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PIL – Mis-utilization of funds of Rs.98 crores by Agriculture Produce Marketing for construction of 5 star hotel on its land earmarked for market yard

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The State had allotted the land for market yard of the APMC, Surat.  However, the Committee had utilized the Market Committee Fund of Rs.98 crores for construction of a five star hotel on the said land and the said land was given on lease to a private person in 2013-2014.

This mis-use and mis-utilization was challenged in the PIL writ petition before the Gujarat High Court.

Gujarat High Court directed public auction of 14000 sq.meters with super structure thereon.

HELD that the Committee had not taken approval of the Director for utilization of huge fund, no action was taken either by the Committee or the Director on the misuse of said fund found in the Auditor report and construction of a five star hotel does not fall in any of the functions of the duties and functions of the Committee.

Glaring example of misappropriation of market committee fund of Rs.98 crores for construction of five star hotel and that too, leasing it out to a private person cannot, by any stretch of imagination, be said to be related to or ancillary to or connected to the main object and purpose of establishment of the Market Committee and cannot be said to be the public purpose.

Order dated 19.4.2024 of the Supreme Court in SPL (Civil) Nos.8250-8251 of 2024 confirming the Order dated 27.3.2024 of the Gujarat High Court in Writ Petition (PIL) No.281 of 2014 of Babubhai Chhotubhai Desai and another Vs. State of Gujarat and others with connected matters.

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