HYDERABAD: A Division Bench of the High Court headed by Chief Justice G. S. Singhvi on Wednesday declared that the issue of allotment of valuable lands to private entrepreneurs has to be examined deeply and directed the State Government to maintain status quo regarding the lands taken possession from M/s IMG Bharata, the sports management company.

The Bench was adjudicating a writ petition filed by IMG Bharata challenging the ordinance annulling its memorandum of understanding with the State Government as also various transfer deeds pertaining to these lands in Kancha Gachibowli and Mamidipalli.

It may be recalled that the Telugu Desam Government entered into agreement with IMG-Bharata, which had claimed to be a sister concern of an international organisation specialising in creating and maintaining sports facilities.

The Congress Government recently promulgated an ordinance cancelling the MoU, which envisaged handing over 10 stadia in the city to IMG Bharata, and took over nearly 855 acres of land from the company's possession. The petition challenged the constitutional validity of the ordinance, especially the State Government's power in issuing such ordinances.

During the hearing, the Bench wondered how the Government, which holds the properties in public trust, could part with the valuable properties. Advocate General C. V. Mohan Reddy pointed out that the transfer was made on a simple application and that the circumstances leading to the promulgation of the ordinance would satisfy the court.

Appearing for the petitioners, Vedula Venkataramana drew the court's attention that the Government was likely to alienate or transfer land taken from his client. At that stage, the Bench passed an interim order declaring that status quo shall be maintained and no charge or third party rights will be created.

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