ACB probing Rs 8,000-crore city property fraud

The HC had granted status quo on the allotment in 2007. Mr Ramakrishna Reddy, while putting the cost of the land at about Rs 8,000 crore, told the court that certain key files were missing and the government had decided to order a probe. According to the government, the 200 acres were allotted to Parasuram Ramchand Mangir Malani in 1953 under the provisions of the Displaced Persons (Compensation & Rehabilitation) Act, 1954 and Administration of Evacuee Property Act, 1950.

Malani died in 1988; 12 years later, one Ramesh Parasuram Malani claiming to be the legal heir approached the government of undivided AP seeking transfer of the title to him. Sensing foul play in the allotment, the bench observed that as per the provision of the Displaced Persons (Compensation & Rehabilitation) Act, the Centre has to designate an authority to deal with the matter of evacuee properties.

The bench pointed out that in AP, the post of settlement commissioner was abolished and a new post called chief commissioner of land administration was brought in. But the government did not seek delegation of powers to this post from the Centre. As a result, the actions of the CCLA cannot be said to be legal. While summoning the family members’ certificate of the alleged allottee, the bench said that it can even summon the claimant to the court and adjourned the case to Tuesday.