APHC010313142020 IN THE HIGH COURT OF ANDHRA PRADESH^ AT AMARAVATI (Special Original Jurisdiction) MONDAY,THE SEVENTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE ^ PRESENT THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 20740 OF 2020 BEnVEEN: Devatlii Pulla Rao, S/o Devatlii Yanlatiah, Aged about 61 years. Shop No. 8400002, F:/o 81-9-846, 8>^lane, DPR Homes, Nallacheruvu, Guntur, Guntur District. 1. L. Potti Venkata Sambasiva Rao, S/o Venkata Nagaeswara Rao, Aged about 52 years. Shop No. 8400003, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur 2. Muppalla Mahidhar, S/o Narayana Rao, Aged about 56 years. Shop No. 8400004, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur 3. Kondepati Srinivas Rao, S/o Kondepati Venkatadri, Aged about 36 yeai-s. Shop No. 8400006, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur 4. 5. Katakam Mastan Rao, S/o K Singaiah, Aged about 66 years. Shop No. 8400007, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur Potti Venkata Subba Rao, S/o Potti Nageswara Rao, Aged about 49 years. Shop No. 8400009, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur 6. I I Gunturu Pulla Rao, S/o Gunturu Satyanaryana, Aged about 78years, Shop No. 8400012, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur 7. V r [ Kattumuri Ranga Rao, S/o Koteswarn Rao, Aged about 51 years. Shop No. 8400010, Red lank Shopping Complex, near NTR Statute, Near Bus Station, Guntur Tadikamalla Raghunadha Babu, S/o Punnayya, Aged about 62 years Shop No. 8400011, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur .y s i Gopisetty Siva Kumari, S/o Devarao, Aged about 55 years Shop No. 8400013(2), Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur Potti Dhana Lakshmi W/o Samba Siva Rao, Aged about 52 Shop No.8400014 Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur KoIIipara Rajeswari, C/o Sridhar, Aged about 65 yccus. Shop No. 8400015(2), Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur Puvvada Vani W/o Puvvada Prasad, Aged about 50 years. Shop No. 8400016, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur years. Polepalli Ravi Teja, S/o Bala Nageswara Rao, Aged about 34 years. Shop No. 8400020 Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur Chamarthi Radha Krishna Murthy, S/o Subba Rao, Aged about 60 years. Shop No. 8400022, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur Chamarthi Durga Devi W/o Chamarthi Radha Krishna Murthy, Aged about 53 years. Shop No. 8400023, Red Tank Shopping Complex, near NTR Statute, Near Bus Station, Guntur 'I : Scarmed with CamScanner ‘ o 17. Desu Yedukondnlu, S/o Chinn Venkatesvv Shop No. 8400025, Red Tank Shopping Complex- Near Bus Station, Guntur Obulasetty Ravi Kumar, S/o Obula setty Sriramulu, Aged about 51 Shop No. 8400030, Red Tank Sliopping Cornpl Near Bus Station, Guntur Valeti Srinivas, C/o Samba Siva Rao, Aged about 49 years. Shop No. 8400033, Red Tank Shopping CompJ Near Bus Station, Guntur Kota Chinna Chalapathi, S/o Venkata Subbaiah, Aged about 56 Shop No.8400035, Red Tank Shopping Complex, Near Bus Station, Guntur The State of Andhra Pradesh, Rep. by Principal Secretary, MA &: UD Department, Secretariat BuUdmgs, Velgapudi, Amaravathi Guntur District - 522 503. 2. The Guntur Municipal Corporation, Rep. by its Commissioner, Guntur. 'arulu. Aged about 73 years. near NTR Statute, IS. years. ex, near NTR Statute, 19. ex, near NTR Statute, 20. years. near NTR Statute, •.. Petidoners AND 1. Respondents. Petition under Articie 226 of the Constitution of India praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ order or direction, more particularly of WRIT OF MANDAMUS declaring the action of the one in the nature 2'^'^ respondent in issuing impugned Notice ROC. No.3293/2016/A2 dated 01-07-2020 is illegal, unreasonable, arbitrary, and against to the Article^4, 19 and 21 of the Constitution and also against the principles of natural justice. Consequently, may pass any other and further set aside the same and this Hon'ble Court orders in the interest of justice deem fit and proper in the circumstances of the case. 1*^ lA NO: 1 OF 2020 Petition under Section 151 CPC praying that in the circumstances stated in the affidavit filed in support of the petition, the High Court may be pleased to direct the 2"'^ Respondent to take the rents @ 33.33% on the existing rents from the date of issue of notice by the 2nd respondent to the respective shops of the Petitioners in Red Tank Shopping Complex, Near Bus Station, Guntur, pending disposal of writ petition. Counsel for the Petitioners: SRI VENKATA DURGA RAO ANANTHA^ Counsel for the Respondent No.1 :GP FOR MUNICIPAL ^ ADMINISTRATION AND URBAN DEVELOPMENT Counsel for the Respondent No.2:SRI A.S.C.BOSE, SC FOR MUNICIPAL CORPORATIONS The Court made the following order: APHC010313142020 IN THE HIGH COURT OF ANDHRA PRADESH AT AMARAVATI (Special Original Jurisdiction) [3460] T-'m 0^ MONDAY,THE SEVENTH DAY OF JULY TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITION NO: 20740 OF 2020 Between: Devathi Pulla Rao, and Others ...PETITIONER(S) AND The State Of Andhra Pradesh and Others ...RESPONDENT(S) Counsel fcr the Petitioner(S): 1. VENKATA DURGA RAO ANANTHA Counsel for the Respondent(S): 1.M MANOHAR REDDY (SC FOR MUNC AND MUNC CORP ) 2.GP FOR MUNCIPAL ADMN URBAN DEV The Court made the following: THE HONOURABLE SRI JUSTICE NYAPATHY VIJAY WRIT PETITIOM mD: 20740 OF 2020 ORDER: The present Writ Petition is filed questioning the action of the Respondent No.2 in issuing impugned Notice vide Roc.No.3293/2016/A2, dated 01.07.2020 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 succeeded by the Petitioners. It is further submitted that the rent was being paid at an enhanced amount as demanded by the Respondent Authorities. were 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 present premises i.e. Red Tank Market Complex representations of the Petitioners. While 01.07.2020 shops to the Petitioners in the pursuant to the so, the impugned notice dated was issued by the Respondent Authorities demanding to pay enhanced rents at the to the Petitioners rate by 123% instead of 33.33% p.a with effect from 01.11.2018 to 31.10.2021. rent is not contemplated under the Rules, the As retrospective enhancement of present Writ Petition came to be filed. 5. Learned Standing Counsel for the Respondent/ submit that the enhancement of rent Municipal Administration and Urban Development 05.02.2011, the rent Corporation would was in accordance with G.O.Ms.No.56 (J1) Department, dated was enhanced at the rate of 33.33% and the impugned notice issued by the Respondent/ contended that Corporation cannot be faulted. 6. Having heard the Respective counsel, this The Andhra Pradesh Municipalities (Regulation Expenditure) Rules, 1968 framed under Section Act, regulates the renewal and enhancement 05.02.2011 without conducting any public auction. The Rule 12(4) thereof court reasons as under; of Receipts and 326 of the A.P. Municipalities of rent. G.O.Ms.No.56, dated as it stands today, provides for renewal of lease for a period 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 once in three years as per the procedure specified below: (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 notice calling upon them to pay enhanced rentals retrospectively and for the foregoing cannot be sustained. reasons, the same 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 shall stand closed. pending, if any. Sd/- M.RAMESH DEPUTY REGi^RAR //TRUE COPY// SECtTON OFFICER 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.t?, Bose, SC for Municipal Corporations[OPUC]^ 5. Two CCs to GP for Municipal Administration and Urban Developrruefrt High Court of Andhra Pradesh. [OUT] 6. Two CD Copies ssb —-0 HIGH COURT DATED:07/07/2025 ORDER WP No.20740 OF 2020 7 » lUL ?»76 Current oeciion ^ Vm Co/' 1% ALLOWING THE W.P. WITHOUT COSTS