Lands held on mortgage by cooperative societies are exempt from the prohibitory classification under the Andhra Pradesh Assigned Land Act, allowing for their registration.

The Court made the following order:

The present writ petition is filed challenging the action of the respondents in treating the subject land in an extent of Ac.3.50 cents in Sy.No.13/3 of Ayyavandlavari Palli Revenue Village, Pulicherla Mandal, Chittoor District (herein after referred as subject land) as “Assigned land”, the petitioner has consequently sought for a direction to the respondents to receive the documents that would be presented by the petitioner and register the same by deleting the subject land from the list of prohibitory properties.

2. Heard Sri K.Muni Reddy Bala Prasad, learned counsel for the petitioner and learned Assistant Government pleader for Revenue appearing for the respondents.

3. It is contended that the petitioner purchased the subject property in an auction conducted by the Special Officer of the District Co-Operative Central Bank Limited (DCCB Ltd), Chittoor on 13.09.2006, and the sale was confirmed in their favour on 04.12.2006. When the petitioner approached for registration of the subject land, the respondents refused to register, citing that the subject land is classified under the prohibitory list.

4. The learned counsel, relying on the provisions of Section 6 of the Andhra Pradesh Assigned Land (Prohibition of Transfers) Act, 1977 (hereinafter referred to as "the Act"), contends that assigned lands held on mortgage by a Cooperative Society or a Scheduled Bank or such other financial institution are exempt from the provisions of the Act. He further contends that the provisions of the Act do not apply to assigned lands held in mortgage by the State or Central Government or local authority and cooperative society.

5. He also relies on the decision of this Court in the case of W.P.No.14743, 14750 of 2007, wherein this Court referring to the provisions of Section 6 of the Act, observed that if assigned lands came to be sold, in pursuance of mortgage, which is exempted under Section 6 of the Act, it looses the characteristics of assigned land and the exemption continues to be available to the purchasers from the society. This decision was affirmed by the Division Bench in W.A. No. 950 of 2007.

6. The 4^th respondent filed a counter affidavit stating that, by virtue of G.O.Ms.No.596, Revenue (Lands.I), dated 19.12.2013, the assigned lands have been converted into freehold, subject to certain conditions. Although the lands were converted to freehold, the directions are to keep the documents in abeyance to prevent further registrations. Reference is made to Clause 5 & 6 of the Circular Memo dated 10.08.2024, which reads as follows:

“5. Furthermore, for lands converted to freehold under G.O.Ms.No.596 of the Revenue (Lands.I) Department dated 19.12.2023, which have not yet been registered or had any transactions so far, the registration process shall be kept in abeyance to prevent further registrations that could create third party interests.

6. Regarding steps for lands covered under the above G.O and Act 35/2023 that have not yet been registered: any document presented for registration must be held in abeyance/kept pending until the Government reaches a final decision following the Collector's report: Registration of prohibited lands that have been converted to freehold will not be allowed until the District Collector issues written permission. The District Collector will also ensure that documents presented for registration, but kept pending by the Sub-Registrar, are re-examined and investigated at the field level by revenue and survey department officials, in accordance with the applicable Acts and Rules, before a report is submitted to the Government for each case of land conversion to freehold.”

7. He contends that since the prohibition continues, it is not permissible to prevent registration of the subject land. He further contends that an alternative mechanism is provided under the Act for seeking deletion or removal of the subject property, and the petitioner can avail such remedy under the Act.

8. Con