S.B.SINHA, J. - (1.) HOW economic development or a State can be halted by a public interest litigation has received the attention of this Court in some of its decisions. The case at hand adds to the said list.
(2.) BACKDROP FACTS: The Karnataka Industrial Area Development Board (hereinafter referred to as 'the Board') is a statutory authority constituted under Karnataka Industrial Areas Development Act, 1966. It acquired a vast tract of land inter alia for the purpose of allotment thereof to entrepreneurs who intended to set up industries in the State of Karnataka. The State of Karnataka with a view to accelerate economic development of the State adopted a policy decision of dealing with the applications received from the entrepreneurs through one window system. With a view to achieve the said objective a high level committee was constituted. B.P.L. Limited (hereinafter referred to as 'the Company') with a view to set up industries applied for allotment of 500 acres of land for its three projects. The said application was considered by the high level committee wherein a decision was taken to allot 175 acres of land in favour of the company at Rs. 92/- per sq.m. The company was held to be entitled to various other incentives for the aforementioned purposes. Such allotment was made by issuing an order dated 7.4.1995 out of the land acquired by it i.e. 296.26 acres in terms of notification dated 2/4th September, 1991 issued under section 28(1) of the Karnataka Industrial Areas Development Act, 1965. Public INTEREST LITIGATION: The respondents filed a public interest litigation questioning the said allotment inter alia on the ground that the statutory purposes for which the Board can acquire the land had been breached by reason thereof. The respondent nos. 1 to 3 describing themselves to be the social workers in the writ petition raised the following contentions: (a) That the Board can acquire the land only for the purposes (three in number as stated in the Act). (b) That the land to other entrepreneurs is sold at the rate of Rs.8,80,000/- per acre whereas it is sold to BPL at Rs.3,72,324/- per acre. (c) That the allotment being contrary to regulations is arbitrary and unreasonable. (d) That the allotment is made without inviting applications and without notifying the availability of land to general public. (e) That the exercise of power is mala fide and suffers from legal malice. The contentions of the Board, on the other hand, were: a) That the respondents have no locus stand to maintain the writ petition as legal rights of the general public have not been infringed. b) No notice under Order 1 Rule 8 of C.P.C. having been published, the writ petition was not maintainable. c) That the government of Karnataka in exercise of its executive powers under Article 162 of the Constitution of India has established a single window Agency to accord, with significant authenticity, sanction/clearance/ approval to the establishment of new Industries of expansion of existing units, which include sanction of infrastructural facilities like land, power, water, finance etc. Wherever an industrial project involves an investment beyond fifty crores, the decision to accord sanction/ approval/ clearance shall be taken by high level committee. d) That the high level committee constituted under the said government orders in its meeting held on 10.10.1994 and 24.1.1995 recommended that : (i) 220 acres of land be made available immediately to BPL group at Dobospet industrial area for implementing colour picture tube and batteries project. (ii) Additional land acquisition be initiated by the Karnataka Industrial Area Development Board on the basis of justification of total land requirement of 500 acres to be furnished by the group. In its 28th meeting held on 29.3.1995, the committee took notice of the requirements of the BPL India Ltd. and after thorough discussion resolved that Karnataka Industrial Area Development Board (KIADB for short) shall handover 175 acres of land at Dobospet industrial area to the BPL India Ltd. e) That thereafter the government of Karnataka by its order dated 16.5.1995 cleared the three projects of the BPL India Ltd. which involved a total investment of Rs.663.56 crores. The government of Karnataka decided to allot 220 acres of land at Dobospet industrial area. f) That an extent of 278.42 acres of private land near Dobospet was acquired by the State government under section 28 (4) of KIADB Act, 1966 for the purpose of development by this respondent. The final declaration is published in Karnataka gazette dated 12.11.1992. A layout was planned in consultation with the director, Town Planning to form 28 plots of varying extent from 1 acre to 210 acres. Plot no.1 and 2 measuring 30 acres and 210 acres are reserved in favour of BPL India Ltd. In the remaining 74 acres small plots are formed to accommodate non- polluting Industries. An extent of 28.80 acres will be occupied by roads, civic amenities etc. g) That this respondent while developing an industrial area undertakes development work like formation of WBM Roads, with block topping, drains with dick also culverts, stream water drains, drains supply through borewell, street lighting, avenue trees and drawing of high tension and low tension power line. The cost incurred has to be borne by allottees. However, the land that is allotted to BPL India Ltd. has not been entirely developed and only peripheral infrastructural facilities would be provided. "
(3.) . The company also filed a counter affidavit alleging that the said allotment was made pursuant to the Board's resolution adopted by the Single Window Agency. The anticipated investment of the company was Rs. 600 crores. The composition of the committee was as follows: JUDGEMENT_515_JTSUPP2_2003Html1.htm The application filed by the company went through various processes and several meetings of the different committees were held. The high level committee also considered the matter in a number of meetings, pursuant whereto and in furtherance whereof the aforementioned decision was taken whereafter the company deposited 99% of the cost of the allotted land amounting to Rs. 6,45,05,133/- with a view to obtain possession. It was further contended that only possession of 149 acres and 5.5 guntas out of 175 acres had been delivered. A lease-cum-sale agreement in terms of the extant regulations was executed on 2.6.1995.;