PIL Challenges Auction of NMC's Bhandewadi Land Leased Out To A Co
Nagpur: A public interest litigation (PIL) was filed before the Nagpur bench of Bombay high court challenging the legality of an ongoing auction process involving 10 acres of land in Bhandewadi, which the Nagpur Municipal Corporation (NMC) leased to a private company in 1999.
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The high court bench recently issued notices to NMC, NB Infrastructure, Housing and Urban Development Corporation (HUDCO), Indian Renewable Energy Development Agency (IREDA), RBI and the insolvency resolution officer, requesting responses. It clarified that the auction process will depend on the final outcome of the PIL.
The PIL, submitted by lawyer Pravin Dahat, asserts that the land — originally leased to NB Infrastructure for setting up a waste-to-energy project — cannot legally be auctioned as it is owned by the civic body.
The company defaulted on its obligations and went bankrupt, and is now undergoing insolvency proceedings where the land has been listed for auction by the resolution professional under a debt recovery ruling.
The petition states that the land was leased on July 14, 1999, as part of a tripartite agreement between NMC, NB Infrastructure and HUDCO. IREDA also financed the project. "Despite no physical verification or due diligence, the funding was disbursed and the project later failed," the petitioner stated.
Dahat argues that the auction breaches lease norms and claims that the no-objection certificate (NOC) issued by NMC for the project was 'fundamentally flawed'. The petition also questions why NMC has taken no stance in the matter despite being the landowner.
The PIL further contests the jurisdiction of Delhi-based Debt Recovery Tribunal, which ruled in favour of HUDCO and IREDA, permitting the auction.
Nagpur: A public interest litigation (PIL) was filed before the Nagpur bench of Bombay high court challenging the legality of an ongoing auction process involving 10 acres of land in Bhandewadi, which the Nagpur Municipal Corporation (NMC) leased to a private company in 1999.
Tired of too many ads? go ad free now
The high court bench recently issued notices to NMC, NB Infrastructure, Housing and Urban Development Corporation (HUDCO), Indian Renewable Energy Development Agency (IREDA), RBI and the insolvency resolution officer, requesting responses. It clarified that the auction process will depend on the final outcome of the PIL.
The PIL, submitted by lawyer Pravin Dahat, asserts that the land — originally leased to NB Infrastructure for setting up a waste-to-energy project — cannot legally be auctioned as it is owned by the civic body.
The company defaulted on its obligations and went bankrupt, and is now undergoing insolvency proceedings where the land has been listed for auction by the resolution professional under a debt recovery ruling.
The petition states that the land was leased on July 14, 1999, as part of a tripartite agreement between NMC, NB Infrastructure and HUDCO. IREDA also financed the project. "Despite no physical verification or due diligence, the funding was disbursed and the project later failed," the petitioner stated.
Dahat argues that the auction breaches lease norms and claims that the no-objection certificate (NOC) issued by NMC for the project was 'fundamentally flawed'. The petition also questions why NMC has taken no stance in the matter despite being the landowner.
The PIL further contests the jurisdiction of Delhi-based Debt Recovery Tribunal, which ruled in favour of HUDCO and IREDA, permitting the auction.
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