SC: nothing wrong if acquired land used in PPP venture

New Delhi, September 5: Clearing the way for acquisition of land for big-ticket investment in infrastructure projects of various governments by way of public-private-partnership, the Supreme Court on Friday ruled that the joint venture mechanism for executing a project and achieving lawful public purpose for realising the goal of larger public good would “neither destroy the object nor vitiate the exercise of power of public purpose for development of infrastructure”.

Dismissing the appeals filed by landowners Sooraram Pratap Reddy and others, whose land in Ranga Reddy district in Andhra Pradesh was acquired by the state Government for public purpose for the purported development of financial district and allied projects, a Bench of Justices C K Thakker and D K Jain observed that the concept of joint venture to tap resources of the private sector for infrastructural development for fulfilment of public purpose had been recognised in foreign countries as also in India.

The Andhra Pradesh High Court had earlier dismissed their pleas challenging acquisition of their land, which, they had contended, was a colourable exercise of power and gross violation of the Land Acquisition Act, 1894 as well as several other statutes in force in Andhra Pradesh. The action, they had alleged, was taken with mala fide intention to transfer valuable land of small farmers to a foreign company.

The acquired land was transferred to the Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC), which entered into an agreement with Emaar Properties to develop the land, which is on the periphery of Hyderabad. The total investment in the project is over Rs 550 crore.

The compensation to the landowners was to be paid by the APIIC.

The Bench also said in deciding whether acquisition is for a public purpose or not, the Government was the best judge.

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