Kerala High Court Directs Reconsideration of Lulu Hypermarket Land Conversion Over Procedural Lapse

The Kerala High Court has upheld a Single Bench decision that quashed the Revenue Divisional Officer’s (RDO) orders permitting Lulu Hyper Market Pvt Ltd to reclassify land in Thrissur and use it commercially. A Division Bench of Justice Devan Ramachandran and Justice Basant Balaji ruled that the RDO had failed to follow the mandatory procedure under the Kerala Conservation of Paddy Land and Wetland Act, 2008 (the Act) and its Rules.

Background of the Dispute

The case concerns 161.45 ares of land in Survey Nos. 403, 405, and 406 of Ayyanthole Village, which had been included in the Paddy Land Data Bank. Lulu Hypermarket sought removal of these extents from the Data Bank by filing three applications under Form 5 of the Kerala Conservation of Paddy Land and Wetland Rules. The RDO allowed these applications and subsequently granted permission under Section 27A of the Act for conversion, after Lulu paid the requisite fees.

While Lulu acted on these approvals, the District Collector issued an order under Section 13 of the Act directing Lulu to restore the land to its original paddy land status. This order was challenged by Lulu in a writ petition, while the Section 27A order was challenged by T.N. Mukundan, a member of the District Level Authorised Committee and the objector. The Single Judge set aside both RDO orders, directed the RDO to reconsider the Form 5 applications in strict compliance with Rules 4(4e) and 4(4f), and kept the District Collector’s restoration order in abeyance pending fresh decision. Aggrieved, Lulu filed the present writ appeals.

Arguments Presented

Senior counsel for Lulu argued that the Kerala State Remote Sensing and Environment Centre (KSRSEC) report, which had been prepared pursuant to an interim direction of the Division Bench, clearly showed that the lands had been converted prior to 2008. They contended that the Agricultural Officer’s report was unnecessary for the RDO’s reconsideration, as the KSRSEC opinion should be treated as conclusive, and that the court could finally decide the matter to avoid endless litigation.

The objector, represented by senior counsel Renjith Thampan, did not oppose the satellite imagery relied upon by KSRSEC but maintained that its opinion could not be treated as conclusive. He argued that the RDO had completely leapfrogged over Rule 4(4e), which mandates obtaining a report from the Agricultural Officer before proceeding under Rule 4(4f). He pointed to paddy subsidy registers suggesting recent cultivation.

KSRSEC, through senior counsel Ramesh Chander, defended its report, asserting that it had not violated any copyright or used images from Google Earth without authorisation. It argued that physical verification was unnecessary because remote sensing by its very nature relies on satellite imagery.

Legal Analysis: Statutory Procedure Cannot Be Tinkered With

The Division Bench firmly rejected Lulu’s invitation to treat the KSRSEC report as conclusive or to bypass the Agricultural Officer. It held that the procedure under Rules 4(4e) and 4(4f) is statutorily ordained and cannot be altered by the court, regardless of the urgency or weight of the scientific evidence.

“The procedure aforementioned is statutorily ordained and cannot be, in any manner, tinkered by us, for whatever reason that may be projected by the parties. It would be impermissible for this Court to substitute our wisdom for that of the legislative policy; and if we are to do so, it would render the entire process to be vitiated.” (Para 19)

The court observed that the RDO had earlier allowed the Form 5 applications without calling for a report from the Agricultural Officer, effectively leapfrogging into Rule 4(4f) directly. The court refused to evaluate the KSRSEC report itself, stating that while this court evaluates administrative action, it assesses the process, not the decision.

Key Observations

The court highlighted several critical points:

  • On the District Collector’s restoration order: The court set aside the order, reasoning that “no such could have been issued at a time when the factual evaluation – if the lands were converted in violation of the ‘Act’ – has not been fully resolved.” (Para 25)

  • On the Section 27A permission: The court noted that “Section 27A of the ‘Act’ applies to unnotified lands, namely lands which are not included in the Data Bank. In the case at hand, even though the extents were originally not in the draft of the Data Bank, it has been included in its final.” Therefore, the permission under Section 27A could not stand once the Form 5 orders were quashed. (Para 29)

  • On the procedural default: Prima facie, he leapfrogged into the provisions of 4(4f) of the ‘Rules’; and then proceeded to allow the application, based on the KSRSEC reports.” (Para 24)

Court’s Decision and Directions

The Division Bench disposed of the appeals with the following directions:

  • The Single Judge’s order quashing the RDO’s orders (Exts.P11 to P13 in the writ petition) was upheld.
  • The District Collector’s restoration order (Ext.P16) was set aside, with the clarification that the Authority could act in accordance with law after the other directions were implemented.
  • The competent Authority (RDO or other authorised officer) was directed to reconsider Lulu’s Form 5 applications, adverting specifically to the KSRSEC report now on record, but strictly following Rules 4(4e) and 4(4f).
  • KSRSEC was ordered to forward its reports to the authorised officer within two weeks of receiving a copy of the judgment.
  • The Agricultural Officer was required to provide the mandated report under Rule 4(4e) within one month of the requisition.
  • The authorised officer must dispose of the Form 5 applications within one month of receiving the Agricultural Officer’s report.

The court left all contentions of the rival parties open to be decided by the competent Authority. The practical effect is that Lulu must now wait for a fresh, procedurally compliant decision before it can proceed with any commercial use of the land, while the District Collector cannot enforce restoration until the factual status of the land is resolved.