Court Orders CBI Investigation into Monumental Fraud Involving State Officials and Private Individuals
In a landmark judgment, the Karnataka High Court has nullified the acquisition of land by the State Government for M/s. Lakeview Tourism Corporation, an entity that was found to be non-existent at the time of acquisition. The Division Bench, comprising Justices D.K. Singh and Tara Vitasta Ganju, declared the acquisition unconstitutional and a monumental fraud, ordering a Central Bureau of Investigation (CBI) probe into the matter.
The appeals were filed against a previous judgment by a single judge who had dismissed the writ petitions challenging the acquisition under the Karnataka Industrial Areas Development Act, 1966 (KIAD Act). The appellants argued that the acquisition was a sham, orchestrated to benefit private individuals under the guise of public purpose, and amounted to a violation of constitutional rights under Article 300A.
The court found that the State Government had acted in collusion with private parties, accepting an application from a non-existent entity for the acquisition of land. The application lacked necessary details and was not supported by legal documentation. Despite this, the State High-Level Committee recommended the acquisition, which was subsequently approved by the government.
The court emphasized that the right to property is a constitutional and human right, and any deprivation of property must be for a genuine public purpose backed by law. The acquisition was deemed a fraudulent exercise of power, aimed at transferring valuable land to private hands for profit, thus violating the constitutional mandate.
Highlighting the need for transparency and accountability, the court ordered a CBI investigation to identify and prosecute those involved in the fraudulent proceedings. The court also imposed costs of Rs. 10 lakhs on M/s. Lakeview Tourism Corporation, to be paid to the Army Battle Casualties Welfare Fund.
This judgment underscores the judiciary's role in safeguarding constitutional rights against misuse of power and serves as a reminder of the accountability of government actions.
Bottom Line:
Land acquisition for non-existent entity deemed fraudulent and unconstitutional, violating Article 300A of the Indian Constitution. Acquisition quashed, investigation directed, and costs imposed.
Statutory provision(s): Karnataka Industrial Areas Development Act, 1966 Sections 28 and 29, Constitution of India, 1950 Article 300A.
Sri. Krishnareddy v. State of Karnataka, (Karnataka)(DB) : Law Finder Doc id # 2881104
