Supreme Court breather to Lanco Infratech

In a major relief to Lanco Infratech Limited (LIL), the Supreme Court passed orders on Tuesday staying the orders of the Wakf Tribunal and also a division bench of Andhra Pradesh (AP) High Court which prevented LIL from selling the properties in its township to third parties.

LIL is developing a 100-acre integrated township called ‘Lanco Hills’ at Manikonda here at a cost of about Rs 5,000 crore and the Phase-I of the residential towers as well as an IT tower are stated to be ready for occupation. The company secured the land in 2005 through international competitive bidding organised by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) at Rs 4.27 an acre.

 

However, a suit has been filed in the Wakf Tribunal claiming that the land belongs to Wakf Board. On February 14, 2011, the Wakf Tribunal had passed on order restraining Lanco Hills, among others, from alienating the property. The state high court had dismissed Lanco’s plea against the Wakf Tribunal order on April 3, 2012, and directed Lanco Hills to proceed to the tribunal for further arguments.

Following this, LIL and the state government have separately moved the Supreme Court, contesting the orders of both high court and the Wakf Tribunal.

According to LIL, staying the orders the Supreme has ruled that in the event of the title dispute pending in the court between the state government and Wakf Board is ultimately decided in favour of the Wakf Board then the state government can compensate Wakf Board either monetarily or by providing alternative land.

“The apex court order has removed all hurdles for Lanco Hills towards the development of the entire project,” LIL chairman, L Madhusudhan Rao, stated in a press release.