APHC010218492021 IN THE HIGH COURT OF ANDHRA PRADESH-^ AT AMARAVATI (Special Original Jurisdiction) 7 MONDAY,THE SEVENTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE NYAPATHY VIJ^ WRIT PETITION NO: 12641 OF 2021 Between: 1. Sagineedu Sambasiva Rao, S/o Venkateswarlu, Aged about 68 years, Shop No. 8400034, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur R/o Near Anjaneyaswami Temple, 1st Lane, Indira Gandhi Nagar, Guntur 2. D. Vasantha Kumari, W/o Edukondalu, Aged about 52 years. Shop No. 8400029, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur 3. Chaganti Krishna Rao, S/o Rama Rao, Aged about 50 years. Shop No. 8400008, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur 4. G. Venkateswarlu, S/o Brahmaiah, Aged about 48 years. Shop No. 8400005, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur 5. Ch. Venkateswarlu, S/o Sobaaramaiah, Aged about 56 years Shop No.840017, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur ...PETITIONERS AND The Stale of Andhra Pradesh, Rep. by Principal Secretary, MA & UD Department, Secretariat Buildings, Velgapudi, Amaravathi, Guntur District - 522 503. 2. The Guntur Municipal Corporation, Rep. by its Commissioner, Guntur. ...RESPONDENTS Petition under Article 226 of the Constitution Circumstances stated i pleased to issue a Writ order of India praying that in the in the affidavit filed therewith, the High Court may be or direction, more particularly one in the nature of WRIT OF MANDAMUS declaring issuing impugned Notice ROC No. 3293/2016/A2, unreasonable, arbitrary, and against Constitution and also against the the action of the 2nd respondent iin dated 01-07-2020 is illegal, to the Articles 14, 19 and 21 of the principles of natural justice. Consequently set aside the same and this Hon'ble Court may pass any other and further and proper in the circumstances of the orders in the interest of justice deem fit case lA NO: 1 OF 7n9i Petition under Section 151 CPC in the affidavit filed i praying that in the circumstances stated in support of the petition, the High Court may be pleased direct the 2"“ Respondent to take to the rents @ 33.33%on the existing rents from the date of issue of notice by the 2 - respondent to the respective shops of the Petitioners in Red Tank Shopping Complex, Near Bus Station pending disposal of writ petition. nd Guntur, Counsel for the Petitioners; SRI VENKATA DURGA RAO ANANTHA Counsel for the Respondent No.I.GP FOR MUNICIPAL ADMINISTRATION AND URBAN DEVELOPMENT SRI A.S.C.BOSE, SC FOR MUNICIPAL CORPORATIONS Counsel for the Respondent No.2: The Court made the following order APHC010218492021 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3460] MONDAY,THE SEVENTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 12641 OF 2021 Between: ...PETITIONER(S) Sagineedu Sambasiva Rao and Others AND ...RESPONDENT(S) The State Of Ap and Others Counsel for the Petitioner(S): 1 .VENKATA DURGA RAO ANANTHA Counsel for the Respondent(S); 1.GP FOR MUNCIPAL ADMN URBAN DEV The Court made the following: THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 12641 OF 2021 ORDER; The present Writ Petition is filed questioning the action of the Respondent No.2 in issuing impugned Notice in Roc.No.3293/2016/A2, dated 01.07.2020 calling upon the Petitioners to pay the enhanced rents as retrospective effect as illegal and arbitrary. 2. The facts leading to filing of the Writ Petition is that the Petitioners were allotted shops in Red Tank Market Complex, near Bus Station, Guntur as tenants and they are doing business viz., tea and coffee shops, pan shop. Tiffin Centre, Cool Drinks, Fancy Stores and Medical Stores etc. It is submitted that the predecessors of the Petitioners were allotted shops in PVK Naidu Municipal Complex and subsequent to his demise, the shops were succeeded by the Petitioners. It is further submitted that the rent was being paid at an enhanced amount as demanded by the Respondent Authorities. 3. Subsequently, as the building deteriorated over a period of time, the Petitioners filed W.P.No. 23013 of 2011 before this Court as there was threat of dispossession. The W.P.No. 23013 of 2011 was disposed of with a direction to the Respondent Authorities to put the Petitioners on notice, in the event the erstwhile shopping complex in question was sought to be demolished. Subsequent thereto, a notice was issued dated 25.06.2012 directing the Petitioners to vacate the premises was questioned in W.P.No.19546 of 2012. The same was dismissed by this Court on 28.02.2014. 4. The Respondent No.2 allotted the shops to the Petitioners in the present premises i.e. Red Tank Market Complex, pursuant to the representations of the Petitioners. While so, the impugned notice dated 01.07.2020 was issued by the Respondent Authorities to the Petitioners demanding to pay enhanced rents at the rate by 123% instead of 33.33% p.a with effect from 01.11.2018 to 31.10.2021. As retrospective enhancement of rent is not contemplated under the Rules, the present Writ Petition came to be filed. 5. Learned Standing Counsel for the Respondent/ Corporation would submit that the enhancement of rent was in accordance with G.O.Ms.No.56 Municipal Administration and Urban Development (J1) Department, dated 05.02.2011, the rent was enhanced at the rate of 33.33% and contended that the impugned notice issued by the Respondent/ Corporation cannot be faulted. 6. Having heard the Respective counsel, this court reasons as under; The Andhra Pradesh Municipalities (Regulation of Receipts and Expenditure) Rules, 1968 framed under Section 326 of the A.P. Municipalities Act, regulates the renewal and enhancement of rent. G.O.Ms.No.56, dated 05.02.2011 as it stands today, provides for renewal of lease for a period without conducting any public auction. The Rule 12(4) thereof reads as under; Rule 12(4): Renewal of lease of immovable properties : The Municipal Council may renew the lease of immovable properties for a period of three years at one time and with the prior sanction of the Government renew the lease for a period exceeding three years and not exceeding twenty-five years at a time without conducting public auction if the present lessee agrees to renew the lease in his favour at the rent as fixed hereunder and for revision of the rent three years as per the procedure specified below: once in (a) Rent at 10% of the current market value of the property per annum, i. e both building and land as per market value of the land and construction rates of the structures and buildings fixed by Registration Department under the Andhra Pradesh Revision of Market Value Guidelines Rules, 1998 (or) (b) Rent at 33 1/3 percent above the earlier rent, or; (c) Prevailing rent of such properties in the vicinity whichever is higher". 7. The language used in the above Rule is that the Municipal Council “may” renew the lease of immovable properties for a period of 3 years on certain conditions. In the event, the Municipal Council is inclined to renew the lease, the rent may be enhanced as provided under sub-rule (a), (b) and (c) thereto and on the contrary if the municipal council remains silent even after a lapse of lease period, the lease of the shops is to be deemed to be continuing at the existing rentals till a decision is taken for enhancement of rent or to issue an eviction notice in order to go for public auction. Another aspect is that the Andhra Pradesh Municipalities (Regulation of Receipts and Expenditure) Rules, 1968 do not contemplate any retrospective enhancement of rental amounts and in the absence of enabling power, the Respondent authorities are not entitled to make such a demand. 8. In this case, the petitioners were issued notices calling upon them to pay enhanced rentals retrospectively and for the foregoing reasons, the same cannot be sustained. 9. Accordingly, the Writ Petition is allowed, while setting aside the impugned notice dated 01.07.2020 issued by the Respondent/ Corporation. No order as to costs. As a sequel, miscellaneous applications pending, if any, shall stand closed. .. Sd/- M.RAMESH BABU DEPUTY,REGISTRAR //TRUE COPY// t aN OFFICER SEC To, 1. The Principal Secretary, MA and UD Department, State of Andhra Pradesh, Secretariat Buildings, Velgapudi, Amaravathi, Guntur District - 522 503 2. The Commissioner, Guntur Municipal Corporation, Guntur. 3. One CC to Sri Venkata Durga Rao Anantha, Advocate [OPUC] 4. One CC to Sri A.S.C. Bose, SC for Municipal Corporations[OPUC]^^ 5. Two CCs to GP for Municipal Administration Development,High Court of Andhra Pradesh. [OUT] 6. Two CD Copies. and Urban ssb HIGH COURT DATED;07/07/2025 2)JULM» ^ . Cufftru ORDER WP No.12641 OF 2021 o Cj (&5ti .-«r. ALLOWING THE W.P. WITHOUT COSTS