The HC also found fault with the government for cancelling the sale deeds unilaterally when the state itself was one of the claimants. Both the state and accused have been ordered to maintain status quo on the disputed 690 acres till the pending litigation over land title in the Supreme Court is settled.
The HC's interim order came in two writ appeals filed by two accused, PS Parthasarathy and Suvishal Power Gen Ltd, against a single judge order that had concluded the state's action was unlawful but declined to stay the cancellation of sale deeds.
A bench of Acting Chief Justice Raghavendra Singh Chauhan and Justice A Rajasheker Reddy said: "State and private parties have conflicting claims over this land and there is a dispute pending before the Supreme Court over the title. In this background, the state, being one of the claimants, cannot unilaterally cancel the sale deeds."
HC orders status quo in land case
The bench said: “State has to file a civil suit seeking title, but it cannot cancel the sale deeds even before the title could be determined. We are staying this cancellation order passed by the state through its Serilingampalli MRO.”
But taking into account apprehensions by AG BS Prasad, who described the sale deeds as a fraud perpetrated against the state, the bench ordered status quo asking both parties not to create any third-party interests over the land till title dispute was finally decided by SC.
The AG had argued that the accused connived with some sub-registrars to show the 690 acres as ‘Inam land’ and avoided paying stamp duty by claiming there was no sale as they had merely registered transfer of ‘sanad rights’ (grant by king).
“We suspended sub-registrars and arrested them along with other accused. The relief granted by this court may have an influence on the trial in this case,” the AG said. But the bench assured him that Tuesday’s stay order would not preclude the state from pursuing the case before the trial court.