Termination of contractual employees by government agencies is valid unless shown to be arbitrary or in violation of fundamental rights.

ORDER :

Subba Reddy Satti, J.

The above writ petition is filed, impugning the proceedings issued by the 2nd respondent vide Rc.No.76/LDM/APTIDCO/Admin/2017 dated 26.06.2024, dispensing with the services of petitioners with effect from 30.06.2024, as illegal and arbitrary.

2. Averments in the affidavit, in brief, are that the petitioners joined the office of the 2nd respondent on different dates on contractual agreements. The services of petitioners were utilized to collect beneficiary allotment data from the Municipality Department and loan allotment data through MEPMA etc. The petitioners further assisted the office of the 2nd respondent in conducting social analysis, social audit and community participation in analyzing the affordability of housing loans to the poor etc. Due to the change of political governance in the State, the 2nd respondent by proceedings impugned (Ex.P1) dispensed with the services of petitioners. The petitioners immediately approached the 2nd respondent and made representations to continue services. The 2nd respondent assured that appropriate action would be taken and intimate to the petitioners. However, nothing was materialized. The impugned order of termination is illegal, arbitrary and irrational. Hence, the writ petition is filed to set aside the impugned proceedings.

3. a) A counter affidavit was filed on behalf of 2nd respondent. It was contended, interalia, that the Andhra Pradesh Township and Infrastructure Development Corporation Limited (APTIDCO) was established as a Government syndicate to take up the task of integrated township and infrastructure development across the State of Andhra Pradesh. It is a State Level Nodal Agency of Pradhan Mantri Awas Yojana-HFA (PMAY) with capabilities of holistic planning, development, financing and implementation of affordable housing in the State under the Municipal Administration and Urban Development Department. It shall look upon to carry out the housing development integrated with the city development plan. As part of the effective implementation of the scheme, APTIDCO has to coordinate and arrange bank loans for the eligible beneficiaries who are selected as eligible candidates. For the said arrangement of bank loans, APTIDCO has appointed one State Coordinator at the Head Office and 13 Assistant Coordinators on a contractual basis and the petitioners are among the 13 Assistant Coordinators. The appointments were made on a contractual basis and have been extended from time to time based on the requirements.

b) The State Government has constructed 2.62 lakh houses under the PMAY scheme. Out of 2.62 lakh houses, 1.50 lakh houses were already handed over to eligible beneficiaries. Out of the balance of 1.02 lakh houses, some disputes arose regarding allotment due to eligibility criteria etc., and some of them approached the Court challenging the allotment. As such house allotments and processing of bank loans have considerably slowed down. Since there is no activity concerning arranging bank loans, the Government has decided to terminate the services of the contractual employees as a matter of policy decision and hence, the notice impugned in the writ petition was issued.

c) The petitioners approached the Court on 30.09.2024 and by the said date the tenure of contract between the 2nd respondent and 8th petitioner was not subsisting and it was completed by 31.08.2024. Insofar as petitioners 2, 3, 5 and 7 are concerned, their contract service was completed by 30.04.2024, 01.05.2024, 18.01.2024 and 31.03.2024 respectively. The petitioners are not employees of the 2nd respondent-Corporation and eventually prayed to dismiss the writ petition.

4. Heard Sri G.V.S.Kishore Kumar, learned counsel for petitioners, Smt.Padmaja Gadiraju, learned standing counsel for 2nd respondent and Sri S.Raju, learned Assistant Government Pleader for Services-I for 1st respondent.

5. At the hearing, learned counsel for the petitioners in elaboration of arguments, would submit that the pr