The court established that the State's actions in acquiring, releasing, and permitting the sale of land were illegal, arbitrary, and mala fide, and the power of acquisition was used fraudulently. The court also emphasized the need for the executive to act lawfully, bona fide, and within the limits of its power.

Rakesh Kumar Garg, J.

1. By way of present writ petition, which has been filed in the public interest, a challenge has been made to the action of the State of Haryana, firstly in proceeding to acquire a big chunk of land for the alleged purpose of development of the land for residential and commercial area for Sector 30, Gurgaon and then proceeding to release the same in favour of respondent No. 3 i.e. East India Hotels Limited vide communications dated 19.9.1995 (Annexure P-3) and 4.1.1996 (Annexure P-4) and thereafter permitting the sale of the aforesaid land by respondent No. 3 in favour of respondents No. 4 and 5 in violation of the conditions imposed vide release orders Annexures P-3 and P-4 and then issuing notifications dated 6.12.2006 (Annexure P-7) and notification dated 19.3.2007 (Annexure P-8) under the provisions of the Special Economic Zone Act, 2005 by creating a nexus between the State Government and respondents No. 3 to 5 to defraud the residents of the area with a further prayer to quash the release orders Annexures P-3 and P-4 sales made in favour of respondents No. 4 and 5 vide Annexures P-5 and P-6 and also the notifications Annexures P-7 and P-8 or any other appropriate writ, order or direction which this Court may deem fit and proper in the facts and circumstances of the case.

2. As per the averments made in this petition, the State of Haryana issued notification dated 30.1.1989 (Annexure P-1) under Section 4 of the Land Acquisition Act, 1894 ( in short the "Act") to acquire an area measuring 210.38 acres in village Silokhera and an area measuring 5.20.acres in village Sukhrali for a public purpose namely utilization thereof for residential and commercial area for Sector 30, Gurgaon. However, notification under Section 6 of the Act was issued only for an area measuring 169 acres in village Silokhera and area measuring 2.13 acres in village Sukhrali. It is also a matter of record that an award was passed on 22.1.1992 only for a land measuring 8.64 acres (i.e. 7.01 acres in village Silokhera and 1.63 acres in village Sukhrali). It is further averred that the State of Haryana vide communication dated 19.9.1995 released 30 acres of land in favour of respondent No. 3 i.e. a Company, namely, East India Hotels Limited. The operative part of the aforesaid communication reads as follows : "This has reference to your representation dated 14.2.1995 to the Honble Chief Minister, Haryana, on the above mentioned subject and it is to inform you that your proposal has been examined and Government of Haryana is considering to release 30 acres of land from acquisition forming part of the under mentioned facilities out of 37 acres 2 marlas land belong to you in Sector 30, Gurgaon :-

i .

Land for Hospital Project

15.00 acres

ii

Land required for Hotel

Management Institute and its

appurtenant and ancillary building

7.5 acres

iii.

Land needed for Executive

Apartment and Staff Housing

5 acres

iv.

Land under green belt

2.5 acres

The above mentioned 30 acres of land is being considered for release subject tot he following conditions :-

1. Released land shall not be sold without the approval of concerned Department of Govt. of Haryana. 2. Released land shall be used only for the facilities proposed to be set up by you as indicated above covering 30 acres of land proposed to be released. 3. Executive Apartments and Staff houses constructed on the released land including those on the 5 acres of land should not be sold and should be exclusively used for housing officers, other professionals and officials associated with the various facilities being developed. 4. You should obtain the permission for change of land use from the Director, Town and Country Planning, Department, Haryana, Chandigarh and an application for the same in the prescribed proforma with the relevant documents and fees should be submitted by you within 30 days of getting