HC refers to two apex court judgments while ordering CBI probe

We are exploring legal options in this matter and the court order is being studied in detail by the legal team. We will approach the higher court to seek relief in this matter. RAJ SINGH GEHLOT, chairman and managing director, Ambience Developers

CHANDIGARH: The Punjab and Haryana high court on Friday made reference to two important Supreme Court judgments pertaining to Haryana land matters while ordering a CBI probe into the construction of Ambience mall in Gurugram.

The HC also quashed three government orders which facilitated de-licensing of a part of the area meant for housing project for commercial purpose and construction of Ambience mall.

While referring to SC judgment of 2018 in Manesar land release case, justice Rajan Gupta and Karamjit Singh said the state government’s decision to de-notify land which was under acquisition led to unjust enrichment of individuals and revealed unholy nexus between the builder and the state authorities.

Mentioning the apex court ruling, the HC said the state had enabled the builder to enter the field after initiation of acquisition to seek colonisation of the land covered by acquisition, defeating the objective for which the land was acquired. The SC, thus, declared the action of state illegal and ordered CBI investigation into the matter.

“It found that where power is conferred to achieve a particular purpose, same has to be exercised reasonably and in good faith. Where power is exercised for extraneous or irrelevant considerations, it would unquestionably be a colourable exercise of power,’’ the court said.

Referring to another land matter related apex court judgment of 2016, the HC said it is a settled proposition of law that fraud on power vitiates the state action. “If state seeks to take some action indirectly though it has no power to do it directly, such action cannot be sustained,” the HC said.

The court was referring to a matter pertaining to release of under acquisition land in Rohtak. A private builder, Uddar Gagan Properties Limited, in March 2005, entered into collaboration agreements with some farmers whose land was under acquisition for development of a colony. The developer applied for a license to develop a colony on land covering about 280 acres. The licences were granted by the town and country planning department in June 2006 and corresponding land was released from acquisition.