Recently ruled out by the Supreme Court that the conditions for allotment of industrial plots do not stay once they are sold to entrepreneurs who paid full consideration. The state-owned Andhra Pradesh Industrial Infrastructure Corporation allotted plots to a larger number of transporters and executed sale deeds in their favour. The units were suppose to start within 2 years. But there was a delay in starting the industries, allegedly because the state corporation did not provide infrastructures like road, electricity and water.
The corporation threatened to cancel the transfer because of the delay. Under pressure, it offered to revive the sale on payment of additional 50 per cent of the market value of the plots.
This was challenged by the buyers in the High Court. The buyers would become absolute owners of the property once they paid the consideration. The corporation appealed to the Supreme Court. It upheld the view of the High Court. The judgment stated that the sale deed did not contain the condition of completing the constructions within two years. The terms of allotment were not valid after the buyers acquired absolute marketable rights to the property.