ORDER

The above writ petition is filed seeking the following relief:

“… to issue a writ order or direction, particularly in the nature of WRIT OF MANDAMUS, declaring Letter No.NIL/2023, dated 18.01.2023 of the 6th Respondent, cancelling the lease/license in relation to the site of Ac.1.46 cents in Survey No.235/1A1 of Etukuru Village and forefieting the initial deposit, EMD and one year rent of Rs.76,70,000/-(Rs. Seventy Six Lakhs Seventy Thousand only) as arbitrary, illegal, and in violation of principles of natural justice and consequently direct 6th Respondent to remove the encroachments and deliver vacant possession or in the alternative refund Rs.76,70,000/- (Rupees Seventy Six Lakhs Seventy Thousand only) deposited towards the initial deposit, EMD and one year rent with interest and to pass such other order or orders …”

2. a) The case of the petitioner, in brief, is that petitioner emerged as successful bidder in the auction conducted by respondent No.6 on 02.12.2020 for lease of vacant site of an extent of Ac.1-46 cents, situated in survey No.235/1A1 in Etukuru village, Guntur, belonging to Sri Madisetty Mahalakshamma & Garlapati Rangammachoultry, for a period of 11 years. The petitioner paid an initial deposit of Rs.2,00,000/- and E.M.D. amount of Rs.13,50,000/- on 02.12.2020 and petitioner paid an advance rent of Rs.61,20,000/- for 12 months, on 03.12.2020 as per the conditions of the auction. Respondent No.2 confirmed the bid vide Memo Rc.No.M2/19021/32) /3/2019 dated 08.03.2021. The same was communicated to the petitioner by respondent No.6 vide letter dated 15.03.2021 and further informed the petitioner to furnish bank guarantee to respondent No.2 within a period of 30 days from 08.03.2021 to get registered lease deed.

b) While the matter stood thus, petitioner addressed letter dated 23.03.2021 to respondent No.6 informing that the subject land is occupied by encroachers; that he would execute bank guarantee in department’s name within ten days from the date of eviction of the encroachers and handing over vacant possession to the petitioner. Respondent No.6, in turn, addressed letter, dated 24.04.2021 to the Commissioner, Municipal Corporation, Guntur, requesting to remove the encroachments. Since no action was taken by the department, the petitioner got issued legal notice dated 09.12.2022 to respondent No.6 requesting to repay the amount deposited by the petitioner. Respondent No.6 issued reply notice, dated 01.02.2023. Petitioner’s lease/license, in respect of the subject site was cancelled by letter dated 18.01.2023 and respondent No.6 proposed to re-auction the site. Aggrieved by the same, the present writ petition is filed.

3. a) Counter affidavit was filed on behalf of respondent No.4. It was contended inter alia that there are no encroachments in the subject site, and it is free from encumbrances and encroachments. The subject site is in the possession of respondent No.6 choultry. The petitioner violated the auction conditions and failed to execute registered lease deed inspite of repeated requests. The allegation made by the petitioner that the subject land is encroached is only to escape from the latches on his part. The alleged encroachments are outside the choultry site, and they are not causing hurdle for ingress and aggress into the site. On the request of the petitioner, respondent No.6 addressed letter dated 23.09.2021 to the Commissioner, Guntur Municipal Corporation, clearly mentioning that there exist temporary roadside encroachments beyond the compound wall of the choultry site on footpath and side drains which were erected with temporary tarpaulin sheet and requested to remove the same.

b) As per the auction condition No.24, the lease period would start after 30 days from the date of approval by the Commissioner, Endowments Department and the gestation period is 90 days thereafter. Subsequently, the petitioner is liable to pay the rents. As per auction condition No.31(1) the security deposit and E