In a significant judgment, the Supreme Court has declined to interfere with the Gujarat High Court’s order directing the Agricultural Produce Market Committee (APMC), Surat, to auction the land allegedly misappropriated for the construction and running of a 5-star hotel. The apex court observed that the High Court was correct in ordering such an auction for the land allocated for constructing a district market yard.
A bench comprising Chief Justice D.Y. Chandrachud and Justice J.B. Pardiwala dismissed the challenge against the interim order of the High Court filed by the APMC and Hotel Shilpi Pvt. Ltd., the lessee of the hotel.
During the hearing, the CJI questioned, “How can the Agricultural Produce Market Committee construct a five-star hotel on the land meant for constructing market yards for agricultural products?” He remarked, “Thank God! The High Court intervened! This is a scam… The government may be a willing accomplice.”
The case originated from a Public Interest Litigation (PIL) filed before the Gujarat High Court on the alleged misappropriation of public funds by the office bearers of the APMC. The petitioners contended that the APMC had wrongly utilized Rs. 98 crores from the ‘Market Committee Fund’ to construct a Five-Star Hotel on land provided by the State Government for a principal market yard in Surat. The hotel, built in 2013-14, was leased to Hotel Shilpi Pvt Ltd, without necessary approvals from the Market Committee.
The Gujarat High Court had directed an exhaustive inquiry into the affairs of the Market Committee, cancellation of the lease deed with Hotel Shilpi Pvt Ltd, and the auctioning of the 14,000 sq. meter land along with the hotel building. The proceeds from the auction were ordered to be divided between the state and the Market Committee.
Before the Supreme Court, the APMC and Hotel Shilpi Pvt Ltd argued that the hotel’s construction was done with prior approvals from the State Government and as per the Operational Guidelines for setting up ‘Terminal Market Complexes’ issued by the Ministry of Agriculture. However, the CJI expressed dismay, stating, “The Chief Justice of Gujarat, she has rightly done this.”
While dismissing the APMC’s appeal, the Supreme Court granted liberty to the lessee, Hotel Shilpi Pvt Ltd, to approach the High Court for appropriate remedies and allowed the withdrawal of their appeal.
The judgment upholds the High Court’s intervention to rectify the alleged misappropriation of public funds and land by the APMC and underscores the judiciary’s commitment to upholding transparency and accountability in the utilization of public resources.
