Point of Law : Special Officer is empowered to conduct auction to the leasehold rights of the shops of the Gram Panchayat in the interest of it’s revenue in exercise of powers vested under Section 143 of the Andhra Pradesh Panchayat Raj Act, 1994, and there is no any illegality or irregularity on the part of the Gram Panchayat in conducting public auction to lease out the shops periodically to get revenue for the interest of Gram Panchayat.

ORDER :

This Writ Petition has been filed declaring the action of the Respondent Nos.2 to 5 in issuing the auction notification vide R.K.No.20/2019, dated 10.07.2020 to the Shop Nos.1 to 41 situated at V. Kota Town and Mandal, Chittoor District, as illegal, arbitrary and violation of principles of natural justice and consequential direction to set aside the said auction notification.

2. The Respondent Nos.5 and 7 filed counter-affidavits.

3. Heard learned counsel for the petitioners and learned counsels appearing for the Respondents.

4. The case of the petitioners is that all the petitioners are residents of V. Kota Village and eking out their livelihood by doing petty business in the shops relating to the Respondent Nos.3 to 5, which were leased out in the year 1991 and 2005 to the petitioners. The rents has been enhanced from time to time and at present the rent ranges from Rs.600/- to 2,500/- per month and as on date all the petitioners have paid their respective rents till 31.03.2012. Thereafter, the Respondents enhanced the rent by 30% orally in the month of April, 2011 and the same was accepted by the petitioners and paid the enhanced rent. Thereafter, the petitioners submitted a representation to the Respondent Nos.3 to 5 stating that they are ready to pay the enhancement of the rents from 15% to 20%. But the elected body did not take any decision due to political scenario. While so, the Respondent Nos.3 to 5 issued auction notification vide R.K.No.20/2019, dated 10.07.2020 to conduct auction on 22.07.2020 basing on the orders passed by the 2nd Respondent vide R.K.No.2419/2019C2(P), dated 11.12.2019 as per the Resolution of the Grama Panchayat No.89, dated 27.09.2019.

5. The grievance of the petitioners is that there is no committee in the Gram Panchayat to pass Resolution No.98, dated 27.09.2019, as the tenure of the local body committee was expired in the month of August, 2019. The petitioners made a representation on 27.11.2019 to the Gram Panchayat Special Officer (i.e.) MPDO to inform the balance of the rent and lease period, but he did not give information. Aggrieved by the same, the petitioners approached 1st Appellate authority (i.e.) Sub-Collector, Mandanapalli, Chittoor District, to direct the Gram Panchayat to furnish information regarding balance of the rent and lease period. The 1st Appellate authority passed orders to furnish the information vide L.Dis.B5/RTI/395/2020, dated 31.01.2020 to the Gram Panchayat, but till date the no information has been furnished.

6. Learned counsel for the petitioners submits that the petitioners are running businesses for their livelihood without being any disturb and also invested the huge amounts on the business premises and without issuing prior notices to the petitioners, directly issued the public auction notice on 11.07.2020 which is illegal, arbitrary and violation of principles of natural justice.

7. In the counter-affidavit, the 5th Respondent submitted that as per Section 143 of Andhra Pradesh Panchayat Raj Act, 1994, the Commissioner shall appoint a Special Officer to exercise the powers and to perform the functions of the Gram Panchayat and its Sarpanch and Executive Authority until the Members and Sarpanch thereof, who are duly elected to assume office. As per Sub-Section 3 of Section 143, in the case may be an officer authorized by the Government shall appoint Special Officer or Person-in-Charge to Gram Panchayat, if for any other reasons the process of elections to such Gram Panchayat is not completed. As contained in Sub-Section 4 of Section 143, the Special Officer or person-in-charge appointed under Sub-Section 3 shall exercise the powers and perform the functions of the Gram Panchayat. As such, the Special Officer is having every power to act as a body of the Gram Panchayat and empowered to pass resolutions as Sarpanch.

8. It is further submitted that the shops/rooms were constructed in various phases from the year 1991 to 2006 and leased out to the vendors by way