Telangana HC stays BIFR order on IDPL land lease dispute

The Telangana High Court stayed BIFR orders after observing that IDPL land allotted for pharma promotion cannot be leased commercially.

Hyderabad: The Telangana High Court has made it clear that lands allotted to Indian Drugs and Pharmaceuticals Limited (IDPL) for industrial purposes cannot be leased out for commercial gain.

Justice Nagesh Bheemapaka heard a petition filed by the state government challenging a 2008 order issued by the Board of Industrial and Financial Reconstruction (BIFR), which had set aside the then district collector’s decision to resume the land and hand it over to the Telangana State Industrial Infrastructure Corporation (TSIIC).

Arguments by state govt, IDPL

Arguing for the state, Advocate General A Sudarshan Reddy told the court that the government had allotted 891.38 acres to IDPL in 1994 to promote the pharmaceutical industry.

However, contrary to the conditions of the allotment, IDPL allegedly issued notifications to lease out its administrative building in Balanagar for revenue generation.

Following this, the then collector resumed the land in January 2008 and transferred it to TGIIC.

The state contended that BIFR later cancelled the collector’s orders on February 6, 2008, without issuing notice to the government and without having the authority to do so.

Centre’s argument

Representing the Centre, Additional Solicitor General P Narasimha Sharma argued that the land was being leased only to generate income.

HC stays BIFR orders

After hearing both sides, the judge observed that the land had been allotted to IDPL with specific conditions aimed at promoting the pharmaceutical sector and that the allotment did not grant unrestricted rights to lease or commercially exploit the property.

The court said it could not accept the argument that IDPL enjoyed absolute ownership rights over the land or that the state government had no authority to intervene.

The judge also noted that there was no evidence to show the government had been notified about the BIFR proceedings.

The High Court subsequently stayed the implementation of the disputed BIFR orders and directed the Centre and IDPL to file detailed counters.

The matter was adjourned to June 22.