P PULLAIAH RANGAIAH Vs. STATE OF ANDHRA PRADESH

JUDGEMENT

(1.) THIS writ petition has been filed by the petitioners, who are 107 in number, with a prayer to issue a writ of Mandamus declaring the action of the respondents in fixing non-refundable deposit (goodwill) of Rs. 1,00,000/- from retail vegetable vendors and Rs. 1,50,000/- from wholesale dealers for allotment of shops in the newly constructed agricultural market complex and also fixing the lease amount of Rs. 3,000/- for retail vegetable vendors and Rs. 5,000/- for wholesale dealers pursuant to the council resolution dated 30. 01. 2008 in cr. No. 1030 of Ongole Municipality-3rd respondent as arbitrary, illegal and violative of Articles 14, 19 (1) (g) of the Constitution of India. The further relief sought for in the writ petition is to direct the respondents to allot the shops to the petitioners in the newly constructed agricultural market complex.

(2.) P. PULLAIAH has sworn to the affidavit filed in support of the writ petition. Writ affidavit, in brief, is: The petitioners are small time vegetable vendors in Damodaram Sanjeevaiah Vegetable Market, Ongole. They have been doing the said business for the last 30 to 40 years. The Ongole municipality-3rd respondent constructed Damodaram Sanjeevaiah Vegetable Market about 50 to 60 years ago. Some of the petitioners are in occupation of the shops in Damodaram Sanjeevaiah Vegetable Market since the time of their forefathers. Since the place where Damodaram Sanjeevaiah Vegetable Market is situated has become densely populated, Ongole Municipality-3rd respondent has taken a decision to construct a new market complex in Survey No. 14/1 at vooracheruvu, Near RTC Complex, Ongole. The Ongole Municipality-3rd respondent has taken a decision to close down the old Damodaram Sanjeevaiah Vegetable market. There are 120 shops in the Damodaram Sanjeevaiah Vegetable Market. The ongole Municipality-3rd respondent has been entrusting the collection of rents on contract basis by way of public auction. All the vegetable vendors in the said market used to pay Rs. 300/- per month to the contractor. The Ongole municipality-3rd respondent passed resolution on 25. 01. 2008 to close down the old vegetable market i. e. Damodaram Sanjeevaiah Vegetable Market and open the newly constructed agricultural market complex at Vooracheruvu. It is proposed to collect Rs. 1,00,000/- from the retail vendors and Rs. 1,50,000/- from the wholesale dealers as goodwill and fixed Rs. 3,000/- as monthly rent for the retail vegetable vendors and Rs. 5,000/- for the wholesale vegetable vendors. The action of the Ongole Municipality-3rd respondent in collecting the goodwill amount and fixing the rent exorbitantly is illegal and arbitrary and violative of Articles 14 and 19 (1) (g) of the Constitution of India. It is further averred in the writ affidavit that a duty is cast upon the Municipality to establish public markets. Once public market is established, the Municipal council is empowered to levy any one or more fees prescribed under Section 277 of the Andha Pradesh Municipalities Act, 1965 (for short, 'the Act' ). The Act does not empower the Ongole Municipality-3rd respondent to collect goodwill. It only empowers the municipalities to collect fee in respect of public market. In exercise of powers under clause [c] of sub-section 2 of Section 326 of the Act, the Governor of Andhra Pradesh has framed the Rules known as the Andhra Pradesh municipality (Acquisition of Transfer of Immovable Properties) Rules, 1967. Rule 5 of the said Rules deals with transfer by lease of immovable property belonging to municipal council. Rules also framed in exercise of powers under sub-section (1) of Section 3 of the Act and these rules are called as the Andhra pradesh Municipality (Regulation of Receipts and Expenditure) Rules, 1968 (for short, 'the Rules' ). Under Rule 12 (A), a municipality can fix reasonable lease/rent amount and it does not empower the municipality to charge goodwill.

(3.) 4th respondent filed counter-affidavit. S. Ravindrababu, Municipal commissioner, Ongole Municipality has sworn to the counter-affidavit. It is stated in the counter-affidavit that the agricultural market committee has constructed new market complex in the site belonging to the Ongole Municipality with the funds of agricultural market committee, Ongole, to a tune of Rs. 7. 00 crores. The Government under G. O. Ms. No. 271 of Agricultural and Co-operation (AMII) Department, dated 01. 09. 2007, decided to handover the new vegetable market complex to Ongole Municipality-3rd respondent subject to the following conditions: