2012 (5) TMI 578 - HC - Indian Laws

Lease legality - petition to quash Jal Mahal Tourism Project and cancel Mansagar Lake Precinct Lease Agreement dated 22nd November, 2005 giving 100 acres of land on lease for a period of 99 years to respondent no.7-Jal Mahal Resorts Private Limited and Jal Mahal Leave & License Agreement dated 22nd November, 2005 - Held that - 1) That Mansagar Lake Precinct Lease Agreement dated 22nd November, 2005 giving 100 acres of land on lease for a period of 99 years to respondent no.7-Jal Mahal Resorts Private Limited is declared illegal and void; (2) That similarly, Jal Mahal Leave & License Agreement dated 22nd November, 2005, appendix 14 to Mansagar Lake Precinct Lease Agreement is also declared illegal and void. (3) That Jal Mahal Resorts Pvt. Ltd. is directed to bear costs to be incurred in restoration of the original position of 100 acres of land in removing the soil filled-in by it and to restore back the possession to the RTDC who shall in turn give it to Jaipur Development Authority, Jaipur Municipal Corporation and State. (4) That respondents are further directed to immediately remove all sedimentation and settling tanks from the Mansagar Lake basin and to realize costs from Jal Mahal Resorts Pvt.Ltd. and to examine restoring position of Nagtalai and Brahampuri Nalah (Drains) to their original position as realigned by RUIDP under Mansagar Lake Restoration Plan, in consultation with Central Government MOEF. (5) That respondents-authorities are further directed to monitor, maintain and re-fix boundaries of the Mansagar Lake in its full original length, breadth and depth in consultation with Central Government MOEF and not to reduce normal water level. (6) That all encroachments made in the catchment area of Mansagar Lake be removed immediately; (7) That wall erected by Jal Mahal Resorts Pvt.Ltd. in the lake is ordered to be dismantled and cost be realized from Jal Mahal Resorts Pvt.Ltd.

Issues Involved:
1. Validity of the Jal Mahal Tourism Project and Mansagar Lake Precinct Lease Agreement.
2. Environmental and ecological impact.
3. Compliance with statutory provisions and rules.
4. Public trust doctrine.
5. Allegations of fraud and misrepresentation.
6. Legality of the bidding process and eligibility criteria.
7. Maintainability of the writ petitions and allegations of delay and laches.

Issue-wise Detailed Analysis:

1. Validity of the Jal Mahal Tourism Project and Mansagar Lake Precinct Lease Agreement:
The court found the Mansagar Lake Precinct Lease Agreement dated 22nd November 2005, and the Jal Mahal Leave & License Agreement dated 22nd November 2005, to be illegal and void. The agreements were executed without proper authority and in violation of statutory provisions. The lease included 100 acres of land, part of which was submerged and recorded as Gairmumkin Talab, making the lease unauthorized and void.

2. Environmental and Ecological Impact:
The project adversely affected the ecology, flora, fauna, and wildlife of the area. The court emphasized that the Mansagar Lake is a significant ecological zone, and any development should not compromise its environmental integrity. The reduction of the lake's water level to carve out 100 acres for the project was deemed illegal and harmful to the ecosystem.

3. Compliance with Statutory Provisions and Rules:
The project violated several statutory provisions, including the Environment (Protection) Act, 1986, and the Wetlands (Conservation and Management) Rules, 2010. The necessary environmental clearance from the Central Government's Ministry of Environment and Forests (MOEF) was not obtained. The project also violated the Rajasthan Tourism, Disposal of Lands and Properties by DOT/RTDC Rules, 1997, and the Rajasthan Municipalities (Disposal of Urban Land) Rules, 1974, as the lease was granted without determining the cost of the land and without following the prescribed procedures.

4. Public Trust Doctrine:
The court reiterated the public trust doctrine, emphasizing that natural resources like lakes and wetlands are held by the state in trust for public use and cannot be leased or sold for private commercial use. The state authorities failed to act as trustees of the land and violated the principles enshrined in Articles 48A, 49, and 51A(g) of the Constitution.

5. Allegations of Fraud and Misrepresentation:
The court found that there was misrepresentation regarding the environmental clearance from the MOEF. The respondents falsely claimed that the project had clearance from the MOEF, which was only granted for the conservation and management of Mansagar Lake, not for the tourism project. The bidding process was also found to be manipulated, with eligibility criteria being relaxed to accommodate the successful bidder, KGK Enterprises.

6. Legality of the Bidding Process and Eligibility Criteria:
The court held that the bidding process was flawed as the eligibility criteria were relaxed to favor KGK Enterprises, which was not a private/public limited company as required. This relaxation was deemed arbitrary and impermissible. The financial bid of KGK Enterprises should have been rejected at the threshold.

7. Maintainability of the Writ Petitions and Allegations of Delay and Laches:
The court rejected the argument of delay and laches, stating that the requisite environmental clearances had not been obtained, and the project was ongoing. The court emphasized that in cases involving public trust and environmental impact, delay in filing petitions should not preclude judicial review. The petitions were found to be bonafide and in the public interest.

Orders and Directions:
1. The lease agreements dated 22nd November 2005 are declared illegal and void.
2. Jal Mahal Resorts Pvt. Ltd. is directed to restore the original position of the 100 acres of land and bear the costs.
3. Respondents are directed to remove all sedimentation and settling tanks from the Mansagar Lake basin.
4. Respondents must monitor, maintain, and re-fix the boundaries of the Mansagar Lake in consultation with the Central Government MOEF.
5. All encroachments in the catchment area of Mansagar Lake must be removed immediately.
6. The wall erected by Jal Mahal Resorts Pvt. Ltd. in the lake is ordered to be dismantled, and costs are to be realized from Jal Mahal Resorts Pvt. Ltd.

The court emphasized the importance of protecting natural resources and ensuring that any development is in compliance with environmental laws and public trust principles.

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