HC stays registration of Emaar villas

A division bench of the AP High Court comprising Chief Justice Madan B Lokur and Justice P V Sanjay Kumar on Tuesday granted stay on an order of the single judge who had stayed a GO of the state government issued to restrain the authorities from registering the plots/flats in Emaar Hills Township project.
High Court Judge L Narasimha Reddy, on March 13, had directed owners of plots and villas in the Emaar project to deposit `15,000 per square yard with the AP Industrial Infrastructure Corporation (APIIC) before their documents are presented for registration.
He granted the interim direction on petitions filed by the Welfare Association of Owners of Excelsior and the Owners’ Association of Boulder Hills Villas challenging the GO dated October 10, 2010.
Aggrieved by the order, the APIIC filed an appeal before the bench.
Advocate General A Sudarshan Reddy, while arguing the case, contended that the government has passed the GO in exercise of its powers under section 22-A (1) (e) of the Registration Act only with an intention to protect its property vested with the APIIC.
He also said that the GO was issued after large-scale irregularities were notified in the transaction with the Emaar group and CBI had filed a chargesheet against senior officials of Emaar and the government.
While agreeing with the AG’s contention, the High Court bench stayed the single judge order and adjourned the hearing to first week of August.
The APIIC, in its writ appeal, stated that the single judge ought to have noticed the fraud played by the Emaar group and that the manner in which the purchasers of plots/flats acted hand in glove with Emaar disentitles them for any equitable relief.
It said fixing the amount payable by the purchasers at `15,000 per square yard is totally incorrect and unwarranted.
It may be recalled that Judge Narasimha Reddy, in his order dated March 13, observed that unless the sale deeds are executed, the agencies are likely to take advantage of the situation, and it will not be possible to recover the amounts.