HC stays VUDA order cancelling sale of land to NMDC

The High Court of Judicature at Hyderabad has issued an interim stay order on a notice by Visakhapatnam Urban Development Authority (VUDA) cancelling the land sale to National Mineral Development Corporation (NMDC) Limited.

NMDC had acquired a plot in 1992, measuring 2,419 sq yards, at Dutch Layout in Visakhapatnam through auction for Rs 55.6 lakh, with an intention to construct staff quarters.

However, the construction could not be taken up since the approach road to the plot remained blocked by boulders, sand and widewall. Despite requests to the authorities concerned by NMDC, the blockade has not been removed till now, a senior NMDC official said.

In 2012, NMDC decided to construct its regional office-cum-guest house on the plot instead of staff quarters. For this purpose, NMDC applied for conversion of land use from residential to commercial by submitting all the documents in February 2012, on which VUDA is yet to accord its approval, the official said.

Instead, VUDA issued an order on June 6 this year to the Regional Manager, NMDC - Visakhapatnam, cancelling the sale deed executed in favour of the miner.

NMDC then approached the high court challenging the VUDA order.

"Having regard to the facts and circumstances of the case, there shall be interim suspension of the impugned order passed by the second respondent (VUDA) for a period of four weeks," the high court said in its order on June 8.

The official quoted above said that NMDC Chairman-cum-Managing Director Bharathi S Sihag has also apprised Union Steel Minister Narendra Singh Tomar and sought his intervention to sort out the issue amicably with the Andhra Pradesh government.