Telangana High Court Sets Aside Free Allotment of Government Land to International Arbitration & Mediation Centre Hyderabad

The Telangana High Court recently nullified the state government's decision to allot 3.70 acres of prime land in Hyderabad, free of cost, to the International Arbitration and Mediation Centre (IAMC). The Division Bench, comprising Justices K. Lakshman and K. Sujana, declared the allotment arbitrary and unlawful, emphasizing that "allotment and distribution of state largesse cannot be done free of cost." The court noted that IAMC, a private body established as a public charitable trust, was not registered under the Companies Act at the time of allotment, violating the Andhra Pradesh (Telangana Area) Alienation of State Lands and Land Revenue Rules, 1975, which mandate collecting market value for private institutions. Despite acknowledging the government's intent to promote institutional arbitration, the court stressed that bona fide objectives do not justify illegal means or unduly hasty decisions. While quashing the land allotment, the court upheld existing financial grants and dispute referral directives to IAMC, subject to performance monitoring, allowing for continued support within legal frameworks.