( 1 ) THIS writ petition by way of public interest litigation is filed by the President of Sri Balaji Park Residents welfare Association, Sector-2, MVP Colony, visakhapatnam for a writ or in the nature of a mandamus declaring the action of the 1st respondent - Visakhapatnam Urban development Authority (VUDA) in dividing the vacant site in an extent of about ac. 0. 85 cents in S. No. SP and 26p of Peda waltair village situate in Sector -2 of MVP colony, reserved for the community purpose, into small plots and selling the same in public auction as illegal arbitrary and for a consequential direction to the respondents to reserve the said site for the public purpose such as community centre or park and nursery in the interest of the residents of the colony. Facts:

( 2 ) THE 1st respondent in 1972 acquired land to an extent of 400 acres in the village of Muvvalavani Palem and published a lay out in the year 1978 calling applications from the public for allotment of house sites of various types viz. , HIG, MIG, lig, EWs for open plots as also for constructed houses. It has been notified that the layout has got all the infrastructure such a roads, water supply, drainage including parks etc. On the northern side of the layout in Sector-2 in Survey No. 5p and 26p of Peda Waltair village an extent of Ac. 0. 85 cents was shown as community centre. The said site is surrounded by houses and it is the only space left vacant for the use of the residents of the MVP colony. The cost of the said site was already realised from the allottees of the plots of Sector-2 for utilising the same for public purpose of the residents of the sector. As a measure of protecting the environment, number of green trees were planted and the trees have now grown up and are serving useful purpose of purifying the air in the locality. In the sale deeds of the surrounding plans it has been shown as nursery only and even in the Master Plan of MVP Colony township dated 1-4-1985 it had been shown as such.

( 3 ) WHILE things stood thus, the 1st respondent, divided the said vacant site into plots and without leaving any space for any public purpose and they were sold in a public auction notified by the 1st respondent on 19-5-2001. The representations made to the respondents have yielded no result and the respondents started cutting the grown up trees, which is detrimental to the environment of the locality.

( 4 ) IN the counter filed by the 1st respondent, it is stated that though originally it was contemplated to acquire 420 acres of lands for the township, only 336 acres could be acquired. The entire plan of the project was for a comprehensive development of Township as a single unit but not sector-wise. The percentage of open spaces and community facilities has been kept at 15. 47% as against the proposed percentage of 13-41% in the concept plan. The open spaces are not saleable and will be handed over to the local authority and the municipal Corporation of Visakhapatnam has taken over all the open spaces. The community centre areas will be allotted to the institutions such as schools, colleges, hospitals, Kalyanamandapams on collecting necessary costs. Therefore, while allotment vuda charges for the community centre from the institutions only. The residents of sector-2 had paid only for their plots allotted and the charges for community centre have not been collected from the allottees.

( 5 ) IT is further stated in the counter that that VUDA has to generate nearly rs. 13. 00 crores for non-remunerative projects such as roads, parks, afforestation, environment improvement programmes during the year 2000-2001 and to meet the expenditure the land in question along with other land in Sector-10 was carved out into plots and allotted in public auction to generate the resources as Government is not allocating funds for the above purpose. As the development started in the layout, there are changes in the layout in the location of community centres, which are m