JUDGMENT

Sawant, J.

1. Leave granted.

2 These two appeals are directed against the common judgment of the High Court delivered, among others, in two writ petitions, viz., W.P. Nos. 9824 and 9825 of 1992. The appellant who was one of the respondents in the said petitions was at the relevant time the Chief Minister of the State of Andhra Pradesh. The High Court by its impugned decision has quashed the permission granted to a society to start medical and dental colleges. The said Society was managed, among others, by the wife and brother of the appellant. In order to appreciate the controversy it is first necessary to refer to the relevant legal provisions.

The establishment, recognition and conduct of educational institutions in the State are governed by the provisions of Andhra Pradesh Education Act, 1982 [hereinafter referred to as the "Act"]. Section 2 [12] of the Act defines "competent authority" to mean any person, officer or authority authorised by the State Government by notification to perform the functions of the competent authority under Act for such area or for such purposes as may be specified in the notification. The competent authority so notified by the Government, is entrusted with several duties and functions under the various provisions of the Act. These provisions are contained in Sections 20, 21, 24, 26, to 29, 31, 45, 49, 51, 60, 64, 69, 72, 79, 80 and 83. Under Section 20(3)(b), the competent authority is to prescribe adequate financial provision for the establishment of an educational institution. Under Section 21(1), it is competent authority which is empowered to grant recognition to the educational institution subject to such conditions as may be prescribed in regard to accommodation, equipment, appointment of teaching staff, syllabi, text books and other matters relating thereto. Under Section 21 (2), the competent authority is empowered to withdraw the recognition or to take such other action as is deemed necessary on the occurrence of the event mentioned therein. Under Section 24(2), the management of every educational institution is required to nominate a person to manage the affairs of the institution and intimate such nomination to the competent authority. Under Section 24(3) (a), the competent authority is empowered to suspend the management and appoint a special officer till the reconstitution of the management. Under Section 24 (3)(b) the competent authority can take action against the manager of the educational institution if it is satisfied that he alone is responsible for the lapses or irregularities of the institution. Under Section 24 (4), the competent authority is even empowered to declare a person to be unfit to be manager of private educational institution and thereupon the management has to nominate another person as manager in his place. Under Section 26, private educational institutions cannot close down unless a notice of not less than one academic year has been given to the officer authorised by the competent authority in that behalf. Under Section 27 in case the private institution closes down or discontinues or its recognition is withdrawn, the management of the institution has to hand over to the competent authority the custody of all the properties, record and accounts of the institution in its possession. Under Section 31, the Government or the competent authority can authorise any officer not below such rank as may be prescribed, to exercise general powers of inspection over the working of any educational institution. Section 50 gives to the competent authority the right to cause an inspection of or an enquiry in respect of any educational institution, its accounts, its buildings, laboratories, libraries, workshops and equipment and also of the examinations, teaching and other work conducted or done by the institution and to cause an inquiry in respect of any other matter connected with the institution and advise the management on the action to be taken. The management has to re