(EAS Sarma)
I thought that the new govt had taken a correct decision when it cancelled the questionable Lulu land deal in Visakhapatnam. I was surprised that the govt has since issued GOMS.No. 172 (Rev) Dated: 12-06-2020 in which the same public land measuring 13.83 acres near the R.K. Beach is now proposed to be “monetised” through an auction process, along with several other large land parcels in Visakhapatnam and elsewhere in the State. In my view, the decision to sell such valuable urban land stretches is highly imprudent, as I had pointed out earlier in my letter dated 27-5-2020 (enclosed). For your ready reference, I have extracted below the relevant portion of that letter.
“In my view, the decision of the State govt to auction government lands to private persons/ institutions to raise resources for running the State machinery is against the public interest. I have listed out the reasons for this as follows.
The government owns fairly large extents of lands in almost all towns and cities and their outskirts. As a result of rapid urbanisation, the value of these lands is skyrocketing, especially in view of the increasing scarcity of public land throughout the State. Therefore, the land assets of the State are equivalent to a highly valuable property that continuously appreciates in its value.
The demand for land for public amenities in urban agglomerations is increasing in leaps and bounds as the State is obligated under the Constitution to provide the basic amenities to the people. At present, the local authorities and the State govt agencies are not fully discharging those obligations as they should. Had they decided to meet those obligations fully, they would need large parcels of govt land for the purpose, as it will be highly expensive for the govt to buy land from private owners.
For example, one of the important obligations of the municipalities under the Constitution is to provide public space for parks, cremation grounds, community halls, night shelters for the homeless etc. If these facilities were to be set up, there will be no dearth of demand for public land in the urban areas. Every stretch of govt land, whether small or large in extent, will be needed for this purpose.
Against the above background, it will not serve the public interest in the long run for the government to alienate its own lands to private individuals/ institutions, when its own land requirements stand unfulfilled.
Since the land value is increasing every day, once the ownership of the land passes from the govt to a private person/ institution, in all likelihood, the latter will exploit the land value increase and profiteer by re-selling it, thus depriving the State of the differential value. In other words, any scheme such as the one in question will pave the way for private persons/ institutions to profiteer at the cost of the public at large. This is unacceptable. Many real estate developers are waiting to grab these plots and, I am afraid, that the govt is playing into their hands.
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The State govt is only a trustee of the public properties on behalf of the people and, in principle, it has no right to alienate the ownership of those properties to private persons/ institutions. Therefore, auctioning the lands as is being done at present will constitute a breach of the public trust.
The land use policy of the govt is defined in GOMs No.571 dated 14-9-2012 enclosed). The land auctions now proposed violate this policy.
As evident from Annexure IV (enclosed) to the auction notice, the plots put to auction are either vacant ones, some of them used for recreation purposes, or those having public structures. It is clear that those plots are in the heart of the urban areas and will be needed for providing parks or other public amenities, either now or in the future. The present govt cannot deprive its successors of the opportunity of using those plots for public purposes.
I would also suggest that selling public lands for raising resources is a soft option that will provide an alibi to the present govt for not taking other measures to minimise unproductive and wasteful expenditure and raise resources through more innovative means from those who can afford to provide such resources. For example, the State can levy a high penalty on influential encroachers of the public land, impose a deterrent penalty on violators of the environment laws and so on.
In one case of illegal beach sand mining in Srikakulam district, the mining company is required to pay more than a thousand crores of rupees to the State but the State has acquiesced in not recovering that amount from the company, for reasons best known to it. There is no justification for the State to condone the violators of the law of the land and, instead, alienate public lands for revenue.”
In the specific case of the land in S.No. 1011, Waltair Ward measuring 13.83 acres originally proposed to be leased out to the Lulu Group, it has a logistic advantage being close to the beach and, in my view, should be allowed to continue as an open space for the public of Visakhapatnam. Moreover, the land in question is ecologically sensitive and a portion of the land is covered by CRZ restrictions. As per the Order dated 28-1-2011 of Hon’ble Supreme Court in (Jagpal Singh & Ors vs State Of Punjab & Ors) Civil Appeal No. 1132/2011 & SLP No. 3109/2011 arising out of SLP No. 19869/2010), the State Govt is prohibited from alienating such land to private parties. Going ahead with the sale of such a land constitutes a breach of the public trust and contempt of the court order.
I am surprised to find that the latest GO also covers 11 acres of a highly valuable land in S.No 39 of Seethammadhara where there are several important govt institutions located such as the Health Department (existing Eye hospital, H & F Welfare institute, Training centre, DMHO office, Leprosy institute, etc. How can the govt ever think of selling away such a valuable stretch of land?
In my view, the proposed land sale transactions are violative of the public trust and they need to be revoked.
If the govt wishes to raise resources, this is not the way to do it. there are items of wasteful expenditure that need to be pruned down. The govt has been dragging its feet to collect a penalty already imposed on Trimex Beach Sand Mining Company in Srikakulam which in my view should be collected with interest and a deterrent penalty.
Please place this letter before the State Cabinet and my suggestion that no public land should ever be alienated to private parties may be placed before the govt for urgent action.
(This is the text of the letter written by EAS Sarma on 13 June 2020 immediately after the state government decided to monetize the urban lands)
(EAS Sarma, Former Secretary, Government of India)