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2025 Supreme(Mad) 3195

IN THE HIGH COURT OF JUDICATURE AT MADRAS
N. ANAND VENKATESH, J.
Ms. Krishna Devanandan - Appellant
Versus
Auroville Foundation, Rep. by its Secretary Dr. Jayanti S. Ravi - Respondent
Writ Petition Nos. 8639, 8652 of 2024, W.M.P. Nos. 9625, 9628 of 2024
Decided On : 04-03-2025


Advocates:
Advocate Appeared:
For the Appellant : Mr.M.V.Swaroop
For the Respondent: Mr.AR.L.Sundaresan, SC for Mr.Vaibhav R.Venkatesh Mr.B.Vijay, AGP

The Governing Body of the Auroville Foundation can conduct land exchanges without prior government approval, provided it adheres to the Auroville Master Plan and consults necessary committees.

Headnote:(A) Auroville Foundation Act, 1988 - Sections 10(3), 11, 17; Auroville Foundation Rules, 1997 - Rules 4(1)(d), 4(1)(i); General Financial Rules, 2017 - Rule 309 - Writ petitions seeking to challenge land exchanges by the Auroville Foundation without following requisite procedures - It is mandatory for the Governing Body to consult the Working Committee and the Funds and Assets Management Committee before any land acquisition or disposal. (Paras 4, 10, 16, 20)

(B) Maintainability - The court found that the petitioner, as a Member of the Residents' Assembly, has locus standi to challenge the actions of the Governing Body of the Foundation despite arguments against her standing. (Paras 12, 26)

(C) Powers of the Governing Body - The court held that the Governing Body has the authority to conduct land exchanges as per the Auroville Master Plan without prior sanction from the Government, distinguishing between 'sale' and 'exchange' of property. (Paras 20, 36)

Facts of the case:
The petitioner alleged that several land exchanges by the Auroville Foundation were conducted illegally without proper consultation and prior government approval, affecting the Foundation's interests. (Paras 4, 6)

Findings of Court:
The court found no grounds to interfere with the land exchanges as they were consistent with the Auroville Master Plan and within the Governing Body's powers. (Paras 36, 37)

Issues: The main issues included the legality of the land exchanges, the necessity of government approval, and the consultation process with the Working Committee and FAMC. (Paras 10, 13)

Ratio Decidendi: The court ruled that the Governing Body acted within its powers and did not require prior government sanction for land exchanges, emphasizing the distinction between sales and exchanges under the Act and Rules. (Paras 20, 36)

Result: Both writ petitions are dismissed.

ORDER :

1. W.P.No.8639 of 2024 has been filed seeking for the issuance of a Writ of Mandamus to forbear the first respondent from proceeding with any transaction of land transfer, including land exchanges, without following the procedure laid down in the Auroville Foundation Rules 1997 (for short, the 1997 Rules) and the General Financial Rules 2017 (for brevity, the 2017 Rules).

2. W.P.No.8652 of 2024 has been filed seeking for a direction to the second respondent to cancel the relevant entries made from the year 2021 whenever the land exchanges were registered and entered in the encumbrance register without following the relevant Rules.

3. Heard the learned counsel appearing for the petitioner, the learned Senior Counsel appearing on behalf of the first respondent and the learned Additional Government Pleader appearing for the second respondent, in both the writ petitions.

4. The facts leading to filing of these cases are as follows :

(i) The petitioner claims to be a Member of the 'Residents' Assembly" that forms part of one of the three Authorities of the Auroville Foundation (hereinafter called the Foundation). Under Rule 4(1)(d) of the 1997 Rules, it is mandatory for the Governing Body of the Foundation to consult (i) the Working Committee and (ii) the Funds and the Assets Management Committee (FAMC) of the Residents' Assembly to acquire by purchase, gift, lease or otherwise any immovable property, which may be necessary or convenient for the purposes of the Foundation.

(ii) Similarly, as per Rule 4(1)(i) of the 1997 Rules, it is mandatory for the Governing Body to dispose of the immovable property through transfer, sale or otherwise only in consultation with the Working Committee and the FAMC. That apart, no property, which is worth more than Rs.5 lakhs, can be sold without the sanction of the Government of India (GoI). Even under Rule 309 of the 2017 Rules, no land belonging to the Government or any of its bodies including autonomous bodies, etc., can be sold without the previous sanction of the Government.

(iii) The grievance of the petitioner is that from the year 2021, several lands of the Foundation have been exchanged with third parties without following any of the Rules and without the knowledge and consultation of the Working Committee and the FAMC and also without following due diligence procedure. That apart, the land exchanges were undertaken without obtaining the prior sanction of the GoI.

(iv) According to the petitioner, several extent of lands belonging to the Foundation has been exchanged in an illegal manner and it is under these circumstances, the above writ petitions have been filed before this Court.

5. The first respondent has filed a common counter affidavit wherein they have questioned the maintainability of these writ petitions on the ground that the petitioner has no locus standi to question the authority of the first respondent only on the basis that she is a Member of the Residents' Assembly. The first respondent has explained the various land exchanges that took place from 2021 to 2024 and stated that such exchanges were warranted for the formation of the Crown Road and consolidation of lands as per the vision laid out by the Mother's Charter. The first respondent has also explained the manner, in which, the consultation took place with the Working Committee of the Residents' Assembly and the FAMC. The first respondent has also justified the land exchange as a method of acquiring land within the Master Plan Area. That apart, the GoI has also provided a check list through its communication dated 06.11.2023 and this check slip was strictly followed.

6. The first respondent has taken a stand that the Foundation has received 240 acres more than its exchange for value of nearly 70 lakhs more than the value of the land provided. In so far as the sanction from the GoI is concerned, it has been stated that letters were written to the Government for permission and the Ministry of Education issued an Office Memo

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