Madras High Court orders fresh auction of shops

December 17, 2014 08:01 am | Updated 08:02 am IST - CHENNAI:

The Madras High Court on Monday ordered that shops allotted in the Koyambedu wholesale vegetable market complex under the discretionary quota of then Information Minister, who was also the CMDA chairman, should be auctioned afresh by March 31, 2015.

The First Bench, comprising the Chief Justice S.K. Kaul and Justice M.Sathyanarayanan, passed the order on writ petitions and appeals.

A petitioner submitted that it was due to the creation of the discretionary quota for the then Minister, Parithi Ilamvazhuthi, in the allotment, that the twice-notified auction in 2009 had been postponed and subsequently cancelled. The CMDA, being an entity created under the Town and Country Planning Act, should strictly function as per the role defined in the legislation. The law did not provide any power to the CMDA to create a discretionary quota for its chairman. When the authorities created the quota, no guidelines were framed. Thus, it would lead to the arbitrary exercise of power.

The Bench observed that it was not in dispute that no methodology was followed for allotting shops under the discretionary quota of the Minister as chairman. The only way to resolve the issue would be to issue a proper ad that the shops would be put to auction.

The sum deposited by the parties concerned till date should be refunded to the parties within 15 days with interest, if any accrued.

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