Vutukuri Pandu Rangam vs. The State Of Telangana

Facts

The petitioners sought sub-division and mutation of Plot No. 1-A in IDA, Phase I, Patancheru. They had applied for this purpose on April 22, 2017, and June 6, 2017, but their applications were not considered. After multiple subsequent applications and a previous writ petition (WP No. 34488 of 2023) which directed the respondents to dispose of their applications, the petitioners received a letter dated December 19, 2024, from the Zonal Manager, Telangana State Industrial Infrastructure Corporation (TSIIC). This letter approved their request subject to payment of Rs. 33,30,303/- towards sub-division fee and Rs. 5,99,456/- as GST, totaling Rs. 39,29,759/-, and Rs. 1,73,888/- towards statutory fee plus Rs. 31,300/- GST, totaling Rs. 2,05,188/-. The petitioners challenged this letter, arguing that the fees and GST should have been calculated based on the rates applicable at the time of their initial application in 2017, when GST was not in effect.

Held

The Court held that the respondents acted in accordance with the revised guidelines dated September 11, 2017. These guidelines stipulated that no mutation would be allowed before the approval of sub-division, any change in the line of activity required Corporation approval, and all dues payable to TSIIC must be collected for considering the sub-division proposal. The Court found no fault with the impugned proceedings which directed the payment of prescribed fees for sub-division approval. The reasoning was that the petitioners were required to pay the amounts prescribed in the impugned order for sub-division and mutation of land as per the prevailing rates on the date of approval, as per the TSIIC's Circular dated September 11, 2017. The ratio decidendi is that statutory authorities are entitled to apply their prevailing rates and guidelines at the time of final approval for services like sub-division and mutation, even if applications were filed earlier, provided such guidelines are consistently applied. The Court dismissed the writ petition as devoid of merit.

Key Issues

1. Whether the sub-division and mutation charges, including GST, are to be calculated based on the rates applicable at the time of the petitioners' initial application (April 22, 2017) or the current rates prevailing at the time of approval (December 19, 2024)? This issue turns on the interpretation of the TSIIC's guidelines and circulars regarding sub-division of plots. The petitioners argued that the charges should be based on the rates applicable when they first applied, as they had been diligent in pursuing their request. They contended that GST was not applicable in 2017. The respondents (TSIIC) argued that as per their rules and regulations, sub-division and mutation charges are payable as per the current rates applicable on the date of approval, not the date of application, citing Circular No. 198445/TSIIC/LACl2OI4l24l, dated September 11, 2017.