The Andhra Pradesh government modified the Capital Region Development Authority (CRDA) Act with the intention of establishing an R5 zone. The court emphasized the need to safeguard public funds until legal matters are resolved. The halted construction has affected Chief Minister Y S Jagan Mohan Reddy's ambitious housing plans, putting a pause on the development of over 50,000 houses under the Pradhan Mantri Awas Yojana (PMAY) scheme. The court's interim stay aims to maintain the status quo and ensure a comprehensive resolution to the contentious matter.
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In a significant setback for the YSRCP government, the Andhra Pradesh High Court issued a stay order last week, effectively halting the construction of houses for the poor in the R5 Zone of the Amaravati capital region. The court's decision comes as a result of petitions filed by the Neerukonda and Kuragallu Farmers Welfare Association, raising concerns about the legality and implications of the ongoing construction.
A three-judge bench, comprised of Justice D V S S Somayajulu, Justice Cheekati Manavendranath Roy, and Justice Ravi Nath Tilhar, emphasized that continuing construction in the R5 Zone under the current circumstances would not be justifiable. The court expressed its view that the larger public interest seems to oppose the ongoing housing construction at this time.
The controversy stems from the Andhra Pradesh government's amendments to the Capital Region Development Authority (CRDA) Act, which established the R5 Zone to allocate housing plots for impoverished individuals and facilitate construction of housing units. However, the court's stay order now puts these plans on hold pending further legal proceedings.
The court acknowledged that subsequent actions would depend on the decisions of the courts, including the Supreme Court, regarding pending petitions challenging the construction activities in the R5 Zone. This move has effectively halted the ambitious plans set in motion by Chief Minister Y S Jagan Mohan Reddy, who, on July 24, inaugurated the construction of over 50,000 houses in Guntur district.
The high court underscored the financial implications of proceeding with construction without resolving the pending legal matters. The interim stay order cautioned against expending significant public funds on construction projects that could later prove unrecoverable, emphasizing the importance of prudent use of public money.
The court also highlighted that the housing documents issued by the state government contained clauses indicating that further actions would be in accordance with the final decisions of the High Court and Supreme Court. Despite these clauses, the government continued to allocate housing plots and initiate construction activities.
Recognizing the complexity of the issues at hand, the bench stressed the need for a comprehensive legal evaluation through a proper hearing. It argued that allowing construction to continue without a resolution would lead to irreparable losses and disrupt the balance of convenience.
In light of the unresolved legal complexities and to safeguard the interests of all parties, the bench concluded that maintaining the status quo with regards to housing construction in the R5 Zone is essential until the litigation reaches a definitive conclusion. This decision has temporarily halted the YSRCP government's housing projects and underscores the need for a thorough legal assessment before proceeding further.
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