Karnataka HC Observes that Allotment of Public Property Should be Only by Auction, not Favouritism or Political Interference

Aastha Thakur

Published on: 04 December 2022 at 18:26 IST

Karnataka High Court termed the allotment of public properties as nothing but favouritism and allowing political interference. The court has opposed the State govt. practice and dispose them through public auction.

The bench of Justice M Nagaprasanna ruled that allotment of public properties must be only done only by public auction and leasing out public property without an auction amount to arbitrary exercise of power.

The court said, “Public property, is trite to be leased out only by way of public auction/tender failing which it would become an arbitrary exercise of power. Public property cannot be bartered away at the whim and fancy of interested persons without even the public coming to know availability of such property,” 

The petitioner and respondent had requested the concession of a leasehold interest in land for the construction of a fish cold storage facility. Because only an auction could be used to distribute the land, both of their applications were turned down.

Then, with their complaints, both parties went to the state MLAs for Karnataka. Both Bharat Janata Party MLAs—the respondent addressed Lalaji Mendon, and the petitioner approached K Raghupathi Bhat—were approached by the parties.

Later, the Joint Director of Fisheries issued an order declaring the land was allotted to the respondent.

The court further added that, “It need no emphasis that the State is governed by ‘rule of law’ and not by ‘rule of men’. A few men at the helm of affairs or the powers that be, cannot be seen to act in a manner that would thwart the rule of law and generate a concept “you show me the person; I will tell you the law”.

It was further directed the State to stop issuing allotment order of public properties as a result of political interference and to allot them only though public auction.

“This case would form the last straw of admonishing the State for bartering away public property at its whim and fancy. Any such iteration would, without doubt, be viewed seriously, as such actions cannot bear any sanction under any law. Rule of law is insurmountable,”

Hence, the court quashed the order allotting the land to the petitioner.

Case Title:  Chandra Suvarna vs State of Karnataka

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