"Once land allotted in 1999, the District Collector may not be within its jurisdiction to claim market value in 2017": Top Court

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While staying the recovery of the amount demanded in 2017 by the Collector as the market value of the land that was allotted way back in 1999, the Top Court on Monday said,

"Prima facie, we find that once the allotment was made in the year 1999, the District Collector may not be within its jurisdiction to claim market value in the year 2017."

Bharat Sanchar Nigam Limited was allotted the land admeasuring 43000 sq. ft. in the year 1999 at the market value of Rs. 259 per sq. ft. by the District Collector, Akola. The total consideration demanded was Rs. 2,24,77,000/- which was paid in March, 2000.

The Collector issued a letter in December, 2017 demanding Rs.9,91,00,800/- as the market value of the land allotted and directed BSNL to deposit the difference between the two.

BSNL filed a writ petition before the High Court, against the said demand, who while issuing notice, directed it deposit 50% of the amount demanded, as a pre-condition for stay.

While granting a stay of recovery of the amount as demanded vide letter issued in December, 2017, a bench of Justices Hemant Gupta and V Ramasubramaniam ordered thus,

"The order of deposit of 50% of the amount as demanded from the appellant is set aside. The demand shall remain stayed till final disposal of the writ petition."

Remarking that it did not want to say anything more as the matter was pending before the High Court, the bench remarked,

"We do hope that the High Court will be able to decide the writ petition at an early date in accordance with law."

Case Title: BHARAT SANCHAR NIGAM LIMITED v. THE STATE OF MAHARASHTRA & ANR.