G SAIBABA Vs. COMMISSIONER GADWAL MUNICIPALITY

JUDGEMENT

(1.) All the petitioners in these writ petitions are residents of Gadwal Town. They are aggrieved by the proceedings of the first respondent dated 10.8.1999 whereby and whereunder the allotment of LIG/MIG plots made in favour of the petitioners sometime back were cancelled and a proposal to reauction the plots was mooted. As the background facts and the contentious issues are same, it is expedient to dispose of the writ petitions by this common order.

(2.) With a view to improve infrastructure and facilities and to check migration from rural areas, small and medium towns to bigger towns, the Central Government sponsored Integrated Development of Small and Medium Towns (IDSMT) Scheme in 6th Five year plan in 1979-1980. The Scheme envisages .development of land with all facilities fit for construction of houses and also payment of grant by the Central Government. In pursuance thereof, the first respondent Municipality took up IDSMT Scheme in Gadwal Town and invited applications from interested persons. All the petitioners applied for LIG/MIG plots. The conditions of allotment are binding on applicants as well as Municipality. Condition No.5 reads as under: 5. (a) The Earnest Money Deposit, shall be remitted by a Demand Draft on any Scheduled Bank in favour of "Municipal Commissioner, Gadwal a/c IDSMT-EMD" The Demand Draft shall be crossed "A/c. Payee" and enclosed to the application. The earnest deposit will be refunded to the unsuccessful applicants within 30 days of announcement of allotment of plots. The Earnest Money Deposit will not carry any interest (b) In the case of successful applicant, the Earnest Money Deposit paid along with the application shall be adjusted as part of the initial 25% payment to be made by him. (c) The Earnest Money Deposit once paid shall not be refunded under any circumstances except in cases of applicants who are not allotted the plots. (d) The excess amount if any compensation payable to the landowners as per Court judgment should be borne by the allottees proportionately as per the plots owned by him. (emphasis supplied)

(3.) The important binding condition is that if the Municipality incurs additional expenditure by reason of payment of enhanced compensation as per a Court judgment, the allottee(s) is/are required to proportionately pay the enhanced amount towards acquisition of land. Be that as it is, the Municipality conducted drawal of plots and all the petitioners were selected for allotment of their respective plots. Accordingly by intimation letter dated 19.6.1993, the petitioners were informed that plot is allotted to them and they were asked to pay 15% of the plot cost. As per the conditions of allotment, an allottee has to pay the balance amount in three quarterly instalments. The petitioners paid the requisite initial amount and took possession of the plots. As per the tentative cost fixed by the first respondent, the cost of LIG plot admeasuring 266 sq. yards is. Rs.29,332/- (Rupees Twenty nine thousand three hundred and thirty two only) whereas that of MIG plot admeasuring 350 sq. yards is Rs.35,100/- (Thirty five thousand and one hundred only) and HIG plot admeasuring 400 sq. yards would cost Rs.38,098/- (Thirty eight thousand and ninety eight only).