the reserve price fixed for the entire land as a whole is impermissible under Rule 8(5) of SARFAESI Act and the Rules 2002.