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2023 Supreme(Online)(Chh) 11612

CHHATTISGARH HIGH COURT
Justices Sanjay K. Agarwal and Rajendra Kumar Dubey, J
Vinay Dubey v. State of Chhattisgarh
Public Interest Litigation No. 245 of 2020



Advocates:
For the Appellants/Petitioners: Mr. Sudeep Shrivastava
For the Respondents: Mr. H.S. Ahluwalia, Mr. Sumesh Bajaj, Mr. Ramakant Mishra, Mr. Ashok Kumar Verma, Dr. Sudeep Agrawal, Mr. Harsh Wardhan

Delegation of municipal powers to smart city SPVs is valid, and the absence of elected representatives on their boards does not constitute usurpation of authority.

Headnote:(A) Chhattisgarh Municipal Corporation Act, 1956 - Article 243W of the Constitution of India - Smart Cities Mission - Challenge to formation of Bilaspur Smart City Limited and Raipur Smart City Limited by the petitioner claiming usurpation of powers of Municipal Corporations - The court held that the SPVs executed projects under the delegated powers from Municipal Corporations, thus not usurping their authority - The existence of a unified board with Central and State Government representation does not negate the role of elected bodies. (Paras 2, 10, 34, 35, 38)

(B) Public Interest Litigation - Maintainability and locus standi of the petitioner questioned, as no elected representatives challenged the actions of the SPVs prior to this petition - The court emphasized the necessity for direct grievance from affected parties in public interest litigation. (Para 37)

(C) Representative Governance - The composition and functioning of the Smart City SPVs, with no direct elected representation on their boards, was critiqued, highlighting potential conflicts with principles of elected governance. (Paras 36, 18)

Findings of Court:
The court found no merit in the petition challenging the constitution and functioning of the SPVs, affirming that the delegation of powers by Municipal Corporations was legitimate under the Smart Cities Mission framework.

Issues: The court addressed the legality of the delegation of powers to SPVs, the representation of elected officials on SPV boards, and the criteria for maintainability of public interest litigation.

Ratio Decidendi: The court determined that the delegation of powers to SPVs under the Smart Cities Mission was permissible and upheld the actions of the SPVs as compliant with statutory provisions and policy guidelines.

Result: Petition dismissed.

Table of Content
1. petitioner seeks to challenge the constitution and powers of spvs. (Para 1 , 2 , 3)
2. arguments presented regarding lack of representation and control by elected officials. (Para 8 , 9 , 10 , 11 , 12 , 13)
3. delegation of powers to spvs does not infringe upon elected local body functions. (Para 15 , 34 , 36)
4. court's analysis on the constitutionality and functioning of the spvs. (Para 17 , 24 , 25 , 26 , 27 , 29 , 30 , 35 , 37)
5. the court dismisses the petition for lack of merit. (Para 38)

1. The petitioner, who is a practicing Advocate, claims himself to be a known social worker. He has filed the present petition in the representative capacity of the citizens of Bilaspur and Raipur Municipal Corporation seeking for the following reliefs:
"1. That, this Hon'ble Court may kindly be pleased to call for the entire records pertaining to the formation and operation of the Bilaspur Smart City Limited and Raipur Smart City Limited.
2. That, this Hon'ble Court may kindly be pleased to issue an appropriate Writ / Order / Direction to quash the order dated 17.08.2016 F - 528/2-16/18, (Annexure P - 4) passed by respondent No. 1 constituting Bilaspur Smart City Co. Ltd. And Raipur Smart City Ltd. and in consequence thereof declare all the actions taken in furtherance of the order dated 17.08.2016 as and void.
3. That, this Hon'ble Court may kindly be pleased to issue an appropriate writ / order / direction to reconstitute the Board of Directors of the Bilaspur Smart City Limited and Raipur Smart City Limited in manner so that at least 50% of the members would come from elected members of the Nagar Palik Nigam Bilaspur and Raipur respectively.
4. That, this Hon'ble Court may kindly be pleased to issue an appropriate writ / order / direction to make Mayor and Speaker as member of the Board of Directors of the Bilaspur Smart City Limited and Raipur Smart City Limited.
5. That, this Hon'ble Court may kindly be pleased to issue an appropriate writ / order / direction to the effect to take post facto approval of all the development works completed by the Bilaspur Smart City Limited and Raipur Smart City Limited since their inception from the concerned elected bodies of the Nagar Palik Nigam as per the prescribed procedure.
6. That, this Hon'ble Court may kindly be pleased to issue an appropriate writ / order / direction to the effect to constitute Ward Committee and Mohalla Samiti in Nagar Nigam of the State.
7. That, this Hon'ble Court may kindly be pleased to issue an appropriate writ / order / direction to the effect to frame rules for constitution junctions, powers and procedures for conduct of business of the Wards Committee.
8. That, this Hon'ble Court may be pleased to pass any other order / relief that this Hon'ble Court may please deem fit and proper in the facts and circumstances of the case including grant of cost of the instant litigation."








2. Challenge in this petition is to the alleged usurpation of powers and authorities of Municipal Corporation Bilaspur and Raipur by the Smart Cities Limited i.e. the Bilaspur Smart City Limited (for short, the BSCL) and the Raipur Smart City Limited (for short, the RSCL) in contravention of the Chhattisgarh Municipal Corporation Act , 1956 as well as Art.243 of the Constitution of India as by the 74th amendment, Constitutional democracy was extended beyond the Parliament and Assembly to Panchayats and Municipalities. By introduction of Smart City Limited, the Special Purpose Vehicle Companies (for short, the SPV) has undermined the elected local bodies and have also usurped their powers and functions.

3. The facts, in brief, as projected by the petitioner are that the Government of India, Department of Housing and Urban Affairs, launched a Smart City Mission to fund different selected cities for standard development. The said mission was to be implemented through SP v. The respondent No. 1 incorporated BSCL and RSCL as SPVs in September, 2016 to carry out the development and maintena










































































































































































































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