Whether Municipal corporation can lease out out open space in layout without inviting tenders by issuing advertisement?

 This Court has, in the matter of "R.S. Pool Table & others Vs. The Aurangabad Municipal Corporation & ors."

(Writ Petition No.4335 of 2012), decided on 8th July 2014, held that, even where Corporation has to lease its land, it would be necessary to follow transparent procedure inviting tenders by issuing advertisement. In this matter, the Corporation cannot justify its action of simply receiving an application from a Club hardly two years old, managed by one of its Corporator and leasing out property, in violation of the Circular dated 10.6.1996, which had been recently issued at that time. In fact the Circular issued by State was specifically to curb leasing outs to such public institutions. Neither the Circular was resorted to nor any transparent procedure was followed for leasing out the land. In fact, as per direction Clause 'B' of the Circular, the only course open for the Corporation was to either lease out the open space to the Society/ Federation or develop the same itself.

Bombay High Court

Punjabrao Srihari Wadje And Anr vs Municipal Corpn. Aurangabad Thr. ... on 29 February, 2016

Bench: R.M. Borde, A.I.S. CHEEMA, JJ.

Writ Petition No.4208/1998

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