'There Can Be A Legislation Relating To A Single Individual Due To Special Circumstances': Telangana HC Upholds Law Which Cancelled Land Allotted To IMG Academies

The Telangana High Court upheld the legality of the Telangana Government Property (Preservation, Protection, and Resumption) Act, 2007. This law had allowed the Telangana government to reclaim 800 acres of land that had been sold to IMG Academies Bharata Private Limited.

In that context, the Bench of Chief Justice Alok Aradhe and Justice Anil Kumar Jukanti observed that, "it is evident that there could be a legislation relating to a single individual on account of some special circumstances or reasons applicable to him and not applicable to others. It is equally well settled proposition that the burden was on the person to assail the validity of the legislation that there were also other persons similarly situate and he alone was discriminated against."

In similar context, it was also observed that, "It is trite law that under the constitutional scheme, the executive power of the State Government is co-extensive and co-terminus with its legislative power. Merely because the sale deeds were executed in favour of the petitioner, in exercise of powers under Article 298 of the Constitution of India, the same does not prohibit the State Legislature to enact a law in exercise of its legislative powers."

Counsel Vedula Venkararamana appeared for the petitioner, while Counsel A Sudarshan Reddy appeared for the respondent.

The petitioner company, claiming to be a subsidiary of IMG Worldwide, entered into a Memorandum of Understanding (MoU) with the erstwhile State of Andhra Pradesh to purchase land for sports academies and office headquarters. The MoU was executed in 2003, and in 2004, 400 acres of land were sold to the petitioner at a low rate. However, in 2007, the state enacted a law to resume all properties alienated to the petitioner.

The petitioner challenged the Act, arguing that the state lacked legislative competence to enact such a law and that the cancellation of the sale deed was arbitrary and violated Article 14 of the Constitution. The state countered by claiming that the MoU was entered into without proper approval, and the land was sold at an undervalued price. Moreover, the state revealed that the petitioner had no genuine connection to IMG Worldwide and was created shortly before signing the MoU, suggesting fraud.

The High Court observed that, "no discernible grounds have been made out in the pleadings to assail the validity of the impugned legislation. Therefore, the contention that the impugned legislation, in the absence of any pleading in the writ petition, suffers from manifest arbitrariness is negated"

Subsequently, the petition was dismissed.

Appearances:

Petitioner: Counsel Vedula Venkataramana

Respondent: Counsel A Sudarshan Reddy

Cause Title: IMG Academies Bharata Private Limited vs Government of Telangana

Click here to read/download the Judgment