New Delhi, October 5
Land acquired by the government or its instrumentalities for a specific public purpose cannot be changed and transferred to private individuals or corporate bodies, the Supreme Court has held.

A Bench of justices GS Singhvi and Sudhansu Jyoti Mukhopadhaya said that though the government enjoys power of “eminent domain” to compulsorily acquire any land for public purpose, yet it cannot legitimise any fraudulent act of the authorities.

The apex court passed the judgment while dismissing the appeal of certain corporate houses challenging the Karnataka High Court's decision to quash the acquisition proceedings of over 37 acres of land in south Bangalore.

The Karnataka State Tourism Development Corporation had acquired private land through the state government to build a golf resort. Instead of constructing the resort, it chose to transfer the land to a private real estate developer for a group housing project; and also other corporate houses.

Aggrieved by the decision, the private land owners approached the high court, which quashed the acquisition proceedings and directed that the land be restored to the original owners. The owners were also asked to return the compensation received by them at the time of acquisition. The corporate houses had moved the apex court.

Upholding the high court order, the apex court said the corporation had made a false projection to the state government that land was needed for execution of tourism-related projects.

"The Managing Director of the Corporation candidly admitted that the Corporation did not have the requisite finances to pay for the acquisition of land and that Dayananda Pai, who had already entered into agreements with some of the landowners for purchase of land, was prepared to provide funds subject to certain conditions including transfer of 12 acres 34 guntas land to him for house building project,” the Bench noted.

"After eight months, the Corporation passed a resolution for transfer of over 12 acres land to Dayananda Pai. The Corporation also transferred two other parcels of land in favour of Bangalore International Centre and Universal Resorts Limited. These transactions reveal the true design of the officers of the corporation, who first succeeded in persuading the state government to acquire a huge chunk of land for a public purpose and then transferred major portion of the land to private individual and corporate entities, citing poor financial health of the corporation," the Bench said.

Therefore, it said, the Corporation did not have the jurisdiction to transfer the land acquired for a public purpose to the companies and thereby allow them to bypass the provisions of the Land Acquisition Act. — PTI