Telangana HC cancels land allotment to International arbitration centre; says govt acted in haste, land grant violated rules
HYDERABAD: The Telangana high court on Friday set aside a 2021 govt order that allotted 3.70 acres of prime land in Hyderabad's upscale Raidurg area free of cost to the International Arbitration and Mediation Centre (IAMC). The centre was initiated and backed by former chief justice of India, Justice N V Ramana .
A division bench of Justice K Lakshman and Justice K Sujana said the state govt displayed undue haste in the allotment. The previous BRS govt had allotted land on Dec 26, 2021.
The bench was hearing two PILs challenging the allotment and the financial assistance of Rs 3 crore annually to the centre. At the time, the state had also decided to get all disputes arising from its tenders and other commercial deals necessarily referred to the centre.
The bench ruled that the allotment violated the Telangana Land Revenue Act and the Andhra Pradesh Alienation of State Lands Rules, 1975, which mandate market-value payment for land given to private entities. The mediation centre, not being a statutory body or registered under the Companies Act, was deemed ineligible for free land.
The bench, however, agreed with the view that the institutional arbitration must be promoted by govts and upheld the state's decision to give an annual financial assistance of Rs 3 crore and automatic reference of disputes. The judges added a rider that the state must review the performance of the centre every year after the passage of five years.
HC flags centre's poor performance
The two PILs were filed by Koti Raghunath Rao, an advocate from Hyderabad, and A Venkatarami Reddy, a retired govt employee. Senior counsel S Satyam Reddy appeared for one petitioner and questioned the state's support to the centre, which he described as a private trust.
Low caseload a concern, says high court
The Telangana high court, in its order expressed concern over the poor performance of the mediation centre.
"We would like to express our concern regarding the performance of the IAMC and its future." the judges said. "The statistics of the IAMC were placed before this Court. It was stated that as on 29.01.2025 only 15 arbitration cases were conducted by the IAMC. Out of the said 15 cases, 11 arbitration cases were conducted pro-bono."
The high court bench pointed out that overall only 57 mediation cases were conducted by the centre, of which 17 were pro-bono.
"The abysmally low caseload raises concerns regarding the future sustenance of the IAMC on its own. The govt, as a part of its policy, can provide financial assistance to a new institution like the IAMC. However, such financial assistance to a private arbitral institution cannot be perpetual," the bench added.
A division bench of Justice K Lakshman and Justice K Sujana said the state govt displayed undue haste in the allotment. The previous BRS govt had allotted land on Dec 26, 2021.
The bench was hearing two PILs challenging the allotment and the financial assistance of Rs 3 crore annually to the centre. At the time, the state had also decided to get all disputes arising from its tenders and other commercial deals necessarily referred to the centre.
The bench ruled that the allotment violated the Telangana Land Revenue Act and the Andhra Pradesh Alienation of State Lands Rules, 1975, which mandate market-value payment for land given to private entities. The mediation centre, not being a statutory body or registered under the Companies Act, was deemed ineligible for free land.
The bench, however, agreed with the view that the institutional arbitration must be promoted by govts and upheld the state's decision to give an annual financial assistance of Rs 3 crore and automatic reference of disputes. The judges added a rider that the state must review the performance of the centre every year after the passage of five years.
HC flags centre's poor performance
The two PILs were filed by Koti Raghunath Rao, an advocate from Hyderabad, and A Venkatarami Reddy, a retired govt employee. Senior counsel S Satyam Reddy appeared for one petitioner and questioned the state's support to the centre, which he described as a private trust.
Low caseload a concern, says high court
The Telangana high court, in its order expressed concern over the poor performance of the mediation centre.
"We would like to express our concern regarding the performance of the IAMC and its future." the judges said. "The statistics of the IAMC were placed before this Court. It was stated that as on 29.01.2025 only 15 arbitration cases were conducted by the IAMC. Out of the said 15 cases, 11 arbitration cases were conducted pro-bono."
The high court bench pointed out that overall only 57 mediation cases were conducted by the centre, of which 17 were pro-bono.
"The abysmally low caseload raises concerns regarding the future sustenance of the IAMC on its own. The govt, as a part of its policy, can provide financial assistance to a new institution like the IAMC. However, such financial assistance to a private arbitral institution cannot be perpetual," the bench added.
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