Madras High Court Imposes Rs 50,000 Cost on Real Estate Broker for Challenging Free Housing Scheme
The Madras High Court has imposed a cost of Rs 50,000 on a real estate broker for challenging a welfare scheme that provides free house site pattas to SC/ST communities in Tamil Nadu. The court dismissed the petition, emphasizing the scheme's importance in protecting the interests of these communities.
Madras High CourtFree Housing SchemeReal Estate BrokerScst CommunitiesWelfare SchemeReal Estate NewsAug 19, 2025
The petitioner, K Amalraj from Mudukulathur in Ramanathapuram district, challenged Clause 4(d) of a Government Order (G.O.) passed by the revenue and disaster management department on January 13, 2021. This clause stipulates that beneficiaries of the scheme are prevented from selling the land awarded to them until the expiry of the conditional assignment period of 10 years. Even after this period, the land can only be sold to another person belonging to the SC/ST community. Amalraj claimed that this clause was discriminatory and requested the court to declare it void.
A bench of justices SM Subramaniam and AD Maria Clete observed that the ground raised by the petitioner is untenable. The court stated, 'The very intention under the welfare scheme is to ensure that such lands acquired and allotted to the SC/ST people must be occupied by the people from the same community. That being the purpose and object for which the lands are acquired, the government is empowered to impose such conditions in order to protect the interest and well-being of the SC/ST people on allotment of free house site patta.'
Further, the court considered the contention of the government counsel that the petitioner, being a real estate broker, had filed the petition for personal gains to purchase the lands from SC/ST people and sell them to third parties. The judges dismissed the petition and imposed a cost of Rs 50,000 on the petitioner.
The decision by the Madras High Court underscores the importance of protecting the interests of marginalized communities through well-intentioned welfare schemes. It also highlights the court's commitment to ensuring that such schemes are not misused for personal gain. The imposed cost will be used to benefit the Adi Dravidar Welfare High School, further emphasizing the court's focus on community welfare and development.
Frequently Asked Questions
What is the Madras High Court's decision regarding the free housing scheme?
The Madras High Court has imposed a cost of Rs 50,000 on a real estate broker for challenging a welfare scheme that provides free house site pattas to SC/ST communities in Tamil Nadu. The court dismissed the petition, emphasizing the scheme's importance in protecting the interests of these communities.
What was the main contention of the real estate broker?
The real estate broker, K Amalraj, challenged Clause 4(d) of a Government Order, which stipulates that beneficiaries of the scheme are prevented from selling the land awarded to them until the expiry of the conditional assignment period of 10 years and can only be sold to another SC/ST person after that. He claimed this clause was discriminatory.
Why did the court impose a cost on the real estate broker?
The court imposed a cost of Rs 50,000 on the real estate broker, considering the contention of the government counsel that the petitioner filed the petition for personal gains to purchase the lands from SC/ST people and sell them to third parties.
What will the imposed cost be used for?
The imposed cost of Rs 50,000 will be paid to the district adi dravidar welfare officer of Ramanathapuram to be utilized for providing basic amenities for the Adi Dravidar Welfare High School in Sengapadai, Kamuthi taluk, Ramanathapuram district.
What is the purpose of the welfare scheme?
The purpose of the welfare scheme is to ensure that lands acquired and allotted to SC/ST people are occupied by the same community. The government is empowered to impose conditions to protect the interest and well-being of SC/ST people on allotment of free house site pattas.
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