VidhiSangh

Supreme Court of India · 13/05/2025

THE STATE OF TELANGANA & ORS. versus DR. PASUPULETI NIRMALA HANUMANTHA RAO CHARITABLE TRUST

[2025] 7 S.C.R. 1 · 2025 INSC 679

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Summary

The State allotted about 3 acres of government land to a charitable trust in 2001 on payment of market value, subject to conditions including use only for the allotted purpose and resumption on breach; a trustee later executed a GPA concealing the allotment and a residential colony was carved out and plots sold. Reversing the High Court, which had treated the transaction as a sale and held the conditions void under Section 10 of the Transfer of Property Act, the Court held that it was a conditional allotment under a statutory scheme (the Telangana Alienation of State Lands and Land Revenue Rules, 1975, G.O.Ms. No.635 and Board Standing Order 24), that the trust knew and admitted the conditions, that those Rules are not eclipsed by Section 10, and that cutting the colony was a fraud on the statute.

Issues

  1. Whether the alienation of government land by the District Collector's order dated 08.02.2001 on payment of market value was a sale or an allotment under a statutory scheme.
  2. Whether any condition was imposed on the alienation and whether the allottee trust was aware of it.
  3. Whether conditions on the use of land allotted by the State under the 1975 Rules and the Board Standing Orders are void under Section 10 of the Transfer of Property Act, 1882.

Provisions considered

Held

Result

Appeal allowed; judgments of the learned Single Judge dated 24.06.2014 and of the Division Bench dated 05.07.2022 set aside; pending applications disposed of.

Judgment PDF: Supreme Court of India, [2025] 7 S.C.R. 1.